Answered

Get comprehensive solutions to your problems with IDNLearn.com. Join our community to receive prompt and reliable responses to your questions from knowledgeable professionals.


Johnson Cleaning Service has the following account balances on December 31, 20X1.

Cash
Equipment
Accounts payable
Elicia Johnson, Capital
$ 76,000
184,000
96,800
163,200

Sagot :

Parrainidn

Based on the type of accounts they are, the proper classification will be:

  • Cash - Debit balance.
  • Equipment - Debit balance.
  • Accounts payable - Credit balance.
  • Capital - Credit balance.

Classifying the balances

The question asks that the above balances are put on the appropriate side of a T Account.

The proper way to do this will be:

Dr.     Account Title         Amount             Account title          Amount   Cr.

        Cash                       $76,000            Accounts payable  $96,800

        Equipment             $184,000           Elica Capital           $163,200

In conclusion, assets go to the left side and capital and liabilities to the right.

Find out more on asset classification at https://brainly.com/question/24534918.

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.