
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)
Want to see more full solutions like this?
Chapter 3 Solutions
Cornerstones of Financial Accounting - With CengageNow
- provide correct answer mearrow_forwardgeneral accountingarrow_forwardE3-17 (Algo) Calculating Equivalent Units, Unit Costs, and Cost Assigned (Weighted-Average Method) [LO 3-2] Vista Vacuum Company has the following production Information for the month of March. All materials are added at the beginning of the manufacturing process. Units . • Beginning Inventory of 3,500 units that are 100 percent complete for materials and 28 percent complete for conversion. 14,600 units started during the period. Ending Inventory of 4,200 units that are 14 percent complete for conversion. Manufacturing Costs Beginning Inventory was $20,500 ($10,100 materials and $10,400 conversion costs). Costs added during the month were $28,400 for materials and $51,500 for conversion ($26.700 labor and $24,800 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the…arrow_forward
- Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:CengageCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningEssentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,



