Question

Put in T-charts

Transactions

1. On January 3 you opens an account with a deposit of $ 15,000 from the owner

2. You buy $560.00 in materials on January 6

3. Buys on January 7 a wagon with a finance check for $3000 and you contribute $ 700 of your funds, the loan must be paid off within a year

4. Next year's insurance policy is paid $ 2,300

5. You make a loan payment on February 20, $ 300 of principal and $ 89 of interest

6. You buy a new tractor on January 20 at $ 35,000

7. You pay a lawyer $ 50.00 on February 2

8. On May 4 you sell a pig for $ 900

9. Making the sale cost you $ 25.00

10. Herbicide was purchased for $ 300 on May 6, a line of credit account was opened in the store

Answer 1

As per the requirement, transactions have been recorded in T-Accounts:

T- Accounts
Cash					Owners' Equity
Jan. 1	$15,000	Jan. 7	$700				Jan. 1	$15,000
May. 4	$900	4)	$2,300
		Feb. 20	$389
		Feb. 2	$50
					Accounts Payable
							Jan. 6	$560
Cost of Goods Sold							Jan. 20	$35,000
May. 4	$25						May. 6	$300
Inventory					Equipment (Wagon)
Jan. 6	$560	May. 4	$25		Jan. 7	$3,000
Short-term Loan Payable					Prepaid Insurance
Feb. 20	$300	Jan. 7 ($3,000 - $700)	$2,300		4)	$2,300
Interest Expense					Tractor
Feb. 20	$89				Jan. 20	$35,000
Miscellaneous Expenses					Sales Revenue
Feb. 2	$50						May. 4	$900
May. 6	$300