CHAPTER 2 Analyzing Transactions
Prob. 2–3B (Continued)
Account:
Supplies
Account No.
13
Balance
Date
Item
Debit
Credit
Debit
Credit
20Y4
Oct.
14
2,100
2,100
Account:
Prepaid Insurance
Account No.
14
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
15
1
3,600
3,600
Account:
Equipment
Account No.
16
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
13
1
10,500
10,500
Account:
Truck
Account No.
18
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
10
1
23,750
23,750
Account:
Notes Payable
Account No.
21
Balance
Date
Item
Debit
Credit
Debit
Credit
20Y4
Oct.
10
20,000
20,000
Accounts Payable
Date
Ref.
Debit
Debit
Credit
20Y4
Oct.
1
10,500
CHAPTER 2 Analyzing Transactions
2–42
Prob. 2–3B (Continued)
Account:
Common Stock
Account No.
31
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
1
1
18,000
18,000
Account:
Dividends
Account No.
33
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
31
2
3,500
3,500
Account:
Fees Earned
Account No.
41
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
15
1
8,950
8,950
24
2
14,150
23,100
Account:
Wages Expense
Account No.
51
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
30
2
4,800
4,800
Account:
Rent Expense
Account No.
53
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
4
1
3,000
3,000
Account:
Utilities Expense
Account No.
54
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
27
2
2,240
2,240
CHAPTER 2 Analyzing Transactions
2–43
Prob. 2–3B (Continued)
Account:
Truck Expense
Account No.
55
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
26
2
700
700
Account:
Miscellaneous Expense
Account No.
59
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y4
Oct.
27
2
1,100
1,100
CHAPTER 2 Analyzing Transactions
2–44
Prob. 2–3B (Concluded)
3.
Pioneer Designs
Unadjusted Trial Balance
October 31, 20Y4
Account No.
Debit
Balances
Credit
Balances
Cash
11
8,460
Accounts Receivable
12
6,550
Supplies
13
2,100
Prepaid Insurance
14
3,600
Equipment
16
10,500
Truck
18
23,750
Notes Payable
21
20,000
Accounts Payable
22
9,200
Common Stock
31
18,000
Dividends
33
3,500
Fees Earned
41
23,100
Wages Expense
51
4,800
Rent Expense
53
3,000
Utilities Expense
54
2,240
Truck Expense
55
700
Miscellaneous Expense
59
1,100
70,300
70,300
5. Some supplies may have been used during October, 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
2–45
Prob. 2–4B
2. and 3.
JOURNAL
Page
18
Date
Description
Post.
Ref.
Debit
Credit
20Y8
Aug.
1
Office Supplies
14
3,150
Accounts Payable
21
3,150
2
Rent Expense
52
7,200
Cash
11
7,200
3
Cash
11
83,900
Accounts Receivable
12
83,900
5
Prepaid Insurance
13
12,000
Cash
11
12,000
9
Accounts Payable
21
400
Office Supplies
14
400
17
Advertising Expense
53
8,000
Cash
11
8,000
23
Accounts Payable
21
13,750
Cash
11
13,750
JOURNAL
Page
19
Date
Description
Post.
Ref.
Debit
Credit
20Y8
Aug.
29
Miscellaneous Expense
59
1,700
Cash
11
1,700
30
Automobile Expense
54
2,500
Cash
11
2,500
31
Cash
11
2,000
Salary and Commission Expense
51
2,000
31
Salary and Commission Expense
51
53,000
Cash
11
53,000
CHAPTER 2 Analyzing Transactions
2–46
Prob. 2–4B (Continued)
31
Accounts Receivable
12
183,500
Fees Earned
41
183,500
31
Land
16
75,000
Cash
11
7,500
Notes Payable
23
67,500
31
Dividends
33
1,000
Cash
11
1,000
31
Cash
11
5,000
Unearned Rent
22
5,000
1. and 3.
GENERAL LEDGER
Account:
Cash
Account No.
11
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
Aug.
1
Balance
✓
52,500
2
18
7,200
45,300
3
18
83,900
129,200
5
18
12,000
117,200
17
18
8,000
109,200
23
18
13,750
95,450
29
19
1,700
93,750
30
19
2,500
91,250
31
19
2,000
93,250
31
19
53,000
40,250
31
19
7,500
32,750
31
19
1,000
31,750
31
19
5,000
36,750
Account:
Accounts Receivable
Account No.
12
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
Aug.
1
Balance
✓
100,100
3
18
83,900
16,200
31
19
183,500
199,700
CHAPTER 2 Analyzing Transactions
2–47
Prob. 2–4B (Continued)
Account:
Prepaid Insurance
Account No.
13
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
12,600
5
18
12,000
24,600
Account:
Office Supplies
Account No.
14
Date
Item
Post.
Ref.
Debit
Balance
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
2,800
1
18
3,150
5,950
9
18
400
5,550
Account:
Land
Account No.
16
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
31
19
75,000
75,000
Account:
Accounts Payable
Account No.
