Question

Consider the following transactions.

1. Receive cash from customers, $15,000.
2. Pay cash for employee salaries, $9,000.
3. Pay cash for rent, $3,000.
4. Receive cash from sale of equipment, $8,000.
5. Pay cash for utilities, $1,000.
6. Receive cash from a bank loan, $4,000.
7. Pay cash for advertising, $7,000.
8. Purchase supplies on account, $3,000.
Required: Post transactions to the Cash T-account and calculate the ending balance. The beginning balance in the Cash T-accow1t is $5,000.

Answer 1

Cash account

Transaction Debit Credit

Big. bal. 5,000

1. 15,000

2. 9,000

3. 3,000

4. 8,000

5. 1,000

6. 4,000

7. 7,000

8. NO ENTRY

Ending bal. 12,000

Transaction number 8 is not included since an accounts payable is created, there is no cash outflow.

Step-by-step explanation: