Question

Analyzing transactions recorded in Taccounts Instructions: 1. Analyze each numbered transaction in the T accounts. Write the titles of accounts affected in Column 2. For cach account, write the classification of the account in Column 3. 2. For each account, place a check mark in either Column 4 or 5 to indicate if the account is affected by a debitor credit. 3. For each transaction, write a brief statement in Column 6 describing the transaction. 4. Use the back of the paper to work the problem. 1 Cash 30000 2 700 7 500 10 2000 3000 1000 9 5 Accts Rec. William 500 9 200 500 8 Office Equip 2 6 8 2000 200 200

Answer 1

Account Title Debit Credit 38 39 Classification Asset Owner's Equity 1 Cash Greg Failla , Capital х Brief statement Amount invested by owner Amount invested by owner 40 х 41 42 X 2 Office equipment Cash Asset Asset Office Equipment purchased for Cash Office Equipment purchased for Cash 43 X 44 х 45 46 3 Video equipment Accounts Payable-Showbiz Asset Liability Video Equipment purchased on account Video Equipment purchased on account х 47 48 х 4 Cash Greg Failla , Capital Asset Owner's Equity Revenues earned during the year for cash Revenues earned during the year for cash 49 х 50 х 51 52 5 Accounts Receivable-William Greg Failla , Capital Asset Owner's Equity Revenues earned during the year on account Revenues earned during the year on account X 53 54 55 х 6 Office equipment Greg Failla , Capital Asset Owner's Equity Office Equipment contributed by owner Office Equipment contributed by owner х 56 57 х х 7 Accounts Payable - Showbiz Cash Liability Asset Payment made to Accounts Payable Payment made to Accounts Payable 58 х

60 X 8 Accounts Receivable-William Office equipment Asset Asset Sale of Office Equipment on account Sale of Office Equipment on account 61 х 62 63 х 9 Cash Accounts Receivable - William Asset Asset Cash received from Accounts Receivable Cash received from Accounts Receivable 64 х 65 66 х 10 Greg Failla , Capital Cash Owner's Equity Asset Cash withdrawn from Business Cash withdrawn from Business 67 х 68 69