Open T-accounts and post the beginning balances and the preceding transactions t
ID: 2493055 • Letter: O
Question
Open T-accounts and post the beginning balances and the preceding transactions to the appropriate accounts. Determine the balance of each account- Put the number of the event
At the beginning of 2016, Oak Consulting had the following normal balances In Iits accounts: Account Cash Balance $42,000 Accounts recelvable 25,000 Accounts payable Common stock Retained earnings 8,400 payable24.000 24,000 34,600 The following events apply to Oak's Consulting for 2016: Oak's Consuting for 2016 1. Provided $185,000 of services on account. 2. Incurred $45,800 of operating expenses on account 3. Collected $140,000 of accounts recelvable 3. Collected $4 4. Pald $120,000 cash for salarles expense. 5. Pald $31,400 cash as a partial payment on accounts payable. 6. Pald an $10,000 cash dividend to the stockholders.Explanation / Answer
Closing Entries :
1.Sales Revenue A/c Dr $185000
To Profit and loss A/c $185000
2. Profit and loss A/c Dr $45800
To Operating expenses $45800
3.Profit and loss A/c Dr $120000
To Operating expenses $120000
4. Profit and Loss A/c Dr $ 19200
To Retained Eanings $19200
Net Profit for the year = $ 19,200
Cash Account Particulars $ Particulars $ To Balance 42000 By Salary Expenses 120000 To Accounts Receivables 140000 By Accounts Payable 31400 By Dividend 10000 To Balance c/d 20600 182000 182000 Accounts Receivable Particulars $ Particulars $ To Balance 25000 By Cash 140000 To Service Revenue 185000 To Balance c/d 70000 210000 210000 Accounts Payable Particulars $ Particulars $ To Cash 31400 By Balance 8400 To Balance c/d 22800 By Operating Expenses 45800 54200 54200 Common Stock Particulars $ Particulars $ TO Balance 24000 By Balance 24000 24000 24000 Retained Earnings Particulars $ Particulars $ To Dividend 10000 By Balance 34600 By Profit and Loss A/c 19200 To Balance c/d 43800 53800 53800 Dividends Particulars $ Particulars $ To Cash 10000 By Retained Earnings 10000 10000 10000 Services Revenue Particulars $ Particulars $ To Profit and Loss A/c 185000 By Cash 185000 185000 185000 Operating Expenses Particulars $ Particulars $ To Cash 45800 By Profit and Loss A/c 45800 45800 45800 Salaries Expenses Particulars $ Particulars $ To Cash 120000 By Profit and Loss A/c 120000 120000 120000Related Questions
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