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Jim Arnold began a business called Arnold's Shoe Repair.
1. Create T accounts for Cash; Supplies; Jim Arnold, Capital; and Utilities Expense. Identify the following transactions by letter and place them on the proper side of the T accounts:
(a) Invested cash in the business, $5,000.(b) Purchased supplies for cash, $800.(c) Paid utility bill, $1,500.2. Foot the T account for cash and enter the ending balance.
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Sales were $8,300,000, sales discounts were $100,000, sales returns and allowances were $45,000, and the cost of merchandise sold was $5,000,000.
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