Consider the following account starting balances and transactions involving thes

Question

Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Accounts Payable is $1,500 The starting balance of Cash is $9,700 The starting balance of Debt is $2,900 The starting balance of Inventory is $3,800 1. Buy $15 worth of manufacturing supplies on credit 2. Borrow $60 from a bank 3. Pay $7 owed to a supplier What is the final amount in Accounts Payable?

Explanation / Answer

Account Payable Particulars Amt.($) Particulars Amt.($) To cash                  7 By bablance b/d         1,500 By inventory               15 To balance c/d          1,508          1,515         1,515 Debt Particulars Amt.($) Particulars Amt.($) By bablance b/d         2,900 By Cash               60 To balance c/d          2,960          2,960         2,960 Cash Particulars Amt.($) Particulars Amt.($) To balance b/d          9,700 By Accounts payable                 7 To Debt                60 By balance c/d         9,753          9,760         9,760 Inventory Particulars Amt.($) Particulars Amt.($) To balance b/d          3,800 To Accounts payable                15 By balance c/d         3,815          3,815         3,815

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