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Applying the rules of debit and credit, recording transactions in the journal Ryan Kessler operates a heavy equipment transport company, Kessler Transport. The company had the following transactions for the month of August 2010: Aug. 1 Kessler Transport received $20,000 cash and a truck and trailer from Kessler. The truck had originally cost Kessler $300,000, but had a fair market value of $230,000 on August 1. The trailer had a fair market value of $30,000. 3 Purchased a new trailer by paying $10,000 cash and promising to pay another $20,000 in one week. The trailer had a list price of $40,000 and Kessler knew it was worth at least $35,000. 4 Paid parking space rental fees of $400 for the month of August. These fees covered three spaces—two for the trailers and one for the truck. 5 Hired an assistant at a rate of $750 per week. 9 Transported equipment for clients for $3,200. They paid $1,600 and promised to pay the balance in 30 days. 10 Paid $6,000 of the amount owing on the trailer purchase on August 3. Signed a promissory note for the balance, as the company was unable to pay the full amount that day. 15 Paid Kessler’s personal telephone bill for $110. Treat this as a withdrawal. 20 Received $1,600 from the clients of August 9 as payment on the haulage. 26 Paid the assistant for three weeks’ work. 29 Billed a client $6,000 for hauling equipment from Prince Albert to Saskatoon. The client, who was the owner of a service station, paid the bill by providing the company with $6,000 of repair parts that can be used on the truck. 30 Used $60 of repair parts on the truck (a truck operating expense). Required Record each transaction in the journal. Identify each transaction by its date. Explanations are not required.
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