Chapter 02 – Accounting System and Financial Statements
Problem 2-3A (90 minutes)
Part 1
April 1 Cash……………………………………………………. 101 80,000
Office Equipment …………………………………. 163 26,000
Common Stock …………………………….. 307 106,000
Owner invested cash and equipment for stock.
9 Accounts Receivable …………………………... 106 6,000
Services Revenue …………………………. 403 6,000
Billed client for completed work.
13 Accounts Payable ……………………………….. 201 11,600
Cash …………………………………………….. 101 11,600
28 Dividends ……………………………………………. 319 5,500
Cash …………………………………………….. 101 5,500
Paid cash dividends.
29 Office Supplies ……………………………………. 124 600
Accounts Payable …………………………. 201 600
Problem 2-3A (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
April
1
G1
80,000
80,000
2
G1
9,000
71,000
6
G1
4,000
75,000
13
G1
11,600
63,400
19
G1
2,400
61,000
22
G1
4,400
65,400
28
G1
5,500
59,900
30
G1
435
59,465
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
April
9
G1
6,000
6,000
22
G1
4,400
1,600
25
G1
2,890
4,490
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
April
3
G1
3,600
3,600
29
G1
600
4,200
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
April
19
G1
2,400
2,400
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
April
2
G1
9,000
9,000
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
April
1
G1
26,000
26,000
3
G1
8,000
34,000
Problem 2-3A (Continued)
Part 3
LINKWORKS
Trial Balance
April 30
Debit Credit
Problem 2-5A (35 minutes)
Part 1 MIN ENGINEERING
Trial Balance
May 31
Debit Credit
Cash ……………………………………………………. $37,641
Office supplies …………………………………….. 890
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
Problem 2-6A (Part 1 Continued)
i. Accounts Payable …………………………….. 201 2,000
Cash ………………………………………….. 101 2,000
Paid cash on account.
j. Office Equipment ………………………………. 163 20,300
Problem 2-6A (Concluded)
Part 3
HV CONSULTING
Trial Balance
September 30
Debit Credit