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Inferring Transactions from T-Accounts

The following T-accounts summarize the operations of Brilliant Minds Inc., a tutoring service, for April.

Assets

Liabilities

Stockholders Equity

Cash

Accounts Payable

Common Stock

4/1

500

700

4/8

4/9

325

625

4/1

2,000

4/1

4/3

2,000

325

4/9

4/18

1,500

150

4/15

4/24

375

Notes Payable

Retained Earnings

2,000

4/3

4/11

140

675

4/1

Accounts Receivable

1,500

4/18

4/1

700

375

4/24

Supplies

4/1

900

140

4/11

4/15

150

Equipment

4/1

1,200

4/8

700

Required:

1. Conceptual Connection: Assuming that only one transaction occurred on each day (beginning on April 3) and that no dividends were paid, describe the transactions that most likely took place.

April 3: Received cash from a bank loan.

April 8: Purchased equipment with cash.

April 9: Purchased supplies with cash.

April 11: Used supplies (an expense).

April 15: Purchased supplies with cash.

April 18: Received payment of an account receivable from a customer.

April 24: Paid an accounts payable with cash.

2. Prepare a trial balance at April 30. If an amount box does not require an entry, leave it blank.

Brilliant Minds Inc.
Trial Balance
April 30
Account	Debit	Credit
Cash	$fill in the blank d11adbf9c07c013_1	$fill in the blank d11adbf9c07c013_2
Accounts Receivable	fill in the blank d11adbf9c07c013_3	fill in the blank d11adbf9c07c013_4
Supplies	fill in the blank d11adbf9c07c013_5	fill in the blank d11adbf9c07c013_6
Equipment	fill in the blank d11adbf9c07c013_7	fill in the blank d11adbf9c07c013_8
Accounts Payable	fill in the blank d11adbf9c07c013_9	fill in the blank d11adbf9c07c013_10
Notes Payable	fill in the blank d11adbf9c07c013_11	fill in the blank d11adbf9c07c013_12
Common Stock	fill in the blank d11adbf9c07c013_13	fill in the blank d11adbf9c07c013_14
Retained Earnings	fill in the blank d11adbf9c07c013_15	fill in the blank d11adbf9c07c013_16
	$fill in the blank d11adbf9c07c013_17	$fill in the blank d11adbf9c07c013_18