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ACC557 Week 2 Homework
Exercise 2-6
a. 1. Increase the asset Cash, increase the liability Notes Payable.2. Increase the asset Equipment, decrease the asset Cash.3. Increase the asset Supplies, increase the liability Accounts Payable.
b. 1. Cash ……………………………………………………………….... 5,000Notes Payable................................................................. 5,000
2. Equipment ................................................................................ 2,500Cash................................................................................. 2,500
3. Supplies..................................................................................... 450Accounts Payable……………………………………….
450
Exercise 2-9a.
Cash
Aug. 1 5,000 Aug. 12 1,00010 2,700
31 850
Balance 7,550
Accounts Receivable
Aug. 25 1,600 Aug. 31 850
Balance 750
Equipment
Aug. 12 5,000
Notes Payable
Aug. 12 4,000
Common Stock
Aug.1 5,000
Service Revenue
Aug.10 2,700 25 1,600
Balance 4,300
(b) ROBERTA MENDEZ, INVESTMENT BROKERTrial Balance
August 31, 2014
Debit Credit
Cash.................................................................................................... $ 7,550Accounts Receivable.......................................................................... 750Equipment.......................................................................................... 5,000Notes Payable..................................................................................... $ 4,000Common Stock................................................................................... 5,000Service Revenue................................................................................. 4,300
$13,300 $13,300
Exercise 2-11 Debit Credit
Oct. 1 Cash............................................................................ 5,000Common Stock........................................................... 5,000 (Issued shares of stock for cash)
Oct. 10 Cash............................................................................ 650Service Revenue......................................................... 650 (Received cash for services provided)
Oct. 10 Cash.................................................................................... 3,000Notes Payable............................................................. 3,000 (Obtained loan from bank)
Oct. 20 Cash.................................................................................... 500Accounts Receivable.................................................. 500
(Received cash in payment of account)
Oct. 20 Accounts Receivable........................................................... 940Service Revenue......................................................... 940
(Billed clients for services provided)
b.
Sparks Co. Trial BalanceOctober 31, 2014
Debit Credit
Cash.............................................................................................. $ 8,170Accounts Receivable.................................................................... 1,240Supplies........................................................................................ 400Equipment .................................................................................... 2,000Notes Payable............................................................................... $ 3,000Accounts Payable......................................................................... 500Common Stock............................................................................. 7,000Dividends...................................................................................... 300Service Revenue........................................................................... 2,390Salaries and Wages Expense........................................................ 500Rent Expense................................................................................ 280
$12,890 $12,890
Problems P2-2A
(a)
. Debit Credit
May 1 Cash........................................................................... 20,000Common Stock.................................................. 20,000 (Issued shares of stock for cash)
2 No entry—not a transaction.
3 Supplies..................................................................... 1,500Accounts Payable.............................................. 1,500 (Purchased supplies on account)
7 Rent Expense............................................................. 900Cash................................................................... 900 (Paid office rent)
11 Accounts Receivable................................................. 2,800Service Revenue................................................ 2,800 (Billed client for services provided)
12 Cash ........................................................................... 3,500Unearned Service Revenue............................... 3,500 (Received cash for future services)
17 Cash ........................................................................... 1,200Service Revenue................................................ 1,200 (Received cash for services provided)
31 Salaries and Wages Expense..................................... 2,000Cash................................................................... 2,000 (Paid salaries)
31 Accounts Payable ($1,500 X 40%)..............................Cash................................................................. (Paid creditor on account)
600600
(b)
Cash
Date Debit Credit Balance
May 1 20,000 20,0007 900 19,100
12 3,500 22,60017 1,200 23,80031 2,000 21,80031 600 21,200
Accounts Receivable
Date Debit Credit Balance
May 11 2,800 2,800
Supplies
Date Debit Credit Balance
May 3 1,500 1,500
Accounts Payable
Date Explanation Debit Credit Balance
May 3 1,500 150031 600 900
Unearned Service Revenue
Date Debit Credit Balance
May 12 3,500 3,500
Common Stock
Date Debit Credit Balance
May 1 20,000 20,000
Service Revenue
Date Debit Credit Balance
May 1117
2,800 1,200
2,800 4,000
Salaries and Wages Expense
Date Debit Credit Balance
May 31 2,000 2,000
Rent Expense
Date Debit Credit Balance
May 7 900 900
(c) KARA SHIN, INC.Trial BalanceMay 31, 2014
Debit Credit
Cash.............................................................................................. $21,200Accounts Receivable.................................................................... 2,800Supplies........................................................................................ 1,500Accounts Payable......................................................................... $ 900Unearned Service Revenue........................................................... 3,500Common Stock............................................................................. 20,000Service Revenue........................................................................... 4,000Salaries and Wages Expense........................................................ 2,000Rent Expense................................................................................ 900
$28,400 $28,400
Chapter 2 homework screenshot
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a
Exercise 2-6
Your answer is correct.
