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Darlene Cook Company engaged in the following transactions during the month of July: July 1 Acquired land for $10,000. The company paid cash.
8 Billed customers for $3,000. This represents an increase in revenue. The customer has been billed and will pay at a later date. An asset, accounts receivable, has been created.
12 Incurred a repair expense for repairs of $600. Darlene Cook Company agreed to pay in 60 days. This transaction involves an increase in accounts payable and repair expense.
15 Received a check for $500 from a customer who was previously billed. This is a reduction in accounts receivable.
20 Paid $300 for supplies. This was previously established as a liability, account payable.
24 Paid wages in the amount of $400. This was for work performed during July.
Required: Record the transactions, using T-accounts.
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