FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Chapter 2, Problem 3PSB
1.
Summary Introduction
Introduction:
To prepare: The general
1.
Expert Solution
Answer to Problem 3PSB
The total for journal entries is $93430
Explanation of Solution
| Date (November) | Particular | PR | Dr. | Cr. |
| 1stNov | Cash | 101 | 30,000 | |
| Office Equipment | 163 | 15,000 | ||
| To Common stock | 307 | 54,000 | ||
| (Owner’s investment) | ||||
| 2ndNov | Prepaid rent | 131 | 4,500 | |
| To Cash | 101 | 4,500 | ||
| (Paid in advance for rent) | ||||
| 4rdNov | Office equipment | 163 | 2500 | |
| Office supplies | 124 | 600 | ||
| To account payable | 201 | 3100 | ||
| (Purchased office equipment and office supplies) | ||||
| 8thNov | Cash | 101 | 3400 | |
| To Service revenue | 403 | 3400 | ||
| (Received cash for provided service) | ||||
| 12thNov | 106 | 10200 | ||
| To service revenue | 403 | 10200 | ||
| (Provide service on credit) | ||||
| 13thNov | Account payable | 201 | 3100 | |
| Cash | 101 | 3100 | ||
| (Paid cash that was due) | ||||
| 19thNov | Prepaid Insurance | 128 | 1800 | |
| To cash | 101 | 1800 | ||
| (Paid cash as premium for insurance) | ||||
| 22thNov | Cash | 101 | 5200 | |
| Account receivable | 106 | 5200 | ||
| (Received cash) | ||||
| 24thNov | Account receivable | 106 | 1,750 | |
| Service revenue | 403 | 1,750 | ||
| 28thNov | Dividends | 319 | 5300 | |
| Cash | 101 | 5300 | ||
| (to record the payment of cash as dividend) | ||||
| 29thNov | Office supplies | 163 | 249 | |
| To Accounts payable | 201 | 249 | ||
| (Purchase office supplies on credit) | ||||
| 30thNov | Utilities expense | 690 | 831 | |
| To Cash | 101 | 831 | ||
| (Paid cash for utilities) | ||||
| Total | 93430 | 93430 |
2.
Summary Introduction
Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.
To prepare: Ledger for the following transactions.
2.
Expert Solution
Answer to Problem 3PSB
Balance of cash ledger is $23069, account receivable $6750, dividend $5300, office supplies $849, prepaid insurance is $1800, prepaid rent $4500, office equipment $17500, Account payable $249, Common stock $45000, service revenue $1350, and utilities is $831
Explanation of Solution
| Cash Account No.101 | ||||
| Date | PR | Debit | Credit | Balance |
| 1stNov | G1 | 30000 | 30,000 | |
| 2ndNov | G1 | 4500 | 25500 | |
| 8thNov | G1 | 3400 | 28900 | |
| 13thNov | G1 | 3100 | 25800 | |
| 19thNov | G1 | 1800 | 24000 | |
| 22ndNov | G1 | 5200 | 29200 | |
| 28thNov | G1 | 5300 | 23900 | |
| 30thNov | G1 | 831 | 23069 | |
| Account receivable | Account no.106 | |||
| Date | PR | Debit | Credit | Balance |
| 12thNov | G1 | 10200 | 10200 | |
| 22ndNov | G1 | 5200 | 5000 | |
| 24thNov | G1 | 1750 | 6750 |
| Prepaid insurance | Account no. 128 | |||
| Date | PR | Debit | Credit | Balance |
| 19thNov | G1 | 1800 | 1800 | |
| Office equipment | Account no. 163 | |||
| Date | PR | Debit | Credit | Balance |
| 1stNov | G1 | 15000 | 15000 | |
| 4thNov | G1 | 2500 | 17500 | |
| Office supplies | Account no. 124 | |||
| Date | PR | Debit | Credit | Balance |
| 4rdNov | G1 | 600 | 600 | |
| 29thNov | G1 | 249 | 849 |
| Prepaid rent | Account no. 131 | |||
| Date | PR | Debit | Credit | Balance |
| 2ndNov | G1 | 4500 | 4500 | |
| Account payable | Account no. 201 | |||
| Date | PR | Debit | Credit | Balance |
| 4thNov | G1 | 3100 | 3100 | |
| 13thNov | G1 | 3100 | 0 | |
| 29thNov | G1 | 249 | 249 |
| Common stock | Account no. 307 | |||
| Date | PR | Debit | Credit | Balance |
| 1stNov | G1 | 45000 | 45000 | |
| Dividend | Account no. 319 | |||
| Date | PR | Debit | Credit | Balance |
| 28thNov | G1 | 5300 | 5300 | |
| Service Revenue | Account no. 403 | |||
| Date | PR | Debit | Credit | Balance |
| 8thNov | G1 | 3400 | 3400 | |
| 12thNov | G1 | 10200 | 13600 | |
| 24thNov | G1 | 2100 | 1350 | |
| Utilities | Account no. 690 | |||
| Date | PR | Debit | Credit | Balance |
| 30thNov | G1 | 831 | 831 |
3.
Summary Introduction
Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.
To prepare: Trail balance.
3.
Expert Solution
Answer to Problem 3PSB
Total of trail balance is $60599
Explanation of Solution
| HTrail balance30thNov. | ||
| Particular | Dr. | Cr. |
| Cash | 23069 | |
| Account receivable | 6750 | |
| Office supplies | 849 | |
| Prepaid insurance | 1,800 | |
| Prepaid rent | 4500 | |
| Office equipment | 17500 | |
| Account payable | 249 | |
| Common Stock | 45000 | |
| Dividend | 5,300 | |
| Service revenue | 15350 | |
| Utilities | 831 | |
| Total | 60599 | 60599 |
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Javier Jimenez operates a delivery service. During the month of April, the firm had the following transactions.
April 1 Issued a check in the amount of $4,800 to pay the monthly rent for the next 3 months.
April 2 Javier made an additional investment of cash in amount of $11,200.
April 4 Performed services for $715 in cash.
April 6 Sent a check in the amount of $410 to the utility company to pay the monthly bill.
April 7 Purchased supplies in the amount of $870 on credit.
Prepare journal entries to record the above transactions.
View transaction list
Journal entry worksheet
1
2
3
Date
April 01
Issued a check in the amount of $4,800 to pay the monthly rent for the next 3
months.
Note: Enter debits before credits.
5
General Journal
Debit
Credit
>
Sanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…
Sanyu Sony started a new business and completed these transactions during December.Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account inthe name of Sony Electric.2 The company rented office space and paid $1,000 cash for the December rent.3 The company purchased $13,000 of electrical equipment by paying $4,800 cash and agreeing topay the $8,200 balance in 30 days.5 The company purchased office supplies by paying $800 cash.6 The company completed electrical work and immediately collected $1,200 cash for these services.8 The company purchased $2,530 of office equipment on credit.15 The company completed electrical work on credit in the amount of $5,000.18 The company purchased $350 of office supplies on credit.20 The company paid $2,530 cash for the office equipment purchased on December 8.24 The company billed a client $900 for electrical work completed; the balance is due in 30 days.28 The company received $5,000 cash for the work completed…
Chapter 2 Solutions
FINANCIAL ACCT-CONNECT
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