Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
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
Required:
Analyze each transaction and show the effect of each on the
Example:
1. Assets + 300,000(cash) = Liabilities + Paid-In Capital + Retained Earnings + 300,000 (common stock)
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
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.
TB 14150
%3D
Chapter 5 Exercises i
Saved
49
Required information
Part 4 of 7
(The following information applies to the questions displayed below.)
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts
Debit
Credit
1
$ 26,100
14,700
Cash
points
Accounts Receivable
Allowance for Uncollectible Accounts
$ 3,000
Supplies
Notes Receivable (6, due in 2 years)
Land
Skipped
3,600
15,000
80,000
Accounts Payable
Conmon Stock
Retained Earnings
7,900
95,000
33,500
eBook
Totals
$139,400
$139,400
Print
During January 2021, the following transactions occur:
2 Provide services to customers for cash, $46,100.
6 Provide services to customers on account, $83,400.
January
January
January 15 write off accounts receivable as uncollectible, $2,500.
January 20 Pay cash for salaries, $32, 500.
January 22 Receive cash on accounts receivable, $81,000.
January 25 Pay cash on accounts payable, $6,600.
January 30 Pay cash for utilities during January, $14,800.
References…
Problem 5-3A Record transactions related to accounts receivable (LO5-3, 5-4, 5-5)
[The following information applies to the questions displayed below.]The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.
June
12,
2021
Provide services to customers on account for $41,000.
September
17,
2021
Receive $25,000 from customers on account.
December
31,
2021
Estimate that 45% of accounts receivable at the end of the year will not be received.
March
4,
2022
Provide services to customers on account for $56,000.
May
20,
2022
Receive $10,000 from customers for services provided in 2021.
July
2,
2022
Write off the remaining amounts owed from services provided in 2021.
October
19,
2022
Receive $45,000 from customers for services provided in 2022.
December
31,
2022
Estimate that 45% of accounts receivable at the end of the year will not be received.
Problem 5-3A…
Chapter 2 Solutions
Intermediate Accounting
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 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Income determination LO24 If none of the...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Closing entries LO27 The year-end adjusted trial...Ch. 2 - Prob. 2.13BECh. 2 - Transaction analysis LO21 The following...Ch. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Journal entries LO22 The following transactions...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Transaction analysis; debits and credits LO22...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; solving for unknowns LO24,...Ch. 2 - Adjusting entries LO25 The Mazzanti Wholesale...Ch. 2 - Financial statements and closing entries LO26,...Ch. 2 - Closing entries LO27 American Chip Corporations...Ch. 2 - Prob. 2.14ECh. 2 - Cash versus accrual accounting; adjusting entries ...Ch. 2 - External transactions and adjusting entries LO22,...Ch. 2 - Accrual accounting income determination LO24,...Ch. 2 - Cash versus accrual accounting LO28 Stanley and...Ch. 2 - Prob. 2.19ECh. 2 - Worksheet Appendix 2A The December 31, 2018,...Ch. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.25ECh. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Adjusting entries LO25 Pastina Company sells...Ch. 2 - Accounting cycle; adjusting entries through...Ch. 2 - Adjusting entries LO25 Howarth Companys fiscal...Ch. 2 - Accounting cycle LO22 through LO27 The general...Ch. 2 - Adjusting entries and income effects LO22, LO25...Ch. 2 - Adjusting entries LO25 Excalibur Corporation...Ch. 2 - Accounting cycle; unadjusted trial balance through...Ch. 2 - Prob. 2.10PCh. 2 - Prob. 2.11PCh. 2 - Cash versus accrual accounting LO28 Zambrano...Ch. 2 - Worksheet Appendix 2A Using the information from...Ch. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Prob. 2.2BYPCh. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Continuing Cases Target Case LO24, LO28 Target...
