Question

Record these transactions of the XYZ Corporation company by recording the debit and credit entries directly in the T-accounts. Use the date for each transaction to identify the entries, placing the date in the left-hand cell and the amount in the right-hand cell on the appropriate side of the T-account. Then determine the balance of each account using the starting balances as shown, and write 'Balance' (or 'Bal') next to it, in the left-hand cell on the appropriate side.

1. August 2 : Tracy Regis (a shareholder), received share capital in XYZ Corporation, after investing $60,000 cash into the business.
2. August 4 : XYZ Corporation bought $4,500 of equipment, using $1,000 cash and $3,500 on account.
3. August 5 : Furniture was rented by a customer for $800 on credit.
4. August 8 : XYZ Corporation received a bill today for this month's water utilities; $450. It will be paid within 30 days.
5. August 11 : XYZ Corporation received $600 towards payment for the services provided in transaction (c).
6. August 12 : XYZ Corporation purchased new equipment by paying $3,500 cash.
7. August 15 : XYZ Corporation paid $350 for this month's electrical utilities bill received today.
8. August 18 : A client rented equipment for $900 cash.
9. August 21 : XYZ Corporation paid $400 towards the bill from transaction (d).
10. August 24 : XYZ Corporation returned to the supplier $500 of equipment discovered to be defective. It was originally purchased on account in transaction (b)

Answer 1

Cash
Debit	Credit
Aug-02	Shareholders Equity	60000	Aug-04	Equipment	1000
Aug-11	Accounts Receivable	600	Aug-12	Equipment	3500
Aug-18	Service income	900	Aug-15	Electricity Exp	350
			Aug-21	Water Bill Payable	400
		61500			5250
	Balance	56250
Accounts Payable
Debit	Credit
Aug-24	Equipment( Purchase return)	500	Aug-04	Equipment	3500
		500			3500
	Balance				3000
Water Bill Payable
Debit	Credit
Aug-21	Cash	400	Aug-08	Water Exp	450
		400			450
	Balance				50

Share Holders Equity
Debit	Credit
			Aug-02	Cash	60000
					60000
	Balance				60000
Service Income
Debit	Credit
			Aug-05	Accounts Receivable	800
			Aug-18	Cash	900
					1700
	Balance				1700
Accounts Receivable
Debit	Credit
Aug-05	Service Income	800	Aug-11	Cash	600
		800			600
	Balance	200

Equipment ( Purchase)
Debit	Credit
Aug-04	Cash	1000
Aug-04	Accounts Payable	3500
Aug-12	Cash	3500
		8000
	Balance	8000
Water Exp
Debit	Credit
Aug-08	Water Bill payable	450
		450
	Balance	450
Electricity Exp
Debit	Credit
Aug-15	Cash	350
		350
	Balance	350

Equipment (Purchase return)
			Aug-21	Accounts payable	500
					500
	Balance				500

If the company not taken aspurchase return .last transction to be deduct from equipment A/c