Consider the following transactions.

1. Receive cash from customers, $16,700.

2. Pay cash for employee salaries, $10,700.

3. Pay cash for rent, $4,700.

4. Receive cash from sale of equipment, $9,700.

5. Pay cash for utilities, $2,700.

6. Receive cash from a bank loan, $5,700.

7. Pay cash for advertising, $8,700.

8. Purchase supplies on account, $4,700.

Required:

Post transactions to the Cash T-account and calculate the ending balance.

Answer and Explanation:

The posting of transactions to the cash t - account is shown below:

Cash Account

Particulars Amount Particulars Amount

Beginning balance $0 Salaries expense $10,700

Accounts receivable $16,700 Rent expense $4,700

Sale of equipment $9,700 Utilities expense $2,700

Bank loan $5,700 Adverting expense $8,700

Ending balance (Bal. fig) $5,300

Total $32,100 Total $32,100

We assume that the beginning balance of cash is zero and according to that we find out the closing balance of cash