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
- Listed below are a few events and transactions of Kodax Company. Year 1 January 2 Purchased 40,000 shares of Grecco Company common stock for $431,000 cash. Grecco has 120,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax. September 1 Grecco declared and paid a cash dividend of $1.70 per share. December 31 Grecco announced that net income for the year is $489,900. Year 2 June 1 Grecco declared and paid a cash dividend of $1.70 per share. December 31 Grecco announced that net income for the year is $705,400. December 31 Kodax sold 9,000 shares of Grecco for $160,000 cash. Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.) View transaction listarrow_forward4:00 & O O X G lll 59% 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…arrow_forwardV SC Chapter 1 Homework Question 10 of 10 Cash 1 ! Accounts receivable Service revenue 0 Z Supplies Advertising expense Equipment Common stock On June 1, 2025, Crane Service Co. was started with an initial investment in the company of $26,000 cash. Here are the a liabilities, and common stock of the company at June 30, 2025, and the revenues and expenses for the month of June, its f operations: Q 2 < W $4,850 J 4,250 7,800 2,329 400 30,200 26,000 JAN 26 180 # 3 During June, the company issued no additional stock but paid dividends of $1,521. E Notes payable Accounts payable Supplies expense Maintenance and repairs expense Utilities expense Salaries and wages expense $ 4 Virtual muesum education.wiley.com 000 000 R DOCX % 5 2 T $12,500 6 750 1,100 690 210 1,500 OneDrive Ⓒ MacBook Pro Y & 7 IMG_4270.jpg tv A & & C U * 00 8 -/5 1 E ( Sarrow_forward
- Serial Problem Business Solutions LO P1, A1 Selected ledger account balances for Business Solutions follow. For Three MonthsEnded December 31, 2019 For Three MonthsEnded March 31, 2020 Office equipment $ 8,100 $ 8,100 Accumulated depreciation—Office equipment 405 810 Computer equipment 20,000 20,000 Accumulated depreciation—Computer equipment 1,250 2,500 Total revenue 31,334 44,900 Total assets 83,360 121,668 Required:1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts for the year ended December 31, 2020, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method).2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2020?3. Compute the three-month total asset turnover for Business…arrow_forwardInstructions to chapter 10 exercises - Word eview View Help Y Tell me what you want to do AaBbCcDc AaBbCcDc AaBbC AABBCCD AaB AaBbCcD 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Paragraph Styles 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 10-6arrow_forwardItem4 11.11points eBookReferences Check my workCheck My Work button is now enabled3 Item 4 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.arrow_forward
- 18 - 102 debtor xx 100 creditors xx which transaction does this journal entry belong to?A) noneB) withdrawal from the bankC) depositing money in the bankD) buyers deposit money in the bankE) withdrawing money from the safearrow_forward10:04 O 1 A P 0 ןוו ינ VPN Level 12 Text Up... scribd.com Download now 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…arrow_forwardCHP#10_3 Journal Entries for Accounts and Notes PayableGeary Company had the following transactions: Apr. 15 Issued a $6,000, 60-day, 8 percent note payable in payment of an account with Marion Company. May 22 Borrowed $50,000 from Sinclair Bank, signing a 60-day note at nine percent. Jun. 14 Paid Marion Company the principal and interest due on the April 15 note payable. Jul. 13 Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with eight percent interest. Jul. 21 Paid the May 22 note due Sinclair Bank. Oct. 2 Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12 percent. Oct. 11 Defaulted on the note payable to Sharp Company. Requireda. Record these transactions in general journal form.b. Record any adjusting entries for interest in general journal form. Geary Company has a December 31 year-end. Round answers to nearest dollar. Use 360 days for interest calculations.arrow_forward
- the nearest percent. Which company has the most seasonal business? Briefly explain. Which company is Toys "R" Us? The Gillette Company? Briefly explain. c. d. SERIAL PROBLEM:KATE'S CARDS Kate is very pleased with the results of the first year of operations for Kate's Cards. She ended the year on a high note, with the company's reputation for producing quality cards leading to more basi- ness than she can currently manage. Kate is considering expanding and bringing in several employ- ees. In order to do this, she will need to find a larger location and also purchase more equipment. All this means additional financing. Kate has asked you to look at her year-end financial statements as if you were a banker considering giving Kate a loan. Comment on your findings and provide calcula- tions to support your comments. (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter 1 through Chapter 12.) SP13. KATE'S CARDS Income Statement Year Ended August 31, 2019 $185,000…arrow_forwardActivity 7 Instructions: a. Journalize the above transactions b. Post to ledger using the T-account format c. Prepare the unadjusted trial balance, as of April 30, 2020 1946 On April 1, 2020, John Ferrer organized a business called Friendly Trucking. During April, the company entered into the following transactions: Apr 1 John deposited Php500,000 cash in a bank account in the name of the business. Purchased for Php250,000 a transportation equipment to be use in the business. John paid 50% as down payment while the balance will be paid on May 15, 2020 Apr 1 Apr 1 Paid rental for the month of April, Php 5,000 Apr 5 Earned and collected trucking income from Ryan, Php8,000 Earned trucking income from Jesper, Php 30,000 on account. Jesperwill pay on May 8, 2020 Apr 8 Apr 10 Paid salaries of drivers, Php10,000 Rentedthe vehicle to Joshua for Php35,000, Joshua paid Php20,000 on that date and the balance on April Apr 15 Apr 18 Paid electric bills for the month, Php2,000 Apr 20 Collected from…arrow_forwardAccount Title Ch. remainder Believer. remainder Furniture 15.000 Damped Furniture 1.200 Goods 4.000 Domestic Customers 21.000 Promissory notes in the portfolio 6.800 Shares Listed on the Stock Exchange 10.750 Current Deposits in Euro 2.000 Paid-in Share Capital 39.000 Regular reserve 6.000 Long-term bank loans 10.000 Domestic Suppliers 4.000 Promissory notes payable in euro 4.300 Bank A- short-term loan account 5.000 Dividends payable 900 Insurance Organizations (EFKA) 800 Staff Remuneration 26.000 Employer's contributions and personnel charges 9.000 Telecommunications 2.000 Rentals 1.500 Premiums 600 Third Party Facilities (lighting - water supply) 3.100 Travel expenses 900 Promotional and Advertising Expenses 2.500 Interest on Long-term Liabilities 1.800 Furniture depreciation…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY