Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 2, Problem 1P
Highland Design Company 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:
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
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Creating a chart of accounts
Raymond Autobody Shop has the following accounts: Accounts Payable Service Revenue
Create a chart of accounts for Raymond Autobody Shop using the standard numbering system. Each account is separated by a factor of 10. For example, the first asset account will be 100 and the next asset account will 110.
Your company uses account numbers as well as account names in their chart of accounts. They also utilize sub-accounts on the profit and loss accounts. Parent accounts typically end with a "0," and sub-accounts end with digits "1" through "9". For example, 510 would be the parent account, and all accounts 511-519 would be sub-accounts of account 510. Looking at the screenshot below from your company's chart of accounts, please explain the issue and how it should be corrected.
The following transactions occurred for Luminary Engineering:
View the transactions. View the journal entries.
Read the requirements.
Requirements 1 and 2. Post the journal entries (including dates) to the T-accounts. Compute the July 31 balance for each account. Use a "Bal." posting reference on the proper side of each account to show the ending balances of the
accounts. (For accounts with a $0 balance, make sure to enter "0" in the appropriate input field on the normal side of the account.)
Accounts Payable
Cash
Accounts Receivable
Supplies
Equipment
Notes Payable
Common Stock
Dividends
Service Revenue
Utilities Expense
Transactions
Jul. 2
Jul. 4
Jul. 5
Jul. 10
Jul. 12
Jul. 19
Jul. 21
Jul. 27
Requirements
Received $9,000 contribution from Bob Luminary in exchange for common stock.
Paid utilities expense of $420.
Purchased equipment on account, $2,400.
Performed services for a client on account, $2,900.
Borrowed $7,600 cash, signing a notes payable.
Paid cash dividends of $500 to…
Chapter 2 Solutions
Principles of Accounting
Ch. 2 - A company incurs a cost for a part that is needed...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - How are assets and expenses related, and why are...Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Tell whether each of the following accounts is an...Ch. 2 - Prob. 2SE
Ch. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Prob. 5SECh. 2 - Prob. 6SECh. 2 - Prob. 7SECh. 2 - Prepare a general journal form like the one in...Ch. 2 - Prepare three ledger account forms like the one in...Ch. 2 - Prob. 10SECh. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Which of the following events would be recognized...Ch. 2 - You are given the following list of accounts with...Ch. 2 - The following ledger accounts are for Afocentric...Ch. 2 - Prob. 4EACh. 2 - The accounts that follow are applicable to Harolds...Ch. 2 - Prob. 6EACh. 2 - Prob. 7EACh. 2 - Prob. 8EACh. 2 - After recording the transactions in E6A, prepare a...Ch. 2 - The list that follows presents Shah Companys...Ch. 2 - Which of the following errors would cause a trial...Ch. 2 - Prob. 12EACh. 2 - Record the transactions in E6A in the general...Ch. 2 - Prob. 14EACh. 2 - Prob. 15EACh. 2 - Prob. 16EACh. 2 - Highland Design Company creates radio and...Ch. 2 - The following accounts are applicable to Georges...Ch. 2 - Jennifer Lopez opened a school for administrative...Ch. 2 - Sid Patel bid for and won a concession to rent...Ch. 2 - Nordtown Company is a marketing firm. The companys...Ch. 2 - Prob. 6APCh. 2 - The following accounts are applicable to Raymonds...Ch. 2 - Prob. 8APCh. 2 - David Roberts began an upholstery cleaning...Ch. 2 - Prob. 10APCh. 2 - Prob. 1CCh. 2 - Prob. 2CCh. 2 - Prob. 3CCh. 2 - Prob. 4CCh. 2 - Prob. 5CCh. 2 - Prob. 6CCh. 2 - Prob. 7C
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