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CHAPTER 2 Analyzing Transactions
Continuing Problem (Continued)
2. and 3.
Page 2
Post.
Ref. Debit Credit
2014
July 16 Cash 11 2,000
Fees Earned 41 2,000
27 Utilities Expense 53 915
Cash 11 915
28 Wages Expense 50 1,200
Cash 11 1,200
Date
JOURNAL
Description
2-56
CHAPTER 2 Analyzing Transactions
Continuing Problem (Continued)
1. and 3.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
2014
13 1 700 11,620
14 1 1,200 10,420
16 2 2,000 12,420
21 2 620 11,800
22 2 800 11,000
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
2014
July 1 Balance 91,000
Balance
Date
Date
Balance
Cash
Account:
Account: Accounts Receivable
2-57
CHAPTER 2 Analyzing Transactions
Continuing Problem (Continued)
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 17
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2014
Account: Capital Stock
Balance
Date
Account: Accounts Payable
Balance
Date
Account: Unearned Revenue
Balance
Date
Balance
Date
Date
Balance
Balance
Date
Account: Office Equipment
Supplies
Account:
Account: Prepaid Insurance
2-58
CHAPTER 2 Analyzing Transactions
Continuing Problem (Continued)
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2014
July 1 Balance 96,200
Account No. 50
Post.
Item Ref. Debit Credit Debit Credit
2014
July 1 Balance 9400
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2014
July 1 Balance 9800
1 1 1,750 2,550
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
Date
Balance
Dividends
Account:
Account: Wages Expense
Balance
Date
Account: Fees Earned
Balance
Date
Account: Equipment Rent Expense
Balance
Date
Account: Office Rent Expense
Balance
Date
2-59
CHAPTER 2 Analyzing Transactions
Continuing Problem (Continued)
Account No. 53
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 55
Post.
Item Ref. Debit Credit Debit Credit
2014
July 1 Balance 9500
Account No. 56
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 59
Post.
Item Ref. Debit Credit Debit Credit
2014
July 1 Balance 9415
Balance
Date
Account: Utilities Expense
Balance
Date
Balance
Date
Balance
Date
Balance
Account: Miscellaneous Expense
Account: Supplies Expense
Music Expense
Account:
Account: Advertising Expense
Date
2-60
CHAPTER 2 Analyzing Transactions
Continuing Problem (Concluded)
4.
Debit Credit
Balances Balances
Cash 9,945
Accounts Receivable 2,750
PS MUSIC
Unadjusted Trial Balance
July 31, 2014
2-61
CHAPTER 2 Analyzing Transactions
CP 2–1
Acceptable ethical conduct requires that Gil look for the difference. If Gil
CP 2–2
The following general journal entry should be used to record the receipt of tuition
payments in advance of classes:
CP 2–3
The journal is called the book of original entry. It provides a time-ordered history
of the transactions that have occurred for the firm. This time-ordered history is
very important because it allows one to trace ledger account balances back to the
CASES & PROJECTS
2-62
CHAPTER 2 Analyzing Transactions
CP 2–4
1. The rules of debit and credit must be memorized. Dot is correct in that the
rules of debit and credit could be reversed as long as everyone accepted
and abided by the rules. However, the important point is that everyone
accepts the rules as the way in which transactions should be recorded. This
generates uniformity across the accounting profession and reduces errors
2. The accounting system may be designed to capture information about the
buying habits of various customers or vendors, such as the quantity
2-63
CHAPTER 2 Analyzing Transactions
CP 2–5
a. Although the titles and numbers of accounts may differ, depending on how
expenses are classified, the following accounts would be adequate for
recording transaction data for Eagle Caddy Service:
11 Cash 41 Service Revenue
52 Supplies Expense
55 Miscellaneous Expense
31 Cory Neece, Capital
b.
