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Post each transaction to T-accounts and calculate the ending balance for each account. For each posting, indicate the corresponding transaction the appropriate transaction amount. Since this is the first month of operations, all T-accounts have a beginning balance of zero. Cash Debit Beginning Balance Ending Balance Credit Supplies Debit Beginning Balance Ending Balance Credit Land Equipment Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Common Stock Accounts Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable Service Revenue Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Salaries Expense Debit Credit Beginning Balance Ending Balance Ending Balance

Post each transaction to T-accounts and calculate the ending balance for each account. For each posting, indicate the corresponding transaction the appropriate transaction amount. Since this is the first month of operations, all T-accounts have a beginning balance of zero. Cash Debit Beginning Balance Ending Balance Credit Supplies Debit Beginning Balance Ending Balance Credit Land Equipment Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Common Stock Accounts Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable Service Revenue Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Salaries Expense Debit Credit Beginning Balance Ending Balance Ending Balance

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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A company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.
 

1. January 1 Issue 10,000 shares of common stock in exchange for $28,000 in cash.
2. January 5 Purchase land for $17,000. A note payable is signed for the full amount.
3. January 9 Purchase storage container equipment for $7,600 cash.
4. January 12 Hire three employees for $1,600 per month.
5. January 18 Receive cash of $11,600 in rental fees for the current month.
6. January 23 Purchase office supplies for $1,600 on account.
7. January 31 Pay employees $4,800 for the first month's salaries.
Post each transaction to T-accounts and calculate the ending balance for each account. For each posting, indicate the corresponding transaction the appropriate transaction amount. Since this is the first month of operations, all T-accounts have a beginning balance of zero. Cash Debit Beginning Balance Ending Balance Credit Supplies Debit Beginning Balance Ending Balance Credit Land Equipment Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Common Stock Accounts Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable Service Revenue Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Salaries Expense Debit Credit Beginning Balance Ending Balance Ending Balance
Transcribed Image Text:Post each transaction to T-accounts and calculate the ending balance for each account. For each posting, indicate the corresponding transaction the appropriate transaction amount. Since this is the first month of operations, all T-accounts have a beginning balance of zero. Cash Debit Beginning Balance Ending Balance Credit Supplies Debit Beginning Balance Ending Balance Credit Land Equipment Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Common Stock Accounts Payable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable Service Revenue Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Salaries Expense Debit Credit Beginning Balance Ending Balance Ending Balance
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