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Problem 2-6A (35 minutes)
Part 1
MIN ENGINEERING
Trial Balance
May 31
Debit Credit
Cash............................................................. $37,641
Office supplies............................................ 890
Prepaid insurance...................................... 4,600
Office equipment........................................ 12,900
Accounts payable....................................... $12,900
Part 2: Likely transactions (following order of trial balance).
1. Purchased $890 of office supplies for cash.
2. Paid $4,600 insurance premium in advance.
Part 3
Report of Cash Received and Paid
Cash received
Owner investment .................................... $18,000
Engineering fees ....................................... 36 ,000
Total cash received .................................. $54,000
Cash paid
Office supplies .......................................... 890
Ending balance ........................................... $37 ,641
PROBLEM SET B
Problem 2-1B (90 minutes)
Part 1
Sept.1 Cash..........................................................101 38,000
Office Equipment.....................................163 15,000
Office Supplies.........................................124 2,400
Accounts Payable............................201 10,400
Purchased equipment and supplies on credit.
8 Cash..........................................................101 3,280
Services Revenue.............................401 3,280
Received cash for services.
12 Accounts Receivable...............................106 15,400
Services Revenue.............................401 15,400
Billed client for completed work.
Services Revenue.............................401 2,100
Billed client for completed work.
28 H. Humble, Withdrawals..........................302 5,300
Cash...................................................101 5,300
Owner withdrew cash for personal use.
29 Office Supplies.........................................124 550
Accounts Payable............................201 550
Purchased supplies on account.
30 Utilities Expense......................................690 860
Cash...................................................101 860
Paid monthly utility bill.
Problem 2-1B (Continued)
Part 2
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Sept. 1 G1 38,000 38,000
2 G1 9,000 29,000
8 G1 3,280 32,280
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Sept. 12 G1 15,400 15,400
22 G1 7,700 7,700
24 G1 2,100 9,800
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Sept. 4 G1 2,400 2,400
29 G1 550 2,950
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Sept. 19 G1 1,900 1,900
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Problem 2-1B (Continued)
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
H. Humble, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Sept. 1 G1 53,000 53,000
H. Humble, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Sept. 28 G1 5,300 5,300
Services Revenue Acct. No. 401
Date Explanation PR Debit Credit Balance
Utilities Expense Acct. No. 690
Date Explanation PR Debit Credit Balance
Sept. 30 G1 860 860
Problem 2-1B (Concluded)
Cash.................................................................. $21,520
Accounts receivable....................................... 9,800
Office supplies................................................. 2,950
H. Humble, Capital.......................................... 53,000
H. Humble, Withdrawals................................. 5,300
Services revenue............................................. 20,780
Utilities expense.............................................. 860 .
Totals ............................................................... $74 ,330 $74 ,330
Problem 2-2B (90 minutes) Part 1
Part 1
a. Cash............................................................101 65,000
b. Land............................................................172 22,000
Cash....................................................101 5,000
Notes Payable.....................................250 17,000
Purchased land with cash and note payable.
c. Building.......................................................170 34,500
Cash....................................................101 34,500
Purchased building.
g. Accounts Receivable.................................106 4,250
Fees Earned........................................402 4,250
Completed services for client.
h. Office Equipment.......................................163 950
Accounts Payable..............................201 950
Purchased equipment on credit.
Problem 2-2B (Part 1 Continued)
i. Accounts Receivable.................................106 10,200
Fees Earned........................................402 10,200
Billed client for completed work.
j. Computer Rental Expense........................602 580
Accounts Payable..............................201 580
Incurred computer rental expense.
o. B. Grechus, Withdrawals...........................302 6,230
Cash....................................................101 6,230
Owner withdrew cash for personal use.
p. Wages Expense..........................................601 1,800
Cash....................................................101 1,800
Paid assistant’s wages.
Problem 2-2B (Continued)
Part 2
Cash No. 101 Accounts Payable No. 201
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 65,000 65,000 (h) 950 950
(b) 5,000 60,000 (j) 580 1,530
(c) 34,500 25,500 (m) 950 580
(d) 5,000 20,500
(e) 4,600 25,100 Notes Payable No. 250
(n) 608 26,042
(o) 6,230 19,812 B. Grechus, Capital No. 301
(p) 1,800 18,012 Date PR Debit Credit Balance
(q) 750 17,262 (a) 100,750 100,750
Accounts Receivable No. 106 B. Grechus, Withdrawals No. 302
Date PR Debit Credit Balance Date PR Debit Credit Balance
(g) 4,250 4,250 (o) 6,230 6,230
(i) 10,200 14,450
(k) 5,100 9,350 Fees Earned No. 402
Date PR Debit Credit Balance
Prepaid Insurance No. 108 (e) 4,600 4,600
(h) 950 6,700 (p) 1,800 3,600
Computer Equipment No. 164 Computer Rental Expense No. 602
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 30,000 30,000 (j) 580 580
(f) 4,500 34,500
(b) 22,000 22,000 (n) 608 608
