Question

t-accounts

assets = liabilities + equity

contributed capital + retained earnings

cash = salaries payable + common stock - dividends + service revenue - salaries expense
29,000 | 21,000
700 | 4,600
29,000 | 1,900
4,000 | 1,400
2,100 | 700
19,000 | 2,100
4,600
900 | 5,400
notes payable
property tax expense
1,900 | 5,400 | 40,000
700
2,360
accounts receivable
advertising expense
4,000 | 900
260
land
21,000
building
40,000
equipment
19,000

Explanation:

Calculate Cash Account Balance

Using the Cash Account Posting and Debit and Credit Balances knowledge points

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$$

Calculate Salaries Expense Balance

Using the Salaries Expense Posting and Debit and Credit Balances knowledge points

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$$

Calculate Remaining Account Balances

We compute the remaining balances for all other active T-accounts:

• Accounts Receivable: Debit balance of \(4,000 - 900 = 3,100\)
• Land: Debit balance of \(21,000\)
• Building: Debit balance of \(40,000\)
• Equipment: Debit balance of \(19,000\)
• Salaries Payable: Credit balance of \(4,600 - 700 = 3,900\)
• Notes Payable: Credit balance of \(40,000 - 5,400 = 34,600\)
• Common Stock: Credit balance of \(29,000 + 19,000 = 48,000\)
• Dividends: Debit balance of \(1,900\)
• Service Revenue: Credit balance of \(4,000 + 2,100 = 6,100\)
• Property Tax Expense: Debit balance of \(700\)
• Advertising Expense: Debit balance of \(260\)

Verify Accounting Equation Equilibrium

We verify that total assets equal total liabilities plus equity:

$$
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$$

The accounting equation balances perfectly.

Answer:

Based on the T-accounts shown in the image, the calculated balances for each account are as follows:

Assets

• Cash: \(640\) (Debit)
• Accounts Receivable: \(3,100\) (Debit)
• Land: \(21,000\) (Debit)
• Building: \(40,000\) (Debit)
• Equipment: \(19,000\) (Debit)

Liabilities

• Salaries Payable: \(3,900\) (Credit)
• Notes Payable: \(34,600\) (Credit)

Equity

• Common Stock: \(48,000\) (Credit)
• Dividends: \(1,900\) (Debit)
• Service Revenue: \(6,100\) (Credit)
• Salaries Expense: \(6,000\) (Debit)
• Property Tax Expense: \(700\) (Debit)
• Advertising Expense: \(260\) (Debit)