T Accounts & Cash Analysis
1. The following transactions occurred at several different businesses and are not related.
2. Post the following transactions into the appropriate T accounts.
3. Transactions:
4. Shirley Cosby, an owner, made an additional investment of $19,500 in cash.
5. A firm purchased equipment for $9,700 in cash.
6. A firm sold some surplus office furniture for $1,550 in cash.
7. A firm purchased equipment, a computer, for $3,400, to be paid in 60 days.
8. A firm purchased equipment for $10,900 on credit. The amount is due in 60 days.
9. Jack Walker, owner of Walker Travel Agency, withdrew $5,700 of his original cash investment.
10. A firm bought a delivery truck for $35,500 on credit; payment is due in 90 days.
11. A firm issued a check for $3,200 to a supplier in partial payment of an open account balance.
12. Analyze:
13. Select the transactions that directly affected an owner’s equity account.
The following occurred during June at Robinson Financial Planning and Wealth Management.
Post the following transactions into the appropriate T accounts.
Transactions:
T Accounts & Cash Analysis
1. Purchased supplies for $1,400 in cash.
2. Delivered monthly statements; collected fee income of $29,000.
3. Paid the current month’s office rent of $3,400.
4. Completed professional financial planning; billed client for $4,600.
5. Client paid fee of $2,600 for weekly counseling, previously billed.
6. Paid office salaries of $3,000.
7. Paid telephone bill of $420.
8. Billed client for $3,600 fee for preparing a comprehensive financial plan.
9. Purchased supplies of $940 on account.
10. Paid office salaries of $3,000.
11. Collected $3,600 from client who was billed.
12. Clients paid a total of $9,700 cash for fees.
Analyze:
T Accounts & Cash Analysis
How much cash did the business spend during the month?
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What are the T account postings for each transaction?,
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Which transactions directly affect owner’s equity?,
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How should each June transaction be recorded in T accounts?,
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How much cash was spent during the month of June?,
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How do billing and collections affect the company’s accounts?
- How much cash did the business spend during the month?
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What are the T account postings for each transaction?
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