Question

-3 M2-11 Posting to T-Accounts For each of the transactions in M2-9 (including the sample), post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero. Cash (A) Supplies (A) Equipment (A) Accounts Payable (L.) Notes Payable (L) Common Stock (SE)

Answer 1

Solution:

Cash [A]					Supplies [A]					Equipment [A]
Beg, Bal.	$           -				Beg, Bal.	$           -				Beg, Bal.
a	$    3,940	$        200	c		d	$        300				c	$    1,000
b	$    4,630	$        300	d		End. Bal.	$        700
End. Bal.	$    8,070				End. Bal.	$    1,000				End. Bal.	$    1,000
Accounts Payable [L]					Notes Payable [L]					Common Stock [SE]
Beg, Bal.		$           -			Beg, Bal.		$           -			Beg, Bal.	$           -
		$        700	e				$    3,940	a				$    4,630	b
							$        800	c
End. Bal.	$           -	$        700			End. Bal.	$           -	$    4,740			End. Bal.	$           -	$    4,630

Working:

Date	General Journal	Debit	Credit
a	Cash	$ 3,940.00
	Notes payable		$ 3,940.00
	to record notes payable
b	Cash	$ 4,630.00
	common stock		$ 4,630.00
	(To record common stock)
c	Equipment	$ 1,000.00
	Cash		$     200.00
	Notes payable		$     800.00
	to record equipment
d	Supplies	$     300.00
	Cash		$     300.00
	(To record supplies)
e	Supplies	$     700.00
	accounts payable		$     700.00
	(To record supplies)