Chapter 02 – Accounting System and Financial Statements
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Solutions Manual, Chapter 2
41
PROBLEM SET B
Problem 2-1B (90 minutes) Part 1
Part 1
a. Cash……………………………………………………. 101 65,000
Office Equipment …………………………………. 163 5,750
Computer Equipment …………………………... 164 30,000
Common Stock …………………………….. 307 100,750
Purchased 24-month insurance policy.
e. Cash……………………………………………………. 101 4,600
Fees Earned …………………………………. 402 4,600
Collected cash for completed work.
f. Computer Equipment …………………………... 164 4,500
Problem 2-1B (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
Problem 2-1B (Concluded)
Part 3
SOFTWORKS
Trial Balance
April 30
Debit Credit
Cash …………………………………………………….. $ 17,262
Problem 2-2B (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
30,000
30,000
2
G1
4,500
25,500
8
G1
3,400
28,900
13
G1
3,100
25,800
19
G1
1,800
24,000
22
G1
5,200
29,200
28
G1
5,300
23,900
30
G1
831
23,069
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Nov.
12
G1
10,200
10,200
22
G1
5,200
5,000
24
G1
1,750
6,750
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Nov.
4
G1
600
600
29
G1
249
849
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Nov.
19
G1
1,800
1,800
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Nov.
2
G1
4,500
4,500
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
15,000
15,000
4
G1
2,500
17,500
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Nov.
4
G1
3,100
3,100
13
G1
3,100
0
29
G1
249
249
Problem 2-3B (90 minutes)
Part 1
Sept. 1 Cash …………………………………………………. 101 38,000
Office Equipment ………………………………. 163 15,000
Common Stock…………………………... 307 53,000
Owner invested in the business for stock.
12 Accounts Receivable ………………………… 106 15,400
Service Fees Earned …………………… 401 15,400
Billed client for completed work.
13 Accounts Payable …………………………….. 201 10,400
Cash ………………………………………….. 101 10,400
28 Dividends …………………………………………. 319 5,300
Cash ………………………………………….. 101 5,300
Paid cash for dividends.
29 Office Supplies …………………………………. 124 550
Accounts Payable ………………………. 201 550
Problem 2-3B (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Sept.
4
G1
10,400
10,400
13
G1
10,400
0
29
G1
550
550
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Sept.
1
G1
53,000
53,000
Dividends
Acct. No. 319
Date
Explanation
PR
Debit
Credit
Balance
Sept.
28
G1
5,300
5,300
Service Fees Earned
Acct. No. 401
Date
Explanation
PR
Debit
Credit
Balance
Sept.
8
G1
3,280
3,280
12
G1
15,400
18,680
24
G1
2,100
20,780
Utilities Expense
Acct. No. 690
Date
Explanation
PR
Debit
Credit
Balance
Sept.
30
G1
860
860