Exercise 2-14 (LO 2-5)
Cash
(1)
(4)
5,000
15,000
8,000
9,000
3,000
(2)
(3)
Transaction (8) is not posted to the Cash T-account because a purchase on
account does not involve cash.
Exercise 2-15 (LO 2-5)
Cash Accounts Receivable
(3)
3,400
10,200
1,000
(4)
(1)
4,200
8,400 10,200 (3)
Supplies Accounts Payable
400
3,500
Unearned
Revenue Service Revenue
300
0
Advertising
Expense
0
Exercise 2-16 (LO 2-5)
1. Provide services to customers for cash, $20,000.
2. Provide services to customers on account, $5,000.
3. Receive cash from customers on account, $4,000.
Exercise 2-17 (LO 2-6)
Sooner Company
Trial Balance
April 30
Accounts Debit Credit
Cash $ 3,900
Accounts Receivable 6,100
Prepaid Rent 7,400
Land 60,000
Accounts Payable $ 4,300
Exercise 2-18 (LO 2-6)
Cobras Incorporated
Trial Balance
March 31
Accounts Debit Credit
Cash $ 3,500
Accounts Receivable 4,200
Supplies 1,000
Prepaid Insurance 1,200
Buildings 55,000
Accounts Payable $ 2,200
Exercise 2-19 (LO 2-4, 2-5, 2-6)
Requirement 1
(1) Debit Credit
Cash 42,000
(2)
Land 24,000
(3)
Equipment 9,000
(4)
No entry
(5)
Cash 13,000
(6)
Supplies 3,000
(7)
Salaries Expense 9,000
Exercise 2-19 (continued)
Requirement 2
Cash Common Stock
(1)
0
42,000
9,000
(3)
0
42,000 (1)
Land Notes Payable
0
0
Equipment Service Revenue
0
0
Supplies
Accounts Payable
0
0
Salaries Expense
0
Exercise 2-19 (concluded)
Requirement 3
Green Wave Company
Trial Balance
Accounts Debit Credit
Cash $37,000
Supplies 3,000
Land 24,000
Equipment 9,000
Exercise 2-20 (LO 2-4, 2-5, 2-6)
Requirement 1
(1) Debit Credit
Accounts Receivable 20,000
(2)
Equipment 21,000
(3)
Supplies 3,500
(4)
Salaries Expense 4,200
(5)
Advertising Expense 1,000
(6)
Rent Expense 5,400
(7)
Cash 15,000
(8)
Cash 6,000
Exercise 2-20 (continued)
Requirement 2 Accounts Receivable Service Revenue
Beg.
(1)
1,700
20,000
0
20,000
Beg.
(1)
Equipment Cash
Beg.
7,400
Beg.
26,100
Supplies Accounts Payable
Beg.
500
1,200
Beg.
Salaries Expense Advertising Expense
Beg.
0
Beg.
0
Rent Expense
Unearned
Revenue
Beg.
0
0
Beg.
Common Stock Retained Earnings
Exercise 2-20 (concluded)
Requirement 3
Boilermaker House Painting Company
Trial Balance
Accounts Debit Credit
Cash $15,500
Accounts Receivable 6,700
Supplies 4,000
Equipment 28,400
Problem 2-1A (LO 2-2)
Transaction Assets = Liabilities +
Stockholders’
Equity
1. Issue common stock in
exchange for cash. Increase = No effect + Increase
2. Purchase business
3. Pay for legal services
4. Provide services to
5. Pay employee salaries
Problems: Set a
customers for cash.
7. Pay for advertising for
8. Repay loan from the
9. Pay dividends to
10. Receive cash from
above.
11. Pay for supplies
*One asset (cash) increases and another asset (accounts receivable) decreases