Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 2, Problem P2.31APGA
Journalizing transactions, posting
Leaming Objectives 3, 4
3. Cash Balance $50,160
Terrence Murphy opened a law office on January 1, 2018. During the ?rst month of operations, the business completed the following transactions:
| Jan. 1 | Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business gave capital to Murphy. |
| 3 | Purchased office supplies, $600, and furniture, $1,700, on account. |
| 4 | Performed legal services for a client and received $1,000 cash. |
| 7 | Purchased a building with a market value of $130,000, and land with a market value of $25,000. The business paid $25,000 cash and signed a note payable to the bank for the remaining amount. |
| 11 | Prepared legal documents for a client on account, $400. |
| 15 | Paid assistant’s semimonthly salary, $1,120. |
| 16 | Paid for the office supplies purchased on January 3 on account. |
| 18 | Received $2,700 cash for helping a client sell real estate. |
| 19 | Defended a client in court and billed the client for 51,800. |
| 25 | Received a bill for utilities, $600. The bill will be paid next month. |
| 29 | Received cash on account, $1,500. |
| 30 | Paid $1,200 cash for a 12-month insurance policy starting on February 1. |
| 30 | Paid assistant's semimonthly salary, $1,120. |
| 31 | Paid monthly rent expense, $1,800. |
| 31 | Murphy withdrew cash of $2,200. |
Requirements
1. Record each transaction in the journal, using the following account titles: Cash;
2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Murphy, Capital, 301; Murphy, Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references; and posting references Assume thejournal entries were recorded on page 1 of the journal.
4. Prepare the trial balance of Terrence Murphy, Attorney, at January 31, 2018.
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T Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000
Question 1a.Enter the relevant amounts in the T sheet to start the current year, and designate…
construct the Journal Entry of the transaction:
Date/#
Account Title
Debit
Credit
Oct-01
Garcia invested P30,000 cash to start his business.
2
Purchased medical Supplies on account, P10,000
2
Paid monthly office rent of P4,000.
3
Recorded P5,000 revenue for service rendered to patients: received cash of P2,000 and sent bills to patients for the remainder.
15
Borrowed P50,000 from the bank, signing a note payable
22
Performed service for patients on account, P3,600
30
Received cash from patients billed on September 3, P2,000
31
Received and paid a utility bill, P200
31
Paid monthly salary to nurses, P3,000
31
Paid interest expense of P200
ANALYSIS OF TRANSACTIONS
Jona passed the bar exam in April and immediately set up her own law practice. During the first month of operation, she completed the following transactions:
Began the law practice by placing P2,000,000 in a bank account establish for the business
Purchase a Law Library for P290,000 cash
Purchase office supplies for P30,000 on credit
Accepted P50,000 in cash for completing a contract
Billed clients for P39,500 for service rendered during the month
Paid P20,000 of the amount owed for office supplies
Received P30,000 in cash from clients who had been previously billed
Paid rent expense for the month in the amount of P10,000
Withdrew P50,000 for personal use
Paid utilities for P15,000
Office supplies that were consumed for the period is 90%.
REQUIREMENTS:
Analysis of Transaction (increase/decrease)
Statement of Financial Position
Statement of Comprehensive Income
Chapter 2 Solutions
Horngren's Accounting (12th Edition)
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Learning...Ch. 2 - Journalizing transactions and posting to...Ch. 2 - Prob. S2.8SECh. 2 - Prob. S2.9SECh. 2 - Using accounting vocabulary Learning Objectives 1,...Ch. 2 - Creating a chart of accounts Learning Objective 1...Ch. 2 - Identifying accounts, increases in accounts, and...Ch. 2 - Identifying increases and decreases in accounts...Ch. 2 - Identifying source documents Learning Objective 3...Ch. 2 - Analyzing and journalizing transactions Learing...Ch. 2 - Analyzing and journalizing transactions Leaning...Ch. 2 - Posting journal entries to T-accounts Learning...Ch. 2 - Analyzing and journalizing transactions Learning...Ch. 2 - Posting journal entries to four-column accounts...Ch. 2 - Analyzing transactions from T-accounts Learning...Ch. 2 - Journalizing transactions from T-accounts Learning...Ch. 2 - Preparing a trial balance Learning Objective 4...Ch. 2 - Preparing a trial balance from T-accounts Learning...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Analyzing accounting errors Learning Ojective 4...Ch. 2 - Prob. E2.26ECh. 2 - E2-27 Correcting errors in a trial...Ch. 2 - Prob. E2.28ECh. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Correcting errors in a trial balance Learning...Ch. 2 - Prob. P2.34APGACh. 2 - Prob. P2.35BPGBCh. 2 - Prob. P2.36BPGBCh. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Prob. P2.38BPGBCh. 2 - Correcting errors in a trial balance Learning...Ch. 2 - Prob. P2.40BPGBCh. 2 - Prob. P2.41CTCh. 2 - P2-42 Journalizing transactions, posting to...Ch. 2 - Journalizing transactions, posting to T-accounts,...Ch. 2 - Before you begin this assignment, renew the Tymg...Ch. 2 - Prob. 2.1DCCh. 2 - Prob. 2.1EICh. 2 - Prob. 2.1FCCh. 2 - Prob. 2.1FSC
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