Question

Selected transactions from the journal of Giambi Inc. during its first month of operations, August 2022, are presented here.

Date Account Titles and Explanation Debit Credit
Aug. 1 Cash 10,000
Common Stock 10,000

10 Cash 1,700
Service Revenue 1,700
12 Equipment 12,200
Cash 1,200
Notes Payable 11,000
25 Accounts Receivable 2,500
Service Revenue 2,500
31 Cash 600
Accounts Receivable 600

Required:
Post the transactions to T-accounts.

Answer 1

Giambi Inc.

T-Accounts for August 2022:

Cash Account

Aug. 1 Common Stock 10,000 Aug. 12 Equipment 1,200

Aug. 10 Service Revenue 1,700

Aug. 31 Accounts Receivable 600

Common Stock

Aug. 1 Cash Account 10,000

Service Revenue

Aug. 10 Cash Account 1,700

Aug. 25 Accounts Receivable 2,500

Equipment

Aug. 12 Cash 1,200

Aug. 12 Notes Payable 11,000

Notes Payable

Aug. 12 Equipment 11,000

Accounts Receivable

Aug. 25 Service Revenue 2,500 Aug. 31 Cash 600

Step-by-step explanation:

T-accounts are general ledger accounts in T-form. They are mainly used for accounts adjustments at the end of the accounting period. The debit side is on the left hand side while the credit side is on the right hand side. At the end of the period, the accounts are balanced by making the two sides to agree in total with the difference being called the balancing figure.