Question

Consider the recorded transactions below. Credit 1. Accounts Receivable Service Revenue Debit 9,300 9,300 2. Supplies Accounts Payable 1,350 1,350 3. Cash Accounts Receivable 8,300 0 8,300 4. Advertising Expense Cash 1,000 1,000 5. Accounts Payable Cash 1,800 1,800 6. Cash Deferred Revenue 1,100 1,100 Required: Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $1,500; Accounts Receivable, $2,300; Supplies, $210; Accounts Payable, $1,600; Deferred Revenue, $110. Service Revenue and Advertising Expense each have a beginning balance of zero. Cash Accounts Receivable Beg bal Beg bal

Answer 1

Answer:

Cash
Beg. bal	1,500
(3)	8,300	1,000	(4)
(6)	1,100	1,800	(5)
End. bal	8,100

Note:Ending balance=$8,100 DR= (1,500DR + 8,300DR + 1,100DR) - (1,000CR + 1,800CR)= 10,900DR - 2,800CR

DR = debit amount, CR = credit amount

Since cash is an asset, it's beginning balance to be debited.

Accounts receivable
Beg. bal	2,300
(1)	9,300	8,300	(3)
End. bal	3,300

Note:Ending balance=$3,300DR= (2,300DR + 9,300DR ) - 8,300 CR = 11,600DR - 8,300 CR

Since accounts receivable is an asset, it's beginning balance to be debited.

Supplies
Beg. bal	210
(2)	1,350
End. bal	1,560

Note:Ending balance = $1,560DR = 210DR + 1,350DR

Since, supplies is an asset, it's beginning balance to be debited.

Accounts payable
		1,600	Beg. bal
(5)	1,800	1,350	(2)
		1,150	End. bal

Note:Ending balance = $1,150CR = (1,600CR + 1,350CR) - 1,800DR = 2,950CR - 1,800DR = 1,150CR

Since accounts payable is a liability, it's beginning balance should be credited.

Deferred revenue
		110	Beg. bal
		1,100	(6)
		1,210	End. bal

Note:Ending balance = $1,210CR = 110CR +1,100CR

Deferred revenue is a liability and it's beginning balance should be credited.

Service revenue
		9,300	(1)
		9,300	End. bal

Note: Ending balance = $9,300CR. No beginning balance

Advertising expense
(4)	1,000
End. bal	1,000

Note:Ending balance = $1,000DR. No beginning balance