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Use of t-accounts for general ledger accounts

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Why would use a T-account? Why do we use them as a students?

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A "t-account" is a miniature ledger for an individual account, showing only the debit and credit amounts, without all the details such as the description of the transaction, the source of the post, and the date. The t-account provides a quick inspection of the activity ...

Solution Summary

Explains how th use of t-accounts to inspect, communicate and correct general ledger accounts helps students and practitioners.

\$2.19

Prepare entries, general ledger, trial balance, adjustments

During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping,
completed the following transactions:

July 1 Began business by making a deposit in a company bank account of \$24,000, in exchange
for 4,800 shares of \$5 par value common stock.

July 1 Paid the premium on a one-year insurance policy, \$2,400.

July 1 Paid the current month's rent, \$2,080.

July 3 Purchased landscaping equipment from Brookwood Company, \$8,800. Paid \$1,200 down and the balance was
placed on account. Payments will be \$400.00 per month for nineteen months. The first payment is due 8/1.
Note: Use Accounts Payable for the Balance Due.

July 8 Purchased landscaping supplies from Lakeside Company on credit, \$780.

July 12 Paid utility bill for July, \$308.

July 16 Received cash for landscaping revenue for the first half of July, \$2,724.

July 19 Made payment on account to Lakeside Company, \$400.

July 31 Received cash for landscaping revenue for the last half of July, \$2,620.

July 31 Declared and paid cash dividend of \$1,600.

Prepare journal entries to record the July transactions in the General Journal below. Use the following account names for journal entries.

General Journal Chart of Accounts: Account Title (Normal Balance)
Date Description(Account Name) Debit Credit
Assets
Cash (Debit)
Prepaid Insurance (Debit)
Landscaping Supplies (Debit)
Landscaping Equipment (Debit)
Accum Depr -Equipment (Credit)

Liabilities
Accounts Payable (Credit)
Income Tax Payable (Credit)

Stockholders Equity
Common Stock (Credit)
Retained Earnings (Credit)
Dividends (Debit)

Revenue
Landscaping Revenue (Credit)

Expenses
Rent Expense (Debit)
Utility Expense (Debit)
Insurance Expense (Debit)
Supplies Expense (Debit)
Depreciation Expense (Debit)
Income Tax Expense (Debit)

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Note: Remember that Debits must equal Credits - All of your Journal Entries should balance.

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