College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter 2, Problem 1PA
During December of this year, G. Elden established Ginny’s Gym. The following asset, liability, and owner’s equity accounts are included in the chart of accounts:
During December, the following transactions occurred:
- a. Elden deposited $35,000 in a bank account in the name of the business.
- b. Bought exercise equipment for cash, $8,150, Ck. No. 1001.
- c. Bought advertising on account from Hazel Company, $105.
- d. Bought a display rack on account from Cyber Core, $790.
- e. Bought office equipment on account from Office Aids, $185.
- f. Elden invested her exercise equipment with a fair market value of $1,200 in the business.
- g. Made a payment to Cyber Core, $200, Ck. No. 1002.
- h. Sold services for the month of December for cash, $800.
Required
- 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental
accounting equation , as well as the plus and minus signs and Debit and Credit. - 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts
- 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction.
- 4. Foot and balance the accounts.
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Students have asked these similar questions
On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $30,000 from personal funds.
b. Purchased office supplies on account, $3,010.
c. Paid creditor on account, $1,900.
d. Earned sales commissions, receiving cash, $30,690.
On July 1, 20Y7, Pat Glenn established Half
Moon Realty. Pat completed the following
transactions during the month of July:
A. Opened a business bank account with a
deposit of $20,000 from personal funds.
B.
C.
D.
E.
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H.
Purchased office supplies on account,
$1,800.
Paid creditor on account, $1,350.
Earned sales commissions, receiving
cash, $40,000.
G. Paid automobile expenses (including
rental charge) for month, $3,050, and
miscellaneous expenses, $1,600.
Paid office salaries, $3,500.
Determined that the cost of supplies on
hand was $850; therefore, the cost of
supplies used was $950.
I.
Paid rent on office and equipment for the
month, $3,300.
Withdrew cash for personal use, $3,600.
Need Accounting equation grid
income statement
statement of owners equity
balance sheet
On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
Opened a business bank account with a deposit of $33,000 in exchange for common stock.
Purchased supplies on account, $3,320.
Paid creditor on account, $2,100.
Earned sales commissions, receiving cash, $33,920.
Paid rent on office and equipment for the month, $6,650.
Paid dividends, $11,000.
Paid automobile expenses for month, $3,190, and miscellaneous expenses, $1,530.
Paid office salaries, $4,000.
Determined that the cost of supplies on hand was $1,120; therefore, the cost of supplies used was $2,200.
Required:
Question Content Area
1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers using a minus sign.
Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 3QYCh. 2 - R. Nelson invests his personal computer, with a...Ch. 2 - When preparing a trial balance, which of the...Ch. 2 - What would be the net income for Floress Catering?...Ch. 2 - On which financial statement(s) would R. Flores,...Ch. 2 - What is the amount of ending capital shown on the...Ch. 2 - Floress Catering purchased equipment that cost...Ch. 2 - Prob. 1DQ
Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - Prob. 1ECh. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - What Would You Say? A fellow accounting student...Ch. 2 - Prob. 3A
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- In July of this year, M. Wallace established a business called Wallace Realty. The account headings are presented below. Transactions completed during the month follow. a. Wallace deposited 24,000 in a bank account in the name of the business. b. Paid the office rent for the current month, 650, Ck. No. 1000. c. Bought office supplies for cash, 375, Ck. No. 1001. d. Bought office equipment on account from Dellos Computers, 6,300. e. Received a bill from the City Crier for advertising, 455. f. Sold services for cash, 3,944. g. Paid on account to Dellos Computers, 1,500, Ck. No. 1002. h. Received and paid the bill for utilities, 340, Ck. No. 1003. i. Paid on account to the City Crier, 455, Ck. No. 1004. j. Paid truck expenses, 435, Ck. No. 1005. k. Wallace withdrew cash for personal use, 1,500, Ck. No. 1006. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.arrow_forwardOn April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $24,000 in exchange for common stock. Purchased supplies on account, $2,410. Paid creditor on account, $1,530. Earned sales commissions, receiving cash, $24,620. Paid rent on office and equipment for the month, $4,830. Paid dividends, $8,000. Paid automobile expenses for month, $2,310, and miscellaneous expenses, $1,110. Paid office salaries, $2,910. Determined that the cost of supplies on hand was $810; therefore, the cost of supplies used was $1,600.arrow_forwardThe following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $3.990 from a local bank on a note due in six months. b. Received $4,680 cash from investors and issued common stock to them. C. Purchased $1,100 in equipment, paying $250 cash and promising the rest on a note due in one year. d. Paid $350 cash for supplies. e. Bought and received $750 of supplies on account. Required: Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.arrow_forward
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