Chapter 4, Problem 4.9.2MCP

To determine

Introduction: The T-account are prepared to show the balance of different accounts of an organization. It has credit and debit side. T-accounts are prepared with the help of journal entries.

To prepare: The T- account for each of the stated transaction.

Explanation of Solution

The T-accounts are prepared as follows:

Cash
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 2	To capital stock	60,000	Jan. 2	By land	15,000
			Jan. 2	By house	35,000
Jan. 3	To notes payable	30,000	Jan. 4	By furniture	15,000
Jan. 16	To unearned revenue	980	Jan. 5	By prepaid insurance	6,000
Jan. 31	To revenue − rental	8,300	Jan. 6	By advertising expense	450
Jan. 31	To revenue - operations	6,600	Jan. 15	By wages expense	4,230
			Jan. 31	By dividends	600
			Jan. 31	By bal. c/d	29,600
	Total	105,880		Total	105,880

Capital
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 31	To bal. c/d	60,000	Jan. 2	By cash	60,000
	Total	60,000		Total	60,000

Land
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 2	To cash	15,000	Jan. 31	By bal. c/d	15,000
	Total	15,000		Total	15,000

House
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 2	To cash	35,000	Jan. 31	By bal. c/d	35,000
	Total	35,000		Total	35,000

Notes payable
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 31	To bal. c/d	30,000	Jan. 3	By cash	30,000
	Total	30,000		Total	30,000

Furniture
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 4	To cash	15,000	Jan. 31	By bal. c/d	15,000
	Total	15,000		Total	15,000

Prepaid insurance
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 5	To cash	6,000	Jan. 31	By bal. c/d	6,000
	Total	6,000		Total	6,000

Advertisement expense
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 6	To cash	450	Jan. 31	By bal. c/d	450
	Total	450		Total	450

Cleaning supplies
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 7	To account payable	950	Jan. 31	By bal. c/d	950
	Total	950		Total	950

Account payable
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 31	To bal. c/d	950	Jan. 7	By cleaning supplies	950
	Total	950		Total	950

Wages expense
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 15	To cash	4,230	Jan. 31	By bal. c/d	4,230
	Total	4,230		Total	4,230

Unearned rent
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 31	To bal. c/d	980	Jan. 16	By cash	980
	Total	980		Total	980

Revenue − rental
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 31	To bal. c/d	8,300	Jan. 31	By cash	8,300
	Total	8,300		Total	8,300

Revenue − operations
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 31	To bal. c/d	6,600	Jan. 31	By cash	6,600
	Total	6,600		Total	6,600

Dividend
Date	Particular	Debit ($)	Date	Particular	Credit ($)
Jan. 31	To cash	600	Jan. 31	By bal. c/d	600
	Total	600		Total	600