Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2, Problem 10SE
Journalizing transactions (Learning Objective 3) 10-15 min.
Rosa Anderson opened a dental practice in Spokane, Washington as a corporation. The following transactions took place in August:
| Aug 1 | Sold $50,000 of common stock to Anderson to start the business. |
| 5 | Purchased dental supplies on account. $6,300. |
| 7 | Paid monthly office rent of $1,000. |
| 10 | Provided $3,800 of dental services to patients. Received cash of $1,200 for these services and sent bills to patients for the remainder. |
Using the steps outlined in the five-step transaction analysis, record the transactions in the journal.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
EVALUATION (100%)
Make a video of yourself while answering /discussing in detail the following question. Upload this video
clip to a designated folder in Google classroom:
Lesson 6:
On July 1, 2021, Emilia Clarke opened a small paint shop called "Emilia Clarke Paint Shop." The
following were the transactions during the month:
Date
Transactions
1
3
Invested P100,000 cash in the business
Obtained a P30, 000 loan from a bank.
Purchased equipment for P20,000 cash.
5
7
10
Purchased goods for P20,000 cash. (Use perpetual inventory system)
Sold goods for P10,000 cash. The cost of the goods sold was of P7,000.
Withdrew cash P5,000
15
25
Paid utilities expense amounting to P3,000
Paid P5,000 salaries.
31
Requirements:
a.
Record the transactions in the journal.
b.
Post the transaction in the ledger.
c. Prepare the unadjusted trial balance on July 31, 2021
The Sir Arthur Lewis Community College has recently invited all accounting students in from
the Principles of cost and management accounting (ACC115) class to participate in a business
degree scholarship with an emphasis in accounting. The award for the highest score is a full
scholarship for a degree in Business Administration.
The following information for Good Times Inc. has been provided to assess the proficiency of all
participants in accounting:
Estimates for the period January to June 2021
Purchases ($) Operating
expenses ($)
35,000
20,000
Month
Sales ($)
January
February
March
350,000
200,000
100,000
250,000
300,000
360,000
210,000
120,000
60,000
150,000
180,000
10,000
25,000
30,000
36,000
April
May
June
216,000
Relevant data for the Good Times Inc. operations:
a. Payment for purchases is made as follows 80% in the month of purchase and the balance in
the following the following month. Payments made in the month of purchase are entitled to a
10% discount.
b. Sales are made on…
Create a transaction report for the following February transactions for the Access to Learning nonprofif organization:
- On Feb 1, the nonprofit paid $20,000 in salaries.
- On Feb 2, the nonprofit used $5,000 in cash to pay down its accounts payable by that amount.
- On Feb5, the nonprofit received $5,000 in cash from a foundation, and that donation had previously been recorded in accounts receivable.
- On Feb 10, the executive director talked to a foundation program officer who said that the foundation would be giving a $25000 grant to the nonprofit within the next 2 months.
- On Feb 15, the nonprofit incurred another $1,000 in salaries payable.
- On Feb 20, the nonprofit received $5,000 in cash from pledges.
- On Feb 22, the nonprofit received a second payment of $10,000 from the $50,000 foundation grant.
- On Feb 23, the nonprofit conducted the workshops that were paid for in Jan ($10,000), and payment had been recorded as deferred revenue.
- On Feb 24, the nonprofit made a mortgage…
Chapter 2 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 2 - The order in which assets were listed and...Ch. 2 - Prob. 2DQCh. 2 - How is revenue related to retained earnings?Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Distinguish between journalizing and posting.Ch. 2 - True or false: If the trial balance is in balance,...Ch. 2 - When it is time to prepare the financial...
