Exercise 2–21
Requirement 1
June 30 – adjusting entry
Salaries and wages expense ($10,000 x 3/5)………………….. 6,000
July 1 – reversing entry
Salaries and wages payable…………………………………….. 6,000
July 2 – payment of salaries
Salaries and wages expense…………………………………….. 10,000
Requirement 2
June 30 – adjusting entry
Salaries and wages expense…………………………………….. 6,000
July 2 – payment of salaries
Exercise 2–22
Requirement 1
Requirement 2
1. Interest receivable ($90,000 x 8% x 3/12)………………….. 1,800
Requirement 3
1. Interest revenue ………………………………………………… 1,800
Exercise 2–23
Requirement 1
The transactions affected would be the prepayment of rent, transaction 2, and the
purchase of supplies in transaction 6.
Requirement 2
2. Original transaction on November 1:
Adjusting entry on December 31:
6. Original transaction during the year:
Adjusting entry on December 31:
Requirement 3
2. Rent expense ……………………………………………………. 2,000
Exercise 2–24
Transaction Journal
1. Purchased merchandise on account. PJ
2. Collected an account receivable. CR
3. Borrowed $20,000 and signed a note. CR
Exercise 2–25
Transaction Journal
1. Paid interest on a loan. CD
2. Recorded depreciation expense. GJ
3. Purchased furniture for cash. CD
Problem 2–1
Requirement 1
2018 Debit Credit
Jan. 1 Cash ……………………………………………… 100,000
PROBLEMS
Common stock ……………………………. 100,000
Jan. 2 Inventory ………………………………………. 35,000
Accounts payable ………………………… 35,000
Problem 2–1 (continued)
Requirement 2 BALANCE SHEET ACCOUNTS
Cash Accounts receivable
_____________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________
1/1 Bal. 0 1/1 Bal. 0
1/1 100,000
2,400
1/4 1/10 12,0006,000 1/26
1/31 Bal.
Inventory Prepaid insurance
_______________________________________________________________________________________________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________________________________________________________________________________________
1/1 Bal. 0 1/1 Bal. 0
1/2 35,000
7,000
_______
1/31 Bal.
Prepaid rent Accounts payable
_______________________________________________________________________________________________ _______________________________________________________________________________________________
1/1 Bal. 0 0 1/1 Bal.
1/30 2,000
Note payable Common stock
_______________________________________________________________________________________________ _______________________________________________________________________________________________
0 1/1 Bal.
_______
Problem 2–1 (continued)
INCOME STATEMENT ACCOUNTS
Sales revenue Cost of goods sold
_____________________________ _____________________________
0 1/1 Bal.
0
12,0001/101/10 7,000
Salaries and wages expense Rent expense
_____________________________ _____________________________
1/1 Bal. 0 1/1 Bal. 0
_______
1/31 Bal.
Utilities expense
_____________________________
1/1 Bal. 0
_______
Problem 2–1 (concluded)
Requirement 3
Account Title Debits Credits
Cash 117,600
Accounts receivable 6,000
Inventory 22,000
Prepaid insurance 2,400
Prepaid rent 2,000
Problem 2–2
Requirement 2
2018 Debit Credit
Jan. 1 Cash ……………………………………………… 3,500
Sales revenue ……………………………… 3,500
Jan. 1 Cost of goods sold ………………………….. 2,000
Inventory …………………………………… 2,000