Analyze and record the following transactions in the T Accounts below: Jan1:Amount invested in the business $10,000.
Question:
Analyze and record the following transactions in the T Accounts below:
Jan1: Amount invested in the business $10,000.
Jan7: Bought equipment for $500.
Jan9: Bought office furniture for cash $2,000.
Jan10: Bought materials for cash $2,000.
Jan17: Sold part of equipment for $200.
Jan18: Bought computer on credit for $1,000.
Jan19: Purchased office stationary for $100.
Jan25: Paid cash for computer purchased on credit $700.
Guidelines for the assignment:
- Identify the account.
- Classify the account.
- Identify (Debit or Credit, left side or right side) the appropriate side to record.
- Write the transaction under the appropriate side.
- The first transaction is completed for you as an example
Jan 1 Transaction | Account Name: Cash | Account Name: Owner's equity | ||
Debit | Credit | Debit | Credit | |
10,000 | 10,000 | |||
Jan 7 Transaction | Account Name: | Account Name: | ||
Debit | Credit | Debit | Credit | |
Jan 9 Transaction | Account Name: | Account Name: | ||
Debit | Credit | Debit | Credit | |
Jan 10 Transaction | Account Name: | Account Name: | ||
Debit | Credit | Debit | Credit | |
Jan 17 Transaction | Account Name: | Account Name: | ||
Debit | Credit | Debit | Credit | |
Jan 18 Transaction | Account Name: | Account Name: | ||
Debit | Credit | Debit | Credit | |
Jan 19 Transaction | Account Name: | Account Name: | ||
Debit | Credit | Debit | Credit | |
Jan 25 Transaction | Account Name: | Account Name: | ||
Debit | Credit | Debit | Credit | |
Part 2
During the month of January, Mr. Suliz invested $4,000 in a business. He purchased a laptop for $1,000 with cash and purchased office equipment for $2,000 on credit.
- Use the table below.
- List the accounts to be debited and amount of their debit.
- List the accounts to be credited and amount of their credit.
Account name (make it up) | Place x in this column if the account is debited | Amount | Place x in this column if the account is credited | Amount |
1. | ||||
2. | ||||
3. |
Part 3
In the table provided below, complete the chart for the following transactions using the rules of debit and credit
- Cash
- Cash in bank
- Accounts receivable
- Laptop
- Office equipment
- Accounts payable
- Owner’s capital
Guidelines for the assignment:
- Name the account as an asset, liability, or owner’s equity.
- Record whether the increase is on the debit side or the credit side.
- Record whether the decrease is on the debit side or the credit side.
- Write whether the normal balance is a debit or credit balance.
- The first account has been completed for you as an example.
Account name | Asset | Liability | Owner's Equity | Increase side | Decrease side | Normal balance side |
Cash | x | Debit | Credit | Debit | ||
Cash in bank | ||||||
Accounts Rec | ||||||
Laptop | ||||||
Office Equipment | ||||||
Accounts Payable | ||||||
Owner's capital |
Part 4
Write transaction events for Mr. Williams’ following transactions:
Cash | Williams Capital | Office Equipment | |||
LEFT SIDE Debit Increase + | RIGHT SIDE Credit Decrease - | LEFT SIDE Debit Decrease - | RIGHT SIDE Credit Increase + | LEFT SIDE Debit Increase + | RIGHT SIDE Credit Decrease - |
(1) 50000 (6) 10000 (8) 1500 | (2) 10000 (5) 1000 (7) 500 | (1) 50000 (6) 10000 | (2) 10000 (3) 5000 | (4) 2000 | |
Accounts Receivable | Accounts Payable | Office Furniture | |||
LEFT SIDE Debit Increase + | RIGHT SIDE Credit Decrease - | LEFT SIDE Debit Decrease - | RIGHT SIDE Credit Increase + | LEFT SIDE Debit Increase + | RIGHT SIDE Credit Decrease - |
(4) 2000 | (8) 1500 | (5) 1000 | (3) 5000 | (7) 500 |
Guidelines:
- Identify the effect of each transaction on each account.
- Write the business transaction.
- Use the table below.
- The first transaction has been completed for you as an example.
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina