The Accounts with Their Respective Balances for Dom's Delivery Service

question 21

Essay

The accounts with their respective balances for Dom's Delivery Service as of June 1 are given below. All accounts have normal balances. $$\begin{array} { l r l r } \text { Cash } & \$ 23,350 & & \\\text { Accounts Receivable } & 14,600 & \text { Dominic Goggin, Capital } & 64,300 \\\text { Supplies } & 450 & \text { Dominic Goggin, Drawing } & - 0 - \\& & \text { Delivery Fees Income } & - 0 - \\\text { Office Equipment } & 12,800 & \text { Rent Expense } & - 0 - \\\text { Delivery Equipment } & 20,000 & \text { Salaries Expense } & - 0 - \\\text { Accounts Payable } & 6,900 & \text { Utilities Expense } & - 0 - \\& & \text { Advertising Expense } & - 0 -\end{array}$$ Dom's had the following transactions during the month of June.
a. Paid rent for June, $1,000
b. Dominic Goggin withdrew $4,500 from the business for personal use
c. Performed services for $4,000 in cash
d. Performed services for $22,750 on credit
e. Received $12,000 from credit customers on account
f. Paid the administrative assistant salary of $2,000 and delivery service messenger/driver salary of $3,000 for the month by check
g. Paid the electric and phone bills by check for a total of $600
h. Paid creditors $6,000 on account
i. Purchased $7,500 in supplies on account.
j. Paid $1,800 cash for advertising in the local newspaper in June
-Using the information shown, create Chart of Accounts numbers for the accounts given for Dom's Delivery Service.

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Definitions:

Discounting

The process of determining the present value of future cash flows by applying a discount rate to reflect time value of money and risk.

Equilibrium Interest Rate

The interest rate at which the quantity of loanable funds demanded equals the quantity of loanable funds supplied.

Domestic Output

The total value of all goods and services produced within a country's boundaries over a specific time period.

Capital Goods

Physical assets that are used in the production process to manufacture goods and services, including buildings, machinery, and equipment.