f. 400 c. 1,000
h. 1,200
1,000 g. 3,720
a.
b.
E7A. Analysis of Transactions
F. Mills, owner, invested $10,000 in the company.
Purchased equipment with cash, $3,750.
a.
Cash
Repair Fees Earned
Salaries Expense
E6A. Recording Transactions in T Accounts
Accounts Payable
8,600
800
Repair Supplies
b.
Repair Equipment
c.
2-9
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May 1 1,200
Purchased merchandise inventory on account
2 2,800
Purchased marketable securities
3 250
Returned part of merchandise inventory for full
credit
4 800
Sold merchandise inventory
5 100,000
200,000
Purchased land and building with partial
payment in cash
Recorded deposit on services of $12,000 to be
provided
E8A. Analysis of Unfamiliar Transactions
Accounts Payable
focus on analytical thinking.
Marketable Securities
Merchandise Inventory
Land
Accounts Receivable
Note to Instructor: The answer given here assumes the perpetual inventory method be
cause it is most intuitive at this point in the course. The purpose of this exercise is to
Building
Note to Instructor: A full discussion might be held at this point on what should be done
to the Merchandise Inventory account.
2-10
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8,420
1,000
5,400
1,800
660
a.
b.
E9A. Trial Balance
Repair Supplies
Ferdinand Repair Service
Trial Balance
June 30, 2014
Cash
Prepaid Insurance
Equal balance. However, both Accounts Receivable (an asset account) and Accounts
E11A. Effects of Errors on a Trial Balance
Cash
Accounts Receivable
*$38,580 – ($12,000 + $18,870) = $7,710
E10A. Preparing a Trial Balance
Shah Company
Trial Balance
March 31, 2014
Payable (a liability account) would be overstated by $300.
Unequal totals. The total debits would be $54 more than the total credits.
2-11
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2,030
2,890
120
E12A. Correcting Errors in a Trial Balance
Hasson Services
Trial Balance
July 31, 2014
Cash
Accounts Receivable
Supplies
2-12
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
2014
a. 8,600
Repair Equipment 3,200
Invested cash and repair equipment in
the business
b. 800
Paid current month rent
c. 1,000
Purchased repair supplies on credit
d. 600
Purchased additional repair equipment
for cash
e. 900
Paid salary to a helper
f. 400
Paid $400 of the amount purchased on
credit in transaction c.
g. 3,720
Accepted cash for repairs completed
h. 1,200
Withdrew cash from the business
Cash
E13A. Recording Transactions in the General Journal
Rent Expense
Repair Supplies
Salaries Expense
Repair Equipment
C. Ferdinand, Withdrawals
Cash
Accounts Payable
General Journal
2-13
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Page 10
Post.
Ref. Debit Credit
14 146 12,000
28 212 6,000
Ref. Debit Debit Credit
13 16,000
Ref. Debit Debit Credit
14 J10 12,000 12,000
Ref. Debit Debit Credit
14 J10 8,000
Accounts Payable
Purchased equipment; paid one-third
in cash
Dec.
Dec.
E14A. Recording Transactions in the General Journal and Posting to the Ledger Accounts
Balance
Account No. 111
Date
Dec. Office Equipment
General Ledger
Paid for part of equipment purchased
on credit
General Journal
Description
Accounts Payable Account No. 212
Dec. 8,000
Post.
CreditItem
Balance
Account No. 146
Date Item
Item CreditDate
Balance
Credit
Date
Balance
Post.
Office Equipment
Post.
Cash
2-14
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1,500 1,500 1,100 1,100
1,800 1,200 700 1,300
900
1,500
b
1. Purchases recognized on date shipped
2. Purchases recognized on date received
$1,500
800
E15A. Application of Recognition Point
Amount
$ 600
July
July 5
15
22
Order Date Shipped
16
26
10
a June
AmountDate Received
c
July 15
Date Shipped
Date ReceivedOrder
b July 10
Revenues
from Services
Cash
Expenses
E16A. Cash Flow Analysis
Accounts
Receivable Accounts
Payable
The cash balance after these transactions is $900. The amount still to be received (the
Note to Instructor: Solutions for Exercises: Set B are provided separately on the Instructor’s
Resource CD and website.
Cash
Sale
Credit
Sale
Collection
on Account Credit
Purchase
Payment on
Account
Cash
Purchase
2-15
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=
+
$111,160
Wages
Expense
+
P1. T Accounts, Normal Balance, and The Accounting Equation
Rent
Expense
Equipment
Equipment
Expenses
Owner’s Equity
R. Mehta,
Capital
–
+ R. Mehta,
Capital
Revenues –
LiabilitiesAssets =
6,420
Telephone
Expense
Accounts
Receivable Loans
Payable
Problems
Accounts
Payable
R. Mehta,
Withdrawals
Design
Revenue
Cash R. Mehta,
Withdrawals
Unearned
Revenue
$96,400
Accounting equation without Equipment:
Accounting equation in balance:
Equipment
2-16
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Debit Credit
a. Paid for supplies purchased on credit last month. 7 1
b. Received a bill for repairs. 12 7
not yet billed.
j. Paid the bill received in b.71
k. Received an order for services to be performed.
No entry
P2. Transaction Analysis
2-17
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