Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service. The following transactions were completed during the first month of operations, May, 20--. 1. Doug invested $35,000 cash in the business.
2. Purchased extermination equipment for $17,000 in cash.
3. Paid $700 rent for garage and office quarters.
4. Purchased chemicals (expense) for $1,100 from Low Glow Chem Co. on account.
5. Received $1,600 revenue for extermination service.
6. Paid telephone bill, $120
7. Paid assistant's salary, $700.
8. Earned $980 revenue for extermination service, on account.
9. Paid electric bill, $230.
10. Paid for truck repairs (expense), $145.
11. Paid $600 to Low Glow Chem Co., on account.
12. Paid $131 for gas and oil for truck (expense).
13. Received $1,400 revenue for extermination service.
14. Received $500 for services previously earned on account in transaction (8).
15. Paid assistant's salary, $900.
Required:
Write the transactions in the T accounts, then write the total of each column. If an account has entries on both sides, determine the balance and enter it on the side with the larger total.

Doug's Extermination Service

T-accounts:

Cash

Account Titles                      Debit      Credit

Common stock                 $35,000

Extermination equipment               $17,000

Rent                                                        700

Extermination Revenue       1,600

Utilities Expense                                    120  

Salary Expense                                     700

Utilities Expense                                  230

Truck Expenses                                    145

Accounts Payable (Low Glow)            600

Truck Expense                                      131

Extermination service        1,400

Accounts Receivable           500

Salary Expense                                   900

Balance                          $17,974

Common Stock

Account Titles           Debit      Credit

Cash                                         $35,000

Extermination equipment

Account Titles           Debit      Credit

Cash                      $17,000

Rent Expense

Account Titles           Debit      Credit

Cash                         $700

Supplies Expense

Account Titles           Debit      Credit

Accounts payable   $1,100

Accounts Payable (Low Glow Chem Co.)

Account Titles           Debit      Credit

Supplies Expense                    $1,100

Cash                         $600

Balance                                      $500

Extermination Service Revenue

Account Titles           Debit      Credit

Cash                        $1,600

Accounts Receivable  980

Cash                          1,400

Balance                   $3,980

Utilities Expense

Account Titles           Debit      Credit

Cash                          $120

Cash                           230

Balance                    $350

Salary Expense

Account Titles           Debit      Credit

Cash                         $700

Cash                           900

Balance                  $1,600

Accounts Receivable

Account Titles                              Debit      Credit

Extermination Service Revenue $980

Cash                                                            $500

Balance                                        $480

Truck Expenses

Account Titles           Debit      Credit

Cash                          $145

Cash                             131

Balance                    $276

Explanation:

a) Data and Analysis:

1. Cash $35,000 Common Stock $35,000

2. Extermination equipment $17,000 Cash $17,000

3. Rent $700 Cash $700

4. Supplies Expense $1,100 Accounts Payable (Low Glow Chem Co.) $1,100

5. Cash $1,600 Extermination Service Revenue $1,600

6. Utilities Expense $120 Cash $120

7. Salary Expense $700 Cash $700

8. Accounts Receivable $980 Extermination Service Revenue $980

9. Utilities Expense $230 Cash $230

10. Truck Expenses $145 Cash $145

11. Accounts Payable (Low Glow Chem Co.) $600 Cash $600

12. Truck Expense $131 Cash $131

13. Cash $1,400 Extermination Service Revenue $1,400

14. Cash $500 Accounts Receivable $500

15. Salary Expense $900 Cash $900