Question

Selected transactions from the journal of Larkspur, Inc. during its first month of operations are presented here.

Date		Account Titles		Debit		Credit
Aug. 1		Cash		7,700
		Common Stock				7,700
10		Cash		1,550
		Service Revenue				1,550
12		Equipment		6,300
		Cash				2,300
		Notes Payable				4,000
25		Accounts Receivable		3,410
		Service Revenue				3,410
31		Cash		760
		Accounts Receivable				760

(a)

Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)

Answer 1

Cash

Debit	Credit
Date	Account Name	Debit	Date	Account title	Credit
Aug 01	Common stock	7,700	Aug 12	Equipment	2,300
Aug 10	Service revenue	1,550	Aug 31	Closing Balance	7,710
Aug 31	Accounts receivable	760
		10,010			10,010

Common stock

Debit	Credit
Date	Account Name	Debit	Date	Account title	Credit
Aug 31	Closing Balance	7,700	Aug 01	Cash	7,700
		7,700			7,700

Service revenue

Debit	Credit
Date	Account Name	Debit	Date	Account title	Credit
Aug 31	Closing Balance	4,960	Aug 10	cash	1,550
			Aug 25	Account receivable	3,410
		4,960			4,960

Equipment

Debit	Credit
Date	Account Name	Debit	Date	Account title	Credit
Aug 12	Cash	2,300	Aug 31	Closing Balance	6,300
Aug 12	Notes payable	4,000
		6,300			6,300

Notes payable

Debit	Credit
Date	Account Name	Debit	Date	Account title	Credit
Aug 31	Closing Balance	4,000	Aug 12	Equipment	4,000
		4,000			4,000

Accounts Receivable

Debit	Credit
Date	Account Name	Debit	Date	Account title	Credit
Aug 25	Service revenue	3,410	Aug 31	Cash	760
			Aug 31	Closing Balance	2,650
		3,410			3,410