Elvira Industries had the following transactions.
1. Borrowed $5,000 from the bank by signing a note.
2. Paid $2,500 cash for a computer.
3. Purchased $450 of supplies on account.
(a) Indicate what accounts are increased and decreased by each transaction.
Debit Analysis Credit Analysis
1.
Increase the asset
res_EAT_131555Cash
Increase the liability
res_EAT_131555Notes Payable
2.
Increase the asset
res_EAT_131555Equipment
Decrease the asset
res_EAT_131555Cash
3.
Increase the asset
res_EAT_131555Supplies
Increase the liability
res_EAT_131555Accounts Pay
(b) Journalize each transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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No.
Account Titles and Explanation
Debit Credit
1. Cash 5000
Notes Payable 5000
2. Equipment 2500
Cash 2500
3. Supplies 450
Accounts Pay 450
Question Attempts: 1 of 3 used
.
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a
Exercise 2-9
Selected transactions from the journal of Roberta Mendez, investment broker, are presented below.
Date Account Titles and ExplanationRef
.Debit
Credit
Aug.1 Cash 5,000
Common Stock 5,000
(Investment of cash for stock)
10 Cash 2,700
Service Revenue 2,700
(Received cash for services provided)
12 Equipment 5,000
Cash 1,000
Notes Payable 4,000
(Purchased office equipment for cash and notes payable)
25 Accounts Receivable 1,600
Service Revenue 1,600
(Billed clients for services provided)
31 Cash 850
Accounts Receivable 850
(Receipt of cash on account)
(a)
Your answer is correct.
Post the transactions to T accounts. (Post entries in the order displayed in the problem statement.)
Cash
Aug. 1
res_EAT_1315555000
Aug. 12
res_EAT_1315551000
Aug. 10
res_EAT_1315552700
Aug. 31
res_EAT_131555850
Bal.
res_EAT_1315557550
Accounts Receivable
Aug. 25
res_EAT_1315551600
Aug. 31
res_EAT_131555850
Bal.
res_EAT_131555750
Equipment
Aug. 12
res_EAT_1315555000
Notes Payable
Aug. 12
res_EAT_1315554000
Common Stock
Aug. 1
res_EAT_1315555000
Service Revenue
Aug. 10
res_EAT_1315552700
Aug. 25
res_EAT_1315551600
Bal.
res_EAT_1315554300
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(b)
Your answer is correct.
Prepare a trial balance at August 31, 2014.
ROBERTA MENDEZ, INVESTMENT BROKER Trial Balance
August 31, 2014
Debit Credit
Cash$
7550$
Accounts Rec 750
Equipment 5000
Notes Payable 4000
Common Stock 5000
Service Reven 4300
$13300
$13300
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a
Exercise 2-11
Presented below is the ledger for Sparks Co.
Cash
No. 101
10/1 5,000 10/4 400
10/10 650 10/12 1,500
10/10 3,000 10/15 280
10/20 500 10/30 300
10/25 2,000 10/31 500
Accounts Receivable
No. 112
10/6 800 10/20 500
10/20 940
Supplies
No. 126
10/4 400
Equipment
No. 157
10/3 2,000 Balance
Notes Payable
No. 200
10/10 3,000
Accounts Payable
No. 201
10/12 1,500 10/3 2,000
Common Stock
No. 311
10/1 5,000
10/25 2,000
Dividends
No. 332
10/30 300
Service Revenue
No. 400
10/6 800
10/10 650
10/20 940
Salaries and Wages Expense
No. 726
10/31 500
Rent Expense
No. 729
10/15 280
(a)
Your answer is correct.
Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20 and provide
explanations for each. (Record entries in the order displayed in the T-Accounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Date Account Titles and Explanation Debit Credit
Oct. 1
09649515_0_433Cash 5000
Common Stock 5000
(Issued shares of stock for cash)
Oct. 10
9649515_0_4331Cash 650
Service Reven 650
(Received cash for services provided)
Oct. 10
9649515_0_4331Cash 3000
Notes Payable 3000
(Obtained loan from bank)
Oct. 20
9649515_0_4331Cash 500
Accounts Rec 500
(Received cash in payment of account)
Oct. 20
9649515_0_4331Accounts Rec 940
Service Reven 940
(Billed clients for services provided)
(b)
Your answer is correct.
Determine the October 31 balance for each of the accounts above, and prepare a trial balance at October 31, 2014.
SPARKS CO.Trial Balance
October 31, 2014
Debit Credit
Cash$
8170$
Accounts Rec 1240
Supplies 400
Equipment 2000
Notes Payable 3000
Accounts Pay 500
Common Stock 7000
Dividends 300
Service Reven 2390
Salaries and W 500
Rent Expense 280
$12890
$12890
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a
Problem 2-2A
Kara Shin is a licensed CPA. During the first month of operations of her business, Kara Shin, Inc., the following events and transactions occurred.
May 1
Stockholders invested $20,000 cash in exchange for common stock.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $1,500 of supplies on account from Hartig Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a tax assignment and billed client $2,800 for services provided.
12 Received $3,500 advance on a management consulting engagement.
17 Received cash of $1,200 for services completed for Lucille Co.
31 Paid secretary-receptionist $2,000 salary for the month.
31 Paid 40% of balance due Hartig Supply Company.
Kara uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(a)
Your answer is correct.
Journalize the transactions. (Record entries in the order displayed in the problem statement. If no entry is required, select "No entry" for the account titles and enter 0 for the
amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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DateAccount Titles and Explanation
Debit Credit
May 1
res_EAT_131555Cash 20000
Common Stock 20000
May 2
res_EAT_131555No Entry 0
No Entry 0
May 3
res_EAT_131555Supplies 1500
Accounts Pay 1500
May 7
res_EAT_131555Rent Expense 900
Cash 900
May 11
res_EAT_131555Accounts Rec 2800
Service Reven 2800
May 12
res_EAT_131555Cash 3500
Unearned Ser 3500
May 17
res_EAT_131555Cash 1200
Service Reven 1200
May 31
res_EAT_131555Salaries and W 2000
Cash 2000
May 31
res_EAT_131555Accounts Pay 600
Cash 600
Attempts: 1 of 3 used
(b)
Your answer is correct.
Post to the ledger accounts. (Post the entries into ledger in the order displayed in Part 1.)
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Cash No. 101
DateExplanation
Ref
Debit Credit Balance
May 1
00247968_0_664J1 20000 20000
May 7
00247968_0_664J1 900 19100
May 12
00247968_0_664J1 3500 22600
May 17
00247968_0_664J1 1200 23800
May 31
00247968_0_664J1 2000 21800
May 31
00247968_0_664J1 600 21200
Accounts Receivable No. 112
DateExplanation
Ref
Debit Credit Balance
May 11
00247968_0_664J1 2800 2800
Supplies No. 126
DateExplanation
Ref
Debit Credit Balance
May 3
00247968_0_664J1 1500 1500
Accounts Payable No. 201
DateExplanation
Ref
Debit Credit Balance
May 3
00247968_0_664J1 1500 1500
May 31
Attempts: 3 of 3 used
(c)
Your answer is correct.
Prepare a trial balance on May 31, 2014.
KARA SHIN, INC.Trial BalanceMay 31, 2014
Debit Credit
Cash$
21200$
Accounts Rec 2800
Supplies 1500
Accounts Pay 900
Unearned Ser 3500
Common Stock 20000
Service Reven 4000
Salaries and W 2000
Rent Expense 900
$28400
$28400
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