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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Textbook Question
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 depreciation expense of $1,000 for the month on the equipment.
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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Problem 5-3A Record transactions related to accounts receivable (LO5-3, 5-4, 5-5)
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Problem 5-3A…
ACB10103 BUSINESS ACCOUNTING 2021/22
QUESTION 2
31
Paid saiary amou
2. Below are transactions for April 20X3 for Mr Lam, a sole trader
Apr. 1
2 Bought goods worth RM1,000 on credit from Shaf
Paid rent amounting to RM200 in cash.
4 Deposited RM11,000 of the business cash into the bank accou
6 Sold goods worth RM600 on credit to Tan.
7 Bought stationery worth RM50 by cheque.
11 Made cash sales of RM100.
14 Returned goods worth RM150 to Shan.
15 Sold goods worth RM1,200 on credit to Ting.
18 Goods worth RM45 returned by Tan.
23 Paid RM850 to Shah by cheque.
25 Purchased goods worth RM250 by cash.
28 Received a cheque for RM500 from Ting.
31 Received RM100 commission in cash.
Started business with RM12,000 çash.
3.
Required:
(a) Record the above transactions in the relevant accounts.
(b) Balance off the accounts.
(c) Prepare a trial balance for Mr Lam as at 30 April 20X3.
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E TRANSACTION-NO.2docx
TRANSACTION NO.2
Instructions:
a. Journalize the above transactions
b. Post to ledger
c. Make a trial balance
On April 1, 2018, Nels Ferrer organized a business called Friendly
Trucking. During April, the company entered into the following
transactions:
Apr 1 Nels Ferrer deposited Php500,000 cash in a bank account in
the name of the business.
Apr 1 Purchased for Php250,000 a transportation equipment to be
use in the business. Nels paid 50% as down payment while the
balance will be paid on May 15, 2016
Apr 1 Paid rental for the month of April, Php5,000
Apr 5 Earned and collected trucking income from Ryan, Php8,000
Apr 8 Earned trucking income from Jesper, Php30,000 on account.
Jesper will pay on May 8, 2016
Apr 10 Paid salaries of drivers, Php10,000
Apr 15 Rented the vehicle to Joshua for Php35,000, Joshua paid
Php20,000 on that date and the balance on April 20
Apr 18 Paid electric bills for the month, Php2,000
Apr 20 Collected from Joshua…
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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