Question

Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash, indicating the ending balance. Assume no beginning balances in Accounts Payable and Inventory, and a beginning Cash balance of $36,000. A. Purchased merchandise inventory on account, $16,900. B. Paid vendors for part of inventory purchased earlier in month, $11,100. C. Purchased merchandise inventory for cash, $10,400.

Answer 1

Answer and Explanation:

The preparation of the T-accounts are as follows:

For Account payable

Cash      $11,100            Inventory  $16,900

Balance $5,800

Total      $16,900          Total          $16,900

For Inventory

Account payable    $16,900

Cash                       $10,400             Balance    $27,300

Total                       $27,300            Total          $27,300

For cash

Opening balance    $36,000    Account payable  $11,100

                                                   Inventory               $10,400

                                                   Balance                 $14,500

Total                         $36,000    Total                      $36,000