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EXERCISE 2-10
(a)
General Journal
Date
Account Titles and Explanation
Ref.
Debit
Credit
Apr. 1
Cash ....................................................
Common Stock ...............................
(Issued shares of stock
for cash)
10,000
10,000
12
Cash ....................................................
Service Revenue ............................
(Received cash for
services provided)
900
900
15
Salaries and Wages Expense ............
Cash ................................................
(Paid salaries to date)
720
720
25
Accounts Payable ...............................
Cash ................................................
(Paid creditors on account)
1,500
1,500
29
Cash ....................................................
Accounts Receivable .....................
(Received cash in payment
of account)
400
400
30
Cash ....................................................
Unearned Service Revenue ...........
(Received cash for future
services)
1,000
1,000
EXERCISE 2-10 (Continued)
(b) SANTANA LANDSCAPING COMPANY
Trial Balance
April 30, 2015
Debit Credit
Cash .......................................................................... $10,080
Accounts Receivable ............................................... 2,800
Supplies .................................................................... 1,800
Accounts Payable .................................................... $ 300
EXERCISE 2-11
(a) Oct. 1 Cash ............................................................. 5,000
10 Cash ............................................................. 730
10 Cash ............................................................. 3,000
20 Cash ............................................................. 500
20 Accounts Receivable .................................. 910
EXERCISE 2-11 (Continued)
(b) HIGGS CO.
Trial Balance
October 31, 2015
Debit Credit
Cash ..................................................................... $ 8,250
Accounts Receivable .......................................... 1,210
Supplies .............................................................. 400
Equipment .......................................................... 2,000
Notes Payable ..................................................... $ 3,000
EXERCISE 2-12
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Sept. 1
Cash ...................................................
Common Stock ..........................
101
311
10,000
10,000
5
Equipment .........................................
Cash ...........................................
Accounts Payable .....................
157
101
201
12,000
4,000
8,000
25
Accounts Payable .............................
Cash ...........................................
201
101
2,400
2,400
30
Dividends ..........................................
Cash ...........................................
332
101
500
500
EXERCISE 2-12 (Continued)
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
J1
10,000
10,000
5
J1
4,000
6,000
25
J1
2,400
3,600
30
J1
500
3,100
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 5
J1
12,000
12,000
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 5
J1
8,000
8,000
25
J1
2,400
5,600
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
J1
10,000
10,000
Dividends No. 332
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 30
J1
500
500
EXERCISE 2-13
Error
(a)
In Balance
(b)
Difference
(c)
Larger Column
1.
No
$450
Debit
2.
Yes
—
—
3.
Yes
—
—
4.
No
300
Credit
5.
Yes
—
—
6.
No
27
Debit
EXERCISE 2-14
TIME IS MONEY DELIVERY SERVICE
Trial Balance
July 31, 2015
Debit Credit
Cash ($90,907 – Debit total without Cash
$69,340) ................................................................... $21,567
Accounts Receivable ................................................. 10,642
Prepaid Insurance ...................................................... 1,968
Equipment................................................................... 49,360
Notes Payable ............................................................. $26,450
EXERCISE 2-15
Transactions 4, 5, and 7 are operating activities
SOLUTIONS TO PROBLEMS
PROBLEM 2-1A
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Apr. 1
Cash .......................................................
50,000
Common Stock ..............................
50,000
(Issued shares of stock
for cash)
4
Land ........................................................
34,000
Cash ...............................................
34,000
(Purchased land for cash)
8
Advertising Expense .............................
1,800
Accounts Payable ..........................
1,800
(Incurred advertising
expense on account)
11
Salaries and Wages Expense ...............
1,500
Cash ...............................................
1,500
(Paid salaries)
12
No entry—Not a transaction.
13
Prepaid Insurance ................................
2,400
Cash ...............................................
2,400
(Paid for one-year
insurance policy)
17
Dividends ...............................................
1,400
Cash ...............................................
1,400
(Declared and paid cash
dividends)
20
Cash .......................................................
5,700
Service Revenue ............................
5,700
(Received cash for services
provided)
PROBLEM 2-1A (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Credit
Apr. 25
Cash ......................................................
Unearned Service Revenue .............
(Received cash for future
services)
3,000
3,000
30
Cash ......................................................
Service Revenue ............................
(Received cash for services
provided)
8,900
8,900
30
Accounts Payable ................................
Cash ...............................................
(Paid creditor on account)
840
840
PROBLEM 2-2A
(a)
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
May 1
Cash .......................................................
101
20,000
Common Stock ..............................
311
20,000
(Issued shares of stock
for cash)
2
No entry—not a transaction.
3
Supplies .................................................
126
1,500
Accounts Payable ..........................
201
1,500
(Purchased supplies on
account)
7
Rent Expense .........................................
729
900
Cash ...............................................
101
900
(Paid office rent)
11
Accounts Receivable ............................
112
2,800
Service Revenue ............................
400
2,800
(Billed client for services
provided)
12
Cash .......................................................
101
3,500
Unearned Service Revenue...........
209
3,500
(Received cash for future
services)
17
Cash .......................................................
101
1,200
Service Revenue ............................
400
1,200
(Received cash for services
provided)
31
Salaries and Wages Expense ...............
726
2,000
Cash ...............................................
101
2,000
(Paid salaries)
PROBLEM 2-2A (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Credit
May 31
Accounts Payable ($1,500 X 40%) ..........
Cash ..............................................
(Paid creditor on account)
201
101
600
600
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
May 1
J1
20,000
20,000
7
J1
900
19,100
12
J1
3,500
22,600
17
J1
1,200
23,800
31
J1
2,000
21,800
31
J1
600
21,200
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
May 11
J1
2,800
2,800
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
May 3
J1
1,500
1,500
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
May 3
J1
1,500
31
J1
600
900
Unearned Service Revenue No. 209
Date
Explanation
Ref.
Debit
Credit
Balance
May 12
J1
3,500
3,500
PROBLEM 2-2A (Continued)
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
May 1
J1
20,000
20,000
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
May 11
17
J1
J1
2,800
1,200
2,800
4,000
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
May 31
J1
2,000
2,000
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
May 7
J1
900
900
(c) JULIA DUMARS, INC.
Trial Balance
May 31, 2015
Debit Credit
Cash .................................................................... $21,200
Accounts Receivable ......................................... 2,800
Supplies .............................................................. 1,500
Accounts Payable .............................................. $ 900
