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Description: Step-by-step construction of a T-Account Ledger for a first year University student in a Financial Accounting subject. An exercise guide is provided.
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Exercise 3
...
The company’s balance sheet accounts had the following
balances on September 1, 20X0, the beginning of a fiscal year:
Ithaca Espresso
Balance Sheet Accounts, September 1, 20x0
Cash
Accounts receivable
Merchandise inventory
Prepaid rent
Store equipment
Accumulated depreciation, store equipment
Accounts payable
Paid-in capital
Retained earnings
13,000
5,200
77,800
4,000
21,000
6,150
40,000
30,000
44,850
121,000 121,000
Summarized transactions for September were as follows:
a
...
b
...
c
...
d
...
e
...
f
...
g
...
h
...
i
...
j
...
(Rent was paid quarterly in advance, $6,000 per
quarter
...
)
k
...
Required
1
...
2
...
3
...
Key your postings by transaction letter
...
Prepare the trial balance , then an income statement for September and a balance sheet
as of September 30, 20X0
Description: Step-by-step construction of a T-Account Ledger for a first year University student in a Financial Accounting subject. An exercise guide is provided.