Ken cascioli and bill ryder, master painters and paperhangers, formed a partnership. they had the following transactions during their first month of business. record the debits and credits, without making explanations. 1. ken and bill each invested $3,000 in the business. (note: use separate capital accounts for each.)
2. ken and bill acquired the following items of equipment for use in the business:
a. ladders and other equipment, for which they paid $1,800 in cash. they estimated that the equipment would have an average useful life of 6 years.
b. a pickup truck, which they bought for $10,000. they paid $2,000 in cash as a down payment and signed a note for the remainder, agreeing to pay $1,000 a month for the next 8 months, together with interest at the rate of 5 percent per annum on the unpaid balance of the loan. they estimated the truck would have a useful life of 4 years.
3. they took out a 3-year insurance policy related to their business activities, paying $1,200 cash.
4. they paid $380 for paint and other supplies, all of which was consumed on the various painting jobs they did during the month.
5. they paid $80 for gasoline for the pickup truck.
6. ken and bill expect payment from their customers every friday for work done during the week. during the month they collected $9,380 in cash for their work.