FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 2, Problem 4PSB
1.
To determine
Introduction: A journal is used to record financial transactions. It shows debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are
The
1.
Expert Solution
Explanation of Solution
- Journal entries to record the transactions in the month of June
| S.no | Account title and Explanation | PR | Debit | Credit |
| a | Cash | 101 | $35,000 | |
| Office equipment | 163 | $11,000 | ||
| A.N Capital | 301 | $46,000 | ||
| Owners investment in business | ||||
| b | Land | 172 | $7,500 | |
| Building | 170 | $40,000 | ||
| Cash | 101 | $15,000 | ||
| Notes payable | 250 | $32,500 | ||
| Record purchase of land and building for cash and note payable | ||||
| c. | Office supplies | 108 | $500 | |
| Accounts payable | 201 | $500 | ||
| Purchase office equipment and supplies on credit | ||||
| d. | Automobiles | 164 | $8,000 | |
| A.N Capital | 301 | $8,000 | ||
| Record transfer of automobile to business | ||||
| e. | Office equipment | 163 | $1,200 | |
| Accounts payable | 201 | $1,200 | ||
| Record purchase of office equipment on credit | ||||
| f. | Salary expense | 601 | $1,000 | |
| Cash | 101 | $1,000 | ||
| Paid cash towards salary expense | ||||
| g. | Cash | 101 | $3,200 | |
| Fee earned | 402 | $3,200 | ||
| Received cash on service provided | ||||
| h. | Utility Expense | 602 | $540 | |
| Cash | 101 | $540 | ||
| Record cash payment for utility expenses | ||||
| i. | Accounts payable | 201 | $500 | |
| Cash | 101 | $500 | ||
| Record payment of cash to settle payable | ||||
| j. | Office equipment | 163 | $3,400 | |
| Cash | 101 | $3,400 | ||
| Record purchase of office equipment for cash | ||||
| k. | Accounts receivable | 106 | $4,200 | |
| Fees earned | 402 | $4,200 | ||
| Record of fees earned on service provided | ||||
| l. | Salary expense | 601 | $1,000 | |
| Cash | 101 | $1,000 | ||
| Record payment of salary to assistant | ||||
| m. | Cash | 101 | $2,200 | |
| Accounts receivable | 106 | $2,200 | ||
| Received cash on partial settlement of receivables | ||||
| n. | A.N withdrawals | 302 | $1,100 | |
| Cash | 101 | $1,100 | ||
| Record withdrawal of cash by owner for personal use |
2.
To determine
Introduction: A journal is used to record financial transactions. It shows debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are posted into ledgers.
The given ledger accounts
2.
Expert Solution
Explanation of Solution
Posting of journal entries in ledgers
CashAccount no 101
| Date | PR | Account title | Debit | Credit | Balance |
| a. | A.N Capital | $35,000 | $35,000 | ||
| b. | Building | $15,000 | $20,000 | ||
| f. | Salary expense | $1,000 | $19,000 | ||
| g. | Fees earned | $3,200 | $22,200 | ||
| h. | Utility expense | $540 | $21,660 | ||
| i. | Accounts payable | $500 | $21,160 | ||
| j. | Office equipment | $3,400 | $17,760 | ||
| l. | Salary expense | $1,000 | $16,760 | ||
| m. | Accounts receivable | $2,200 | $18,960 | ||
| n. | A.N withdrawals | $1,100 | $17,860 |
Accounts receivableAccount no 106
| Date | PR | Account title | Debit | Credit | Balance |
| k. | Service revenue | $4,200 | $4,200 | ||
| m. | Cash | $2,200 | $2,000 |
Office suppliesAccount no 124
| Date | PR | Account title | Debit | Credit | Balance |
| c. | Accounts payable | $500 | $500 |
AutomobilesAccount no 164
| Date | PR | Account title | Debit | Credit | Balance |
| d. | A.N Capital | $8,000 | $8,000 |
BuildingAccount no 170
| Date | PR | Account title | Debit | Credit | Balance |
| b. | $40,000 | $40,000 |
LandAccount no 172
| Date | PR | Account title | Debit | Credit | Balance |
| b. | $7,500 | $7,500 |
Office equipmentAccount no 163
| Date | PR | Account title | Debit | Credit | Balance |
| a. | A.N Capital | $11,000 | $11,000 | ||
| e. | Accounts payable | $1,200 | $12,200 | ||
| j. | Cash | $3,400 | $15,600 |
Accounts PayableAccount no 201
| Date | PR | Account title | Debit | Credit | Balance |
| c. | Office supplies | $500 | $500 | ||
| e. | Office equipment | $1,200 | $1,700 | ||
| i. | Cash | $500 | $1,200 |
Notes payableAccount no 250
| Date | PR | Account title | Debit | Credit | Balance |
| b. | $32,500 | $32,500 |
A.N CapitalAccount no 301
| Date | PR | Account title | Debit | Credit | Balance |
| a. | Cash | $35,000 | $35,000 | ||
| Office equipment | $11,000 | $46,000 | |||
| d. | Automobiles | $8,000 | $54,000 |
A.N WithdrawalsAccount no 302
| Date | PR | Account title | Debit | Credit | Balance |
| N | Cash | $1,100 | $1,100 |
Fees earnedAccount no 402
| Date | PR | Account title | Debit | Credit | Balance |
| g. | Cash | $3,200 | $3,200 | ||
| k. | Accounts receivable | $4,200 | $7,400 |
Salary expenseAccount no 601
| Date | PR | Account title | Debit | Credit | Balance |
| f. | Cash | $1,000 | $1,000 | ||
| l. | Cash | $1,000 | $2,000 |
Utility expensesAccount no 602
| Date | PR | Account title | Debit | Credit | Balance |
| h. | Cash | $540 | $540 |
3.
To determine
Introduction: A journal is used to record financial transactions. It shows debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are posted into ledgers.
The
3.
Expert Solution
Explanation of Solution
Trial balance
| Account title | Debit | Credit |
| Cash | $17,860 | |
| Accounts receivable | $2,000 | |
| Office equipment | $15,600 | |
| Office supplies | $500 | |
| Building | $40,000 | |
| Automobiles | $8,000 | |
| Land | $7,500 | |
| Accounts payable | $1,200 | |
| Note payable | $32,500 | |
| M.Z Capital | $54,000 | |
| M.Z Withdrawals | $1,100 | |
| Fees earned | $7,400 | |
| Salary expense | $2,000 | |
| Utility expenses | $540 | |
| Total | $95,100 | $95,100 |
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Chapter 2 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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Ch. 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. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 1QSCh. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Prob. 15QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Analyzing account entries and balances A1 Use the...Ch. 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 - Identifying effects of posting errors on the trial...Ch. 2 - Prob. 21ECh. 2 - Prob. 22ECh. 2 - Prob. 23ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 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 - Using transactions from the following assignments,...Ch. 2 - Prob. 7GLPCh. 2 - Prob. 8GLPCh. 2 - Prob. 1AACh. 2 - Prob. 2AACh. 2 - Prob. 3AACh. 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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