Question

ezto.mheducation.com/hm.tpx The items making up the statement of financial position of Rankin Truck Rental at December 31 are listed below in tabular form similar to the illustration of the accounting equation in Exhibit 2-11 Assets Liabilities + Equity Accounts Office Notes Accounts Share Cash + Receivable + Trucks + Equipment = Payable + Payable + Capital Balances $9,500 $13,900 $68,000 $3,800 $20,000 $10.200 $65,000 During a short period after December 31, Rankin Truck Rental had the following transactions: 1. Bought office equipment at a cost of $2,700. Paid cash. 2. Collected $5.400 of accounts receivable. 3. Pald $3,300 of accounts payable. 4. Borrowed $20,000 from a bank. Signed a note payable for that amount. 5. Purchased two trucks for $30,000. Paid $14,000 cash and signed a note payable for the balance. 6. Sold additional shares to investors for $84,000. b. Record the effects of each of the six transactions in the preceding tabular arrangement. Show the totals for all columns after each transaction. (Only enter the dollar amount of the transactions. Indicate the negative effect by entering "-" before the amount. Omit the "S" sign in your response.) Assets Llabilities Equity Cash 9,500 $ Accounts Receivable + 13,900 $ Trucks + 68,000 $ Office Equipment Notes Payable + 3,800 $ 20,000 $ Accounts Payable 10,200 $ Share Capital 65,000 December 31 balances $ (1) $ $ $ $ $ Balances (2) $ $ Balances (3) $ Balances (4) $ Balances (5) $ $ Balances (6

Answer 1

	Assets                                                              =	Liabilities                               +	Equity
	Cash	Accounts Receivables	Trucks	office Equipment	Notes Payable	Accounts Payable	Share Capital
December 31 Balance	9,500	13,900	68,000	3,800	20,000	10,200	65,000
1	(2,700)			2,700
Balance	6,800	13,900	68,000	6,500	20,000	10,200	65,000
2	5,400	(5,400)
Balance	12,200	8,500	68,000	6,500	20,000	10,200	65,000
3	(3,300)					(3,300)
Balance	8,900	8,500	68,000	6,500	20,000	6,900	65,000
4	20,000				20,000
Balance	28,900	8,500	68,000	6,500	40,000	6,900	65,000
5	(14,000)		30,000		16,000
Balance	14,900	8,500	98,000	6,500	56,000	6,900	65,000
6	84,000						84,000
Balance	98,900	8,500	98,000	6,500	56,000	6,900	149,000