Chapter 3, Problem 13E

1.

To determine

Prepare the T- account for the various accounts that are listed

Explanation of Solution

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

The components of the T-account are as follows:

a) The title of the account

b) The left or debit side

c) The right or credit side

Prepare the T-accounts:

Cash account:

Cash account
Beginning balance
Ending balance

Accounts receivable account:

Accounts receivable account
Beginning balance
Ending balance

Supplies account:

Supplies account
Beginning balance
Ending balance

Equipment account:

Equipment account
Beginning balance
Ending balance

Building account:

Building account
Beginning balance
Ending balance

Accounts payable account:

Accounts payable account
		Beginning balance
		Ending balance

Note payable account:

Note payable account
		Beginning balance
		Ending balance

Mortgage payable account:

Mortgage payable account
		Beginning balance
		Ending balance

Common stock account:

Common stock account
		Beginning balance
		Ending balance

Additional paid-in capital account:

Additional paid-in capital account
		Beginning balance
		Ending balance

Retained earnings account:

Retained earnings account
		Beginning balance
		Ending balance

Food sales revenue account:

Food sales revenue account
		Beginning balance
		Ending balance

Catering sales revenue account:

Catering sales revenue account
		Beginning balance
		Ending balance

Supplies expense account:

Supplies expense account
Beginning balance
Ending balance

Utilities expense account:

Utilities expense account
Beginning balance
Ending balance

Wages expense account:

Wages expense account
Beginning balance
Ending balance

Fuel expense account:

Fuel expense account
Beginning balance
Ending balance

Thus, the t-accounts are prepared.

2.

To determine

Post the amount of each transaction in their respective accounts and compute the ending balance.

Explanation of Solution

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

The components of the T-account are as follows:

a) The title of the account

b) The left or debit side

c) The right or credit side

Prepare the T-accounts:

Cash account:

Cash account
Beginning balance	$0	(b)	$72,000
(a)	$160,000	(d)	$10,830
(c)	$50,000	(h)	$363
(e)	$2,600	(i)	$6,280
(f)	$11,900	(j)	$600
		(k)	$70,000
Ending balance	$64,427

Accounts receivable account:

Accounts receivable account
Beginning balance	$0
(a)	$2,000
(e)	$1,600
Ending balance	$3,600

Supplies account:

Supplies account
Beginning balance	$0
(a)	$1,200
Ending balance	$1,200

Equipment account:

Equipment account
Beginning balance	$0
(a)	$18,300
(k)	$50,000
Ending balance	$68,300

Building account:

Building account
Beginning balance	$0
(k)	20,000
(b)	$360,000
Ending balance	$380,000

Accounts payable account:

Accounts payable account
		Beginning balance	$0
		(g)	$420
		Ending balance	$420

Note payable account:

Note payable account
		Beginning balance	$0
		(c)	$50,000
		Ending balance	$50,000

Mortgage payable account:

Mortgage payable account
		Beginning balance	$0
		(b)	$288,000
		Ending balance	$288,000

Common stock account:

Common stock account
		Beginning balance	$0
		(a)	$1,000
		Ending balance	$1,000

Additional paid-in capital account:

Additional paid-in capital account
		Beginning balance	$0
		(a)	$180,500
		Ending balance	$180,500

Retained earnings account:

Retained earnings account
		Beginning balance	0
(j)	$600
Ending balance	$600

Food sales revenue account:

Food sales revenue account
		Beginning balance	$0
		(f)	$11,900
		Ending balance	$11,900

Catering sales revenue account:

Catering sales revenue account
		Beginning balance	$0
		(e)	$4,200
		Ending balance	$4,200

Supplies expense account:

Supplies expense account
Beginning balance	$0
(d)	$10,830
Ending balance	$10,830

Utilities expense account:

Utilities expense account
Beginning balance	$0
(g)	$420
Ending balance	$420

Wages expense account:

Wages expense account
Beginning balance	$0
(i)	$6,280
Ending balance	$6,280

Fuel expense account:

Fuel expense account
Beginning balance	$0
(h)	$363
Ending balance	$363

Thus, the amounts are posted to their respective accounts.