The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
a. Tyler invested $6,500 in the bike service from his personal savings account.
b. Bought office equipment for cash, $900.
c. Performed bike service for a customer on account, $1,000.
d. Company cell phone bill received, but not paid, $80.
e. Collected $500 from customer in transaction c.
f. Tyler withdrew $300 for personal use.
Cash 111
a. Capital $6,500 b. Office Equipment $900
e. Accounts receivable $500 f. Tyler’s Withdrawal $300
c/d $5,800
$7,000
$7,000
Tyler’s Capital
311
a. Cash $6,500
Office Equipment
112
b. Cash $900
Bike fees
411
b. Accounts Receivable $1,000
Accounts Receivable
112
c.. Service Revenue $1,000 e. Cash $500
$1,000 c/d $500
$1,000
Telephone Expense
512
d. Phone Payable $80
Accounts Payable 211
e. Phone Expenses $80
Tyler’s Withdrawals 312
f. Cash $300 b. Office Equipment $900
Let me know if I'm right..
Based on the given information, you have correctly recorded the transactions in the T accounts. However, there are a few mistakes in the footings and calculations of the ending balances. Here are the correct ending balances in the T accounts:
Cash:
- Debit: $6,500 (initial investment) + $900 (office equipment) + $1,000 (collected from customer) - $300 (personal withdrawal) = $8,100
- Credit: $500 (paid by the customer) - $80 (phone bill) = $420
Ending balance: Debit $8,100 - Credit $420 = $7,680
Capital (Tyler’s Investment):
- Debit: $6,500 (initial investment)
Ending balance: Debit $6,500
Office Equipment:
- Debit: $900 (equipment purchase)
Ending balance: Debit $900
Accounts Receivable:
- Debit: $1,000 (bike service performed)
- Credit: $500 (collected from the customer)
Ending balance: Debit $1,000 - Credit $500 = $500
Phone Payable:
- Credit: $80 (phone bill received, but not paid)
Ending balance: Credit $80
Accounts Payable:
- Debit: $80 (phone expenses)
Ending balance: Debit $80
Tyler’s Withdrawals:
- Debit: $300 (personal withdrawal)
Ending balance: Debit $300
Please make the necessary corrections to the footings and calculations in order to accurately reflect the ending balances in the T accounts.