CHAPTER 2 Analyzing Transactions
2–21
Prob. 2–3A
1.
JOURNAL
Page
1
Date
Description
Post.
Ref.
Credit
20Y9
Nov.
1
Cash
11
Common Stock
31
50,000
1
Rent Expense
53
Cash
11
4,000
6
Equipment
16
Accounts Payable
22
15,000
8
Truck
18
Cash
11
5,000
Notes Payable
21
33,500
10
Supplies
13
Cash
11
1,750
12
Cash
11
Fees Earned
41
11,500
15
Prepaid Insurance
14
Cash
11
2,400
23
Accounts Receivable
12
Fees Earned
41
22,300
24
Truck Expense
55
Accounts Payable
22
1,250
JOURNAL
Page
2
Date
Description
Post.
Ref.
Credit
20Y9
Nov.
29
Utilities Expense
54
Cash
11
4,500
29
Miscellaneous Expense
59
Cash
11
1,000
CHAPTER 2 Analyzing Transactions
2–22
Prob. 2–3A (Continued)
30
Cash
11
9,000
Accounts Receivable
12
9,000
30
Wages Expense
51
6,800
Cash
11
6,800
30
Accounts Payable
22
3,000
Cash
11
3,000
30
Dividends
33
2,500
Cash
11
2,500
2.
GENERAL LEDGER
Account:
Cash
Account No.
11
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y9
Nov.
1
1
50,000
50,000
1
1
4,000
46,000
8
1
5,000
41,000
10
1
1,750
39,250
12
1
11,500
50,750
15
1
2,400
48,350
29
2
4,500
43,850
29
2
1,000
42,850
30
2
9,000
51,850
30
2
6,800
45,050
30
2
3,000
42,050
30
2
2,500
39,550
Account:
Accounts Receivable
Account No.
12
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y9
Nov.
23
1
22,300
22,300
30
2
9,000
13,300
CHAPTER 2 Analyzing Transactions
Prob. 2–3A (Continued)
Account:
Supplies
Account No.
13
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
10
1
1,750
1,750
Account:
Prepaid Insurance
Account No.
14
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
15
1
2,400
2,400
CHAPTER 2 Analyzing Transactions
Prob. 2–3A (Continued)
Account:
Common Stock
Account No.
31
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
1
1
50,000
50,000
Account:
Dividends
Account No.
33
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
30
2
2,500
2,500
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
12
1
11,500
11,500
23
1
22,300
33,800
Account:
Wages Expense
Account No.
51
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
30
2
6,800
6,800
Account:
Rent Expense
Account No.
53
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
1
1
4,000
4,000
Account:
Utilities Expense
Account No.
54
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
CHAPTER 2 Analyzing Transactions
Prob. 2–3A (Continued)
Account:
Truck Expense
Account No.
55
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y9
Nov.
24
1
1,250
1,250
Account:
Miscellaneous Expense
Account No.
59
Balance
CHAPTER 2 Analyzing Transactions
2–26
Prob. 2–3A (Concluded)
3.
Heritage Designs
Unadjusted Trial Balance
November 30, 20Y9
Account
No.
Debit
Balances
Credit
Balances
Cash
11
39,550
Accounts Receivable
12
13,300
Supplies
13
1,750
Prepaid Insurance
14
2,400
Equipment
16
15,000
Truck
18
38,500
Notes Payable
21
33,500
Accounts Payable
22
13,250
Common Stock
31
50,000
Dividends
33
2,500
Fees Earned
41
33,800
Wages Expense
51
6,800
Rent Expense
53
4,000
Utilities Expense
54
4,500
Truck Expense
55
1,250
Miscellaneous Expense
59
1,000
130,550
130,550
5. Some supplies may have been used during November, but no supplies expense
has been recorded.
As will be discussed in Chapter 3, adjustments are necessary at the end of the
CHAPTER 2 Analyzing Transactions
2–27
Prob. 2–4A
2. and 3.
JOURNAL
Page
18
Date
Description
Post.
Ref.
Debit
Credit
20Y3
Apr.
1
Rent Expense
52
6,500
Cash
11
6,500
2
Office Supplies
14
2,300
Accounts Payable
21
2,300
5
Prepaid Insurance
13
6,000
Cash
11
6,000
10
Cash
11
52,300
Accounts Receivable
12
52,300
15
Land
16
200,000
Cash
11
30,000
Notes Payable
23
170,000
17
Accounts Payable
21
6,450
Cash
11
6,450
20
Accounts Payable
21
325
Office Supplies
14
325
23
Advertising Expense
53
4,300
Cash
11
4,300
JOURNAL
Page
19
Date
Description
Post.
Ref.
Debit
Credit
20Y3
Apr.
27
Cash
11
2,500
Salary and Commission Expense
51
2,500
28
Automobile Expense
54
1,500
Cash
11
1,500
29
Miscellaneous Expense
59
1,400
Cash
11
1,400
CHAPTER 2 Analyzing Transactions
2–28
Prob. 2–4A (Continued)
30
Accounts Receivable
12
57,000
Fees Earned
41
57,000
30
Salary and Commission Expense
51
11,900
Cash
11
11,900
30
Dividends
33
4,000
Cash
11
4,000
30
Cash
11
10,000
Unearned Rent
22
10,000
1. and 3.
