1.
Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas
To calculate: Journal entries, trial balance and general ledgers of the accounts.
1.
Answer to Problem 2PSA
All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.
Explanation of Solution
Sr. No. | Particulars | PR | Amount | Amount |
a. | Cash | 101 |
| |
Office equipment | 163 |
| ||
Drafting Equipment | 164 |
| ||
Common stock | 307 |
| ||
(Being owner Invested cash and equipment) | ||||
b. | Land | 172 |
| |
Cash | 101 |
| ||
Note payable | 250 |
| ||
(Being land purchased with cash and note payable) | ||||
c. | Building | 170 |
| |
Cash | 101 |
| ||
(Being building purchased) | ||||
d. | Prepaid Insurance | 108 |
| |
Cash | 101 |
| ||
(Being insurance policy for 18 month purchased) | ||||
e. | Cash | 101 |
| |
Engineering fees earned | 402 |
| ||
(Being cash collected after completion of work) | ||||
f. | Drafting equipment | 164 |
| |
Cash | 101 |
| ||
Note Payable | 250 |
| ||
(Being equipment purchased for cash and notes payable) | ||||
g. | Accounts receivable | 106 |
| |
Engineering fees earned | 402 |
| ||
(Being client services completed) | ||||
h. | Office equipment | 163 |
| |
Account payable | 201 |
| ||
(Being Equipment purchased on credit) | ||||
i. | Account Receivable | 106 |
| |
Engineering fees earned | 402 |
| ||
(Being Client billed for completed work) | ||||
j. | Equipment Rental expense | 602 |
| |
Accounts payable | 201 |
| ||
(Being rental expense incurred on equipment) | ||||
k. | Cash | 101 |
| |
Accounts receivable | 106 |
| ||
(Being cash collected on account) | ||||
l. | Wages expenses | 601 |
| |
Cash | 101 |
| ||
(Being wages paid to assistant) | ||||
m. | Accounts payable | 201 |
| |
Cash | 101 |
| ||
(Being amount due on account) | ||||
n. | Repairs Expenses | 604 |
| |
Cash | 101 |
| ||
(Being expense paid for repair of equipment) | ||||
o. | Dividends | 319 |
| |
Cash | 101 |
| ||
(being cash drawn for personal use) | ||||
p. | Wages expenses | 601 |
| |
Cash | 101 |
| ||
(Being wages paid to assistant) | ||||
q. | Advertising Expenses | 603 |
| |
Cash | 101 |
| ||
(Being Advertising expenses paid) | ||||
Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.
To calculate: Journal entries, trial balance and general ledgers of the accounts.
Answer to Problem 2PSA
All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.
Explanation of Solution
Cash Ledger- A/c No. 101
Sr. No. | PR | Debit | Credit | Balance |
a. | G1 |
|
| |
b. | G1 | $6,300 | $93,700 | |
c. | G1 | $55,000 | $38,700 | |
d. | G1 | $3,000 | $35,700 | |
e. | G1 | $6,200 | $41,900 | |
f. | G1 | $9,500 | $32,400 | |
k. | G1 | $7,000 | $39,400 | |
l. | G1 | $1,200 | $38,200 | |
m. | G1 | $1,150 | $37,050 | |
n. | G1 | $925 | $36,125 | |
o. | G1 | $9,480 | $26,645 | |
p. | G1 | $1,200 | $25,445 | |
q. | G1 | $2,500 | $22,945 | |
Account Receivable -A/c. No. 106
Sr. No. | PR | Debit | Credit | Balance |
g. | G1 | $14,000 | $14,000 | |
i. | G1 | $22,000 | $36,000 | |
k. | G1 | $7,000 | $29,000 |
Prepaid Insurance- A/c. No. 108
Sr. No. | PR | Debit | Credit | Balance |
d. | G1 | $3,000 | $3,000 | |
Office Equipment- A/c No. 163
Sr. No. | PR | Debit | Credit | Balance |
a. | G1 | $5,000 | $5,000 | |
h. | G1 | $1,150 | $6,150 |
Drafting Equipment − A/C No. 164
Sr. No. | PR | Debit | Credit | Balance |
a. | G1 | $60,000 | $60,000 | |
f. | G1 | $20,000 | $80,000 |
Building - A/c No. 170
Sr. No. | PR | Debit | Credit | Balance |
c. | G1 | $55,000 | $55,000 |
Land - A/c No. 172
Sr. No. | PR | Debit | Credit | Balance |
b. | G1 | $49,000 | $49,000 |
Account payable − A/c No. 201
Sr. No. | PR | Debit | Credit | Balance |
h. | G1 | $1,150 | $1,150 | |
j. | G1 | $1,333 | $2,483 | |
m. | G1 | $1,150 | $1,150 |
Notes Payable − A/c No. 250
Sr. No. | PR | Debit | Credit | Balance |
b. | G1 | $42,700 | $42,000 | |
f. | G1 | $10,500 | $53,200 |
Common Stock −A/c No. 307
Sr. No. | PR | Debit | Credit | Balance |
a. | G1 | $165,000 | $165,000 |
Dividends _A/c No. 319
Sr. No. | PR | Debit | Credit | Balance |
o. | G1 | $9,480 | $9,480 |
Engineering Fees earned - A/c No. 402
Sr. No. | PR | Debit | Credit | Balance |
e. | G1 | $6,200 | $6,200 | |
g. | G1 | $14,000 | $20,200 | |
i. | G1 | $22,000 | $42,200 |
Equipment rental expenses-A/c No. 602
Sr. No. | PR | Debit | Credit | Balance |
j. | G1 | $1,333 | $1,333 |
Wages expenses −A/c No. 601
Sr. No. | PR | Debit | Credit | Balance |
l. | G1 | $1,200 | $1,200 | |
p. | G1 | $1,200 | $2,400 |
Repair expenses
Sr. No. | PR | Debit | Credit | Balance |
n. | G1 | $925 | $925 |
Advertising Expenses − A/c No. 106
Sr. No. | PR | Debit | Credit | Balance |
q. | G1 | $2,500 | $2,500 |
Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.
To calculate: Journal entries, trial balance and general ledgers of the accounts.
Answer to Problem 2PSA
All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.
Explanation of Solution
Trial Balance (As on June 30)
Particulars | Debit | Credit |
Cash | $22,945 | |
Account Receivable | $29,000 | |
Prepaid Expenses | $3,000 | |
Office Equipment | $6,150 | |
Drafting Equipment | $80,000 | |
Building | $55,000 | |
Land | $49,000 | |
Accounts Payable | $1,333 | |
Notes Payable | $53,200 | |
Common Stock | $165,000 | |
Dividends | $9,480 | |
Engineering Fees Earned | $42,200 | |
Equipmenmt Rental Expenses | $1,333 | |
Wages Expenses | $2,400 | |
Repair Expenses | $925 | |
Adverstising Expenses | $2,500 | |
Total | $261,733 | $261,733 |
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Chapter 2 Solutions
FINANCIAL ACCT-CONNECT
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College