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Chapter 2: 4SE (page 91)
Calculating the balance of a T-account
Accounts Payable
May 2 6,000 21,000 May 1
May 22 11,500 500 May 5
8,500 May 15
500 May 23
Calculate the Accounts Payable balance.
Accounts payable is money owed to the supplier and the balance of accounts payable is $13,000
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Consider the following accounts and identify each as an asset (A), liability (L), or equity (E). 1. Rent Expense 6. Accounts Payable 2. Common Stock 7. Unearned Revenue 3. Furniture 8. Notes Receivable 4. Service Revenue 9. Dividends 5. Prepaid Insurance 10. Insurance Expense
EMB Consulting Services had the following transactions for the month of November. Journalize the transactions and include an explanation with each entry.
Nov. 1 The business received \(10,000 cash and issued common stock.
15 Purchased office supplies on account, \)400.
18 Paid advertising bill, \(150.
20 Received \)1,000 from customers for services rendered.
28 Cash dividends of $500 were paid to stockholders
Journalizing transactions
Harper Sales Consultants completed the following transactions during the latter part of January:
Jan. 22 Performed services for customers on account, \(7,500.
30 Received cash on account from customers, \)8,000.
31 Received a utility bill, \(220, which will be paid during February.
31 Paid monthly salary to salesman, \)2,500.
31 Received \(2,310 for three months of consulting service to be performed starting in February.
31 Cash dividends of \)950 were paid to stockholders.
Journalize the transactions of Harper Sales Consultants. Include an explanation with each journal entry.
Question:Preparing a trial balance from T-accounts
The T-accounts of McMahon Farm Equipment Repair follow as of May 31, 2018.
ASSETS Salaries Payable LIABILITIES EQUITY Retained Earnings 4,000 29,000 Notes Payable 3,500 400 Accounts Receivable 14,000 Land 29,000 Building 16,000 Equipment Common Stock Contributed Capital Dividends Property Tax Expense 1,000 Advertising Expense 280
Cash 31,000 1,800 400 14,000 4,200 800 4,000 2,000 3,380
Service Revenue 3,500 1,800 4,200 31,000 2
Journalizing transactions, posting journal entries to T-accounts, and preparing a trial balance
Ann Simpson started her practice as a design consultant on September 1, 2018. During the first month of operations, the business completed the following transactions:
Sep. 1 Received \(48,000 cash and issued common stock to Simpson.
4 Purchased office supplies, \)1,200, and furniture, \(1,300, on account.
6 Performed services for a law firm and received \)1,900 cash.
7 Paid \(18,000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to pay the \)1,200 within one week.
14 Paid for the furniture purchased on September 4 on account.
15 Paid assistant鈥檚 semimonthly salary, \(1,500.
17 Received cash on account, \)1,000.
20 Prepared a design for a school on account, \(650.
25 Received \)2,100 cash for design services to be performed in October.
28 Received \(2,900 cash for consulting with Plummer & Gordon.
29 Paid \)600 cash for a 12-month insurance policy starting on October 1.
30 Paid assistant鈥檚 semimonthly salary, \(1,500.
30 Paid monthly rent expense, \)600.
30 Received a bill for utilities, \(350. The bill will be paid next month.
30 Paid cash dividends of \)3,700.
Requirements 2. Open a T-account for each of the accounts.
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