BRIEF EXERCISE 2-6
Aug. 1 Cash ……………………………………………………………. 5,000
4 Prepaid Insurance ………………………………………… 1,800
16 Cash ……………………………………………………………. 1,900
27 Salaries and Wages Expense ………………………… 1,000
BRIEF EXERCISE 2-7
Cash
Service Revenue
5/12 2,100
5/5 5,000
5/15 3,200
5/15 3,200
Ending Bal. 5,300
Ending Bal. 8,200
Accounts Receivable
5/5 5,000
5/12 2,100
Ending Bal. 2,900
BRIEF EXERCISE 2-8
Cash
Date
Explanation
Ref.
Debit
Credit
Balance
May 12
J1
2,100
2,100
15
J1
3,200
5,300
BRIEF EXERCISE 2-8 (Continued)
Accounts Receivable
Date
Explanation
Ref.
Debit
Credit
Balance
May 5
J1
5,000
5,000
12
J1
2,100
2,900
Service Revenue
Date
Explanation
Ref.
Debit
Credit
Balance
May 5
J1
5,000
5,000
15
J1
3,200
8,200
BRIEF EXERCISE 2-9
FAVRE COMPANY
Trial Balance
June 30, 2015
Debit Credit
Cash ………………………………………………………………… $ 5,200
Accounts Receivable ………………………………………… 3,000
Equipment ………………………………………………………… 17,000
BRIEF EXERCISE 2-10
ERIKA COMPANY
Trial Balance
December 31, 2015
Debit Credit
Cash …………………………………………………………………. $16,800
Prepaid Insurance ……………………………………………… 3,500
Accounts Payable ……………………………………………… $ 3,000
Unearned Service Revenue ………………………………… 4,200
SOLUTIONS FOR DO IT! REVIEW EXERCISES
DO IT! 2-1
James would likely need the following accounts in which to record the
transactions necessary to ready his photography studio for opening day:
Cash (debit balance) Notes Payable (credit balance)
Supplies Accounts Payable
DO IT! 2-2
Each transaction that is recorded is entered in the general journal. The
three activities would be recorded as follows:
1.
Cash ……………………………………………………..
8,000
Common Stock ……………………………..
8,000
2.
Supplies ……………………………………………….
1,600
Cash ……………………………………………..
300
Accounts Payable ………………………….
1,300
3.
No entry because no transaction has occurred.
DO IT! 2-3
Cash
4/1 1,600
4/16 600
4/3 3,900
4/20 500
4/30 4,400
DO IT! 2-4
CHILLIN’ COMPANY
Trial Balance
December 31, 2015
Debit Credit
Cash ………………………………………………………………… $ 6,000
Accounts Receivable ………………………………………… 8,000
Supplies …………………………………………………………… 5,000
Equipment ………………………………………………………… 76,000
Notes Payable …………………………………………………… $ 20,000
Accounts Payable……………………………………………… 9,000
SOLUTIONS TO EXERCISES
EXERCISE 2-1
EXERCISE 2-2
2-16 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
Transaction
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
Jan. 2
Asset
Cash
Increase
Debit
Stockholders’
Equity
Common
Stock
Increase
Credit
3
Asset
Equipment
Increase
Debit
Asset
Cash
Decrease
Debit
9
Asset
Supplies
Increase
Debit
Liability
Accounts
Payable
Increase
Credit
11
Asset
Accounts
Receivable
Increase
Debit
Stockholders’
Equity
Service
Revenue
Increase
Credit
16
Stockholders’
Equity
Advertising
Expense
Increase
Debit
Asset
Cash
Decrease
Debit
20
Asset
Cash
Increase
Debit
Asset
Accounts
Receivable
Decrease
Debit
23
Liability
Accounts
Payable
Decrease
Credit
Asset
Cash
Decrease
Debit
28
Stockholders’
Equity
Dividends
Increase
Debit
Asset
Cash
Decrease
Debit
EXERCISE 2-3
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Jan. 2
Cash ……………………………………………
15,000
Common Stock ……………………..
15,000
3
Equipment …………………………………..
8,200
Cash …………………………………….
8,200
9
Supplies ………………………………………
500
Accounts Payable …………………
500
11
Accounts Receivable ……………………
1,800
Service Revenue ……………………
1,800
16
Advertising Expense …………………….
200
Cash …………………………………….
200
20
Cash ……………………………………………
780
Accounts Receivable …………….
780
23
Accounts Payable ………………………..
300
Cash …………………………………….
300
28
Dividends …………………………………….
500
Cash …………………………………….
500
EXERCISE 2-4
Oct. 1 Debits increase assets: debit Cash $20,000.
Credits increase stockholders’ equity: credit Common Stock
EXERCISE 2-4 (Continued)
Oct. 6 Debits increase assets: debit Accounts Receivable $3,600.
30 Debits increase expenses: debit Salaries and Wages Expense
$2,500.
EXERCISE 2-5
General Journal
Date
Account Titles and Explanation
Ref.
Debits
Credit
Oct. 1
Cash …………………………………………..
20,000
Common Stock ……………………
20,000
2
No entry.
3
Equipment …………………………………
2,300
Accounts Payable ……………….
2,300
6
Accounts Receivable …………………..
3,600
Service Revenue………………….
3,600
27
Accounts Payable ……………………….
850
Cash …………………………………..
850
30
Salaries and Wages Expense ……….
2,500
Cash …………………………………..
2,500
EXERCISE 2-6
(a) 1. Increase the asset Cash, increase the liability Notes Payable.
2. Increase the asset Equipment, decrease the asset Cash.
3. Increase the asset Supplies, increase the liability Accounts Payable.
(b) 1. Cash ……………………………………………………….. 5,000
Notes Payable ……………………………………. 5,000
2. Equipment ………………………………………………. 2,500
EXERCISE 2-7
(a) Assets = Liabilities + Stockholders’ Equity
1. + + (Issue stock)
(b) 1. Cash ……………………………………………………….. 5,000
Common Stock …………………………..……… 5,000
2. Rent Expense ………………………………………….. 950
EXERCISE 2-8
EXERCISE 2-9
(a)
Cash
Aug. 1 6,000
Aug. 12 800
10 2,700
31 880
Bal. 8,780
Notes Payable
Aug. 12 4,200
Common Stock
Aug. 25 1,600
Aug. 31 880
Bal. 720
Aug. 12 5,000
Aug. 1 6,000
Aug. 10 2,700
Bal. 4,300