Question

required:
post the following journal entries to the t - accounts and compute the ending balance for each account.
january 1 cash 50,000
notes payable 50,000
january 4 equipment 25,000
cash 25,000
january 6 rent expense 500
cash 500
january 15 accounts receivable 10,000
service revenue 10,000
january 25 cash 3,000
accounts receivable 3,000
january 28 land 200,000
cash 10,000
notes payable 190,000
january 30 salaries expense 2,500
cash 2,500
cash
beginning balance 12,000
accounts receivable
beginning balance 6,300

Explanation:

Step1: Calculate cash ending balance

Add cash receipts and subtract cash payments. Initial cash balance is 12,000.
Cash receipts: 50,000 (Jan 1) + 3,000 (Jan 25)
Cash payments: 25,000 (Jan 4) + 500 (Jan 6) + 10,000 (Jan 28) + 2,500 (Jan 30)
Ending cash balance = 12,000+50,000 + 3,000-(25,000 + 500+10,000 + 2,500)
= 12,000+53,000 - 38,000
= 27,000

Step2: Calculate accounts receivable ending balance

Add credit sales and subtract cash received on account. Initial accounts - receivable balance is 6,300.
Credit sales: 10,000 (Jan 15)
Cash received on account: 3,000 (Jan 25)
Ending accounts - receivable balance = 6,300+10,000 - 3,000
= 13,300

Answer:

Cash ending balance: 27,000
Accounts Receivable ending balance: 13,300