On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow
Assets
Liabilities +
Owner's Equity
Cash +Accounts Receivable + Supplies +Prepaid Insurance +Truck Catering Equipment Accounts Payable +Capital Drawing + Revenue
a Gervais deposited $25,000 in a bank account in the name of the business.
b. Bought a truck from Kelly Motors for $26,329, paying $8,000 in cash and placing the balance on account, Ck. No. 500.
c. Bought catering equipment on account from Luigi's Equipment, $3,795
d. Paid the rent for the month, $1,255, Ck No. 501.
e. Bought insurance for the truck for one year, $400, Ck. No. 502.
f Sold catering senices for cash for the first half of the month $3.012