Question

1. What is the ending balance in the accounts listed below given the following transactions: a. RWV borrows $1,100,000 in the form of a note payable. b. RWV purchases land for $250,000. c. RWV builds a building for $750,000. d. RWV orders $7,500 worth of food, which will be paid for later. e. RWV provides services worth $95,000, and will bill for the services later. f. RWV pays salaries to employees totaling $45,000. g. RWV pays $7,500 towards the food it previously ordered. h. RWV uses $5,000 worth of food. i. RWV pays $17,000 of G

Answer 1

RWV

Ending Account Balances:

Account Details Debit Credit

Notes Payable $1,100,000

Cash $30,500

Land 250,000

Building 750,000

Supplies (Food) 2,500

Accounts Receivable 95,000

Service Revenue 95,000

Salaries Expense 45,000

Supplies (Food) Exp. 5,000

G 17,000

Totals $1,195,000 $1,195,000

Step-by-step explanation:

a) Notes Payable

Account Details Debit Credit

Cash $1,100,000

a) Cash Account

Account Details Debit Credit

Notes Payable $1,100,000

Land (b) $250,000

Building (c) 750,000

Salaries (f) 45,000

Supplies (Food) (g) 7,500

G (i) 17,000

Balance c/d $30,500

b) Land

Account Details Debit Credit

Cash $250,000

c) Building

Account Details Debit Credit

Cash $750,000

d) Supplies (Food)

Account Details Debit Credit

Accounts Payable $7,500

Supplies (Food) Expense (h) $5,000

Balance c/d $2,500

Accounts Payable

Account Details Debit Credit

Supplies (d) $7,500

Cash (g) $7,500

e) Accounts Receivable

Account Details Debit Credit

Service Revenue $95,000

Service Revenue

Account Details Debit Credit

Accounts Receivable (e) $95,000

f) Salaries Expense

Account Details Debit Credit

Cash $45,000

h) Supplies (Food) Expense

Account Details Debit Credit

Supplies (Food) $5,000

i) G

Account Details Debit Credit

Cash $17,000