Reference no: EM132574611
Selected transactions for Peters Equipment Services are listed below:
1. Purchased a new lawn mower for $2,000, making a 10% down payment in cash, the remainder is on account.
2.Purchased $350 supplies for cash.
3. Billed customers $1,500 for lawn services completed.
4. Purchased used truck for $6,500, fully financed by a bank loan.
5. Collected $800 from customers for services previously billed.
6. Paid balance owing on lawn mower.
7. Incurred telephone expenses of $85 on account.
8. Completed services for customers who pay $440 cash.
9 .Peter Willes, the owner, invests $7,000 of additional funds in the business.
10. Part of the funds invested is used to repay the full balance of the bank loan plus $65 in interest expense.
11.$1,250 in wages is paid to employees.12.Peter withdrew $1,000 cash for personal use.
Instructions
Question 1: For each transaction, state whether the transaction increases or decreases assets, liabilities, and/or owner's equity, and by what amount(s).