E2-18 Analyzing and journalizing transactions
Learning Objective 3
Journalize the transactions of Wilke Technology Solutions. Include an explanation with each
journal entry. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid
Advertising; Land; Building; Accounts Payable; Unearned Revenue; Common Stock; Service
Revenue; Rent Expense; and Salaries Expense.
SOLUTION
services to be performed next month.
E2-19, cont.
E2-19 Posting journal entries to four-column accounts
Learning Objective 3
2. Cash Balance $52,050
Requirements
1. Open four-column accounts using the following account numbers: Cash, 110; Accounts
Receivable, 120; Office Supplies, 130; Prepaid Advertising, 140; Land, 150; Building, 160;
Accounts Payable, 210; Unearned Revenue, 220; Common Stock, 310; Service Revenue, 410;
Rent Expense, 510; and Salaries Expense, 520.
2. Post the journal entries to the four-column accounts, and determine the balance in the account
after each transaction. Assume that the journal entries were recorded on page 10 of the
journal. Make sure to complete the Post. Ref. columns in the journal and ledger.
SOLUTION
Requirement 2
E2-19, cont.
E2-19, cont.
Requirements 1 and 2
E2-19, cont.
E2-20 Analyzing transactions from T-accounts
Learning Objective 3
The first nine transactions of North-West Airplane Repair have been posted to the T-accounts.
Provide an explanation for each of the nine transactions.
SOLUTION
E2-21 Journalizing transactions from T-accounts
Learning Objective 3
In December 2018, the first five transactions of Abling’s Lawn Care Company have been posted
to the T-accounts. Prepare the journal entries that served as the sources for the five transactions.
Include an explanation for each entry.
SOLUTION
E2-22 Preparing a trial balance
Learning Objective 4
Total Debits $191,800
The accounts of Anderson Moving Company follow with their normal balances as of August 31,
2018. The accounts are listed in no particular order.
Common Stock $ 49,800 Trucks $ 123,000
Insurance Expense 600 Fuel Expense 1,000
Accounts Payable 4,000 Dividends 5,600
Service Revenue 82,000 Utilities Expense 300
Building 41,000 Accounts Receivable 10,000
Advertising Expense 200 Notes Payable 56,000
Salaries Expense 6,000 Office Supplies 100
Cash 4,000
Prepare Anderson’s trial balance as of August 31, 2018.
SOLUTION
E2-23 Preparing a trial balance from T-accounts
Learning Objective 4
Total Debits $80,700
The T-accounts of McMahon Farm Equipment Repair follow as of May 31, 2018.
Prepare McMahon Farm Equipment Repair’s trial balance as of May 31, 2018.
SOLUTION
E2-24 Journalizing transactions, posting journal entries to four-column accounts, and
preparing a trial balance
Learning Objectives 3, 4
3. Total Debits $24,670
The following transactions occurred during the month for Teresa Parker, CPA:
Jun. 1 Parker opened an accounting firm by contributing $13,200 cash and office furniture with a fair market
value of $5,300 in exchange for common stock.
5 Paid monthly rent of $1,300.
9 Purchased office supplies on account, $600.
14 Paid employee’s salary, $1,900.
18 Received a bill for utilities to be paid next month, $370.
21 Paid $500 of the accounts payable created on June 9.
25 Performed accounting services on account, $5,700.
28 Paid cash dividends of $6,700.
Requirements
1. Open the following four-column accounts of Teresa Parker, CPA: Cash, 110; Accounts
Receivable, 120; Office Supplies, 130; Office Furniture, 140; Accounts Payable, 210; Utilities
Payable, 220; Common Stock, 310; Dividends, 320; Service Revenue, 410; Salaries Expense,
510; Rent Expense, 520; and Utilities Expense, 530.
2. Journalize the transactions, and then post the journal entries to the four-column accounts.
Explanations are not required for the journal entries. Keep a running balance in each account.
Assume the journal entries are recorded on page 10 of the journal.
3. Prepare the trial balance as of June 30, 2018.