FINANCIAL ACCOUNTING ACCT 2301 >IC<
FINANCIAL ACCOUNTING ACCT 2301 >IC<
5th Edition
ISBN: 9781259690457
Author: Wild
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
bartleby

Concept explainers

bartleby

Videos

Question
Book Icon
Chapter 2, Problem 3BP

1.

To determine

Prepare journal entries to record the given transaction.

1.

Expert Solution
Check Mark

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

Prepare journal entries to record the given transaction of Company Z as follows:

Journal
DateAccount Title and ExplanationPostDebitCredit
Ref.($)($)
November  1Cash10130,000
Office Equipment16315,000
Common Stock30745,000
(To record the amount invested on equipment in exchange of stock.)
November  2Prepaid Rent1314,500
Cash1014,500
(To record the rent paid in advance)
November  4Office Equipment1632,500
Office Supplies124600
Accounts Payable2013,100
(To record the Purchase of equipment & supplies on credit.)
November  8Cash1013,400
Services Revenue4033,400
(To record receipt of cash for the service performed)
November  12Accounts Receivable10610,200
Services Revenue40310,200
(To record the service performed on account)
November  13Accounts Payable2013,100
Cash1013,100
(To record the payment made for the balance due on account)
November  19Prepaid Insurance1281,800
Cash1011,800
(To record Payment of premium for insurance)
November  22Cash1015,200
Accounts Receivable1065,200
(To record the cash received on account)
November  24Accounts Receivable1061,750
Services Revenue4031,750
(To record the service performed on account.)
November  28Dividends3195,300
Cash1015,300
(To record the payment of cash  dividends)
November  29Office Supplies124249
Accounts Payable201249
(To record the purchase of supplies on account)
November  30Utilities Expense690831
Cash101831
(To record the utility bill incurred)

Table (1)

2.

To determine

Post the journal entries from Part 1 to their respective ledger accounts.

2.

Expert Solution
Check Mark

Explanation of Solution

Posting transactions:

The process of transferring the journalized transactions into the accounts of the ledger is known as posting the transactions.

CashAccount. No. 101
DatePR    Debit    CreditBalance
November  1G130,000 30,000
2G1    4,50025,500
8G13,40028,900
13G1 3,10025,800
19G1 1,80024,000
22G15,20029,200
28G1 5,30023,900
30G1 83123,069
Accounts ReceivableAccount. No. 106
DatePR    Debit    CreditBalance
November  12G110,20010,200
22G15,2005,000
24G11,7506,750
Office SuppliesAccount. No. 124
DatePR    Debit    CreditBalance
November  4G1600600
29G1249849
Prepaid InsuranceAccount. No. 128
DatePR    Debit    CreditBalance
November  19G11,800 1,800
Prepaid RentAccount. No. 131
DatePR    Debit    CreditBalance
November  2G14,500 4,500
Office EquipmentAccount. No. 163
DatePR    Debit    CreditBalance
November  1G115,000 15,000
4G12,500 17,500
Accounts payableAccount. No. 201
DatePR    Debit    CreditBalance
November 4G1 3,1003,100
13G13,100 0
29G1 249249
Common stockAccount. No. 307
DatePR    Debit    CreditBalance
November  1G1 45,00045,000
DividendsAccount. No. 319
DatePR    Debit    CreditBalance
November  28G15,300 5,300
Service revenueAccount. No. 403
DatePR    Debit    CreditBalance
November  8G1 3,4003,400
12G1 10,20013,600
24G1 1,75015,350
Utilities expensesAccount. No. 690
DatePR    Debit    CreditBalance
November  30G1831831

Table (2)

3.

To determine

Prepare a trial balance of Company Z as of November 30.

3.

Expert Solution
Check Mark

Explanation of Solution

Trial balance:

Trial balance is a summary of all the asset, liability, and equity accounts and their balances.

Company Z
Trial Balance
November  31
ParticularsDebit ($) Credit ($)
Cash$23,069
Accounts receivable6,750
Office supplies849
Prepaid insurance1,800
Prepaid rent4,500
Office equipment17,500
Accounts payable$249
Common stock45,000
Dividends5,300
Services revenue15,350
Utilities expense831
Totals$60,599$60,599

Table (3)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
ayco Inc. started its operations in 2022. Its sales during 2022, all on account, totalled $700,000. The company collected $500,000 in cash from customers during the year and wrote off $8,000 in uncollectible accounts. The company set up an allowance for doubtful accounts at December 31, 2022, its fiscal year-end, and determined the account balance to be $14,000.   The unadjusted balances of selected accounts at December 31, 2023 are as follows:     Accounts receivable $ 300,000   Allowance for doubtful accounts (debit)   10,000   Sales revenue (including 80 percent in sales on account)   800,000       Aging of the accounts receivable on December 31, 2023, resulted in an estimate of $11,000 in potentially uncollectible accounts.   Required: 1. Prepare the journal entries to record all the transactions during 2022 and post them to appropriate T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)…
Calculate the sample size based on the specifications in Buhi's contract. Make sure it is within budget, reasonable to obtain, and that you use appropriate inputs relative to market research best practices. Use the calculator to adjust the sample size statement. Use the agreed-upon sample size in Buhi's contract: 996. In your secondary research, find the target population size (an estimate of those in the United States looking to purchase luggage in the category in the next two years). You will use this target population size for each sample size estimate. Adjust the provided sample size calculator inputs to find the rest of the figures that get you to the agreed-upon sample size. The caveats from Buhi are that you must: Use the market research standard for your confidence level. Use a confidence interval that is better than the market research standard for your confidence interval.
The partnership of Keenan and Kludlow paid the following wages during this year: Line Item Description Amount M. Keenan (partner) $108,000 S. Kludlow (partner) 96,000 N. Perry (supervisor) 54,700 T. Lee (factory worker) 35,100 R. Rolf (factory worker) 27,200 D. Broch (factory worker) 6,300 S. Ruiz (bookkeeper) 26,000 C. Rudolph (maintenance) 5,200 In addition, the partnership owed $250 to Rudolph for work he performed during December. However, payment for this work will not be made until January of the following year. The state unemployment tax rate for the company is 2.95% on the first $9,000 of each employee's earnings. Compute the following:   ound your answers to the nearest cent. a.  Net FUTA tax for the partnership for this year b.  SUTA tax for this year
Knowledge Booster
Background pattern image
Accounting
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.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
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