Chapter 2, Problem 2.10EX

(a)

To determine

T-account:

An account is referred to as a T-account, because the alignment of the components of the account resembles the capital letter ‘T’. An account consists of the three main components which are as follows:

• The title of the account
• The left or debit side
• The right or credit side

To indicate: Whether the Company W had net income during the month.

(b)

To determine

The cash balance at the beginning of the month.