Question

The following transactions occurred at several different businesses and are not related. Post the following transactions into the appropriate T-accounts
a. Serena Hamilton, an owner, made an additional investment of $42,000 in cash.
b. A firm purchased equipment for $20,000 in cash.
c. A firm sold some surplus office furniture for $3,400 in cash.
d. A firm purchased a computer for $3,700, to be paid in 60 days.
e. A firm purchased office equipment for $22,400 on credit.
f. The amount is due in 60 days. James Taylor, owner of Taylor Travel Agency, withdrew $12,000 of his original cash investment.
g. A firm bought a delivery truck for $38,500 on credit; payment is due in 90 days.
h. A firm issued a check for $7,200 to a supplier in partial payment of an open account balance

Answer 1

Answer:

T-accounts:

a. Cash Account

Account Titles         Debit    Credit

Common Stock    $42,000

Common Stock

Account Titles         Debit    Credit

Cash                                 $42,000

b. Equipment

Account Titles         Debit    Credit

Cash                    $20,000

Cash

Account Titles         Debit    Credit

Equipment                     $20,000

c. Cash

Account Titles         Debit    Credit

Office Furniture                  $3,400

Office Furniture

Account Titles         Debit    Credit

Cash                     $3,400

d. Computer

Account Titles         Debit    Credit

Accounts payable $3,700

Accounts payable

Account Titles         Debit    Credit

Computer                            $3,400

e. Office Equipment

Account Titles         Debit    Credit

Accounts payable $22,400

Accounts payable

Account Titles         Debit    Credit

Office Equipment            $22,400

f. James Taylor, Capital

Account Titles         Debit    Credit

Cash                                 $12,000

Cash

Account Titles         Debit    Credit

James Taylor,

 Capital                $12,000

g. Delivery Truck

Account Titles         Debit    Credit

Accounts payable $38,500

Accounts payable

Account Titles         Debit    Credit

Delivery Truck     $38,500

h. Accounts payable

Account Titles         Debit    Credit

Cash                       $7,200

Cash

Account Titles         Debit    Credit

Accounts payable               $7,200

Explanation:

a) Data and Analysis:

a. Cash $42,000 Common Stock $42,000

b. Equipment $20,000 Cash $20,000

c. Cash $3,400 Office Furniture $3,400

d. Computer $3,700 Accounts payable $3,400

e. Office Equipment $22,400 Accounts payable $22,400

f. James Taylor, Capital $12,000 Cash $12,000

g. Delivery Truck $38,500 Accounts payable $38,500

h. Accounts payable $7,200 Cash $7,200