GENERAL LEDGER
Account:
Cash
Account No.
11
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y3
Apr.
1
Balance
✓
26,300
1
18
6,500
19,800
5
18
6,000
13,800
10
18
52,300
66,100
15
18
30,000
36,100
17
18
6,450
29,650
23
18
4,300
25,350
27
19
2,500
27,850
28
19
1,500
26,350
29
19
1,400
24,950
30
19
11,900
13,050
30
19
4,000
9,050
30
19
10,000
19,050
Account:
Accounts Receivable
Account No.
12
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y3
Apr.
1
Balance
✓
61,500
10
18
52,300
9,200
30
19
57,000
66,200
CHAPTER 2 Analyzing Transactions
2–29
Prob. 2–4A (Continued)
Account:
Prepaid Insurance
Account No.
13
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
✓
3,000
5
18
6,000
9,000
Account:
Office Supplies
Account No.
14
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y3
Apr.
1
Balance
✓
1,800
2
18
2,300
4,100
20
18
325
3,775
Account:
Land
Account No.
16
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
15
18
200,000
200,000
Account:
Accounts Payable
Account No.
21
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y3
Apr.
1
Balance
✓
14,000
2
18
2,300
16,300
17
18
6,450
9,850
20
18
325
9,525
Account:
Unearned Rent
Account No.
22
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
30
19
10,000
10,000
Account:
Notes Payable
Account No.
23
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y3
Apr.
15
18
170,000
170,000
CHAPTER 2 Analyzing Transactions
Prob. 2–4A (Continued)
Account:
Common Stock
Account No.
31
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
✓
10,000
Account:
Retained Earnings
Account No.
32
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
✓
36,000
Account:
Dividends
Account No.
33
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
✓
2,000
30
19
4,000
6,000
Account:
Fees Earned
Account No.
41
Date
Debit
Credit
Debit
20Y3
Apr.
Balance
240,000
19
297,000
Account:
Salary and Commission Expense
Account No.
51
Item
Ref.
Debit
Credit
Credit
20Y3
Apr.
1
Balance
27
2,500
Account:
Rent Expense
Account No.
52
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
CHAPTER 2 Analyzing Transactions
2–31
Prob. 2–4A (Continued)
Account:
Advertising Expense
Account No.
53
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
✓
17,800
23
18
4,300
22,100
Account:
Automobile Expense
Account No.
54
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
✓
5,500
28
19
1,500
7,000
Account:
Miscellaneous Expense
Account No.
59
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y3
Apr.
1
Balance
✓
3,900
29
19
1,400
5,300
4.
Elite Realty
Unadjusted Trial Balance
April 30, 20Y3
Account
No.
Debit
Balances
Credit
Balances
Cash
11
19,050
Accounts Receivable
12
66,200
Prepaid Insurance
13
9,000
Office Supplies
14
3,775
Land
16
200,000
Accounts Payable
21
9,525
Unearned Rent
22
10,000
Notes Payable
23
170,000
Common Stock
31
10,000
Retained Earnings
32
36,000
Dividends
33
6,000
Fees Earned
41
297,000
Salary and Commission Expense
51
157,600
Rent Expense
52
36,500
Advertising Expense
53
22,100
Automobile Expense
54
7,000
Miscellaneous Expense
59
5,300
532,525
532,525
CHAPTER 2 Analyzing Transactions
2–32
Prob. 2–4A (Concluded)
5. (a) The unadjusted trial balance in (4) still balances because the debits equaled the credits
in the original journal entry.
(b) The correcting entry for $7,200 ($19,100 – $11,900) would be as follows:
JOURNAL
Page
19
Date
Description
Post.
Ref.
Debit
Credit
20Y3
Apr.
30
Salary and Commission Expense
51
7,200
Cash
11
7,200
(c) Transposition
CHAPTER 2 Analyzing Transactions
2–33
Prob. 2–5A
1.
The Lexington Group
Unadjusted Trial Balance
May 31, 20Y6
Debit
Balances
Credit
Balances
Cash
18,750
Accounts Receivable
53,500
Supplies
2,225
Prepaid Insurance
7,400
Equipment
171,175
Notes Payable
45,000
Accounts Payable
36,000
Common Stock
50,000
Retained Earnings
89,150
Dividends
20,000
Fees Earned
429,850
Wages Expense
270,000
Rent Expense
60,300
Advertising Expense
25,200
Gas, Electricity, and Water Expense
16,350
Miscellaneous Expense
5,100
650,000
650,000
CHAPTER 2 Analyzing Transactions
2–34
Prob. 2–1B
1. and 2.
Cash
Accounts Payable
(a)
18,000
(b)
2,500
(h)
1,800
(e)
6,500
(g)
12,000
(c)
3,150
(j)
2,500
(d)
1,450
Bal.
7,200
(f)
2,400
(h)
1,800
Common Stock
(i)
375
(a)
18,000
(l)
2,800
(m)
200
Professional Fees
(n)
300
(g)
12,000
(o)
550
(k)
15,650
Bal.