Ch. 2 - Which sequence of actions correctly summarizes the...Ch. 2 - Prob. 2SCCh. 2 - Prob. 3SCCh. 2 - Prob. 4SCCh. 2 - Prob. 5SCCh. 2 - Which journal entry records obtaining a bank loan...Ch. 2 - RV Wholesale, Inc., paid 1,200 for supplies and...Ch. 2 - Prob. 8SCCh. 2 - Prob. 9SCCh. 2 - Prob. 10SCCh. 2 - Prob. 11SCCh. 2 - Prob. 12SCCh. 2 - Prob. 1SECh. 2 - Prob. 2SECh. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Accounting terminology (Learning Objectives 2, 3, ...Ch. 2 - Effects of debits and credits on accounts...Ch. 2 - Balancing accounts and normal balances (Learning...Ch. 2 - Types of accounts and effects of debits and...Ch. 2 - Re-creating journal entries from T-account...Ch. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Prob. 13SECh. 2 - Accounting terminology (Learning Objectives 1, 2,...Ch. 2 - Prob. 15AECh. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 17AECh. 2 - Balancing accounts and preparing a trial balance...Ch. 2 - Prob. 19AECh. 2 - Prob. 20AECh. 2 - Prob. 21AECh. 2 - Prob. 22AECh. 2 - Prob. 23BECh. 2 - Prob. 24BECh. 2 - Prob. 25BECh. 2 - Balancing accounts and preparing a trial balance...Ch. 2 - Recording transactions and preparing a trial...Ch. 2 - Prob. 28BECh. 2 - Prob. 29BECh. 2 - Prob. 30BECh. 2 - Prob. 31APCh. 2 - Prob. 32APCh. 2 - Journalizing, posting, and preparing a trial...Ch. 2 - Prob. 34APCh. 2 - Preparing a trial balance, income statement,...Ch. 2 - Prob. 36APCh. 2 - Prob. 37BPCh. 2 - Prob. 38BPCh. 2 - Prob. 39BPCh. 2 - Prob. 40BPCh. 2 - Prob. 41BPCh. 2 - Prob. 42BPCh. 2 - Prob. 1CECh. 2 - Prob. 1CPCh. 2 - Prob. 1CFSAPCh. 2 - Prob. 1EIACh. 2 - Prob. 2EIACh. 2 - Prob. 1FACh. 2 - Prob. 1IACh. 2 - Prob. 1SBACh. 2 - Prob. 1WC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Create journal entries for sage 50. ? 1.The owner Jasmine, had the bank transfer (by the bank memo) $20000 from the personal savings account to the business bank account to start the business. 2. Negotiated a 5-year bank loan of $40000 at an annual interest rate of 9.50% with Loyal Bank. The money was deposited in the bank account today. 3.Received invoice 402 for $1200 plus HST from Captain Insurance, for a one-year business Insurance Policy, commencing Aug 1, 2018. Issued cheque #1001 to pay this invoice.arrow_forwardList and record each transaction (in 000s) for the Claymont Outpatient Clinic, under the accrual basis of accounting, at December 31, 20X1. You are creating a General Ledger using exhibit 3-6 on page 112 as a guide. Zelman( Workbook) a. The clinic received a $10,000,000 unrestricted cash contribution from the community. b. The clinic purchased $4,500,000 of equipment using cash. c. The clinic borrowed $2,000,000 from the bank on a long-term basis. d. The clinic purchased $550,000 of supplies on credit. e. The clinic provided $8,400,000 of services on credit. f. In the provision of these services, the clinic used $420,000 of supplies. g. The clinic received $800,000 in advance to care for capitated patients. h. The clinic incurred $4,500,000 in labor expenses and paid cash for them. i. The clinic incurred $2,230,000 in general expenses and paid cash for them. j. The clinic received $6,000,000 from patients and their 3rd party payers in payment of outstanding accounts. k.…arrow_forwardT Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000 Question 1a.Enter the relevant amounts in the T sheet to start the current year, and designate…arrow_forward
- What I Can Do Activity 9-4 As a senior high school in your school, you were required to undergo Work Immersion in a bank. You were assigned in accounting department and your immediate superior instructed you to conduct an audit to the following transactions: 1. The bank acquired Furniture and Fixtures last February 1, 2020 for P125,000. The said asset has a salvage value of P20,000 after its estimated useful life of 10 years. 2. The payment for one-year rent of P96,000 dated January 1, 2020 was debited to Prepaid Rent. 3. The Notes Receivable of P200,000 dated February 29, 2020 with 15% interest is collectible after six months. Prepare the adjusting journal entries as of June 30, 2020 (with computation in good form) Assessment Test I: True or False Write TRUE if the statement is corect and FALSE if the statement is incorrect. 1. All adjusting entries require to analyze the source document before they recorded. 2. Prepaid expense is an expense account with a debit normal balance. 17arrow_forwardAn international children’s charity collects donations, which are used to buy clothing and toysfor children in need. The charity records donations of cash and other items as Donations Revenuewhen received. Prepare journal entries for the following transactions, which occurred during arecent month, and determine the charity’s preliminary net income.a. Received $4,000 in cash and checks from a door-to-door campaign.b. Paid $2,000 cash for employee wages this month.c. Paid $1,000 cash on a short-term loan from the bank (ignore interest).d. Bought $3,000 worth of new toy supplies from a large toy manufacturer, paying $1,000 cashand signing a short-term note for $2,000.e. The manufacturer generously donated an additional $2,500 of toy suppliearrow_forwardInstruction: Use Journal Sheet (Yellow or White) for the Performance Tasks Performance Task No. 1- On Mar. 1, 2009, Samuel Barbo, a recent medical board topnotcher, started his medical practice. During the month of March, the following transactions were completed. Mar. 1 Barbo invested P42,500 personal funds in a new bank account in the name of Samuel Barbo, M.D. Acquired medical equipment costing P95,000 from Tambilo Medical Equipment Company, paying P15,000 cash, and financing the remainder issuing a P80,000 note payable. Paid rent for the month of March, P7,500. Acquired Medical Supplies from Suiza Medical Supply Company on account, P15,250. Received P18,450 in cash from patients for medical services rendered this week. 2 3 7 Paid Pablo Labs for preparing laboratory work on a patient, P1,800. Paid salaries of medical technician and receptionist, P9,600. 12 15 Billed patients P51,700 for services rendered. 17 Paid Suiza Medical Supply Company P3,750 on account. Paid telephone…arrow_forward
