Question

Selected transactions from the journal of Monty Corp., are presented below:
Aug. 1 Cash 37,800
Common Stock 37,800 (Investment of cash for stock)
10 Cash 17,010
Service Revenue 17,010 (Received cash for services performed)
12 Equipment 31,500
Cash 5,040
Notes Payable 26,460 (Purchased office equipment for cash and notes payable)
25 Account Receivable 10,080
Service Revenue 10,080 (Billed clients for services performed)
31 Cash 5,544
Accounts Receivable 5,544 (Receipt of cash on account)
Required:
a. Post the transactions to T-accounts.

Answer 1

Answer:

Aug. 1 Cash 37,800

Common Stock 37,800 (Investment of cash for stock)

Dr.Cash                  37,800

Cr. Common stock 37,800

10 Cash 17,010

Service Revenue 17,010 (Received cash for services performed)

Dr. Cash                     17010

Cr. Service Revenue 17010

12 Equipment 31,500

Cash 5,040

Notes Payable 26,460 (Purchased office equipment for cash and notes payable)

Dr. Office Equipment  31500

Cr. Cash                       5040

Cr. Account Payable   26460

25 Account Receivable 10,080

Service Revenue 10,080 (Billed clients for services performed)

Dr. Account Receivable   10080

Cr. Sales                            10080

31 Cash 5,544

Accounts Receivable 5,544 (Receipt of cash on account)

Dr. Cash                          5544

Cr. Account Receivable 5544

T account are prepared in the attached MS Excel File, Please find that.