Problem 2-2A (LO 2-2)
Transaction Assets = Liabilities +
Stockholders’
Equity
1. Provide services to
$1,600.
2. Pay $400 for current
3. Hire a new employee, who
of each month.
4. Pay $100 for advertising
5. Purchase office supplies for
+$400
6. Receive cash of $1,000
from customers in (1)
above.
+$1,000
7. Obtain a loan from the bank
8. Receive a bill of $200 for
period.
9. Issue common stock for
10. Pay $500 to employee in (3)
Problem 2-3A (LO 2-3)
Accounts Type of Account
Normal Balance
(Debit or Credit)
1. Salaries Payable Liability Credit
2. Common Stock Stockholders’ equity Credit
3. Prepaid Rent Asset Debit
4. Buildings Asset Debit
5. Utilities Expense Expense Debit
Problem 2-4A (LO 2-4)
Transactions for Jake’s Lawn Maintenance Company
July 3 Debit Credit
Accounts Receivable 500
July 6
Repairs and Maintenance Expense 450
July 9
Cash 500
July 14
Notes Receivable 600
July 18
Advertising Expense 110
July 20
Accounts Payable 450
July 27
No entry for Jake.
July 30
No entry for Jake.
July 31
Cash 600
Problem 2-5A (LO 2-2, 2-4)
Transactions for Luke’s Repair Shop
July 3 Debit Credit
Repairs and Maintenance Expense 500
July 6
Accounts Receivable 450
July 9
Accounts Payable 500
July 14
Cash 600
July 18
No entry for Luke.
July 20
Cash 450
July 27
Cash 800
July 30
Salaries Expense 300
July 31
Notes Payable 600
Problem 2-5A (concluded)
Jake’s Lawn Maintenance Company Luke’s Repair Shop
Assets = Liabilities +
Stockholders’
Equity Assets = Liabilities +
Stockholders’
Equity
July 3 +
$500
= $0 ++$500 $0 =+$500 +−$500
6$0 =+$450 +−$450 +$450 =$0 ++$450
9+$500
14 +$600
−$450 =$0 +$0
31 +$600
Problem 2-6A (LO 2-6)
Bruins Company
Trial Balance
November 30
Accounts Debit Credit
Cash $ 40,000
Accounts Receivable 50,000
Supplies 1,100
Prepaid Rent 3,000
Equipment 60,800
Problem 2-7A (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1) March 1 Debit Credit
Cash 3,000
(2) March 3
Equipment 2,700
(3) March 5
Rent Expense 600
March 7
No entry
(4) March 12
Supplies 130
(5) March 15
Cash 800
(6) March 19
Cash 700
(7) March 25
Unearned Revenue 700
(8) March 30
Utilities Expense 95
(9) March 31
Dividends 150
Problem 2-7A (connued)
Requirements 2 and 3
Cash Supplies Equipment
(1) 3,000 600 (3) (4) 130 (2) 2,700
130 (4) (7) 700 700 (6)
130 0
Notes Payable Common Stock Dividends
Service Revenue Rent Expense Utilities Expense
Problem 2-7A (concluded)
Requirement 4
Ute Sewing Shop
Trial Balance
March 31
Accounts Debit Credit
Cash $3,655
Supplies 130
Equipment 2,700
Accounts Payable $ 130
Unearned Revenue 0
Problem 2-8A (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1) Sep. 1 Debit Credit
Cash 4,700
(2) Sep. 2
Land 6,400
(3) Sep. 4
Advertising Expense 500
(4) Sep. 8
Accounts Receivable 6,000
(5) Sep. 10
Supplies 1,100
(6) Sep. 13
Notes Payable 4,000
(7) Sep. 18
Cash 5,000
(8) Sep. 20
Rent Expense 900
(9) Sep. 30
Utilities Expense 2,000
