Question

how do you post a T account given this information: 1-Dec Began business by depositing $7500 in a bank account in the name of the company in exchange for 750 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $650 . 1-Dec Paid the premium on a one-year insurance policy, $840 . 1-Dec Purchased Equipment for $3600 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $6000 cash. 16-Dec Provided service to customers ABC Inc. on account, $3400 . 21-Dec Received $1800 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $5040 . 30-Dec Declared and paid dividend to stockholders $200 .

Answer 1

Solution :

Cash
Date	Particulars	Debit	Date	Particulars	Credit
1-Dec	To Common Stock	$7,500.00	1-Dec	By Rent Expense	$650.00
15-Dec	To service revenue	$6,000.00	1-Dec	By Prepaid insurance	$840.00
21-Dec	To Accounts receivables	$1,800.00	1-Dec	By Equipment	$3,600.00
			23-Dec	By Accounts payable	$170.00
			28-Dec	By Wages expense	$5,040.00
			30-Dec	By Dividend	$200.00
				Ending Balance	$4,800.00
	Total	$15,300.00		Total	$15,300.00

Common Stock
Date	Particulars	Debit	Date	Particulars	Credit
	Ending balance	$7,500.00	1-Dec	By Cash	$7,500.00
	Total	$7,500.00		Total	$7,500.00

Rent Expense
Date	Particulars	Debit	Date	Particulars	Credit
1-Dec	To Cash	$650.00		Ending balance	$650.00
	Total	$650.00		Total	$650.00

Prepaid Insurance
Date	Particulars	Debit	Date	Particulars	Credit
1-Dec	To Cash	$840.00		Ending balance	$840.00
	Total	$840.00		Total	$840.00

Equipment
Date	Particulars	Debit	Date	Particulars	Credit
1-Dec	To Cash	$3,600.00		Ending balance	$3,600.00
	Total	$3,600.00		Total	$3,600.00

Office Supplies
Date	Particulars	Debit	Date	Particulars	Credit
5-Dec	To Accounts Payable	$300.00		Ending balance	$300.00
	Total	$300.00		Total	$300.00

Accounts payable
Date	Particulars	Debit	Date	Particulars	Credit
23-Dec	To Cash	$170.00	5-Dec	By Office Supplies	$300.00
	Ending balance	$130.00
	Total	$300.00		Total	$300.00

Service Revenue
Date	Particulars	Debit	Date	Particulars	Credit
	Ending balance	$9,400.00	15-Dec	By Cash	$6,000.00
			16-Dec	By Accounts receivables	$3,400.00
	Total	$9,400.00		Total	$9,400.00

Accounts receivables
Date	Particulars	Debit	Date	Particulars	Credit
16-Dec	To Service Revenue	$3,400.00	21-Dec	By Cash	$1,800.00
				Ending balance	$1,600.00
	Total	$3,400.00		Total	$3,400.00

Wage Expense
Date	Particulars	Debit	Date	Particulars	Credit
28-Dec	To Cash	$5,040.00		Ending balance	$5,040.00
	Total	$5,040.00		Total	$5,040.00

Dividend
Date	Particulars	Debit	Date	Particulars	Credit
30-Dec	To Cash	$200.00		Ending balance	$200.00
	Total	$200.00		Total	$200.00