Question

Consider the following account starting balances and transactions involving these accounts.
Use T-accounts to record the starting balances and the offsetting entries for the transactions.

The starting balance of Accounts Payable is $1,500
The starting balance of Cash is $9,700
The starting balance of Debt is $2,900
The starting balance of Inventory is $3,800

1. Buy $15 worth of manufacturing supplies on credit
2. Borrow $60 from a bank
3. Pay $7 owed to a supplier

What is the final amount in Accounts Payable?

Answer 1

Cash Account					Accounts receivable
Description	Amount Dr	Description	Amount Cr		Description	Amount Dr	Description	Amount Cr
To balance b/d	9,700	By Accounts payable	7		To balance b/d	2,900	By Balance c/d	2,900
To Bank Loan	60	By Balance c/d	9,753
	9,760		9,760			2,900		2,900
Inventory					Accounts payable
Description	Amount Dr	Description	Amount Cr		Description	Amount Dr	Description	Amount Cr
To balance b/d	3,800				To Bank	7	By balance b/d	1,500
To Accounts payable	15	By Balance c/d	3,815		To balance c/d	1,508	By Inventory	15
	3,815		3,815			1,515		1,515
Bank Loan
Description	Amount Dr	Description	Amount Cr
To balance c/d	60	By Bank	60
	60		60