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Cash Accounts Recelvable c. 1,800 2,250 Equlpment 7,500 h. 4,500 b. b. 20,000 750 a. 7,500 4,000 g. 750 450 d. g. h. e. 450 f. Accounts Payable J. Roth, Capltal Service Revenue f. 2,250 | d. 4,500 20,000 c. 4,000 a. Wages Expense 1,800

Cash Accounts Recelvable c. 1,800 2,250 Equlpment 7,500 h. 4,500 b. b. 20,000 750 a. 7,500 4,000 g. 750 450 d. g. h. e. 450 f. Accounts Payable J. Roth, Capltal Service Revenue f. 2,250 | d. 4,500 20,000 c. 4,000 a. Wages Expense 1,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Explain each transaction in the attached image, a-h, entered in the following T accounts

This image displays a series of T-accounts commonly used in accounting to track debits and credits for various accounts. ### T-Accounts: 1. **Cash:** - **Debit:** - a. 20,000 - g. 750 - h. 450 - **Credit:** - b. 7,500 - e. 1,800 - f. 2,250 2. **Accounts Receivable:** - **Debit:** - c. 4,000 - **Credit:** - g. 750 3. **Equipment:** - **Debit:** - b. 7,500 - **Credit:** - d. 4,500 - h. 450 4. **Accounts Payable:** - **Debit:** - f. 2,250 - **Credit:** - d. 4,500 5. **J. Roth, Capital:** - **Credit:** - a. 20,000 6. **Service Revenue:** - **Credit:** - c. 4,000 7. **Wages Expense:** - **Debit:** - e. 1,800 ### Explanation: - **Cash Account**: Tracks all inflow (debits) and outflow (credits) of cash. - **Accounts Receivable**: Represents money owed to the company by customers. - **Equipment**: Represents the cost of equipment purchased by the company. - **Accounts Payable**: Represents money the company owes to its suppliers. - **J. Roth, Capital**: Represents the owner's investment in the business. - **Service Revenue**: Represents income earned from providing services. - **Wages Expense**: Tracks the expense incurred from wages paid to employees. Each T-account helps in understanding how individual transactions affect the overall financial position of the business.
Transcribed Image Text:This image displays a series of T-accounts commonly used in accounting to track debits and credits for various accounts. ### T-Accounts: 1. **Cash:** - **Debit:** - a. 20,000 - g. 750 - h. 450 - **Credit:** - b. 7,500 - e. 1,800 - f. 2,250 2. **Accounts Receivable:** - **Debit:** - c. 4,000 - **Credit:** - g. 750 3. **Equipment:** - **Debit:** - b. 7,500 - **Credit:** - d. 4,500 - h. 450 4. **Accounts Payable:** - **Debit:** - f. 2,250 - **Credit:** - d. 4,500 5. **J. Roth, Capital:** - **Credit:** - a. 20,000 6. **Service Revenue:** - **Credit:** - c. 4,000 7. **Wages Expense:** - **Debit:** - e. 1,800 ### Explanation: - **Cash Account**: Tracks all inflow (debits) and outflow (credits) of cash. - **Accounts Receivable**: Represents money owed to the company by customers. - **Equipment**: Represents the cost of equipment purchased by the company. - **Accounts Payable**: Represents money the company owes to its suppliers. - **J. Roth, Capital**: Represents the owner's investment in the business. - **Service Revenue**: Represents income earned from providing services. - **Wages Expense**: Tracks the expense incurred from wages paid to employees. Each T-account helps in understanding how individual transactions affect the overall financial position of the business.
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