Scribd Logo
Upload

Welcome to Scribd!

  • 94 views

    HW Chapter 2

    Uploaded by

    KHANH Du Ngoc
    1) The owner invested $40,000 cash into the business. 2) Prepaid expenses for rent, insurance, and supplies were purchased totaling $26,720. 3) Various business transactions occurred including the purchase of equipment, payment of expenses, and collection of revenue totaling $20,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    HW Chapter 2

    Uploaded by

    KHANH Du Ngoc
    94 views20 pages
    1) The owner invested $40,000 cash into the business. 2) Prepaid expenses for rent, insurance, and supplies were purchased totaling $26,720. 3) Various business transactions occurred including the purchase of equipment, payment of expenses, and collection of revenue totaling $20,000.

    Original Description:

    PA

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) The owner invested $40,000 cash into the business. 2) Prepaid expenses for rent, insurance, and supplies were purchased totaling $26,720. 3) Various business transactions occurred including the purchase of equipment, payment of expenses, and collection of revenue totaling $20,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    94 views20 pages

    HW Chapter 2

    Uploaded by

    KHANH Du Ngoc
    1) The owner invested $40,000 cash into the business. 2) Prepaid expenses for rent, insurance, and supplies were purchased totaling $26,720. 3) Various business transactions occurred including the purchase of equipment, payment of expenses, and collection of revenue totaling $20,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 20

    SOLUTIONS TO PROBLEMS

    PROBLEM 2-1A

    J1
    Date Account Titles and Explanation Re Debit Credit
    f.
    Mar. Cash 20,00
    0
    1
    Owner’s Capital 20,000
    (Owner’s investment of cash
    in business)

    Land 12,00
    3 0
    Buildings 2,000
    Equipment 1,000
    Cash 15,000
    (Purchased Rainbow’s Golf
    Land)

    Advertising Expense 900


    5
    Cash 900
    (Paid for advertising)

    Prepaid Insurance 600


    6
    Cash 600
    (Paid for one-year insurance
    policy)

    Equipment 1,050
    10
    Accounts Payable 1,050
    (Purchased equipment on
    account)

    Cash 1,100
    18
    Service Revenue 1,100
    (Received cash for services
    performed)

    Cash 1,500
    19
    Unearned Service Revenue 1,500
    (Received cash for coupon
    books sold)
    PROBLEM 2-1A (Continued)

    Date Account Titles and Explanation Ref Debit Credit


    .
    Mar. Owner’s Drawings 800
    2 Cash 800
    5 (Withdrew cash for
    personal
    use)

    3 Salaries and Wages Expense 250


    0 Cash 250
    (Paid salaries)

    3 Accounts Payable 1,050


    0 Cash 1,050
    (Paid creditor on account)

    3 Cash 2,700
    1 Service Revenue 2,700
    (Received cash for services
    performed)
    PROBLEM 2-2A

    (a)
    J1
    Date Account Titles and Explanation Ref. Debit Credit
    Apr. Cash 101 20,00
    0
    1
    Owner’s Capital 301 20,000
    (Owner’s investment of cash
    in business)

    No entry—not a transaction.
    1

    Rent Expense 729 1,100


    2
    Cash 101 1,100
    (Paid monthly office rent)

    Supplies 126 4,000


    3
    Accounts Payable 201 4,000
    (Purchased supplies on
    account from Dazzle
    Company)

    Accounts Receivable 112 5,100


    10
    Service Revenue 400 5,100
    (Billed clients for services
    performed)

    Cash 101 1,000


    11
    Unearned Service Revenue 209 1,000

    (Received cash for future


    service)

    Cash 101 2,100


    20
    Service Revenue 400 2,100
    (Received cash for services
    performed)
    Salaries and Wages Expense 726 2,800
    30
    Cash 101 2,800
    (Paid monthly salary)
    PROBLEM 2-2A (Continued)

    Date Account Titles and Explanation Ref. Debit Credit


    s
    Apr. Accounts Payable 201 2,400
    30
    Cash 101 2,400
    (Paid Dazzle Company on
    account)

    (b)

    Cash No. 101


    Date Explanation Ref Debit Credi Balanc
    . t e
    Apr. 1 J1 20,00 20,000
    0
    2 J1 18,900
    1,100
    1 J1 19,900
    1 1,000
    2 J1 2,100 22,000
    0
    3 J1 2,800 19,200
    0
    3 J1 16,800
    0 2,400

    Accounts Receivable No. 112


    Date Explanation Ref Debit Credi Balanc
    . t e
    Apr. J1 5,100 5,100
    1
    0

