Explanation T-account: A T-account is an account used to represent a general ledger account. The title of the account is present at the top. The left side of the base of T denotes the debit amount and the right side denotes the credit amount. Prepare the t-accounts as shown below. a. Investment of $50,000 made by owner in corporation and in exchange 5,000 shares were issued to him on January 1, 2018. Common stock a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) Jan 1 Balance 50,000 Table - 1 b. Office equipment purchased on Mar 14, 2018. Cash a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) Mar 14 Balance 10,000 Table - 2 Equipment a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) Mar 14 Balance 10,000 Table - 3 c. Note issued by bank on April 6. Cash a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) Mar 14 Balance 100,000 Table - 4 Notes payable a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) Mar 14 Balance 100,000 Table - 5 d. Salaries of $12,000 were paid as on May 31. Salaries payable a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) May 31 Balance 12,000 Table - 6 e. Salaries of $12,000 were accrued as on May 31. Salary expense a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) May 31 Balance 12,000 Table - 7 f. Legal fees were paid on July 12. Cash a/c Date Particulars Ref. Debit ($) Credit ($) Particulars Ref. Debit ($) Credit ($) Jul 12 Balance 5,000 Table - 8 Legal expense a/c Date Particulars Ref...

3rd Edition

ISBN: 9780136946533

Author: GORDON

Publisher: PEARSON

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