The chart of accounts of Mel's Delivery Service includes the following: Cash, 111; Accounts Receivable, 112; Office Equipment, 121; Delivery Trucks, 122; Accounts Payable, 211; Mel Free, Capital, 311; Mel Free, Withdrawals, 312; Delivery Fees Earned, 411; Advertising Expense, 511; Gas Expense, 512; Salaries Expense, 513; and Telephone Expense, 514. The following transactions resulted for Mel's Delivery Service during the month of July 2023:
A. Mel invested $10,000 in the business from his personal savings account.
B. Bought a delivery truck on account, $17,000.
C. Advertising bill received but unpaid, $700.
D. Bought office equipment for cash, $1,200.
E. Received cash for delivery services rendered, $15,000.
F. Paid salaries expense, $3,000.
G. Paid gas expense for company trucks, $1,250.
H. Billed customers for delivery services rendered, $4,000.
I. Paid the telephone bill, $300.
J. Received $3,000 as partial payment of Transaction H.
K. Mel paid the home telephone bill from the company chequebook, $150.
Assignment: As Mel's newly employed accountant, you must do the following:
1. Record transactions in the T accounts. (Place the letter of the transaction next to the entry.)
2. Prepare from the trial balance, in proper form, (a) an income statement for the month of July, (b) a statement of owner's equity, and (c) a balance sheet as of July 31, 2023.