T Accounts & Cash Analysis

T Accounts & Cash Analysis

1. The following transactions occurred at several different businesses and are not related.

2. Post the following transactions into the appropriate T accounts.

3. Transactions:

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4. Shirley Cosby, an owner, made an additional investment of $19,500 in cash.

5. A firm purchased equipment for $9,700 in cash.

6. A firm sold some surplus office furniture for $1,550 in cash.

7. A firm purchased equipment, a computer, for $3,400, to be paid in 60 days.

8. A firm purchased equipment for $10,900 on credit. The amount is due in 60 days.

9. Jack Walker, owner of Walker Travel Agency, withdrew $5,700 of his original cash investment.

10. A firm bought a delivery truck for $35,500 on credit; payment is due in 90 days.

11. A firm issued a check for $3,200 to a supplier in partial payment of an open account balance.

12. Analyze:

13. Select the transactions that directly affected an owner’s equity account.

The following occurred during June at Robinson Financial Planning and Wealth Management.

Post the following transactions into the appropriate T accounts.

Transactions:

T Accounts & Cash Analysis

1. Purchased supplies for $1,400 in cash.

2. Delivered monthly statements; collected fee income of $29,000.

3. Paid the current month’s office rent of $3,400.

4. Completed professional financial planning; billed client for $4,600.

5. Client paid fee of $2,600 for weekly counseling, previously billed.

6. Paid office salaries of $3,000.

7. Paid telephone bill of $420.

8. Billed client for $3,600 fee for preparing a comprehensive financial plan.

9. Purchased supplies of $940 on account.

10. Paid office salaries of $3,000.

11. Collected $3,600 from client who was billed.

12. Clients paid a total of $9,700 cash for fees.

Analyze:

T Accounts & Cash Analysis

How much cash did the business spend during the month?

1. What are the T account postings for each transaction?,

2. Which transactions directly affect owner’s equity?,

3. How should each June transaction be recorded in T accounts?,

4. How much cash was spent during the month of June?,

5. How do billing and collections affect the company’s accounts?

6. How much cash did the business spend during the month?

   1. What are the T account postings for each transaction?