FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
24th Edition
ISBN: 9781265497613
Author: Wild
Publisher: MCG
Question
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Chapter 2, Problem 3BPSB
To determine

Concept Introduction:

Journal entry:

In double entry system of accounting, journalizing is the recording of the given accounting transactions by giving effects to debits and credits.

Ledger accounts: Ledger accounts are the refinement of journal entries by presenting them in an understandable form that helps in finding out the balance of an account at a given point in time.

Trial balance: Trial balance is the first step in the preparation of final accounts and for ensuring that the arithmetical accuracy of the books of accounts prepared.

To write:

The general journal entries, ledger accounts and the trial balance

Expert Solution & Answer
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Explanation of Solution

The journal entries are passed; ledger accounts and trial balance is prepared.

The debit-credit rules for recording the journal entries are as under −

  1. Debit what comes in, credit what goes out.
  2. Debit the receiver, credit the giver.
  3. Debit the expenses and assets, credit the incomes and liabilities.
  4. 1. The journal entries in the books of Zucker Management Services are passed as under-
      S. NoParticularsAccount NoDebit ($)Credit ($)
      01-NovCash account10130,000
      Office equipment account16315,000
      M. Zucker, capital account30145,000
      02-NovPrepaid rent account1314,500
      Cash account1014,500
      04-NovOffice equipment account1632,500
      Office supplies account124600
      Accounts payable account2013,100
      08-NovCash account1013,400
      Services revenue account4033,400
      12-NovAccounts receivable account10610,200
      Services revenue account40310,200
      13-NovAccounts payable account1643,100
      Cash account1013,100
      19-NovPrepaid insurance account1281,800
      Cash account1011,800
      22-NovCash account1015,200
      Accounts receivable account1065,200
      24-NovAccounts receivable account1061,750
      Services revenue account4031,750
      28-NovM. Zucker, withdrawals account3025,300
      Cash account1015,300
      29-NovOffice supplies account124249
      Accounts payable account164249
      30-NovUtilities expense account690831
      Cash account101831

    2. Ledger accounts in the books of Zucker Management Services are passed as under-

      Cash account
      DateParticularsDebit ($)Credit ($)Account #101 Balance (Dr)
      Opening balance ---
      01-NovM. Zucker, capital account30,00030,000
      02-NovPrepaid rent account4,50025,500
      08-NovServices revenue account3,40028,900
      13-NovAccounts payable account3,10025,800
      19-NovPrepaid insurance account1,80024,000
      22-NovAccounts receivable account5,20029,200
      28-NovM. Zucker, withdrawals account5,30023,900
      30-NovUtilities expense account83123,069
      Accounts receivable account
      DateParticularsDebit ($)Credit ($)Account #106 Balance (Dr)
      Opening balance ---
      12-NovServices revenue account10,20010,200
      22-NovCash account5,2005,000
      24-NovServices revenue account1,7506,750
      Office supplies account
      DateParticularsDebit ($)Credit ($)Account #124 Balance (Dr)
      Opening balance ---
      04-NovAccounts payable account600600
      29-NovAccounts payable account249849
      Prepaid insurance account
      DateParticularsDebit ($)Credit ($)Account #128 Balance (Dr)
      Opening balance ---
      19-NovCash account1,8001,800
      Prepaid rent account
      DateParticularsDebit ($)Credit ($)Account #131 Balance (Dr)
      Opening balance ---
      02-NovCash account4,5004,500
      Office equipment account
      DateParticularsDebit ($)Credit ($)Account #163 Balance (Dr)
      Opening balance ---
      01-NovM. Zucker capital account15,00015,000
      04-NovAccounts payable account2,50017,500
      Accounts payable account
      DateParticularsDebit ($)Credit ($)Account #201 Balance (Cr)
      Opening balance ---
      04-NovOffice equipment account2,5002,500
      04-NovOffice supplies account6003,100
      13-NovCash account3,1000
      29-NovOffice supplies account249249
      M.Zucker, capital account
      DateParticularsDebit ($)Credit ($)Account #301 Balance (Cr)
      Opening balance ---
      01-NovCash account30,00030,000
      01-NovOffice equipment account15,00045,000
      M. Zucker, withdrawals account
      DateParticularsDebit ($)Credit ($)Account #302Balance (Dr)
      Opening balance ---
      28-NovCash account5,3005,300
      Services revenue account
      DateParticularsDebit ($)Credit ($)Account #403 Balance (Cr)
      Opening balance ---
      08-NovCash account3,4003,400
      12-NovAccounts receivable account10,20013,600
      24-NovAccounts receivable account1,75015,350
      Utilities expense account
      DateParticularsDebit ($)Credit ($)Account #690 Balance (Dr)
      Opening balance ---
      30-NovCash account831831

