Financial Accounting, 8th Edition
Financial Accounting, 8th Edition
8th Edition
ISBN: 9780078025556
Author: Robert Libby, Patricia Libby, Daniel Short
Publisher: McGraw-Hill Education
Question
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Chapter 3, Problem 13E

1.

To determine

Prepare the T- account for the various accounts that are listed

1.

Expert Solution
Check Mark

Explanation of Solution

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

The components of the T-account are as follows:

a) The title of the account

b) The left or debit side

c) The right or credit side

Prepare the T-accounts:

Cash account:

Cash account
Beginning balance
Ending balance

Accounts receivable account:

Accounts receivable account
Beginning balance
Ending balance

Supplies account:

Supplies account
Beginning balance
Ending balance

Equipment account:

Equipment account
Beginning balance
Ending balance

Building account:

Building account
Beginning balance
Ending balance

Accounts payable account:

Accounts payable account
Beginning balance
Ending balance

Note payable account:

Note payable account
Beginning balance
Ending balance

Mortgage payable account:

Mortgage payable account
Beginning balance
Ending balance

Common stock account:

Common stock account
Beginning balance
Ending balance

Additional paid-in capital account:

Additional paid-in capital account
Beginning balance
Ending balance

Retained earnings account:

Retained earnings account
Beginning balance
Ending balance

Food sales revenue account:

Food sales revenue account
Beginning balance
Ending balance

Catering sales revenue account:

Catering sales revenue account
Beginning balance
Ending balance

Supplies expense account:

Supplies expense account
Beginning balance
Ending balance

Utilities expense account:

Utilities expense account
Beginning balance
Ending balance

Wages expense account:

Wages expense account
Beginning balance
Ending balance

Fuel expense account:

Fuel expense account
Beginning balance
Ending balance

Thus, the t-accounts are prepared.

2.

To determine

Post the amount of each transaction in their respective accounts and compute the ending balance.

2.

Expert Solution
Check Mark

Explanation of Solution

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

The components of the T-account are as follows:

a) The title of the account

b) The left or debit side

c) The right or credit side

Prepare the T-accounts:

Cash account:

Cash account
Beginning balance$0(b)$72,000
(a)$160,000(d)$10,830
(c)$50,000(h)$363
(e)$2,600(i)$6,280
(f)$11,900(j)$600
(k)$70,000
Ending balance$64,427

Accounts receivable account:

Accounts receivable account
Beginning balance$0
(a)$2,000
(e)$1,600
Ending balance$3,600

Supplies account:

Supplies account
Beginning balance$0
(a)$1,200
Ending balance$1,200

Equipment account:

Equipment account
Beginning balance$0
(a)$18,300
(k)$50,000
Ending balance$68,300

Building account:

Building account
Beginning balance$0
(k)20,000
(b)$360,000
Ending balance$380,000

Accounts payable account:

Accounts payable account
Beginning balance$0
(g)$420
Ending balance$420

Note payable account:

Note payable account
Beginning balance$0
(c)$50,000
Ending balance$50,000

Mortgage payable account:

Mortgage payable account
Beginning balance$0
(b)$288,000
Ending balance$288,000

Common stock account:

Common stock account
Beginning balance$0
(a)$1,000
Ending balance$1,000

Additional paid-in capital account:

Additional paid-in capital account
Beginning balance$0
(a)$180,500
Ending balance$180,500

Retained earnings account:

Retained earnings account
Beginning balance0
(j)$600
Ending balance$600

Food sales revenue account:

Food sales revenue account
Beginning balance$0
(f)$11,900
Ending balance$11,900

Catering sales revenue account:

Catering sales revenue account
Beginning balance$0
(e)$4,200
Ending balance$4,200

Supplies expense account:

Supplies expense account
Beginning balance$0
(d)$10,830
Ending balance$10,830

Utilities expense account:

Utilities expense account
Beginning balance$0
(g)$420
Ending balance$420

Wages expense account:

Wages expense account
Beginning balance$0
(i)$6,280
Ending balance$6,280

Fuel expense account:

Fuel expense account
Beginning balance$0
(h)$363
Ending balance$363

Thus, the amounts are posted to their respective accounts.

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Chapter 3 Solutions

Financial Accounting, 8th Edition

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