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Utilizing "T" Accounts

Need help with setting up a "T" account...
also see attachment.....

1) Betty and her friend each invested $50,000 in cash (for a total of $100,000) in exchange for shares of common stock in Bobbie's Book Store.

2) On January 1, 2005, purchased new equipment for cash costing $70,000

3) Depreciation on the new equipment during 2005 was $800

4) Paid cash for rent expense of $45,000.

5) Purchase a small lot next to the store for $20,000. Paid cash for $5,000 and took out a loan for the remainder.

6) During 2005, customers purchased $300,000 of books. Of that amount $250,000 has been collected from customers
in cash and the remaining amounts are yet to be collected (an account receivable).

7) Inventory purchases totaled $200,000 for the year. All purchases were paid for in cash.

8) Interest due on the loan in (5) is $100 and is due but not yet paid.

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Need help with setting up a "T" account...
also see attachment.....

1) Betty and her friend each invested $50,000 in cash (for a total of $100,000) in exchange for shares of common stock in Bobbie's Book Store.

2) On January 1, ...

Solution Summary

This explains the prepration of "T" Account

$2.19