T-Account TEST Review
Name: ____________________
DIRECTIONS: Use the following chat of accounts for John’s Marketing Services, owner John
Burke. Complete each transaction, write the debit or credit amounts in each T-account. Complete
the normal balance as the last step.
Cash in Bank
Supplies
Prepaid Insurance
March
1.
2.
2.
11.
12.
14.
18.
19.
25.
26.
27.
28.
29.
29.
Accounts Receivable, Orv Grant
Accounts Payable, D & S Co.
John Burke, Capital
Received cash from owner as an investment, $1,500.00
Paid cash for insurance, $600.00.
Bought supplies on account from D & S, $800.00.
Received cash from sales, $2,200.00
Paid cash for advertising, $150.00
Sold services on account to Orv Grant, $1,700.00.
Paid cash to owner for personal use, $500.00
Received cash on account from Orv Grant, $1,000.00.
Sold services for cash, $900.00.
Performed $750.00 of services for Orv Grant on account.
Ran an ad in the local newspaper. Paid $25 cash.
John Burke withdrew $450.00 for his personal use.
Received a $375.00 check from Orv Grant on account.
Paid monthly rent $1,500, check 1489.
Cash in Bank
(1) 1,500
(11) 2,200
(19) 1,000
(25) 900
(29) 375
John Burke, Withdrawals
Sales
Advertising Expense
Rent Expense
(2) 600
(12) 150
(18) 500
(27)
25
(28) 450
(29) 1,500
Supplies
Prepaid Insurance
(2) 800
(2) 600
BAL. 600
BAL. 800
BAL. 2,750
Accts. Rec. – Orv Grant
(14) 1,700
(26) 750
BAL. 1,075
(19) 1,000
(29) 375
J. Burke, Withdrawals
(18) 500
(28) 450
BAL. 950
Accts. Pay. – D & S Co.
Sales
(11) 2,200
(14) 1,700
(25) 900
(26) 750
BAL. 5,550
J. Burke, Capital
(2) 800
(1) 1,500
BAL. 800
BAL. 1,500
Advertising Expense
Rent Expense
(12) 150
(27) 25
(29) 1,500
BAL. 175
BAL. 1,500
T-Account TEST Review
Name: ____________________
Complete a Trial Balance
Explain in detail, why the totals from the debit and credit totals on the Trial Balance is a different
amount from the Accounting Equation totals.
Explanation something like ~
(must haves are bold & italicized)
The accounting equation calculates the temporary accounts different than the trial balance. The accounting equation
gives a true accurate value of capital because the temporary accounts are absorbed into the capital account which
subtracts the withdrawals and expenses. However, in the trial balance totals withdrawals and expenses are
added to calculate the total debit balance, which equals the difference between the two totals [$7,850 – $5,225 =
$2,625] (950 + 175 + 1,500 = $2,625)

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