Question

The following transactions need to be recorded in T-Accounts

Trans #      Activity

1                Debit Cash $50,000

2                Credit Jones, Capital $50,000

3                Credit Cash $1,200

4                Debit Prepaid Insurance $1,200

5                Credit Accounts Payable $3,500

6                Debit Salary Expense $3,500

Once you have the entries entered into the T-Accounts, calculate the account balance for all 5 accounts.

Enter all of your answers using the following instructions:

A DR balance will show as xxx,xxx dr

A CR balance will show as xxx,xxx cr

Make sure you put the comma in the correct place and leave a space after the number when you enter dr or cr

Example:

The answer should be a debit of 1,255. Enter the number as: 1,255 dr

Answer 1

		Cash
Transaction	Description	Debit	Credit	Balance
1	Jones, Capital	$50,000		$50,000
3	Prepaid Insurance		$1,200	$48,800
	Ending Balance		$48,800	$48,800

Debit Balance of $48,800

		Jones, Capital
Transaction	Description	Debit	Credit	Balance
1	Cash		$50,000	$50,000
	Ending Balance	$50,000		$50,000

Credit Balance of $50,000

Jones, Capital$50,000 Cr

		Prepaid Insurance
Transaction	Description	Debit	Credit	Balance
3	Cash	$1,200		$1,200
	Ending Balance		$1,200	$1,200

Debit Balance of $1,200

Prepaid Insurance $1,200 Dr

		Accounts Payable
Transaction	Description	Debit	Credit	Balance
5	Salary Expense		$3,500	$3,500
	Ending Balance	$3,500		$3,500

Credit Balance of $3,500

Accounts Payable$3,500 Cr

		Salary Expense
Transaction	Description	Debit	Credit	Balance
	Accounts Payable	$3,500		$3,500
	Ending Balance		$3,500	$3,500

Debit Balance of $3,500

Salary Expense $3,500 Dr