Reference no: EM132771588

Problem 1: Make a T- account, trial balance, and balance sheet for the following transaction.

• B. Birch, the owner, invested $40,000 in the business
• Borrowed $45 000 from the bank, which was deposited in the business' bank account.
• Paid $7 500 to Turtle Dove Properties Ltd. for the monthly rent.
• Purchased office and various sports supplies for $6 000 cash.
• Purchased $13 000 worth of sports equipment from Cannon Sports on the account. The amount is due in 30 days.
• Bought pitching machines from Ewert Equipment for $12 000 on the account and have 30 days to pay.
• Bought $8 800 of miscellaneous sports supplies on account from Sandhu Sporting Goods.
• Sold a one month team membership to the Infield Flyers for $1,300 on the account. The amount is to be received in 15 days.
• Sold a two-month team membership to the Remdal Red Sox for $2 600 on the account. The bill is due in 30 days.
• Cash sales for the month amounted to $7 200
• Bank charges for services fees and interest amounted to $550, which was taken directly out of the business' bank account.