Question

Question 2: The following transaction took place for Company A.

Aug. 5: The company purchased office supplies for $1,900 cash.

The T-accounts below were prepared for the transaction, but not all components were completed

a)------------------- b)------------------ office supplies

Aug 5th Aug 5th 1,900

Balance 1,900

  

Required:

Review the T-accounts above and determine the missing components.

Explain which components are missing

Add the missing components to the T-account(s)

Answer 1

Journal entry will be :-

Office supplies Debit $ 1900 ; Cash Credit $ 1900

T -account

Office supplies:-

Date	Account	Debit	Date	Account	Credit
Aug 5th	Cash	1900		Balance	1900
		1900			1900

Cash:-

Date	Account	Debit	Date	Account	Credit
	Balance	1900	Aug 5th	Office supplies	1900
		1900			1900

The question has been solved in this way for conceptual clarification purpose.

The T - account made in the question is not clear, therefore, each parts can't be answered individually and hence, complete T- accounts have been prepared in the solution.