Question

a. Borrowed $3,940 from a local bank on a note due in six months. b. Received $4,630 cash from investors and issued common stock to them. c. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year d. Paid $300 cash for supplies. e. Bought and received $700 of supplies on account. Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero. Cash Supplies Beg. Bal. Beg. Bal. End. Bal. End. Bal. Equipment Accounts Payable Beg. Bal. Beg. Bal End. Bal. End. Bal. Notes Payable (short-term) Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal.

Answer 1

Cash					Supplies
Beg Bal	-	By Accounts Payable	200		Beg Bal	0
To Note Payable	3,490	By Supplies	300		To Cash	300
To Common Stock	4,630				To Accounts Payable	700
		End Bal	7620				End Bal	1000
	8,120		8120			1000		1000
Equipment					Accounts Payable
Beg Bal	-				To Cash	200	Beg Bal	0
To Accounts Payable	1,000						By Equipment	1000
							By Supplies	700
		End Bal	1000		End Bal	1500
	1,000		1000			1700		1700
Notes Payable(short term)					Common Stock
		Beg Bal	0				Beg Bal	0
		By Cash	3490				By Cash	4630
End Bal	3,490				End Bal	4630
	3,490		3490			4630		4630