Question

Consider the following account starting balances and journal transactions involving these accounts.
Use T-accounts to record the starting balances and organize the offsetting entries for the transactions.

The starting balance of Accounts Payable is $2,400
The starting balance of Cash is $12,500
The starting balance of Debt is $3,700
The starting balance of Inventory is $5,200

Date	Accounts and Explanation	Debit	Credit
Feb 10	Accounts Payable	4
	Cash		4
	Paid money owed to supplier
Feb 11	Inventory	15
	Accounts Payable		15
	Bought manufacturing supplies on credit
Feb 12	Cash	54
	Debt		54
	Borrowed money from bank

What is the final amount in Debt?

Answer 1

Answer:

Calculate final amount of debt:

Starting balance of debt	$3700
Amount borrowed	$54
Ending balance of debt	$3754