Question

Derrick Wells decided to start a dental practice. The first five transactions for the business follow.  

1. Derrick invested $89,000 cash in the business.
2. Paid $29,000 in cash for equipment.
3. Performed services for cash amounting to $8,900.
4. Paid $3,700 in cash for advertising expense.
5. Paid $2,900 in cash for supplies.

(1) Select which two accounts are affected in each of the above transactions.
(2&3) Post the above transactions into the appropriate T accounts.

Select which two accounts are affected in each of the above transactions.

	Transactions Debit Credit Transaction 1 Transaction 2 Transaction 3 Transaction 4 Transaction 5

Post the above transactions into the appropriate T accounts.

	Cash Equipment Bal. Bal. Fees Income Advertising Expense Bal. Bal. Supplies Derrick Wells, Capital Bal. Bal.

Answer 1

Answer 1

Answer 2

Note: Balances in Supplies, Fees Income and Ad Expense will be transferred to the Income Statement at the end of the financial year.

In case of any questions on the above workings, please share the same in the comments section.

All the best!