1. Refer to the transactions recorded directly in T accounts for We-Go Delivery Service in Exercise 3-10. Assume that all of the transactions took place during December. Prepare a trial balance at December 31.
Exercise 3-10:
Record each of the following transactions directly in T accounts using the numbers preceding the transactions to identify them in the accounts. Each account needs a separate T account.
1. Received contribution of $6,500 from each of the three principal owners of We-Go Delivery Service in exchange for shares of stock.
2. Purchased office supplies for cash of $130.
3. Purchased a van for $15,000 on an open account. The company has 25 days to pay for the van.
4. Provided delivery services to residential customers for cash of $125.
5. Billed a local business $200 for delivery services. The customer is to pay the bill within 15 days.
6. Paid the amount due on the van.
7. Received the amount due from the local business billed in (5).
2. During the month, services performed for customers on account amounted to $7,500 and collections from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts Receivable account had a balance of $2,500. What was the Accounts Receivable balance at the beginning of the month?