Hunter Thompson, an owner, made an additional investment of $21,000 in cash. A firm purchased equipment for $10,000 in cash. A firm sold some surplus office furniture for $1,700 in cash. A firm purchased a computer for $3,700, to be paid in 60 days. A firm purchased office equipment for $11,200 on credit. The amount is due in 60 days. Nancy Fowler, owner of Fowler Travel Agency, withdrew $6,000 of her original cash investment. A firm bought a delivery truck for $37,000 on credit; payment is due in 90 days. A firm issued a check for $3,500 to a supplier in partial payment of an open account balance.

Explanation:

The Ledger account is shown below:-

1. An additional investment = $21,000 in cash.

Cash (Dr balance)                 Hunter Thompson, Capital (Cr balance)

$21,000                                                    $21,000

2. Equipment purchased = $10,000 in cash.

Equipment (Dr balance)    Cash (Cr balance)

$10,000                                                                              $10,000

3. Office furniture sold = $1,700 in cash.

Office furniture (Cr balance)  Cash  (Dr balance)

                           $1,700                   $1,700

4. Computer purchased for $3,700 to be paid in 60 days

Office Equipment (Dr balance)  Accounts Payable  (Cr balance)

$3,700                                                       $3,700

5. Purchased office equipment $11,200 in due amount 60 days.

Office Equipment (Dr balance)   Accounts Payable   (Cr balance)

$11,200                                                        $11,200

6. Nancy withdraw cash $6,000 from her original cash investment.

Cash (Cr. balance)                        Nancy Fowler, Withdraws  (Dr. balance)

                $6,000                         $6,000

7. Truck bought $37,000 with the due payment 90 days

Delivery truck (Dr balance)            Accounts Payable   (Cr balance)

$37,000                                                        $37,000

8. firm issued check to a supplier $3,500 partial payment of an open account balance

Accounts Payable                          Cash  (Cr balance)

$3,500                                                         $3,500

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explanation: