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.
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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