A. Post the Transaction to T- Accounts ( see example on exercise 2-10 for T-Acco

Question

A. Post the Transaction to T- Accounts ( see example on exercise 2-10 for T-Accounts)

B. Prepare: A Trial Balance at August 31 2017

Demonstration Problem (see example on 76 Campus Trial Balance Format)

Date

Account Title & Explanation

Ref.

Debit

Credit

2017

Aug. 1

Cash

Owner’s Capital

   (Owner’s investment of cash in business)

5,000

5,000

         10

Cash

Service Revenue

   (Received cash for services performed)

2,000

2,000

         12

Equipment

Cash

   Notes Payable

     (Purchased equipment for cash note payable)

5,000

2,300

2,700

         25

Accounts Receivable

Service Revenue

(Billed clients for services performed)

1,700

1,700

         31

Cash

Accounts Receivable

   (Receipt of cash on account)

900

900

Date

Account Title & Explanation

Ref.

Debit

Credit

2017

Aug. 1

Cash

Owner’s Capital

   (Owner’s investment of cash in business)

5,000

5,000

         10

Cash

Service Revenue

   (Received cash for services performed)

2,000

2,000

         12

Equipment

Cash

   Notes Payable

     (Purchased equipment for cash note payable)

5,000

2,300

2,700

         25

Accounts Receivable

Service Revenue

(Billed clients for services performed)

1,700

1,700

         31

Cash

Accounts Receivable

   (Receipt of cash on account)

900

900

Explanation / Answer

Answer A. Cash Equipment Accounts Receivable Beg. Bal.                   -      2,300.00 12-Aug Beg. Bal.                 -   Beg. Bal.                 -         900.00 31-Aug 1-Aug      5,000.00 12-Aug    5,000.00 25-Aug    1,700.00 10-Aug      2,000.00 31-Aug          900.00 End. Bal.      5,600.00 End. Bal.    5,000.00 End. Bal.       800.00 Owners' Equity Notes Payable Beg. Bal.                 -   Beg. Bal.                 -      5,000.00 1-Aug    2,700.00 12-Aug End. Bal.    5,000.00 End. Bal.    2,700.00 Service Revenue Beg. Bal.                 -      2,000.00 10-Aug    1,700.00 25-Aug End. Bal.    3,700.00 Answer B. Trial Balance At August 31,2017 Dr. Amt. Cr. Amt. Cash      5,600.00 Equipment      5,000.00 Accounts Receivable          800.00 Owners' Equity      5,000.00 Notes Payable      2,700.00 Service Revenue      3,700.00 Total    11,400.00    11,400.00

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