14,475
Bal.
27,650
Accounts Receivable
Rent Expense
(k)
15,650
(c)
3,150
Supplies
Salary Expense
(d)
1,450
(l)
2,800
Prepaid Insurance
Blueprint Expense
(f)
2,400
(j)
2,500
Automobiles
Automobile Expense
(b)
19,500
(o)
550
Equipment
Miscellaneous Expense
(e)
6,500
(i)
375
(m)
200
Notes Payable
Bal.
575
(n)
300
(b)
17,000
Bal.
16,700
CHAPTER 2 Analyzing Transactions
2–35
Prob. 2–1B (Concluded)
3.
Jones Architects
Unadjusted Trial Balance
April 30, 20Y2
Debit
Balances
Credit
Balances
Cash
14,475
Accounts Receivable
15,650
Supplies
1,450
Prepaid Insurance
2,400
Automobiles
19,500
Equipment
6,500
Notes Payable
16,700
Accounts Payable
7,200
Common Stock
18,000
Professional Fees
27,650
Rent Expense
3,150
Salary Expense
2,800
Blueprint Expense
2,500
Automobile Expense
550
Miscellaneous Expense
575
69,550
69,550
CHAPTER 2 Analyzing Transactions
Prob. 2–2B
1.
(a)
Cash
17,500
Common Stock
17,500
(b)
Supplies
2,300
Accounts Payable
2,300
(c)
Cash
13,300
Sales Commissions
13,300
(d)
Rent Expense
3,000
Cash
3,000
(e)
1,150
Cash
1,150
Dividends
1,800
Cash
1,800
(g)
Automobile Expense
1,500
Miscellaneous Expense
Cash
1,900
(h)
Office Salaries Expense
2,800
Cash
2,800
Supplies Expense
1,050
Supplies
1,050
CHAPTER 2 Analyzing Transactions
2–37
Prob. 2–2B (Continued)
2.
Cash
Sales Commissions
(a)
17,500
(d)
3,000
(c) 13,300
(c)
13,300
(e)
1,150
(f)
1,800
Rent Expense
(g)
1,900
(d) 3,000
(h)
2,800
Bal.
20,150
Supplies
Office Salaries Expense
(b)
2,300
(i)
1,050
(h) 2,800
Bal.
1,250
Accounts Payable
Automobile Expense
(e)
1,150
(b)
2,300
(g) 1,500
Bal.
1,150
Common Stock
Supplies Expense
(a)
17,500
(i) 1,050
Dividends
Miscellaneous Expense
(f)
1,800
(g) 450
CHAPTER 2 Analyzing Transactions
2–38
Prob. 2–2B (Concluded)
3.
Planet Realty
Unadjusted Trial Balance
August 31, 20Y7
Debit
Balances
Credit
Balances
Cash
20,150
Supplies
1,250
Accounts Payable
1,150
Common Stock
17,500
Dividends
1,800
Sales Commissions
13,300
Rent Expense
3,000
Office Salaries Expense
2,800
Automobile Expense
1,500
Supplies Expense
1,050
Miscellaneous Expense
400
31,950
31,950
4. a. $13,300
CHAPTER 2 Analyzing Transactions
2–39
Prob. 2–3B
1.
JOURNAL Page
1
Date
Description
Post.
Ref.
Debit
Credit
20Y4
Oct.
1
Cash
11
18,000
Common Stock
31
18,000
4
Rent Expense
53
3,000
Cash
11
3,000
10
Truck
18
23,750
Cash
11
3,750
Notes Payable
21
20,000
13
Equipment
16
10,500
Accounts Payable
22
10,500
14
Supplies
13
2,100
Cash
11
2,100
15
Prepaid Insurance
14
3,600
Cash
11
3,600
15
Cash
11
8,950
Fees Earned
41
8,950
JOURNAL Page
2
Date
Description
Post.
Ref.
Debit
Credit
20Y4
Oct.
21
Accounts Payable
22
2,000
Cash
11
2,000
24
Accounts Receivable
12
14,150
Fees Earned
41
14,150
26
Truck Expense
55
700
Accounts Payable
22
700
27
Utilities Expense
54
2,240
Cash
11
2,240
CHAPTER 2 Analyzing Transactions
Prob. 2–3B (Continued)
27
Miscellaneous Expense
59
1,100
Cash
11
1,100
29
Cash
11
7,600
Accounts Receivable
12
7,600
30
Wages Expense
51
4,800
Cash
11
4,800
31
Dividends
33
3,500
Cash
11
3,500
2.
GENERAL LEDGER
Account:
Cash
Account No.
11
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y4
Oct.
1
1
18,000
18,000
4
1
3,000
15,000
10
1
3,750
11,250
14
1
2,100
9,150
15
1
3,600
5,550
15
1
8,950
14,500
21
2
2,000
12,500
27
2
2,240
10,260
27
2
1,100
9,160
29
2
7,600
16,760
30
2
4,800
11,960
31
2
3,500
8,460
Account:
Accounts Receivable
Account No.
12
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
24
2
14,150
14,150
29
2
7,600
6,550