The following are the business transactions. Post all these transactions in “T” accounts with the following ledger accounts: Cash Account; Sales Account; Rent Expense; Wages Expense; Purchases Account; Machine Account; Receivables Account; Payables Account; Insurance Expense; Owner’s Capital.

Owner’s invested $15,000 in a newly opened Business for cash deposited to the account of the company.

Bought a machine on credit from A, $8,000.

Bought goods on credit from B, cost $500.

Sold goods on credit to C, value at $1,200.

Paid D (a supplier) $300.

Collected $180 form E, a customer.

Paid wages for $4,000

Received rent bill of $700 form Landlord G.

Paid rent of $700 to Landlord G.

Paid insurance premium $90.

Based on our “T” in Homework 1, T-accounts should always be closed off at the end of each period, even when they contain only one entry.

The balance above the totals is described as the balance carried down (often this is abbreviated to ‘balance c/d’). The balance below the total is described as the balance brought down (often abbreviated to ‘balance b/d’)

Example:

Required:

Extract the totals of Account Ledger in your T account and a prepare a Trial Balance.

Answer rating: 100% (QA)

LEDGER ACCOUNTS CASH PARTICULARS AMOUNT PARTICULARS AMOUNT Capital 15000 D 300 E 180 Wages 4000 Insu... View the full answer