Question is related to accounting class plzzz help!?

the equation used is assets=liabilities+owner's equity

a.)gervais deposited $25,000 in a bank account in the name of the business

b.)bought a truck from kelly motors for $26,329, paying $8,000 in cash and placing the balance of account

c.)bought catering equipment on account from Luigi's equipment, $3,795

the letters go all the way through "m" and i understand the rest. i just need help in placing these in the right column plzzz helpp!

Update:

ok i have that straight.thanksss but i still cant figure to balance it out...plz help with the rest of these

d.)paid the rent for the month, $1,255

e.)bought insurance for the truck for one year, $400

f.)sold catering sevices for cash for the first half of the month, $3,012

g.)bought supplies for cash, $185

h.)sold catering services on account, $4,307

i.)received and paid the heating bill, $248

j.)received a bill from GC gas and lube for gas and oil for the truck, $128

k.)sold catering services for cash for the remainder of the month, $2,649

l.)gervais withdrew cash for personal use, $1,550

m.)paid the salary of assistant, $1,150

1 Answer

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  • JKRB
    Lv 7
    1 decade ago
    Favorite Answer

    a.)gervais deposited $25,000 in a bank account in the name of the business

    Dr Cash 25,000

    Cr Gervais, Capital 25,000

    Assets increase 25,000, Owner's Equity increase 25,000

    b.)bought a truck from kelly motors for $26,329, paying $8,000 in cash and placing the balance of account

    Dr Truck 26,329

    Cr Cash 8,000

    Cr Accounts Payable 18,329

    Assets increase 26,329, Assets decrease 8,000, Liabilities increase 18,329

    c.)bought catering equipment on account from Luigi's equipment, $3,795

    Dr Equipment 3,795

    Cr Accounts Payable 3,795

    Assets increase 3,795, Liabilities increase 3,795

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