Question

Name: You own a small bakery. Given the following transactions, complete the T-Accounts, including titles and closing balances. • Take out a loan for $1,000 from the bank. • Purchase $300 in flour using cash. Purchase $250 in equipment on credit from The Bread Warehouse • Sell $100 in flour to Joe's Bakery for Cash • Your friend gives you $2,500 cash for ownership of your company • You raise $500 in cash by offering a bond liability Credits Debits Credits Debits Credits Debits Credits Debits Credits Debits Credits Debits Credits Debits Complete your Balance Sheet. Circle the mathematical functions that completes the accounting equation. +/-/- Owners Equity: +/-/- Liabilities: Assets:

Answer 1

Answer: T ACCOUNT

		Cash/Bank Account				Bank Loan A/c
To Bank Loan		1000	By Purchases	300	To Bal. C/d.	1000	ByCash/ Bank	1000
To Sales		100	by Bal c/d	3800
To Partners capital		2500
To Bond		500
	Total	4100		4100		1000		1000
		Purchase Account (Flour)				Equipment A/c
To Cash/Bank		300	By Sales	100	To Braod whea	250	By Bal. C/d	250
			By Bal. C/d	200
Total		300		300		250		250
						Sales A/c
		Broad Wherehouse			To Purchases	100	By Cash/Bank	100
To Bal. C/d		250	By Equipment	250
	Total	250		250
		Partners Capital				Bond A/c
To Bal. C/d		2500	By Cash/Bank	2500	To Bal. C/d	500	By Cash/Bank	500
	Total	2500		2500		500		500
				BALANCE SHEET
Own Capital				0	Cash/Bank			3800
Partners Capital				2500	Stock			200
Bond				500	Equipment			250
Broad wherehouse				250
Bank Loan				1000
			Total	4250				4250