Consider the following transactions. Receive cash from customers, $16,000. Pay cash for employee salaries, $10,000. Pay cash for rent, $4,000. Receive cash from sale of equipment, $9,000. Pay cash for utilities, $2,000. Receive cash from a bank loan, $5,000. Pay cash for advertising, $8,000. Purchase supplies on account, $4,000.

The ending balance is $22,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Consider the following transactions. Receive cash from customers, $16,000. Pay cash for employee salaries, $10,000. Pay cash for rent, $4,000. Receive cash from sale of equipment, $9,000. Pay cash for utilities, $2,000. Receive cash from a bank loan, $5,000. Pay cash for advertising, $8,000. Purchase supplies on account, $4,000.

Required: Post transactions to the Cash T-account and calculate the ending balance. The beginning balance in the Cash T-accow1t is $16,000.

The answer to the question is now given as follows:

In the Cash T-account, only transactions involving cash receipts and payments are recorded. While cash receipts are posted on the debit side, cash payments are posted on the credit side of the Cash T-account. The difference between the total of the debit side and the credit side of the Cash T-account gives the ending balance.

Note: See the attached excel file for Preparation of Cash T-Account and Calculation of the ending balance.

In the attached excel file, the ending balance is $22,000.

Note that "Purchase supplies on account, $4,000" is not included in the Cash T-account because it is not a cash transaction.

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