Homework SourseA Post the Transaction to T Accounts see example on exercis
A. Post the Transaction to T- Accounts ( see example on exercise 2-10 for T-Accounts)
B. Prepare: A Trial Balance at August 31 2017
Demonstration Problem (see example on 76 Campus Trial Balance Format)
Date
Account Title & Explanation
Ref.
Debit
Credit
2017
Aug. 1
Cash
Owner’s Capital
(Owner’s investment of cash in business)
5,000
5,000
10
Cash
Service Revenue
(Received cash for services performed)
2,000
2,000
12
Equipment
Cash
Notes Payable
(Purchased equipment for cash note payable)
5,000
2,300
2,700
25
Accounts Receivable
Service Revenue
(Billed clients for services performed)
1,700
1,700
31
Cash
Accounts Receivable
(Receipt of cash on account)
900
900
| Date | Account Title & Explanation | Ref. | Debit | Credit |
| 2017 Aug. 1 | Cash Owner’s Capital (Owner’s investment of cash in business) | 5,000 | 5,000 | |
| 10 | Cash Service Revenue (Received cash for services performed) | 2,000 | 2,000 | |
| 12 | Equipment Cash Notes Payable (Purchased equipment for cash note payable) | 5,000 | 2,300 2,700 | |
| 25 | Accounts Receivable Service Revenue (Billed clients for services performed) | 1,700 | 1,700 | |
| 31 | Cash Accounts Receivable (Receipt of cash on account) | 900 | 900 |
Solution
Answer A. Cash Equipment Accounts Receivable Beg. Bal. - 2,300.00 12-Aug Beg. Bal. - Beg. Bal. - 900.00 31-Aug 1-Aug 5,000.00 12-Aug 5,000.00 25-Aug 1,700.00 10-Aug 2,000.00 31-Aug 900.00 End. Bal. 5,600.00 End. Bal. 5,000.00 End. Bal. 800.00 Owners\' Equity Notes Payable Beg. Bal. - Beg. Bal. - 5,000.00 1-Aug 2,700.00 12-Aug End. Bal. 5,000.00 End. Bal. 2,700.00 Service Revenue Beg. Bal. - 2,000.00 10-Aug 1,700.00 25-Aug End. Bal. 3,700.00 Answer B. Trial Balance At August 31,2017 Dr. Amt. Cr. Amt. Cash 5,600.00 Equipment 5,000.00 Accounts Receivable 800.00 Owners\' Equity 5,000.00 Notes Payable 2,700.00 Service Revenue 3,700.00 Total 11,400.00 11,400.00
