Accounting Appendix A Homework Total debits must equal total credits. To get the cash amount, first find the total of the Credit Balances column, which is $350,000

subject Type Homework Help
subject Pages 10
subject Words 1091
subject Textbook Survey of Accounting 9th Edition
subject Authors Amanda Farmer, Carl S. Warren
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APPENDIX A
DOUBLE-ENTRY ACCOUNTING SYSTEMS
EXERCISES
E–1
a. Credit g. Credit
b. Debit h. Credit
c. Debit i. Credit
E–2
a. and b.
Account Debited Account Credited
Transaction Type Effect Type Effect
(1) asset + capital stock +
(2) asset + asset –
(3) asset + asset –
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E–3
(1) Cash ..................................................................... 12,500
Common Stock .............................................. 12,500
(5) Accounts Receivable .......................................... 6,750
Service Revenue ............................................ 6,750
(6) Accounts Payable ............................................... 3,750
Cash ................................................................ 3,750
(7) Cash ..................................................................... 5,000
Accounts Receivable ..................................... 5,000
E–4
PACK YOUR BAGS INC.
Trial Balance
May 31, 20Y5
Debit Credit
Balances Balances
Cash .................................................................................... 8,475
Accounts Receivable......................................................... 1,750
Supplies .............................................................................. 350
Equipment .......................................................................... 9,000
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E–5
1. both debit and credit entries (c)
2. both debit and credit entries (c)
3. both debit and credit entries (c)
E–6
a. Liability—credit f. Revenue—credit
b. Asset—debit g. Asset—debit
c. Stockholders’ equity h. Expense—debit
(Capital stock)—credit i. Asset—debit
E–7
a. The increase of $184,000 ($515,000 – $331,000) in the cash account does
not necessarily indicate earnings of that amount. Earnings will represent
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E–8
a.
Accounts Payable
Oct. 1 X
100,000 115,150
Oct. 31 39,000
X + $115,150 – $100,000 = $39,000
X = $39,000 + $100,000 – $115,150
X = $23,850
c.
Cash
June 1 20,000 X
279,100
June 30 15,500
$20,000 + $279,100 – X = $15,500
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E–9
20Y9
July 1 Rent Expense ....................................................... 900
Cash ................................................................ 900
2 Advertising Expense ........................................... 360
Cash ................................................................ 360
15 Accounts Payable ................................................ 240
Cash ................................................................ 240
27 Miscellaneous Expense ...................................... 100
Cash ................................................................ 100
30 Utilities Expense .................................................. 36
Cash ................................................................ 36
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E–10
a.
20Y3
Nov. 2 Supplies .................................................. 1,800
Accounts Payable .............................. 1,800
b., c., d.
Accounts Payable
20Y3
Nov. 1 Bal.
2
15,600
1,800
Nov. 30 Bal. 17,400
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E–11
a.
1. Accounts Receivable .......................................... 8,346
Fees Earned .................................................... 8,346
2. Supplies ............................................................... 360
Accounts Payable .......................................... 360
b.
Cash Accounts Payable
(3) 7,830 (4) 220 (4) 220 (2) 360
Supplies Fees Earned
(2) 360
(1) 8,346
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E–12
ANGEL CO.
Trial Balance
December 31, 20Y7
Debit Credit
Balances Balances
Cash .................................................................................... 13,000*
Accounts Receivable......................................................... 29,950
Dividends ........................................................................... 15,000
Fees Earned ....................................................................... 232,500
Wages Expense ................................................................. 131,250
Rent Expense ..................................................................... 45,000
*Hint: Total debits must equal total credits. To get the cash amount, first find the
total of the Credit Balances column, which is $350,000. Once you know that the
Credit column totals $350,000, then you know that the total of the Debit
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PROBLEMS
P–1
1.
(a) Cash ...................................................................... 10,000
Common Stock ............................................... 10,000
(b) Supplies ............................................................... 500
Accounts Payable .......................................... 500
(c) Cash ...................................................................... 6,125
Sales Commissions ....................................... 6,125
(d) Rent Expense ....................................................... 1,900
Cash ................................................................ 1,900
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P–1, Concluded
2.
Cash Sales Commissions
(a) 10,000
(d) 1,900
(c) 6,125
(c) 6,125
(e) 300
Supplies Office Salaries Expense
(b) 500
(i) 363 (h) 1,550
Bal. 137
Accounts Payable Automobile Expense
Dividends Miscellaneous Expense
(f) 1,500
(g) 200
3. PAMPERED PET
Trial Balance
March 31, 20Y1
Debit Credit
Balances Balances
Cash .................................................................................... 9,925
Supplies .............................................................................. 137
Accounts Payable .............................................................. 200
Common Stock .................................................................. 10,000
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P–2
2.
20Y4
Nov. 1 Office Supplies ....................................... 1,050
Accounts Payable .............................. 1,050
2 Rent Expense ......................................... 2,000
Cash .................................................... 2,000
17 Advertising Expense ............................. 2,750
Cash .................................................... 2,750
23 Accounts Payable .................................. 2,475
Cash .................................................... 2,475
29 Miscellaneous Expense ........................ 250
Cash .................................................... 250
30 Salary and Commission Expense ........ 13,900
Cash .................................................... 13,900
30 Accounts Receivable ............................. 41,500
Fees Earned ....................................... 41,500
30 Land ........................................................ 37,500
Cash .................................................... 5,000
Notes Payable .................................... 32,500
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P–2, Continued
1. and 3.
Cash
20Y4
Nov. 1 Bal.
3
30
16,960
22,300
500
Nov. 2
5
2,000
2,850
Accounts Receivable
20Y4
Nov. 1 Bal.
30
34,900
41,500
Nov. 3
22,300
______
Nov. 30 Bal. 54,100
Prepaid Insurance
Office Supplies
20Y4
Nov. 1 Bal.
1
Nov. 30 Bal.
800
1,050
1,650
Nov. 9
200
___
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P–2, Continued
Land
20Y4
Nov. 30
37,500
Nov. 30 Bal. 37,500
Accounts Payable
Unearned Rent
20Y4
Nov. 30
1,800
Nov. 30 Bal. 1,800
Notes Payable
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P–2, Continued
Dividends
20Y4
Nov. 1 Bal.
30
Nov. 30 Bal.
12,800
2,500
15,300
Salary and Commission Expense
20Y4
Nov. 1 Bal.
30
Nov. 30 Bal.
112,000
13,900
125,400
Nov. 30
500
Common Stock
20Y4
Nov. 1 Bal.
5,000
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P–2, Continued
Rent Expense
20Y4
Nov. 1 Bal.
2
Nov. 30 Bal.
14,000
2,000
16,000
Advertising Expense
Automobile Expense
20Y4
Nov. 1 Bal.
30
Nov. 30 Bal.
5,120
750
5,870
Miscellaneous Expense
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P–2, Concluded
4.
ORANGE REALTY
Trial Balance
November 30, 20Y4
Debit Credit
Balances Balances
Cash .................................................................................... 9,085
Accounts Receivable......................................................... 54,100
Prepaid Insurance ............................................................. 6,450
Office Supplies .................................................................. 1,650
Land .................................................................................... 37,500

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