Fundamental Accounting Principles
Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
Question
Book Icon
Chapter 2, Problem 4BPSB
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
Check Mark

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 Nuncio Consulting are passed as under-
      S. NoParticularsAccount NoDebit ($)Credit ($)
      a.Cash account10135,000
      Office equipment account16311,000
      A.Nuncio, capital account30146,000
      b.Land account1727,500
      Building account17040,000
      Cash account10115,000
      Notes payable25032,500
      c.Office supplies account108500
      Accounts payable account201500
      d.Automobiles account1648,000
      A.Nuncio, capital account3018,000
      e.Office equipment account1631,200
      Accounts payable account2011,200
      f.Salaries expense account6011,000
      Cash account1011,000
      g.Cash account1013,200
      Fees earned account4023,200
      h.Utilities expense602540
      Cash account101540
      i.Accounts payable account201500
      Cash account101500
      j.Office equipment1633,400
      Cash account1013,400
      k.Fees earned account4024,200
      Cash account1014,200
      l.Salaries expense account6011,000
      Cash account1011,000
      m.Cash account1012,200
      Accounts receivable account1062,200
      n.A.Nuncio, withdrawals account3021,100
      Cash account1011,100

    2. Ledger accounts in the books of Nuncio Consulting are passed as under-

      Cash account
      DateParticularsDebit ($)Credit ($)Account #101 Balance (Dr)
      Opening balance ---
      A.Nuncio, capital account35,00035,000
      Land account7,50027,500
      Building account7,50020,000
      Salaries expense account1,00019,000
      Fees earned account3,20022,200
      Utilities expense account54021,660
      Accounts payable account50021,160
      Office equipment account3,40017,760
      Salaries expense account1,00016,760
      Accounts receivable account2,20018,960
      A.Nuncio, withdrawals account1,10017,860
      Accounts receivable account
      DateParticularsDebit ($)Credit ($)Account #106 Balance (Dr)
      Opening balance ---
      Fees earned account4,2004,200
      Cash account2,2002,000
      Office supplies account
      DateParticularsDebit ($)Credit ($)Account #108 Balance (Dr)
      Opening balance ---
      Accounts payable account500500
      Office equipment account
      DateParticularsDebit ($)Credit ($)Account #163 Balance (Dr)
      Opening balance ---
      A.Nuncio, capital account11,00011,000
      Accounts payable account1,20012,200
      Cash account3,40015,600
      Automobiles account
      DateParticularsDebit ($)Credit ($)Account #164 Balance (Dr)
      Opening balance ---
      A.Nuncio, capital account8,0008,000
      Building account
      DateParticularsDebit ($)Credit ($)Account #170 Balance (Dr)
      Opening balance ---
      Cash account7,5007,500
      Notes payable account32,50040,000
      Land account
      DateParticularsDebit ($)Credit ($)Account #172 Balance (Dr)
      Opening balance ---
      Cash account7,5007,500
      Accounts payable account
      DateParticularsDebit ($)Credit ($)Account #201 Balance (Cr)
      Opening balance ---
      Office supplies account500500
      Office equipment account1,2001,700
      Cash account5001,200
      Notes payable account
      DateParticularsDebit ($)Credit ($)Account #250 Balance (Cr)
      Opening balance ---
      Building account32,50032,500
      A.Nuncio, capital account
      DateParticularsDebit ($)Credit ($)Account #301 Balance (Cr)
      Opening balance ---
      Cash account35,00035,000
      Office equipment account11,00046,000
      Automobiles account8,00054,000
      A.Nuncio, withdrawals account
      DateParticularsDebit ($)Credit ($)Account #302Balance (Dr)
      Opening balance ---
      Cash account1,1001,100
      Fees earned account
      DateParticularsDebit ($)Credit ($)Account #402 Balance (Cr)
      Opening balance ---
      Cash account3,2003,200
      Accounts receivable account4,2007,400
      Salaries expense account
      DateParticularsDebit ($)Credit ($)Account #601 Balance (Dr)
      Opening balance ---
      Cash account1,0001,000
      Cash account1,0002,000
      Utilities expense account
      DateParticularsDebit ($)Credit ($)Account #690 Balance (Dr)
      Opening balance ---
      Accounts payable account540540

    3. Trial balance of Nuncio Consulting as on June, 30

      S. NoLedger NoLedger NameDebit ($)Credit ($)
      1101Cash17,860
      2106Accounts receivable2,000
      3108Office supplies500
      4163Office equipment15,600
      5164Automobiles8,000
      6170Building40,000
      7172Land7,500
      8201Accounts payable1,200
      9250Notes payable32,500
      10301A.Nuncio, capital account54,000
      11302A.Nuncio, withdrawals account1,100
      12402Fees earned account7,400
      13601Salaries expense account2,000
      14602Utilities expense account540
      TOTAL95,10095,100

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

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!

Chapter 2 Solutions

Fundamental Accounting Principles

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
Knowledge Booster
Background pattern image
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