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 Receivable is $4,700
The starting balance of Cash is $8,400
The starting balance of Inventory is $4,200

1. Sell product for $30 in cash with historical cost of $30
2. Receive payment of $9 owed by a customer
3. Buy $15 worth of manufacturing supplies for cash

What is the final amount in Cash?

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 $2,400
The starting balance of Cash is $14,700
The starting balance of Debt is $3,700
The starting balance of Inventory is $3,800

1. Buy $16 worth of manufacturing supplies on credit
2. Borrow $62 from a bank
3. Pay $5 owed to a supplier

What is the final amount in Debt?

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 Cash is $12,500
The starting balance of Inventory is $5,200
The starting balance of Retained Earnings is $23,900

1. Consume good or service and pay expense of $3
2. Sell product for $20 in cash with historical cost of $16
3. Sell, deliver, and receive payment of $35 for service

What is the final amount in Retained Earnings?

Answer 1

1) Cash Account :-

Particulars	Amount($)
Beginning Balance of Cash	8400
Add : Cash Received from Product Sell	30
Add : Cash Received from Customer	9
Less : Cash Paid Against supplies purchase	(15)
Ending Balance of Cash	8424

2) Debt Account :-

Particulars	Amount($)
Beginning Balance of Debt	3700
Add : Fund Borrow from Bank	62
Ending Balance of Debt	3762

Note :- Purchase of Supplies and payment related to Accounts Payable, no effect on Debts.

3) Retained Earnings :-

Particulars	Amount($)
Beginning Balance of Retained Earnings	23900
Less : Goods and Service Expenses	(3)
Add : Profit on Sale of Product ($20-$16)	4
Add : Sale of Service	35
Ending Balance of Retained Earnings	23936

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