Question

9) (7pts) Record the transactions in the table below. Total the columns to record the balance in each account. a) The owner of the Reynolds Company invested $12,000 cash in the company for its common stock. b) The company purchased supplies for $500 in on account. The company paid an employee $1,000 cash as wages for the period. d) The company completed service work for a client and sent a bill for $2,800. e) The company purchased additional supplies for $430 with cash. f) The company received a partial payment of $800 for the amount owed by the client in transaction d. Record the balances of each account. Remember Debits should equal the credits. CASH ASSETS = LIABILITES + EQUITY Accounts Common + Supplies Dividends + Revenues Payable Stock Accounts Receivable + + Expenses a) = b) c) d) e) f) = Bal 10) Which side of the T-account is the normal balance for an asset account?

Answer 1

ASSETS = LIABILITIES + EQUITY

	CASH	+	Accounts Receivable	+	Supplies	=	Accounts Payable	+	Common Stock	-	Dividends	+	Revenues	-	Expenses
a)	$12000	+	$0	+	$0	=	$0	+	$12000	-	$0	+	$0	-	$0
b)	$0	+	$0	+	$500	=	$500	+	$0	-	$0	+	$0	-	$0
c)	($1000)	+	$0	+	$0	=	$0	+	$0	-	$0	+	$0	-	$1000
d)	$0	+	$2800	+	$0	=	$0	+	$0	-	$0	+	$2800	-	$0
e)	($430)	+	$0	+	$430	=	$0	+	$0	-	$0	+	$0	-	$0
f)	$800	+	($800)	+	$0	=	$0	+	$0	-	$0	+	$0	-	$0
Balance	$11370	+	$2000	+	$930	=	$500	+	$12000	-	$0	+	$2800	-	$1000

Normal balance of an asset account will be having a debit balance and it will be shown on the left side of the T-account.

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