Question

Selected transactions from the journal of Larkspur, Inc., are presented below. Date Account Titles and Explanation Debit Credit Aug. 1 Cash 33,000 Common Stock 33,000 (Investment of cash for stock) 10 Cash 14,850 Service Revenue 14,850 (Received cash for services performed) 12 Equipment 27,500 Cash 4,400 Notes Payable 23,100 (Purchased office equipment for cash and notes payable) 25 Account Receivable 8,800 Service Revenue 8,800 (Billed clients for services performed) 31 Cash 4,840 Accounts Receivable 4,840 (Receipt of cash on account)

Answer 1

Answer:

The requirement of the question is below:

Post the transactions to T accounts. (Post entries in the order displayed in the problem statement.)

The postings of the transactions to t accounts are found in the attached

Explanation:

In doing the post , I have observed strictly the rule of double that the giving account be credited and the receiving account be debited.

Also,this could be done understanding that assets ,expenses and drawings should be debited when they increase and the reverse when there is reduction.

Besides, liabilities,capital and income should be credited when they increase and the reverse for the opposite.

Check the highlighted balances as well and note that the balances are named after the side with balance brought down.

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