Chapter 1 Additional ProblemProblem 1-3 The Cash Bucket Accounting SystemThis problem repeats the Cash Bucket transactions from Chapter 1. Print the forms on the next page and use them to complete this problem.Requirement 1A. You will utilize the following four accounts: My Equity, Note Payable, Sister’s Equity, and Cash. Label the four “T” accounts using these account names.B. Put Dr and Cr Labels at the top of each “T” account. Also put “+” and “-“signs above the Dr and Cr Labels.C. Because you are just starting your Cash Bucket system, put a beginning balance of zero in each account. Label these amounts as “Beg. Bal.”Requirement 2For each of the following transactions make the required entries in the “T” accounts:(The description of the transaction that you write in the “T” account should be very brief. For example the description for transaction A. could be “I put in cash.” There are no right or wrong descriptions for the transactions.)A. You put \$200 into the Cash Bucket.B. Your sister puts \$150 into the Cash Bucket.C. Your sister takes \$20 out of the Cash Bucket.D. You take \$15 out of the Cash Bucket.E. Your Dad loans \$100 to the Cash Bucket and you sign a Note for the loan.F. You take \$25 out of the Cash Bucket, to pay off a portion of Dad’s loan.Requirement 3Compute an ending balance for each account. Be sure to place a Total Line in each account and the label “End. Bal.”Requirement 4Prepare a Trial Balance.Requirement 5Prepare a Balance Sheet.Requirement 6Compare your solutions for Requirements 1 through 5 to the Debits and Credits tab in the 1-Stuff & Claims-to-Stuff workbook.

Question

Problem 1-3 The Cash Bucket Accounting System

This problem repeats the Cash Bucket transactions from Chapter 1. Print the forms on the next page and use them to complete this problem.

Requirement 1
A. You will utilize the following four accounts: My Equity, Note Payable, Sister’s Equity, and Cash. Label the four “T” accounts using these account names.
B. Put Dr and Cr Labels at the top of each “T” account. Also put “+” and “-“signs above the Dr and Cr Labels.
C. Because you are just starting your Cash Bucket system, put a beginning balance of zero in each account. Label these amounts as “Beg. Bal.”

Requirement 2
For each of the following transactions make the required entries in the “T” accounts:
(The description of the transaction that you write in the “T” account should be very brief. For example the description for transaction A. could be “I put in cash.” There are no right or wrong descriptions for the transactions.)
A. You put \$200 into the Cash Bucket.
B. Your sister puts \$150 into the Cash Bucket.
C. Your sister takes \$20 out of the Cash Bucket.
D. You take \$15 out of the Cash Bucket.
E. Your Dad loans \$100 to the Cash Bucket and you sign a Note for the loan.
F. You take \$25 out of the Cash Bucket, to pay off a portion of Dad’s loan.

Requirement 3
Compute an ending balance for each account. Be sure to place a Total Line in each account and the label “End. Bal.”

Requirement 4
Prepare a Trial Balance.

Requirement 5
Prepare a Balance Sheet.

Requirement 6
Compare your solutions for Requirements 1 through 5 to the Debits and Credits tab in the 1-Stuff & Claims-to-Stuff workbook.

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