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Net Total Total Owners'
Error Income Assets Liabilities Equity
NE U NE U
UNENENE
PROBLEM 3.8
A
10 Minutes, Difficult
Recorded the issuance of capital stock by
debiting Capital Stock and crediting Cash.
HOME TEAM CORPORATION
Recorded the declaration and payment of a
dividend by debiting Interest Expense and
crediting Cash.
Recorded the payment of an account payable
30 Minutes, Medium
a.
1 650,000
Capital Stock 650,000
10 6,000
Cash 6,000
Purchased office supplies.
General Journal
Apr. Cash
Issued 10,000 shares of capital stock.
SOLUTIONS TO PROBLEMS SET B
NORTH ENTERPRISES
PROBLEM 3.1B
Purchased computer system.
Purchased land and office building.
20__
Computer Systems
b.
Transaction Assets = Liabilities + Owners’ Equity
Apr. 1 + $650,000 (Capital
Apr. 6 + $60,000 (Land) $0
+ $240,000 (Office Building)
– $100,000 (Cash)
+ $200,000 (Notes
Payable)
PROBLEM 3.1B
NORTH ENTERPRISES
(
concluded
)
+ $650,000 (Cash) $0
30 Minutes, Medium
a. (1) (a)
(b)
(c)
(4) (a)
(b)
(b)
$800.
PROBLEM 3.2B
The asset Cash was decreased. Decreases in assets are recorded by credits. Credit Cash,
$1,800.
Credit Office Supplies, $100.
LYONS, INC.
The asset Accounts Receivable was increased. Increases in assets are recorded by debits.
Debit Accounts Receivable, $5,000.
Revenue has been earned. Revenue increases owners’ equity. Increases in owners’ equity
are recorded by credits. Credit Consulting Revenue, $5,000.
The asset Cash was increased. Increases in assets are recorded by debits. Debit Cash,
$5,000.
The owners’ equity account Capital Stock was increased. Increases in owners’ equity are
recorded by credits. Credit Capital Stock, $5,000.
The liability Accounts Payable was increased. Increases in liabilities are recorded by
credits. Credit Accounts Payable, $2,400.
b.
1 5,000
Consultin
g
Revenue 5,000
June 1.
Billed customers for services rendered.
General Journal
PROBLEM 3.2B
LYONS, INC. (continued)
20__ (1)
June Accounts Receivable
a.
Revenue Expenses = Assets Liabilities =
NE I D D NE D
INEII NEI
Oct. 1
Transaction
Oct. 4
Income Statement
PROBLEM 3.3B
Net
Income
DANA, INC.
Balance Sheet Owners'
Equity
b.
Oct. 1 4,000
Cash 4,000
PROBLEM 3.3B
DANA, INC. (concluded
)
General Journal
Rent Expense
Paid October rent.
a.
Revenue Expenses = Assets Liabilities =
NE NE NE I NE I
NE NE NE I I NE
NE I D NE I D
NE NE NE NE I D
Mar. 30
Mar. 30
Mar. 2
Transaction
PROBLEM 3.4B
50 Minutes, Strong
TONE DELIVERIES
Balance Sheet Owners'
Equity
Net
Income
Mar. 4
Income Statement
b.
Mar. 2 80,000
Ca
p
ital Stock 80,000
PROBLEM 3.4B
TONE DELIVERIES (continued)
General Journal
2015
Cash
c.
Debit Credit Balance
Mar. 2 80,000 80,000
4 15,000 65,000
Debit Credit Balance
Debit Credit Balance
Mar. 4 45,000 45,000
Debit Credit Balance
2015
PROBLEM 3.4B
Date Cash
TONE DELIVERIES (continued)
Explanation
Date
Explanation
Accounts Receivable
2015 Explanation
Truck
Date
Explanation
Notes Payable
Date