21
Date
Item
Post.
Ref.
Debit
Balance
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
21,000
1
18
3,150
24,150
9
18
400
23,750
23
18
13,750
10,000
Account:
Unearned Rent
Account No.
22
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
31
19
5,000
5,000
Account:
Notes Payable
Account No.
23
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
31
19
67,500
67,500
CHAPTER 2 Analyzing Transactions
Prob. 2–4B (Continued)
Account:
Common Stock
Account No.
31
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
17,500
Account:
Retained Earnings
Account No.
32
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
70,000
Account:
Dividends
Account No.
33
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
44,800
31
19
1,000
45,800
Account:
Fees Earned
Account No.
41
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
591,500
31
19
183,500
775,000
Account:
Salary and Commission Expense
Account No.
51
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
Aug.
1
Balance
✓
385,000
31
19
2,000
383,000
31
19
53,000
436,000
Account:
Rent Expense
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
49,000
CHAPTER 2 Analyzing Transactions
Prob. 2–4B (Continued)
Account:
Advertising Expense
Account No.
53
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
32,200
17
18
8,000
40,200
Account:
Automobile Expense
Account No.
54
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
Aug.
1
Balance
✓
15,750
30
19
2,500
18,250
Post.
Balance
29
19
1,700
CHAPTER 2 Analyzing Transactions
2–50
Prob. 2–4B (Concluded)
4.
Valley Realty
Unadjusted Trial Balance
August 31, 20Y8
Account
Debit
Credit
No.
Balances
Balances
Cash
11
36,750
Accounts Receivable
12
199,700
Prepaid Insurance
13
24,600
Office Supplies
14
5,550
Land
16
75,000
Accounts Payable
21
10,000
Unearned Rent
22
5,000
Notes Payable
23
67,500
Common Stock
31
17,500
Retained Earnings
32
70,000
Dividends
33
45,800
Fees Earned
41
775,000
Salary and Commission Expense
51
436,000
Rent Expense
52
56,200
Advertising Expense
53
40,200
Automobile Expense
54
18,250
Miscellaneous Expense
59
6,950
945,000
945,000
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 $9,000 ($10,000 – $1,000) would be as follows:
JOURNAL
Page
19
Date
Description
Post.
Ref.
Debit
Credit
20Y8
Aug.
31
Dividends
33
9,000
Cash
11
9,000
(c) Slide
CHAPTER 2 Analyzing Transactions
2–51
Prob. 2–5B
1.
Tech Support Services
Unadjusted Trial Balance
January 31, 20Y5
Debit
Credit
Balances
Balances
Cash
20,250
Accounts Receivable
56,400
Supplies
6,750
Prepaid Insurance
9,600
Equipment
162,000
Notes Payable
54,000
Accounts Payable
16,650
Common Stock
18,000
Retained Earnings
89,850
Dividends
39,000
Fees Earned
534,000
Wages Expense
306,000
Rent Expense
62,550
Advertising Expense
28,350
Gas, Electricity, and Water Expense
17,000
Miscellaneous Expense
4,600
712,500
712,500
CHAPTER 2 Analyzing Transactions
2–52
CONTINUING PROBLEM
2. and 3.
JOURNAL
Page
1
Date
Description
Post.
Ref.
Debit
Credit
20Y5
July
1
Cash
11
5,000
Common Stock
31
5,000
1
Office Rent Expense
51
1,750
Cash
11
1,750
1
Prepaid Insurance
15
2,700
Cash
11
2,700
2
Cash
11
1,000
Accounts Receivable
12
1,000
3
Cash
11
7,200
Unearned Revenue
23
7,200
3
Accounts Payable
21
250
Cash
11
250
4
Miscellaneous Expense
59
900
Cash
11
900
5
Office Equipment
17
7,500
Accounts Payable
21
7,500
8
Advertising Expense
55
200
Cash
11
200
11
Cash
11
1,000
Fees Earned
41
1,000
13
Equipment Rent Expense
52
700
Cash
11
700
14
Wages Expense
50
1,200
Cash
11
1,200
CHAPTER 2 Analyzing Transactions
Continuing Problem (Continued)
2. and 3.
JOURNAL
Page
2
Date
Description
Post.
Ref.
Debit
Credit
20Y5
July
16
Cash
11
2,000
Fees Earned
41
2,000
18
Supplies
14
850
Accounts Payable
21
850
21
Music Expense
54
620
Cash
11
620
22
Advertising Expense
55
800
Cash
11
800
23
Cash
11
750
Accounts Receivable
12
1,750
Fees Earned
41
2,500
27
Utilities Expense
53
915
Cash
11
915
28
Wages Expense
50
1,200
Cash
11
1,200
29
Miscellaneous Expense
59
540
Cash
11
540
30
Cash
11
500
Accounts Receivable
12
1,000
Fees Earned
41
1,500
31
Cash
11
3,000
Fees Earned
41
3,000
31
Music Expense
54
1,400
Cash
11
1,400
31
Dividends
33
1,250
Cash
11
1,250