Explore BrainMass

Explore BrainMass

    T Account to Record Transactions

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Using T accounts to record transactions involving assets, liabilities and owner's equity. Analyze each of the transaction. For each decide which accounts are affected and set up T accounts. Use plus or minus sign signs before the amounts to show the increase or decrease.

    1. James Walker, an owner, made an additional investment of $16,000 in cash
    2. A firm purchased equipment for $9,000 in cash
    3. A firm sold some surplus office furniture for $1,200 in cash
    4. A firm purchased a computer for $2,700 to be paid in 60 days
    5. A firm purchased office equipment for $10,200 on credit. The amount is due in 60 days.
    6. Carol Rose, owner of Rose Travel Agency, withdrew $5,000 of her original cash investment.
    7. A firm issues a check for $2,500 to a supplier in partial payment on an open account balance.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:47 am ad1c9bdddf

    Solution Summary

    The expert uses t accounts to record transactions involving assets, liabilities, and owner;s equity.