    Supplies No. 126


    Date Explanation Ref Debit Credi Balanc
    . t e
    Apr. 3 J1 4,000 4,000
    Accounts Payable No. 201
    Date Explanation Ref Debit Credi Balanc
    . t e
    Apr. 3 J1 4,000 4,000
    3 J1 2,400 1,600
    0

    Unearned Service Revenue No. 209


    Date Explanation Ref Debit Credi Balanc
    . t e
    Apr. J1 1,000 1,000
    1
    1
    PROBLEM 2-2A (Continued)

    Owner’s Capital No. 301


    Date Explanation Ref Debit Credit Balance
    .
    Apr. 1 J1 20,000 20,000

    Service Revenue No. 400


    Date Explanation Ref Debit Credit Balance
    .
    Apr. J1 5,100 5,100
    1
    0
    2 J1 2,100 7,200
    0

    Salaries and Wages Expense No. 726


    Date Explanation Ref Debit Credit Balance
    .
    Apr. J1 2,800 2,800
    3
    0

    Rent Expense No. 729


    Date Explanation Ref Debit Credit Balanc
    . e
    Apr. 2 J1 1,100 1,100

    (c) EMILY VALLEY, DENTIST


    Trial Balance
    April 30, 2017

    Debit Credit
    Cash $16,800
    Accounts Receivable 5,100
    Supplies 4,000
    Accounts Payable $ 1,600
    Unearned Service Revenue 1,000
    Owner’s Capital 20,000
    Service Revenue 7,200
    Salaries and Wages Expense 2,800
    Rent Expense 1,100
    $29,800 $29,800
    PROBLEM 2-3A

    (a)
    Trans Account Titles and Explanation Debit Credit
    .
    1. Cash 40,000
    Owner’s Capital 40,000

    2. No entry—Not a transaction.

    3. Prepaid Rent
    24,000
    Cash 24,000

    4. Equipment
    30,000
    Cash 10,000
    Accounts Payable 20,000

    5. Prepaid Insurance
    1,800
    Cash 1,800

    6. Supplies 420
    Cash 420

    7. Supplies
    1,500
    Accounts Payable 1,500

    8. Cash 8,000
    Accounts Receivable
    12,000
    Service Revenue 20,000

    9. Accounts Payable
    400
    Cash 400

    10. Cash
    3,000
    Accounts Receivable 3,000

    11. Utilities Expense


    380
    Accounts Payable 380
    PROBLEM 2-3A (Continued)

    Trans Account Titles and Explanation Debit Credit


    .
    12. Salaries and Wages Expense 6,100
    Cash 6,100

    (b)
    Cash
    (1) 40,000
    (3) 24,000
    (4) 10,000
    (5) 1,800
    (6) 420
    (8) 8,000
    (9) 400
    (10) 3,000
    (12) 6,100
    8,280

    Accounts Receivable
    (8) 12,000
    (10) 3,000
    9,000

    Supplies
    (6) 420
    (7) 1,500
    1,920

    Prepaid Insurance
    (5) 1,800
    1,800

    Prepaid Rent
    (3) 24,000
    24,000
    Equipment
    (4) 30,000
    30,000
    Accounts Payable
    (4) 20,000
    (7) 1,500
    (9) 400
    (11) 380
    21,480

    Owner’s Capital
    (1) 40,000
    40,000

    Service Revenue
    (8) 20,000
    20,000

    Salaries and Wages Expense


    (12) 6,100
    6,100

    Utilities Expense
    (11) 380
    380
    PROBLEM 2-3A (Continued)

    (c) MAQUOKETA SERVICES


    Trial Balance
    May 31, 2017

    Debit Credit
    Cash $ 8,280
    Accounts Receivable 9,000
    Supplies 1,920
    Prepaid Insurance 1,800
    Prepaid Rent 24,000
    Equipment 30,000
    Accounts Payable $21,480
    Owner’s Capital 40,000
    Service Revenue 20,000
    Salaries and Wages Expense 6,100
    Utilities Expense 380
    $81,480 $81,480
    PROBLEM 2-4A

    AVTAR SANDHU CO.


    Trial Balance
    June 30, 2017

    Debit Credit
    Cash ($3,340 + $270) $ 3,610
    Accounts Receivable ($2,812 – $270) 2,542
    Supplies ($1,200 – $710) 490
    Equipment ($2,600 + $710) 3,310
    Accounts Payable ($3,666 – $306 – $360) $ 3,000
    Unearned Service Revenue 1,100
    Owner’s Capital 8,000
    Owner’s Drawings ($800 + $600) 1,400
    Service Revenue ($2,480 + $882) 3,362
    Salaries and Wages Expense
    ($3,200 + $700 – $600) 3,300
    Utilities Expense 810
    $15,462 $15,462

    You might also like