- Create a balance sheet (in 000s) as of December 31, 20X1 for the Claymont Outpatient Clinic using the General Ledger transactions below. You will enter balances for total current assets a. The clinic received a $10,000,000 unrestricted cash contribution from the community. b. The clinic purchased $4,500,000 of equipment using cash. c. The clinic borrowed $2,000,000 from the bank on a long-term basis. d. The clinic purchased $550,000 of supplies on credit. e. The clinic provided $8,400,000 of services on credit. f. In the provision of these services, the clinic used $420,000 of supplies. g. The clinic received $800,000 in advance to care for capitated patients. h. The clinic incurred $4,500,000 in labor expenses and paid cash for them. i. The clinic incurred $2,230,000 in general expenses and paid cash for them. j. The clinic received $6,000,000 from patients and their 3rd party payers in payment of outstanding accounts. k. The clinic met $440,000 of its obligation to…arrow_forwardWhile completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Purchase Date October 30, Year 1 October 30, Year 1 October 30, Year 1 October 30, Year 1 Basis $16,200 10,000 5,400 19,160 Year 1 Asseta Computers (5-year) office equipment (7-year) Furniture (7-year) Start-up costa In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow Information systems students preparing to graduate. The customer list cost $12,160, and the sale was completed on April 30. During their summer break, Dailin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not considered a luxury…arrow_forwardWhile completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a technology support company called eSys Answers. During year 1, they bought the following assets and incurred the following start-up fees: Year 1 Assets Purchase Date Basis Computers (5-year) October 30, Year 1 $ 15,100 Office equipment (7-year) October 30, Year 1 10,000 Furniture (7-year) October 30, Year 1 3,200 Start-up costs October 30, Year 1 17,180 In April of year 2, they decided to purchase a customer list from a company providing virtually the same services, started by fellow information systems students preparing to graduate. The customer list cost $10,180, and the sale was completed on April 30. During their summer break, Dallin and Michael passed on internship opportunities in an attempt to really grow their business into something they could do full time after graduation. In the summer, they purchased a small van (for transportation, not…arrow_forward
- Most Essential Learning Competencies 1. Identify the elements of the SFP and describe each of them. 2. Prepare an SFP using the report form and the account form with proper classification of items as current and noncurrent. STATEMENT OF FINANCIAL Part 1: At the back of this paper, prepare a Statement of Financial Position pf CDS Enterprise Business for the calendar year 2020 using the following accounts in Report Form: Cash - 5,000 Loans Payable - 77,500 Accounts Receivable - 2,600 Supplies - 2,300 Equipment - 17,000 Owner's equity – 40,000 Accounts Payable - 22,400 Building - 113,000 Part 2: Answer the following questions and write the solutions in a clean paper. Attached your solution with this paper. 1. If assets are Php17,000 and owner's equity is Php10,000, liabilities are 2. At the end of the first month of operations for Juana's Delivery Service, the business had the following accounts: Accounts Receivable, Php1,200; Prepaid Insurance, Php500; Equipment, Php36,200 and Cash,…arrow_forwardDuring January 2020 Orgonite Wellness Clinic completed the following transactions : Jan 1 Orgonite received $ 50,000 cash and issued common shares to shareholders 4 Purchased supplies , $ 5,000 , and equipment , $ 2,500 on account 5 Performed checkup services , and received cash , $ 2,500 7 Paid cash to acquire land for an office site , $ 25,000 11 Performed a therapy session , and billed the customer $ 2500 16 Paid for the equipment , purchased Oct 4 on account 17 Paid the telephone bill , $ 150 18 Received partial payment from client on account , $ 2000 22 Paid the water and electricity bills , $ 500 29 Received $ 5,000 cash for conducting a workshop on " Healthy Living " 31 Paid employee salary , $ 4,000 31 Declared and paid dividends of $ 4,500 Requirements : Record each transaction in the journal . Key each transaction by date . Prepare the trial balance of Orgonite , at Jan 31 , 2020 .arrow_forwardMANAGEMENT DEPARTMENT, FACULTY PROBLEM On January 1 of the current year, Juan David opened the “ J.D Men's Wear Shop", and during the month, the following transactions were completed: Jan. 1 Juan David invested cash P 80,000 in the business. He bought two sewing machines amounting P 30,000 each from Patio Merchandising, the he gave P15,000 down and the balance is payable within 60 days. Paid a three month rental of the shop, P30,000. This was charged to 1 1 prepaid Rent account. 1 Paid a one year insurance policy, P 5,700. Bought sewing tools P 5,900 and sewing supplies P 2,700 from Jomar Trading on credit. Received P 1,200 from customer for a short delivered. Billed to Maricris Acosta, P 5,000 for two-pair of pants and polo barong 7 delivered. 10 Purchased clothing materials from Baclaran Market and paid P 15,000 cash. 13 Received P 12,500 from various customers for pants and barong made and delivered. 14 Gave Patio Merchandising P 15,000 and issued a 60-day, 6% note for the balance.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License