    3. Trial balance of Zucker Management Services as on November, 30

      S.NoLedger NoLedger NameDebit ($)Credit ($)
      1101Cash23,069
      2106Accounts receivable6,750
      3124Office supplies849
      4128Prepaid insurance1,800
      5131Prepaid rent4,500
      6163Office equipment17,500
      7201Accounts payable249
      8301M.Zucker, capital45,000
      9302M.Zucker, withdrawals5,300
      10403Services revenue15,350
      11690Utilities expense831
      TOTAL60,59960,599

    The journal entries are thus passed and the ledger accounts and trial balance are thus prepared.

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Chapter 2 Solutions

FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS

Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Identifying source documents C1 Identify the items...Ch. 2 - Identifying financial statement accounts C2...Ch. 2 - Reading a chart of accounts C3 A chart of accounts...Ch. 2 - Identifying normal balance C4 Identify the normal...Ch. 2 - QS 2–5 Linking debit or credit with normal...Ch. 2 - Prob. 6QSCh. 2 - Analyzing debit or credit by account A1 Identify...Ch. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Preparing journal entries P1 Prepare general...Ch. 2 - Preparing an income statement P3 Liu Zhang...Ch. 2 - Preparing a statement of owner's equity P3 Use the...Ch. 2 - Prob. 14QSCh. 2 - Prob. 15QSCh. 2 - Exercise 21 Steps in analyzing and recording...Ch. 2 - Prob. 2ECh. 2 - Exercise 2-3 Identifying a ledger and chart of...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Exercise 28 Preparing Taccounts (ledger) and a...Ch. 2 - Prob. 9ECh. 2 - Exercise 2-10 Preparing a trial balance P2 After...Ch. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Exercise 2-13 Entering transactions into...Ch. 2 - Exercise 2-14 Preparing general journal entries P1...Ch. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 21ECh. 2 - Exercise 2-22 Calculating and interpreting the...Ch. 2 - Exercise 2-23 Preparing journal entries P1 Prepare...Ch. 2 - Prob. 1APSACh. 2 - Prob. 2APSACh. 2 - Prob. 3APSACh. 2 - Prob. 4APSACh. 2 - Prob. 6APSACh. 2 - Prob. 7APSACh. 2 - Prob. 1BPSBCh. 2 - Prob. 2BPSBCh. 2 - Prob. 3BPSBCh. 2 - Prob. 4BPSBCh. 2 - Problem 2-5B Computing net income from equity...Ch. 2 - Prob. 6BPSBCh. 2 - Problem 2-7B Preparing an income statement,...Ch. 2 - SP 2 On October 1, 2019, Santana Rey launched a...Ch. 2 - Using transactions from the following assignments...Ch. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Prob. 8GLPCh. 2 - Refer to Apple's financial statements in Appendix...Ch. 2 - Prob. 2AACh. 2 - Key comparative figures for Apple, Google, and...Ch. 2 - Prob. 1BTNCh. 2 - Prob. 2BTNCh. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTNCh. 2 - Prob. 7BTN
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