T Accounts, normal Balance, and the Accounting equation

p1. Highland Design Corporation creates radio and television advertising for local businesses in the twin cities. The following alphabetical list shows Highland Design’s account balances as of January 31, 2014:

 

 

Accounts Payable	$    6,420	Equipment	?
Accounts Receivable	78,000	Loans Payable	$  10,000
Cash	18,400	Rent Expense	11,880
Common Stock	30,000	Retained Earnings	44,000
Design Revenue	210,000	Telephone Expense	960
Dividends	36,000	Unearned Revenue	18,000
Â	Â	Wages Expense	124,000

ReQUIReD

Insert the account title at the top of its corresponding T account and enter the dollar amount as a normal balance in the account. Determine the balance of Equipment and then show that the accounting equation is in balance.

 

Stockholders’ Equity

 

Assets     5      Liabilities    1      Common    1 Retained    2     Dividends    1     Revenues     2               Expenses

Stock               Earnings