7SE_2 - Horngren'S Financial And Managerial Accounting

Question

 Journalizing transactions and posting to T-accounts 

Roland Foster Optical Dispensary completed the following transactions during the latter part of March: 

Mar. 15 Purchased office supplies on account, \(3,400. 

28 Paid \)1,800 on account.

 Requirements ,

2. Open the following accounts (use T-account format): Cash (Beginning Balance of $21,000), Office Supplies, and Accounts Payable. Post the journal entries from Requirement 1 to the accounts, and compute the balance in each account.

Step-by-Step Solution

Answer

The closing balance of cash is $19,200, the closing balance of office supplies is $3,400 and the closing balance of accounts payable is $1,600.

T-account of Cash

Dr                                                            Cash                                                          Cr
March 1           21,000	1,800    March 28
Balance           19,200

T-account of Office Supplies

Dr                                                            Office Supplies                                           Cr
March 15          3,400
Balance           3,400

T-account of Accounts Payable

Dr                                                     Accounts Payable                                             Cr
March 28            1,800	3,400         March 15
	1,600         Balance