Question & Answer: Assume the following T-accounts reflect Belle Co.'s general ledger and that seven transactions a through g are posted to them. Provide a sh…..

Exercise 2-13 Assume the following T-accounts reflect Belle Co.s general ledger and that seven transactions a through g are posted to them. Provide a short description of each transaction. Include the amounts in your descriptions. Interpreting and describing transactions from T-accounts Automobiles A1 6,000 (b) 4,500 (c) 12,000 4.800 900 1,600 (a) Accounts Payable 820 () 1,600 (d) 10,000 Office Supplies Common Stock 25,600 900 300 Delivery Services Revenue Prepaid Insurance 4,500 4,800 Gas and Oil Expense Equipment 7,600 9,700 820

Assume the following T-accounts reflect Belle Co.’s general ledger and that seven transactions a through g are posted to them. Provide a short description of each transaction. Include the amounts in your descriptions. Interpreting and describing transactions from T-accounts

Expert Answer

JOURNAL ENTRIES :

DATE	ACCOUNTS & EXPLANATION	DEBIT	CREDIT

A)	Cash a/c	6000
	Equipment a/c	7600
	Automobile a/c	12000
	Common stock a/c		25600
	(To record issue of common stock with exchange of cash, equipment, automobile)

B)	Prepaid insurance a/c	4800
	Cash a/c		4800
	(To record prepaid insurance paid)

C)	Office supplies a/c	900
	Cash a/c		900
	(To record office supplies purchased)

D)	Office supplies a/c	300
	Equipment a/c	9700
	Account payable a/c		10000
	(To record office supplies and equipment purchased on account)

E)	Cash a/c	4500
	Delivery service revenue a/c		4500
	(To record delivery service revenue received)

F)	Account payable a/c	1600
	Cash a/c		1600
	(To record cash paid to creditors)

G)	Gas and oil expenses a/c	820
	Cash a/c		820
	(To record gas and oil expenses paid)

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