ACC 290 Chapter 1 Test Q-5

Thom Sell is preparing his balance sheet and income statement for the month ended October 31, 2018. Use the following

information to help him prepare his financial statements.

Opening Balances - October 1, 2018

Cash $9,300

Contents of Home $1,600

Automobile $17,700

House $187,800

Unpaid Accounts $11,600

Mortgage $145,800

Net Worth $59,000

Transactions for the month of October.

1. Purchased new furniture worth $2,600 for home using the credit card

2. Paid credit card bill with $4,600 cash.

3. Paid travel bills of $1,000 for the month of April using a credit card.

4. Purchased gas for $3,700 using cash.

5. Made a principal payment of $900 on the mortgage.

6. Paid October's rent of $1,400 with cash.

7. Deposited $6,700 salaries earned during the month.