Question

on December 1, Jim Higgins began an auto repair shop, the following transactions occurred during December.

post the tractions to the T-accounts. use the transaction dates as posting references. if posting more than one entry on the same date to a single account, post to that account in the same order as you prepared the entries above. Use a “Bal.” posting reference to show the ending balance of each account. for any accounts with a zero balance, use “Bal” posting reference and write a zero on the correct side of the account.

Answer 1

The given transactions are posted to respective T-Accounts:

T- Accounts
Cash					Accounts Payable
Bal.	$0	Dec. 1	$13,500		Dec. 26	$1,100	Bal.	$0
Dec. 1	$53,000	Dec. 1	$6,000				Dec. 10	$2,000
Dec. 19	$25,000	Dec. 9	$16,000		Bal.	$900
Dec. 31	$20,600	Dec. 22	$2,300		Service Revenue
Dec. 31	$1,270	Dec. 26	$1,100				Dec. 31	$23,200
		Dec. 31	$6,200
		Dec. 31	$2,500
					Utilities Payable
Bal.	$52,270						Bal.	$0
							Dec. 28	$360
					Bal.	$360
					Salaries Expense
					Dec. 31	$4,100
Accounts Receivable					Interest Payable
Bal.	$0						Bal.	$0
Dec. 31	$2,600
Bal.	$2,600
Office Supplies					Unearned Revenue
Bal.	$0						Bal.	$0
Dec. 10	$2,000						Dec. 31	$1,270
Bal.	$2,000				Bal.	$1,270
Prepaid Insurance					Notes Payable
Bal.	$0						Bal.	$0
Dec. 1	$6,000						Dec. 19	$25,000
Bal.	$6,000				Bal.	$25,000
Land					Common Stock
Bal.	$0						Bal.	$0
Dec. 9	$16,000						Dec. 1	$53,000
Bal.	$16,000				Bal.	$53,000
Equipment					Dividends
Bal.	$0				Dec. 31	$2,500
Dec. 1	$13,500
Bal.	$13,500
Accumulated Depr. - Equipment					Depreciation Expense - Equipment
		Bal.	$0
Rent Expense					Utilities Expense
Dec. 31	$2,100				Dec. 28	$360
Advertising Expense					Supplies Expense
Dec. 22	$2,300
Insurance Expense					Interest Expense

Note: There are no ending balances for all revenue and expense accounts because they are not transferred to next period but closed in current period after making all the adjustments.