Question

Consider the recorded transactions below.

DebitCredit 1. Accounts Receivable8,400 Service Revenue 8,400 2. Supplies2,300 Accounts Payable 2,300 3. Cash10,200 Accounts Receivable 10,200 4. Advertising Expense1,000 Cash 1,000 5. Accounts Payable3,700 Cash 3,700 6. Cash1,100 Deferred Revenue 1,100
Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $3,400; Accounts Receivable, $4,200; Supplies, $400; Accounts Payable, $3,500; Deferred Revenue, $300. Service Revenue and Advertising Expense each have a beginning balance of zero.

Answer 1

1. T-accounts:

Accounts Debit Credit

Accounts Receivable

Balance $4,200

Service Revenue 8,400

Cash 10,200

Accounts Debit Credit

Service Revenue

Accounts Receivable 8,400

Accounts Debit Credit

Supplies

Balance $400

Accounts Payable 2,300

Balance c/d $2,700

Accounts Debit Credit

Accounts Payable

Balance $3,500

Supplies 2,300

Cash $3,700

Balance c/d $2,100

Accounts Debit Credit

Cash Account

Balance $3,400

Accounts Receivable 10,200

Advertising $1,000

Accounts Payable 3,700

Deferred Revenue 1,100

Balance c/d $10,000

Accounts Debit Credit

Advertising Expense

Cash 1,000

Accounts Debit Credit

Accounts Payable

Cash 3,700

Accounts Debit Credit

Deferred Revenue

Balance $300

Cash 1,100

Balance c/d $1,400

Step-by-step explanation:

a) Data:

General Entries:

Accounts Debit Credit

1. Accounts Receivable 8,400

Service Revenue 8,400

2. Supplies 2,300

Accounts Payable 2,300

3. Cash 10,200

Accounts Receivable 10,200

4. Advertising Expense 1,000

Cash 1,000

5. Accounts Payable 3,700

Cash 3,700

6. Cash 1,100

Deferred Revenue 1,100

b) The beginning balance of each account before the transactions is:

Cash, $3,400

Accounts Receivable, $4,200

Supplies, $400

Accounts Payable, $3,500

Deferred Revenue, $300