Recording Transactions in T Accounts; Trial Balance

question 24

Essay

Recording transactions in T accounts; trial balance
On May 15,George Manny began a new business,called Sounds,Inc.,a recording studio to be rented out to artists on an hourly or daily basis.The following six transactions were completed by the business during May:
(A.)Issued to Manny 5,000 shares of capital stock in exchange for his investment of $200,000 cash.
(B.)Purchased land and a building for $410,000,paying $100,000 cash and signing a note payable for the balance.The land was considered to be worth $310,000 and the building $100,000.
(C.)Installed special insulation and soundproofing throughout most of the building at a cost of $120,000.Paid $32,000 cash and agreed to pay the balance in 60 days.Manny considers these items to be additional costs of the building.
(D.)Purchased office furnishings costing $18,000 and recording equipment costing $88,400 from Music Supplies.Sounds paid $28,000 cash with the balance due in 30 days.
(E.)Borrowed $180,000 from a bank by signing a note payable.
(F.)Paid the full amount of the liability to Music Supplies arising from the purchases in D above.
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 May 31 by completing the form provided.

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Definitions:

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