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Cash $44,120 = $57,880
+
Accounting equation without Cash:
6,500
Equipment
Utilities
Accounting equation in balance:
Supplies Wages
Cash
P6. T Accounts, Normal Balance, and the Accounting Equation
Assets
Cash
Accounts
Receivable
Alternate Problems
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Debit Credit
a. Paid for supplies purchased on credit last month. 7 1
b. Billed customers for services performed. 2 10
formed but not yet billed.
k. Received an order for services to be performed.
P7. Transaction Analysis
No entry
2-28
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
f. 3,480 j. 2,160 e. 660
8,600 a. 7,200 h. 660 e. 660
a. 27,200 m. 600 f. 3,480
a. b.
d.
B. Turner, Capital
B. Turner, Withdrawals Tuition Revenue
Accounts Payable
Rent Expense
Office Equipment
Salaries Expense
No entry
1 and 2.
a.
Cash
P8. Transaction Analysis, T Accounts, and Trial Balance
Accounts Receivable Supplies
11,400 520
Computers
Utilities Expense
2-29
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
3.
10,260
1,320
660
4.
Blitz Secretarial Training
The revenues were $3,480, and only $2,160 of cash was received from those revenues.
The company accepts credit sales to accommodate its students and encourage them
P8. Transaction Analysis, T Accounts, and Trial Balance (Concluded)
Trial Balance
(Current Date)
Cash
Accounts Receivable
Supplies
2-30
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Aug. 21 2,680 Aug. 27 1,200
Aug. 7 6,000 Aug. 4 2,400
Bal. 3,000
Aug. 12 1,920 Aug. 9 2,160
Aug. 2
1 and 2.
D. Roberts, Withdrawals
Accounts Payable
No entry
Cleaning Equipment
D. Roberts, Capital
Cleaning Revenue Repair Expense
Cleaning Supplies Prepaid Lease
P9. Transaction Analysis, T Accounts, and Trial Balances
Accounts ReceivableCash
5,6003Aug.Aug. 1 30,000
2-31
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
3.
18,400
1,480
4.
The supplies purchased on August 7 are classified as an asset, Supplies, because the
hand, the purchase of repairs is classified as Repairs Expense, an owner's equity ac-
count, because they are necessary now in the current period for the van to continue
Both transactions are recorded at cost, the amount that the company is obligated to
pay.
August 7 and 9 are the recognition points for these transactions. August 7 is the recog-
nition point for the purchase of supplies rather than August 2 when the supplies were
supplies are not used immediately but will be used up in the future. On the other
Cash
Accounts Receivable
Roberts Upholstery Cleaning
Trial Balance
August 31, 2014
P9. Transaction Analysis, T Accounts, and Trial Balances (Continued)
2-32
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Page 17
Post.
Ref. Debit Credit
2 511 270
To pay February rent
3 111 650
To record receipt of fees for this
month's services
4 115 85
To purchase supplies on account
5 512 40
To reimburse bus driver for gas
6
8 212 170
To make payment to creditors
9 111 1,200
To record receipt of cash on
account
10 113 700
To bill customers for services
11 212 85
To make payment to creditors
13 141 1,000
To purchase equipment
17 141 290
To purchase equipment on
account
19 514 145
To pay February utility bil
l
Utilities Expense
Accounts Payable
Equipment
Equipment
Cash
Supplies
Accounts Payable
Cash
Gas and Oil Expense
P10. Transaction Analysis, General Journal, Ledger Accounts, and Trial Balance
Rent Expense
General Journal
2014
Description
Feb.
Date
(Requirements 1, 2, 4, 5, and 6 follow)
3.
Accounts Receivable
No entry
2-33
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Page 18
Post.
Ref. Debit Credit
22 111 500
To record receipt of cash on
account from customers
26 513 460
To pay part-time assistants
27 512 325
To purchase gas and oil for bus
on account
28 313 110
To make a cash withdrawal
General Journal
2014
Date
P10. Transaction Analysis, General Journal, Ledger Accounts, and Trial Balance (Continued)
Description
Cash
Feb.
Wages Expense
J. Ziden, Withdrawals
Gas and Oil Expense
2-34
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
