Recording Transactions Directly in T Accounts; Trial Balance

question 69

Essay

Recording transactions directly in T accounts; trial balance
On July 20, Mollie Rose began a new business called MR Printing, which provides typing, duplicating, and printing services. The following six transactions were completed by the business during July.
(A.) Issued to Rose 1,000 shares of share capital in exchange for her investment of $200,000 cash.
(B.) Purchased land and a small building for $450,000, paying $165,000 cash and signing a note payable for the balance. The land was considered to be worth $240,000 and the building $210,000.
(C.) Purchased office equipment for $30,000 from Quality Interiors Limited Paid $17,000 cash and agreed to pay the balance within 60 days.
(D.) Purchased a motorcycle on credit for $3,400 to be used for making deliveries to customers and agreed to make payment to Spokes Limited within 10 days.
(E.) Paid in full the account payable to Spokes Limited
(F.) Borrowed $30,000 from a bank and signed a note payable due in six months.
Instructions
(A.) Record the above transactions directly in the T accounts below. Identify each entry in a T account with the letter shown for the transaction. This exercise does not call for the use of a journal.
(B.) Prepare a trial balance at July 31 by completing the form provided.

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Definitions:

Water Holes

Natural or man-made depressions or excavations where water collects, often serving as a vital source of hydration for wildlife in arid environments.

Economy Primarily

Refers to the main or dominant sector or aspect of an economy that drives economic activity, such as agriculture, manufacturing, or services.

Industrial

Pertaining to industry or manufacturing, characterized by the mass production of goods and the extensive use of machinery and factories.

Division Of Labor

The allocation of different tasks or jobs to different people or groups, typically to improve efficiency and productivity.