week 2 E2-3 - 9. Recorded depreciation expense of $1,600...

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E 2–3 T-accounts and trial balance LO3 Post the journal entries prepared below to T-accounts. Assume that the opening balances in each of the accounts is zero. Prepare a trial balance from the ending account balances. 1. Issued 35,000 shares of common stock in exchange for $350,000 in cash. 2. Purchased equipment at a cost of $59,500. $10,200 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $84,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $192,000. The cost of the goods sold was $65,334. 5. Paid $4,800 in rent on the warehouse building for the month of March. 6. Paid $5,900 to an insurance company for fire and liability insurance for a one- year period beginning April 1, 2006. 7. Paid $65,334 on account for the merchandise purchased in 3. 8. Collected $87,999 from customers on account.
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Unformatted text preview: 9. Recorded depreciation expense of $1,600 for the month on the equipment. Complete every answer box. Cash 3/1 Bal. 1. $350000 $10200 2. 8. $87999 $4800 5. $5900 6. $65334 7. 3/31 Bal. $351765 Accounts Receivable 3/1 Bal. 4. 192,000 $87999 8. 3/31 Bal. 104,001 Prepaid Insurance 3/1 Bal. 6. $5900 3/31 Bal. $5900 Accumulated Depreciation 3/1 Bal. $1600 9. $1600 3/31 Bal. Note Payable 3/1 Bal. $49300 2. $49300 3/31 Bal. Cost of Goods Sold 3/1 Bal. 4. $65334 3/31 Bal. $65334 Depreciation expense 3/1 Bal. 9. $1600 3/31 Bal. $1600 Account Title Debits Credits Cash $351765 Accounts receivable 104,001 Inventory $18666 Prepaid insurance $5900 Equipment $59500 Accumulated depreciation $1600 Accounts payable $18666 Note payable $49300 Common stock $350000 Sales revenue 192,000 Cost of goods sold $65334 Rent expense $4800 Depreciation expense $1600 Totals 611,566 611,566...
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week 2 E2-3 - 9. Recorded depreciation expense of $1,600...

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