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To prepare: T accounts and to
Introduction: Journal entries in respect of each account is posted to its respective T account. T accounts are ledger accounts prepared to ascertain the transactions entered in respect of each account and to obtain its closing balance thereafter.
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Explanation of Solution
Preparation of cash account in general ledger:
Cash | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 14,100 | |||
February, 1 | Unearned sales revenue | 28,400 | 42,500 | ||
February, 1 | Rent expense | 800 | 41,700 | ||
February, 2 | Accounts payable | 1,500 | 40,200 | ||
February, 6 | Prepaid rent | 30,150 | 10,050 | ||
February, 9 | 325 | 10,375 | |||
February, 15 | Sales revenue | 3,400 | 13,775 | ||
February, 15 | Artist fee expense | 9,000 | 4,775 | ||
February, 20 | Unearned sales revenue | 10,125 | 14,900 | ||
February, 21 | Sales revenue | 5,100 | 20,000 | ||
February, 21 | Artist fee expense | 12,620 | 7,380 |
Table (1)
Preparation of accounts receivable account in general ledger:
Accounts receivable | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 400 | |||
February, 9 | Cash | 325 | 75 |
Table (2)
Preparation of supplies account in general ledger:
Supplies | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 2,500 | |||
February, 12 | Accounts payable | 475 | 2,975 |
Table (3)
Preparation of prepaid insurance account in general ledger:
Prepaid insurance | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 3,600 |
Table (4)
Preparation of prepaid rent account in general ledger:
Prepaid rent | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 10,000 | |||
February, 6 | Cash | 30,150 | 40,150 |
Table (5)
Preparation of equipment account in general ledger:
Equipment | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 7,000 |
Table (6)
Preparation of accounts payable account in general ledger:
Accounts payable | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | ||||
February, 2 | Cash | 1,500 | 0 | ||
February, 12 | Supplies | 475 |
Table (7)
Preparation of unearned sales revenue account in general ledger:
Unearned sales revenue | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | ||||
February, 1 | Cash | 28,400 | |||
February, 20 | Cash | 10,125 |
Table (8)
Preparation of notes payable account in general ledger:
Notes payable | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance |
Table (9)
Preparation of common stock account in general ledger:
Common stock | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance |
Table (10)
Preparation of sales revenue account in general ledger:
Sales revenue | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | ||||
February, 15 | Cash | 3,400 | |||
February, 21 | Cash | 5,100 |
Table (11)
Preparation of artist fee expense account in general ledger:
Artist fee expense | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 800 | |||
February, 15 | Cash | 9,000 | 9,800 | ||
February, 21 | Cash | 12,620 | 22,420 |
Table (12)
Preparation of rent expense account in general ledger:
Rent expense | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 800 | |||
February, 1 | Cash | 800 | 1,600 |
Table (13)
Preparation of salaries expense account in general ledger:
Salaries expense | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 2,400 |
Table (14)
Preparation of advertising expense account in general ledger:
Advertising expense | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 4,500 |
Table (15)
Preparation of legal expense account in general ledger:
Legal expense | |||||
Date | Particular | Post Ref. | Debit($) | Credit($) | Balance($) |
February, 1 | Balance | 1,200 |
Table (16)
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Chapter 3 Solutions
Cornerstones of Financial Accounting
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