Question

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Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $24,500 cash. After those seven transactions, the ledger included the following accounts with normal balances.

Cash	$	42,971
Office supplies		960
Prepaid insurance		4,900
Office equipment		12,300
Accounts payable		12,300
Y. Min, Capital		24,500
Y. Min, Withdrawals		3,939
Engineering fees earned		37,000
Rent expense		8,730

The following seven transactions produced the account balances shown above.

1. Y. Min invested $24,500 cash in the business.
2. Paid $8,730 cash for monthly rent expense for May.
3. Paid $4,900 cash in advance for the annual insurance premium beginning the next period.
4. Purchased office supplies for $960 cash.
5. Purchased $12,300 of office equipment on credit (with accounts payable).
6. Received $37,000 cash for engineering services provided in May.
7. Y. Min withdrew $3,939 cash for personal use.

2. Prepare a Cash T-account for the above transaction, and compute the ending Cash balance. Code each entry with one of the transaction codes a through g.

Answer 1

2.)			Cash	Amount $
	a.	24,500	b.	8,730
	f.	37,000	c.	4,900
			d.	960
			g.	3,939
			Ending Bal.	42,971