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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

During December of this year, G. Elden established Ginny’s Gym. The following asset, liability, and owner’s equity accounts are included in the chart of accounts:

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During December, the following transactions occurred:

  1. a. Elden deposited $35,000 in a bank account in the name of the business.
  2. b. Bought exercise equipment for cash, $8,150, Ck. No. 1001.
  3. c. Bought advertising on account from Hazel Company, $105.
  4. d. Bought a display rack on account from Cyber Core, $790.
  5. e. Bought office equipment on account from Office Aids, $185.
  6. f. Elden invested her exercise equipment with a fair market value of $1,200 in the business.
  7. g. Made a payment to Cyber Core, $200, Ck. No. 1002.
  8. h. Sold services for the month of December for cash, $800.

Required

  1. 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental accounting equation, as well as the plus and minus signs and Debit and Credit.
  2. 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts
  3. 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction.
  4. 4. Foot and balance the accounts.

1.

To determine

Write the account classifications in the fundamental accounting equation.

Explanation

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

Accounting equation:

Accounting equation is an acc...

2, 3 & 4

To determine

Write the account names on the T-accounts record the amounts in the proper positions and balance the accounts.

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