Concept explainers
1.
Prepare the T- account for the various accounts that are listed
1.
Explanation of Solution
T-account:
T-account is the form of the ledger account, where the
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 | |||
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 | |||
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.
Post the amount of each transaction in their respective accounts and compute the ending balance.
2.
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.
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Chapter 3 Solutions
Financial Accounting
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