Question

Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Accounts Payable is $1,500 The starting balance of Cash is $9,700 The starting balance of Debt is $2,900 The starting balance of Inventory is $3,800 1. Buy $15 worth of manufacturing supplies on credit 2. Borrow $60 from a bank 3. Pay $7 owed to a supplier What is the final amount in Accounts Payable?

Answer 1

Solution:

Accounts Payable
Particulars	Debit	Particulars	Credit
Cash	$7.00	Beginning Bal.	$1,500.00
Ending Bal	$1,508.00	Inventory	$15.00
Total	$1,515.00	Total	$1,515.00

Cash
Particulars	Debit	Particulars	Credit
Beginning Bal.	$9,700.00	Accounts Payable	$7.00
Borrowing from bank	$60.00	Ending Balance	$9,753.00
Total	$9,760.00	Total	$9,760.00

Debt
Particulars	Debit	Particulars	Credit
Ending Balance	$2,960.00	Beginning Bal.	$2,900.00
		Cash	$60.00
Total	$2,960.00	Total	$2,960.00

Inventory
Particulars	Debit	Particulars	Credit
Beginning Bal.	$3,800.00	Ending Balance	$3,815.00
Accounts Payable	$15.00
Total	$3,815.00	Total	$3,815.00

Final amount in accounts payable = $1,508