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# Postings to a Cash T-Account

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Oct. 2 - Received membership dues for the month of October total \$7,500
Oct 5 - Issue common stock in exchange for cash, \$10,000
Oct 9 - Purchase additional boxing equipment for \$8,600, paying one-half of the amount in cash and the other one-half due by the end of the year
Oct 12 - Pay \$1,000 for advertising regarding a special membership rate available during the month of October
Oct 19 - Pay dividends to stockholders, \$3,400
Oct 22 - Pay liability insurance to cover accidents to members for the next six months, starting November 1, \$6,000
Oct 30 - Receive, but do not pay, utilities bill for the month, \$4,200
Oct 31 - Pay employees' salaries for the month, \$6,300

Required 3: Assuming the balance of cash at the beginning of October is \$15,600, post each cash transaction to the Cash T-account and compute the ending cash balance

#### Solution Summary

This solution illustrates how various transactions are posted to the Cash T-account.

\$2.19

## Journal Entries with explanations; post T-accounts

3-1 Impact of a Transaction. The company borrowed \$85,000 in cash from Eastern Bank.

Dr Cash \$85,000
Cr Bank loan \$85,000

3-2 Impact of a Transaction. The company used \$45,000 in cash to purchase land on the west side of Hatu Lake.

Dr Land \$45k
Cr Cash \$45k

3-11 Journal Entries Refer to PE 3-1. Make the journal entry necessary to record the transaction.

3-12 Journal Entries Refer to PE 3-2. Make the journal entry necessary to record the transaction.

3-17 Posting Refer to the journal entries made in PE 3-11 through PE 3-15. Construct a T-account representing each account impacted by those five transactions. Post all of the journal entries to these T-accounts. Compute the ending balance in each account. Assume that the beginning balance in each T-account is zero.

3-34 Analysis of Journal Entries
The following journal entries are from the books of Kara Elizabeth

a. Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000
Mortgage Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000
b. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Capital Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
c. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
Loan Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
d. Salary Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
e. Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,500
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,500
f. Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000
Cost of Goods Sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,000
g. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,000
Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,000
h. Accounts Payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000

For each of the journal entries, prepare an explanation of the business event that is being
represented.

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