Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.2E
• LO2–2
Prepare journal entries to record each of the transactions listed in E 2–1.
E 2–1
Transaction analysis
• LO2–1
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
1. Issued 30,000 shares of common stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded
Required:
Analyze each transaction and show the effect of each on the
Example:
1. Assets + 300,000(cash) = Liabilities + Paid-In Capital +
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Exercise 6-5 (Algo) Cash and cash equivalents LO C2
Specter Company combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount reported on the year-end balance sheet for cash and cash equivalents.
$19,000 cash deposit in checking account.
$52,000 bond investment due in 20 years.
$13,000 U.S. Treasury bill due in 1 month.
$1,000, 3-year loan to an employee.
$4,200 of currency and coins.
$1,300 of accounts receivable.
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Exer 10-4
Entries for notes payable
Obj. 1 A business issued a 120-day,5% note for $60,000 to a creditor on
account. Journalize the entries to record (a) the issuance of the note and
(b) the payment of the note at maturity, including interest.
Exer 10-6
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Question – 1
T Morgan, a sole Trader extracted the following trial balance from his books at the close of business on 31 M
1999.
$
2$
Purchases & Revenue
22,860
41,970
Inventory at 1 April 1998
5,160
Capital 1 April 1998
7,200
Bank overdraft
4,350
Cash
90
Discounts
1,440
930
Returns inwards
810
Returns outwards
570
Training
Carriage outwards
Countancy
WBM
2,160
Rent and insurance
1,740
Allowance for doubtful debts
660
Fixtures and fittings
1,200
Delivery van
2,100
Trade Receivable and Trade Payables
11,910
6,060
Drawings
2,880
Wages and salaries
8,940
General office expenses
450
61,740
61,740
Notes;
(1) Inventory 31 March 1999 $4,290.
(2) Wages and salaries accrued at 31 March 1999 $210; office expenses owing $20.
(3) Rent prepaid 31 March 1999 $180.
(4) Increase allowance for doubtful debts by $150 to $810.
(5) Provide for depreciation as follows fixtures and fittings $120; delivery van $300.
Required;
Prepare the…
Chapter 2 Solutions
Intermediate Accounting, 10 Ed
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Prob. 2.12BECh. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.24ECh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.12PCh. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Prob. 2.1DA
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