IDNLearn.com: Your go-to resource for finding expert answers. Whether it's a simple query or a complex problem, our community has the answers you need.
Answer:
Metlock, Inc.
T-accounts:
Common Stock
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Aug. 10 Service Revenue 1,400
Aug. 12 Equipment 1,540
Aug. 31 Accounts receivable 750
Service Revenue
Date Account Titles Debit Credit
Aug. 10 Cash 1,400
Aug. 25 Accounts receivable 2,570
Equipment
Date Account Titles Debit Credit
Aug. 12 Cash 1,540
Notes Payable 4,060
Accounts Receivable
Date Account Titles Debit Credit
Aug. 25 Service Revenue 2,570
Aug. 31 Cash 750
Explanation:
Common stock of $9,000 was posted on the debit side as it appeared first. This follows the normal order of recording transactions in the journal. The accounts to be debited are recorded first before the accounts to be credited. However, this entry appears abnormal. Cash of $9,000 should have appeared first in the journal before the Common Stock. Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.