I am having a serious issue with T accounts and classification. It seems very ba
ID: 2435003 • Letter: I
Question
I am having a serious issue with T accounts and classification. It seems very backwards, and I'm hoping someone can clear it up a bit for me. This is what I have worked so far, however I am quite certain (since my T accounts aren't coming out right) that I have a few errors.The question: For each transaction that follows, indicate which account is debited and which account is credited.
May 2 Leon Bear started a computer programming business, Bear’s Programming Service, Inc., by investing $5,000 in exchange for common stock.
Credited: Common Stock Debited: Cash
5 Purchased a computer for $2,500 in cash.
Credited: Cash Debited: Equipment
7 Purchased supplies on credit for $300.
Credited: Accounts Payable Debited: Supplies
19 Received cash for programming services performed, $500.
Credited: Programming Revenue Debited: Cash
22 Received cash for programming services to be performed, $600.
Credited: Unearned Programming Revenue Debited: Accounts Receivable
25 Paid the rent for May, $650.
Credited: Cash Debited: Rent
31 Billed a customer for programming services performed, $250.
Credited: Programming Revenue Debited: Accounts Receivable
Explanation / Answer
May 2 Leon Bear started a computer programming business, Bear’s Programming Service, Inc., by investing $5,000 in exchange for common stock. Credited: Common Stock Debited: Cash 5 Purchased a computer for $2,500 in cash. Credited: Cash Debited: Equipment 7 Purchased supplies on credit for $300. Credited: Accounts Payable Debited: Supplies 19 Received cash for programming services performed, $500. Credited: Programming Revenue Debited: Cash 22 Received cash for programming services to be performed, $600. Credited: Unearned Programming Revenue Debited: Accounts Receivable Cash 25 Paid the rent for May, $650. Credited: Cash Debited: Rent 31 Billed a customer for programming services performed, $250. Credited: Programming Revenue Debited: Accounts Receivable Note : There is only one error on 22nd May entry. But this should not give any difference in T accounts. Please check that you have written the debit amount on debit side and credit amount on credit side on T account. Further check if all amounts are entered correctly, and then the balancing have be done correctly.
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