FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Chapter 2, Problem 2PSA
Problem 2-2A Preparing and posting
P2
Aracle Engineering completed the following transactions in the month of June.
a. Jena Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000.
and $60,000 of drafting equipment to launch the company in exchange for common stock.
b. The company purchased land worth $49,000 for an office by paying $6,300cash and
signing a long-term note payable for $42,700.
c. The company purchased a portable building with $55,000 cash and moved it onto the land
acquired in b.
d. The company paid $3,000 cash for the premium on an 18-month insurance policy.
e. The company completed on delivered a set of plans for a client and collected $6,200 cash.
f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash
and signing a long-term note payable for $10,500.
g. The company completed $14,000 of engineering services for a client. This amount is to be
received in 30 days.
h. The company purchased $1,150 of additional office equipment on credit.
i. The company completed engineering services for $22,000 on credit.
j. The company received a bill for rent of equipment that was used on a recently completed
job. The $1,333 rent cost must be paid within 30 days.
k. The company completed $7,000 cash is partial payment from the client described in
transaction g.
l. The company paid $1,200cash for wages to a drafting assistant.
m. The company paid $1,150 cash to settle the account payable credit in transaction h.
n. The company paid $925 cash for minor maintenance of its drafting equipment.
o. The company paid $9480 cash in dividends.
p. The company paid$1,200 cash for wages to drafting assistant.
q. The company paid $2,500cash for advertisements on the web during June.
Required
1. Prepare general journal entries to record these transactions (use the account titles listed in
part 2).
2. Open the following ledger accounts—their account numbers are in parentheses (use the
balance column format): Cash (101):
office Equipment (163): Drafting Equipment (164): Building (170): Land (172): Accounts
Payable (201): Notes Payable (250): Common stock (307): Dividends (319):Engineering
Fees Earned (402): Wages Expense (601); Equipment Rental Expense (602); Advertising
Expense (603): and Repair Expense (604). Post the journal entries from part 1to the
accounts and enter the balance after each posting.
Check (2 )Ending balances : Cash. $22,945; Accounts Receivable,$29,000;Accounts
payable.$1,333
3. Prepare a trial balance as of the end of June.
(3)Trial balance totals, $261,733
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create a journal entry and t accounts using the following transaction of august.
1 Garcia invested Php48000 cash in the business1 Rented office space and paid Php800 cash for the August rent3 Purchased exploration equipment for Php22000 by paying cash and agreeing to pay the balance in 3 months5 Purchased office supplies by paying Php1500 cash6 Completed exloration work and immediately collected Php420 cash for the work8 Purchased Php1350 of office equipment on credit15 Completed exploration work on credit in the amount of Php800018 Purchased Php700 of office supplies on credit20 Paid cash for the office equipment purchased on August 824 Billed a client Php2400 for work completed; the balance is due in 30 days28 Received Php5000 cash for the work completed on August 1530 Paid the assistant's salary of Php1100 cash for this month30 Paid Php340 cash for this month's utility bill30 Garcia withdrew Php1050 cash from the business for personal use
T Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000
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Chapter 2 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 2 - Prob. 1QSCh. 2 - Prob. 2QSCh. 2 - Reading a chart of accounts C3 A chart of accounts...Ch. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QS
Ch. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Prob. 15QSCh. 2 - Prob. 16QSCh. 2 - Prob. 17QSCh. 2 - Prob. 18QSCh. 2 - Prob. 19QSCh. 2 - Exercise 2-1 Steps in analyzing and recording...Ch. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 21ECh. 2 - Exercise 2-20 Identifying effects of posting...Ch. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 25ECh. 2 - Prob. 26ECh. 2 - Prob. 27ECh. 2 - Prob. 28ECh. 2 - Prob. 29ECh. 2 - Prob. 1PSACh. 2 - Problem 2-2A Preparing and posting journal...Ch. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 6PSACh. 2 - Prob. 7PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Prob. 4PSBCh. 2 - Prob. 5PSBCh. 2 - Prob. 6PSBCh. 2 - Prob. 7PSBCh. 2 - Prob. 2SPCh. 2 - Prob. 1GLPCh. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Prob. 1.1AACh. 2 - Prob. 1.2AACh. 2 - Prob. 1.3AACh. 2 - Prob. 1.4AACh. 2 - Prob. 2.1AACh. 2 - Prob. 2.2AACh. 2 - Prob. 2.3AACh. 2 - Prob. 3.1AACh. 2 - Prob. 3.2AACh. 2 - Prob. 3.3AACh. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 1BTNCh. 2 - Prob. 2BTNCh. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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