Recording Transactions Directly in T Accounts; Trial Balance

question 31

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 capital stock 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,Inc.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.Mollie agreed to make payment to Spokes,Inc.within 10 days.
(E.)Paid in full the account payable to Spokes,Inc.
(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:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with a reduction in per-unit cost as the size of a facility and the usage levels of other factors of production increase.

Cubic Cost Function

A cost function where total costs are a cubic function of output levels, allowing for complex relationships between cost and output.

Cost Curves

Graphs that depict the relationship between the cost of producing goods and the quantity of goods produced.

ATC Curve

Average Total Cost (ATC) Curve represents the per-unit cost of production, which includes both fixed and variable costs, plotted against the level of output.