Question

Consider the following transactions for Mittel Corporation:

Issue common stock for $14,000.
Purchase equipment for $11,400 cash.
Pay employees’ salaries of $3,900.
Provide services to customers for $6,500 cash.
Required:
1. Post these transactions to the cash T-account. Assume the balance of cash before these transactions is $4,000.

Answer 1

Step-by-step explanation:

The preparation of the Cash T-account is presented below:

Cash Account

Particulars Amount Particulars Amount

Beginning balance $4,000 Equipment $11,400

Common stock $14,000 Salaries expense $3,900

Service revenue $6,500 Ending balance $9,200

(Balancing figure)

Total $24,500 Total $24,500