Question

Selected transactions from the journal of Concord Corporation, are presented below. Date Account Titles and Explanation Debit Credit Aug. 1 Cash 59,400      Common Stock 59,400         (Investment of cash for stock) 10 Cash 26,730      Service Revenue 26,730         (Received cash for services performed) 12 Equipment 49,500      Cash 7,920      Notes Payable 41,580         (Purchased office equipment for cash and notes payable) 25 Account Receivable 15,840      Service Revenue 15,840         (Billed clients for services performed) 31 Cash 8,712      Accounts Receivable 8,712         (Receipt of cash on account)

Your answer is partially correct. Try again. Post the transactions to T-accounts

Answer 1

Cash account Debit Description Common stock Service revenue Accounts receivable Credit Description Equipment | Date Aug 1 Aug 10 Aug 31 Amount $ 7,920 | Date $ 59,400 Aug 12 $ 26,730 $ 8,712 Aug 31 $94,842 Balance c/d $ 86,922 $ 94,842

Common stock account Debit Description Balance c/d Credit Description Date Aug 31 Amount Date $ 59,400 Aug 1 $ 59,400 Cash Amount $ 59,400 $ 59,400

Service revenue Debit Description Date Amount Date Aug 10 $ 42,570 Aug 25 $ 42,570 Credit Description Cash Accounts receivable Amount $ 26,730 $ 15,840 $ 42,570 Aug 31 Balance c/d

Equipment account Credit Description Amount | Date Aug 12 Aug 12 Debit Description Cash Notes Payable Amount Date 7,920 41,580 Aug 31 49,500 Balance c/d 49,500 49,500

| Date Aug 31 Debit Description Balance c/d Notes payable account Credit Amount Date Description $ 41,580 Aug 12 Equipment $ 41,580 Amount 41,580 41,580

Date Aug 25 Debit Description Service revenue Accounts receivable Credit Amount Date Description 15,840 Aug 31 Cash Aug 31 Balance c/d $ 15,840 Amount $ 8,712 $ 7,128 $ 15,840

Trial Balance Accounts Debit Credit Cash account $ 86,922 Common stock account $ 59,400 Service revenue $ 42,570 Equipment account $ 49,500 Accounts receivable $ 7,128 Notes payable account $ 41,580 Totals $ 143,550 $ 143,550

Account type	Increase	Decrease
Assets & Expenses	Debit	Credit
Equity, Liabilities & Income	Credit	Debit

• Equipment, Accounts receivable & Cash are assets.
• Common stock is equity.
• Service revenue is an income account.
• Notes payable is a liability account.

• Balance c/d means accounts balance carried down.
• It is the difference between debits and credits.