Question
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
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.
Feedback
1. Match the dates together. Keep the accounting rules in mind. Effectively, you need to perform the steps involved with transaction analysis "backward": Determine which financial statement elements increased or decreased. Then develop possible scenarios that may have taken place to create the transaction.
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 f2b07005201c045_1 | $fill in the blank f2b07005201c045_2 |
Accounts Receivable | fill in the blank f2b07005201c045_3 | fill in the blank f2b07005201c045_4 |
Supplies | fill in the blank f2b07005201c045_5 | fill in the blank f2b07005201c045_6 |
Equipment | fill in the blank f2b07005201c045_7 | fill in the blank f2b07005201c045_8 |
Accounts Payable | fill in the blank f2b07005201c045_9 | fill in the blank f2b07005201c045_10 |
Notes Payable | fill in the blank f2b07005201c045_11 | fill in the blank f2b07005201c045_12 |
Common Stock | fill in the blank f2b07005201c045_13 | fill in the blank f2b07005201c045_14 |
Retained Earnings | fill in the blank f2b07005201c045_15 | fill in the blank f2b07005201c045_16 |
$fill in the blank f2b07005201c045_17 | $fill in the blank f2b07005201c045_18 |
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