Question

Consider the following transactions.
1. Receive cash from customers, $16,700.
2. Pay cash for employee salaries, $10,700.
3. Pay cash for rent, $4,700.
4. Receive cash from sale of equipment, $9,700.
5. Pay cash for utilities, $2,700.
6. Receive cash from a bank loan, $5,700.
7. Pay cash for advertising, $8,700.
8. Purchase supplies on account, $4,700.
Required:
Post transactions to the Cash T-account and calculate the ending balance.

Answer 1

Answer and Explanation:

The posting of transactions to the cash t- account is shown below:

                                      Cash Account

Particulars                Amount           Particulars               Amount  

Beginning balance   $0                    Salaries expense    $10,700

Accounts receivable $16,700          Rent expense          $4,700

Sale of equipment     $9,700           Utilities expense      $2,700

Bank loan                   $5,700           Adverting expense  $8,700

                                                          Ending balance (Bal. fig) $5,300

Total                           $32,100          Total                        $32,100

We assume that the beginning balance of cash is zero and according to that we find out the closing balance of cash