Question

The following information pertains to Darius Jakande's personal financial transactions. Opening Balances - December 1, 2018 Cash $14,200 Contents of Home $1,900 Automobile $19,900 House $156,900 Unpaid Accounts $6,400 Bank Loan $55,700 Transactions for the month of December 2018. 1. Paid maintenance expenses for the month of December with $800 cash. 2. Purchased a new computer worth $2,800 with cash. 3. Paid credit card liability of $6,400 (Unpaid Accounts) in full. 4. Paid telephone, electricity and water bill for December with $600 cash. 5. Purchased $2,100 of groceries and goods for personal consumption with cash. 6. Deposited $4,100 salary earned during the month. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a deficit. The T-Account fields are labeled by transaction number. Record each transaction by entering the value into the corresponding T-Account field. Required a) Using the information provided, record the opening balances in the T-accounts. b) Record the transactions for the month of December in the T-accounts.

Answer 1

Answer:

Darius Jakande

T-accounts:

a) Opening balances:

Cash

Account Title                Debit     Credit

Beginning balance     14,200

Contents of Home

Account Title                Debit     Credit

Beginning balance       1,900

Automobile

Account Title                Debit     Credit

Beginning balance     19,900

House

Account Title                Debit     Credit

Beginning balance   156,900

Unpaid Accounts

Account Title                Debit     Credit

Beginning balance                      6,400

Bank Loan

Account Title                Debit     Credit

Beginning balance                    55,700

Net Worth

Account Title                Debit     Credit

Beginning balance                   130,800

b) Transactions for the month of December:

Cash

Account Title                Debit     Credit

Beginning balance     14,200

Maintenance expenses               800

Computer                                  2,800

Unpaid accounts                       6,400

Utilities expenses                        600

Food expenses                         2,100

Salary                          4,100

Contents of Home

Account Title                Debit     Credit

Beginning balance       1,900

Computer

Account Title                Debit     Credit

Cash                            2,800

Automobile

Account Title                Debit     Credit

Beginning balance     19,900

House

Account Title                Debit     Credit

Beginning balance   156,900

Unpaid Accounts

Account Title                Debit     Credit

Beginning balance                      6,400

Cash                             6,400

Bank Loan

Account Title                Debit     Credit

Beginning balance                    55,700

Net Worth

Account Title                Debit     Credit

Beginning balance                   130,800

Salary Income

Account Title                Debit     Credit

Cash                                             4,100

Maintenance Expenses

Account Title                Debit     Credit

Cash                                800

Utilities Expenses

Account Title                Debit     Credit

Cash                                600

Food Expenses

Account Title                Debit     Credit

Cash                              2,100

Explanation:

a) Data and Calculations:

Opening Balances - December 1, 2018

Cash                     $14,200

Contents of Home $1,900

Automobile          $19,900

House                $156,900

Total assets      $192,900

Unpaid Accounts $6,400

Bank Loan          $55,700

Total liabilities    $62,100

Net Worth = $130,800 ($192,900 - $62,100)