Question

Feb 1.            Sample invested $55,000 in the business by depositing it into the company’s bank account.

Feb 2.            Paid $46,000 cash for land.

Feb 3.            Purchased medical supplies for $1,800 on account.

Feb 4.            Officially opened for business.

Feb 5.            During the month, Sample treated patients and earned service revenue of $8,000, receiving cash.

Feb 6.            Paid cash expenses: employees’ salaries, $1,600; office rent, $900;

                       utilities, $100.

Feb 7.           Returned supplies purchased on the 3rd for the cost of those supplies, $700.

Feb 8.            Paid $1,100 on account for purchases made on Feb 3.

1. Post the transaction to the “T” accounts of the company and balance off each account.

Answer 1

T-Accounts
Cash					Common Stock
Feb. 1	$55,000	Feb. 2	$46,000				Feb. 1	$55,000
Feb. 5	$8,000	Feb. 6	$1,600
		Feb. 6	$900
		Feb. 6	$100
		Feb. 8	$1,100
End. Bal.	$13,300						End. Bal.	$55,000
Land					Supplies
Feb. 2	$46,000				Feb. 3	$1,800	Feb. 7	$700
End. Bal.	$46,000				End. Bal.	$1,100
Accounts Payable					Service Revenue
Feb. 7	$700	Feb. 3	$1,800		Feb. 5	$8,000
Feb. 8	$1,100
End. Bal.	$0
Salaries Expense					Rent Expense
Feb. 6	$1,600				Feb. 6	$900
Utilities Expense
Feb. 6	$100