Chapter 3, Problem 3.12.1MCP

To determine

Introduction: The T accounts of the company are prepared based on the journal entries. The T accounts have a credit side and debit side to record the balances of the different accounts.

To prepare: The T accounts for each of the transaction for A. A. Agency.

Explanation of Solution

The T accounts are prepared as follows:

Cash
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
a	To capital stock	200,000	b	By building	110,000
	To balance c/d	28,000	b	By land	40,000
			c	By office equipment	10,000
			e	By wages & salaries expense	13,000
			f	By account payable	40,000
			h	By wages & salaries expense	15,000
	Total	228,000		Total	228,000

Capital Stock
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
	To balance c/d	200,000	a	By cash	200,000
	Total	200,000		Total	200,000

Building
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
b	To cash	110,000		By balance b/d	110,000
	Total	110,000		Total	110,000

Land
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
b	To cash	40,000		By balance b/d	40,000
	Total	40,000		Total	40,000

Bank
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
c	To note payable	125,000		By balance b/d	125,000
	Total	125,000		Total	125,000

Note payable
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
	To balance c/d	125,000	c	By bank	125,000
	Total	125,000		Total	125,000

Office Equipment
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
d	To cash	10,000		By balance b/d	50,000
	To account payable	40,000
	Total	50,000		Total	50,000

Account payable
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
	To cash	40,000	d	By office equipment	40,000
	To balance c/d	0
	Total	40,000		Total	40,000

Advertising Revenue
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
	To balance c/d	24,000	g	By account receivable	24,000
	Total	24,000		Total	24,000

Account Receivable
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
g	To advertising revenue	24,000		By balance b/d	24,000
	Total	24,000		Total	24,000

Commission Expense
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
i	To commission payable	3,500		By balance b/d	3,500
	Total	3,500		Total	3,500

Commission payable
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
	To balance c/d	3,500	i	By commission expense	3,500
	Total	3,500		Total	3,500

Wages & Salaries Expense
Sr. no.	Particular	Amount ($)	Sr. no.	Particular	Amount ($)
e	To cash	13,000		By balance c/d	28,000
h	To cash	15,000
	Total	28,000		Total	28,000

[Note: For transactions refer to 76337-3-3.11MCP.]