Transaction analysis using T-accounts This exercise provides practice in understanding the...

Transaction analysis using T-accounts This exercise provides practice in understanding the operation of T-accounts and transaction analysis. For each situation, you must solve for a missing amount. Use a T-account for the balance sheet account, show in a horizontal model, or prepare journal entries for the information provided. In each case, there is only one debit entry and one credit entry in the account during the month.

Example:

Accounts Payable had a balance of $6,000 at the beginning of the month and $5,400 at the end of the month. During the month, payments to suppliers amounted to $16,000. Calculate the purchases on account during the month.

Solution:

a. Accounts Receivable had a balance of $5,400 at the beginning of the month and $2,200 at the end of the month. Credit sales totaled $30,000 during the month. Calculate the cash collected from customers during the month, assuming that all sales were made on account.

b. The Supplies account had a balance of $1,460 at the beginning of the month and $1,940 at the end of the month. The cost of supplies used during the month was $6,320. Calculate the cost of supplies purchased during the month.

c. Wages Payable had a balance of $1,520 at the beginning of the month. During the month, $6,200 of wages were paid to employees. Wages Expense accrued during the month totaled $7,800. Calculate the balance of Wages Payable at the end of the month.