I need to make a t account for accounting homework. The statements are from 2009?
Earned revenues for 2009 of 55,000 including 8,000 on credit and 47,000 cash.
Received a 3,000 deposit from hospital to start January 5, 2010.
Purchased supplies on account for future use. 7,000
credit revenue $55,000
Debit A/R $8,000
Debit Cash $47,000
Debit Cash $3,000
Credit Unearned Revenue $3,000
Debit Expense Account $7,000
Credit A/P $7,000
To create a T-account for accounting homework, you will need to understand the basic structure and purpose of a T-account. A T-account is a visual representation of a general ledger account that shows the debit and credit entries associated with it.
Let's start by creating a T-account for the "Revenue" account for the year 2009. Since the statement mentions both cash and credit sales, we'll need to record both of them separately.
1. On the left side of the T-account, write "Revenues." This will be the account title.
2. On the left side of the account, record the cash revenue of $47,000. You can write "Cash" on the left side and "$47,000" on the right side.
3. On the right side of the account, record the credit revenue of $8,000. You can write "Credit" on the left side and "$8,000" on the right side.
Your T-account for "Revenue" would now look like this:
+------------------------+
| Revenue |
|------------------------|
| Cash: $47,000 |
| Credit: $8,000 |
+------------------------+
Now, let's move on to the next transaction regarding the deposit received for January 5, 2010.
1. Create a new T-account titled "Unearned Revenue" or "Liability" on the debit side.
2. Record the deposit received of $3,000 on the left side of the account.
3. Since this is a liability account, the normal balance is on the right side. Write "$3,000" on the right side.
Your T-account for "Unearned Revenue" would now look like this:
+------------------------+
| Unearned Revenue |
|------------------------|
| $3,000 |
+------------------------+
Finally, let's create a T-account for the purchase of supplies on account for future use.
1. Create a new T-account titled "Supplies" on the debit side.
2. Record the purchase of supplies on the right side of the account since this is an increase in the asset.
3. Write "$7,000" on the right side.
Your T-account for "Supplies" would now look like this:
+------------------------+
| Supplies |
|------------------------|
| $7,000 |
+------------------------+
Remember, T-accounts represent a snapshot of transactions, and you can continue adding entries to them as more information becomes available.