Question

Exercise 4.20 LO 6, 7 Transaction analysis using T-accounts This exercise provides practice in under- standing the operation of T-accounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare journal entries for the information provided. In each case, there is only one debit entry and one credit entry in the account during the month. Example: Accounts Payable had a balance of $6,000 at the beginning of the month and $5,400 at the end of the month. During the month, payments to suppliers amounted to $16,000. Calculate the purchases on account during the month. O brt A Solution: o l ub. 000.02 Doba . Accounts Payable 6,000 ?-15,400 Beginning balance Purchase Ending balance Dr. Accounts Payable... 16,000 Cr. Cash Payments to suppliers. Payment 16,000 Dr. Inventory...... 15,400 Cr Accounts Payable....... 15,400 Die Purchases an account. To 16,000 5,400 moldon a. Accounts Receivable had a balance of $25,200 at the beginning of the month and $10,600 at the end of the month. Credit sales totaled $90,000 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account. Oni sul b. The Supplies account had a balance of $40,000 at the beginning of the month and $49,600 at the end of the month. The cost of supplies used during the month was $157,200. Calculate the cost of supplies purchased during the month. c. Wages Payable had a balance of $7,600 at the beginning of the month. During the month, $30,200 of wages were paid to employees. Wages Expense accrued during the month totaled $39,000. Calculate the balance of Wages Payable at the end of the month.

Answer 1

BOLD ONES ARE YOUR ANSWER TO QUESTION WITH DETAILED LEDGER
ACCOUNTS RECEIVABLE AMOUNT($) PARTICULARS 25200 PARTICULARS BEGINNING BALANCE AMOUNT($) CREDIT SALES 90000 CASH COLLECTED FROM CUSTOMERS 104600 CLOSING BALANCE 10600

SUPPLIES ACCOUNT AMOUNT($) PARTICULARS 40000 PARTICULARS BEGINNING BALANCE AMOUNT($) COST OF SUPPLIES PURCHASED 166800 COST OF SUPPLIES USED 157200 CLOSING BALANCE 49600

PARTICULARS WAGES PAYABLE AMOUNT($) PARTICULARS BEGINNING BALANCE AMOUNT($) 7600 WAGES PAID 30200 WAGES ACCRUVED DURII 39000 CLOSING BALANCE 16400