In: Accounting
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 Cash is $9,700
The starting balance of Inventory is $3,800
The starting balance of Retained Earnings is $23,600
1. Sell product for $30 in cash with historical cost of
$24
2. Sell, deliver, and receive payment of $40 for service
3. Consume good or service and pay expense of $2
What is the final amount in Retained Earnings?
---Left side is DEBIT SIDE, Right side is CREDIT SIDE.
Cash |
|||
Beginning balance |
$ 9,700.00 |
Expenses (3) |
$ 2.00 |
Sales Revenue (1) |
$ 30.00 |
Ending balance |
$ 9,768.00 |
Service revenue (2) |
$ 40.00 |
||
Total |
$ 9,770.00 |
Total |
$ 9,770.00 |
Inventory |
|||
Beginning Balance |
$ 3,800.00 |
Cost of Goods Sold (1) |
$ 24.00 |
Ending balance |
$ 3,776.00 |
||
Total |
$ 3,800.00 |
Total |
$ 3,800.00 |
Retained Earnings |
|||
Expenses (3) |
$ 2.00 |
Beginning balance |
$ 23,600.00 |
Ending balance (or Final Amount) |
$ 23,644.00 |
Gross Profits (1) |
$ 6.00 |
Service Revenue (2) |
$ 40.00 |
||
Total |
$ 23,646.00 |
Total |
$ 23,646.00 |