Question

Post each transaction to T-accounts and compute the end balance of each account.

Required information [The following information applies to the questions displayed below.] Boilermaker House Painting Company incurs the following transactions for September. 1. September 2. September 3. September 12 Purchase office supplies on account for $1,600. 4. September 15 Pay employee salaries of $2,300 for the current month. 5. September 19 Purchase advertising to appear in the current month for $1,000 cash. 6. September 22 Pay office rent of $3,500 for the current month. 7. September 26 Receive $5,500 from customers in (1) above. 8. September 30 Receive cash of $4,100 in advance from a customer who plans to have his house painted in the following 3 Paint houses in the current month for $10,500 on account. 8 Purchase painting equipment for $11,500 cash. month. 2. Post each transaction to T-accounts and calculate the ending balance for each account. At the beginning of September, the company had the following account balances: Cash, $36,600; Accounts Receivable, $750; Supplies, $310; Equipment, $5,500; Accounts Payable, $650; Common Stock, $15,500; Retained Earnings, $27,010. All other accounts had a beginning balance of zero.

Answer 1

Cash Alc. Date Description Amount Date Description Amourd Sep 1. Opening balanka 36,600 26 Accounts Recein 10500 Sep 8 Equipment 11500 15 Salary Alc2300 30. Costomer Ad- 410019 Advertisement 1000 22 Office rent 3500. alde vanes Sept Ending balanu. # 32900 51200 51200 Accounts Receivable All Sep Opening balance 750 Sep 3 Service Revenue 10500 Sep 2d Cash Aje (105DD Sepsi Ending balame 750 11250 11250 Supplies AK Sep Opening balance 310 12 Accounts payable 16OD Sep 31 Ending baland 1910 1910 11910 4100 Costomer Advances Sep 30 Cash Alc 4100 4100 3 cept. Ending balance 4100

Equipment Alc Sepi Opening balance 5500 Sep 8 Cash 11500 - Sep 3) Ending balance 17ooo 17000 Account payable Alc 650 1600 Sep 31 Ending balonu Sep1 Opening balance 12 Supplies 2250 225D Common Stock Alc 2250 septi Opening balance 15500 Sep3) Ending balance 15500 Betained earnings Alc Sep! Opening balance 27010 -Sep 15 Salany Alcf 2360 Sep 3. Service Revenue 10500 Sep19 Advertisement 1000. office rent 3500! Sep31 Ending balance 30710 137570 137510 Service Revenue Alc. sup3 Retained earnings T105DD OSDO

Salary Alc. Sep 15 Cash All 2300 31. sept Retained eam 230 2300 T2300 Rent Ac. 22 Sept Cash Ale earning 3500 37 sept Retainedomina 350 3500 Advertisement Alc. 350 19 Sept Cash Al 1000 s sept Retained 1000 TODO NOTE: The balance of expenses Alc (Salas pent, advertisement)' & income Afc Service peucan) is transfered to Retained earnings finally at the year end only

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