4SE - Horngren'S Financial And Managerial Accounting

Question

 Calculating the balance of a T-account 

                  Accounts Payable 

May 2 6,000           21,000   May 1 

 May 22 11,500     500        May 5 

                                 8,500    May 15 

                                 500        May 23

Calculate the Accounts Payable balance.

Step-by-Step Solution

Answer

Accounts payable is money owed to the supplier and the balance of accounts payable is $13,000

Definition of Accounts payable

The accounts payable are defined as the money owed by the business to the supplier of goods for the acquisition of goods.

Computation of balance of T-account

$$\begin{gathered} \text{Balance of Accounts pay able = Credit Slide - Debit Side} \\ \text{ = 21,000+500+8,500+500-6,000-11,500} \\ \text{ =\$13,000} \end{gathered}$$