The transactions of the Stori Imbambe Store are recorded in the general journalbelow.General Journal_____________________________________________________________________Date Account Titles and Explanation Debit Credit_____________________________________________________________________2016Aug. 5 Accounts Receivable 2,500Service Revenue 2,50010 Cash 3,000Service Revenue 3,00019 Rent Expense 1,000Cash 1,00025 Cash 1,400Accounts Receivable 1,400Required:Post the journal entries to T-accounts and balance off the accounts as at August 31,2016. (14 marks)*END*
Question
The transactions of the Stori Imbambe Store are recorded in the general journalbelow.General Journal_____________________________________________________________________Date Account Titles and Explanation Debit Credit_____________________________________________________________________2016Aug. 5 Accounts Receivable 2,500Service Revenue 2,50010 Cash 3,000Service Revenue 3,00019 Rent Expense 1,000Cash 1,00025 Cash 1,400Accounts Receivable 1,400Required:Post the journal entries to T-accounts and balance off the accounts as at August 31,2016. (14 marks)END
Solution
To post the journal entries to T-accounts and balance off the accounts as at August 31, 2016, you would follow these steps:
-
Create T-accounts for each account listed in the journal entries. A T-account is a visual representation of an account that looks like a "T". The left side is for debits and the right side is for credits.
-
Post the journal entries to the T-accounts. For example, on August 5, you would debit Accounts Receivable with 2,500 and credit Service Revenue with 2,500.
Here's how the T-accounts would look:
Accounts Receivable
| Debit | Credit |
|---|---|
| 2,500 | |
| 1,400 | |
| ------- | -------- |
| 1,100 |
Service Revenue
| Debit | Credit |
|---|---|
| 2,500 | |
| 3,000 | |
| ------- | -------- |
| 5,500 |
Cash
| Debit | Credit |
|---|---|
| 3,000 | |
| 1,400 | |
| 1,000 | |
| ------- | -------- |
| 3,400 |
Rent Expense
| Debit | Credit |
|---|---|
| 1,000 | |
| ------- | -------- |
| 1,000 |
- Balance off the accounts. This means calculating the balance of each account as at August 31, 2016. For example, the balance of the Accounts Receivable account would be 1,100 (2,500 debit - 1,400 credit). The balance of the Service Revenue account would be 5,500 credit. The balance of the Cash account would be 3,400 debit. The balance of the Rent Expense account would be 1,000 debit.
Similar Questions
General Journal_____________________________________________________________________Date Account Titles and Explanation Debit Credit_____________________________________________________________________2016Aug. 5 Accounts Receivable 2,500Service Revenue 2,50010 Cash 3,000Service Revenue 3,00019 Rent Expense 1,000Cash 1,00025 Cash 1,400Accounts Receivable 1,400Required:Post the journal entries to T-accounts and balance off the accounts as at August 31,2016. (14 marks)*END*
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