Service revenue $11,400
Expenses:
Rent expense $3,500
Balance Sheet Accounts Income Statement Accounts
1. Assets 4. Revenue
Income Statement
For Month Ended June 30, 2014
2. Liabilities
3. Owner’s Equity
EAGLE CADDY SERVICE
2-64
CP 2–5 (Continued)
11 41
2014 2014 2014
June 1 2,000 June 1 500 June 15 5,400
15 5,400 2 750 25 1,800
12 52
2014 2014 2014
13 53
2014 2014 2014
21 54
2014 2014 2014
June 17 1,000 June 3 2,400 June 30 340
31 55
2014 2014
Cory Neece, Capital Miscellaneous Expense
Supplies ExpenseAccounts Receivable
Supplies
Accounts Payable
Wages Expense
Utilities Expense
Cash Service Revenue
2-65
CHAPTER 2 Analyzing Transactions
CP 2–5 (Concluded)
c. $6,265, computed in the following manner:
Cash receipts:
Initial investment………………………………………………… $2,000
Cash sales………………………………………………………
…
9,600
d. The difference of $90 ($6,265 – $6,175) between the cash on hand according
CP 2–6
Note to Instructors: The purpose of this activity is to familiarize students with the
CP 2–6 (Continued)
JOB SNAPSHOT:
Location: North East metro Atlanta area, GA Experience: 3 to 8 years
Base Pay: $60,000–$65,000/Year Travel: None
Other Pay: Excellent corporate benefits Relocation Covered: No
Employee Type: Full-Time Post Date: 5/9/2011
Industry: Manufacturing Contact Information
Manages Others: Yes Contact:
Job Type: Accounting Phone: 555-395-6969
Education: 4-Year Degree Ref ID: RD5694
DESCRIPTION:
A growing and well-established Atlanta company has asked us to recruit an Accounting Manager.
This person will report to the Controller and be responsible for all day-to-day management of the
department.
ESSENTIAL FUNCTIONS:
●Provide management with timely and accurate data and reports
●Responsible for accuracy of accounting entries, monthly P & L and Balance Sheets
●Perform analysis of financial reports and performance
●Personally conduct and manage collection activities
●Process biweekly employee payroll in an accurate and timely manner
●Supervise, train, and develop Accounts Payable Coordinator and additional accounting staff as
necessary
●Interact with vendors and customers in a payables and receivables management process
●Initiate bank wires and ACH transfers
●Interact with internal and external auditors in completing audits
●Perform other duties as assigned
REQUIREMENTS:
●BS degree in Accounting, successful completion of CPA exams is a plus. Minimum 3 years
experience as an accounting manager or supervisor in a manufacturing environment is
absolutely required. Working knowledge of Microsoft Dynamics 10.0 is strongly preferred.
●Exceptional analytical and problem-solving abilities
●Must be well-versed in the financial aspects of inventory as well as state and federal financial
regulations
●Must possess the ability to professionally interact with internal and external customers
●Excellent written and verbal communication skills
●Proficient knowledge of Excel and Word
●Experience with EXACT software as well as LOTUS Notes would be a plus
●Ability to analyze financial data and prepare financial reports, statements, and projections
NO CALLS PLEASE, AND LOCAL CANDIDATES ONLY need apply by emailing confidential
resume as soon as possible. All qualified candidates will be contacted immediately.
ACCOUNTING MANAGER
Accountants One
CLIENT IS INTERVIEWING FOR AN IMMEDIATE HIRE!
2-67
CHAPTER 2 Analyzing Transactions
CP 2–6 (Continued)
An example of a job advertisement requiring accounting knowledge is as follows:
Source: CareerBuilders.com
JOB SNAPSHOT:
Location: Atlanta, GA 30301 Experience: Not Specified
Employee Type: Full-Time Travel: Up to 50%
Industry: Accounting—Finance Post Date: 5/17/2011
Manages Others: Yes Contact Information
Job Type: Accounting Ref ID: 1294
DESCRIPTION:
Directors at Jefferson Wells are crucial to our success. They bring a wealth of experience and knowledge
to our various service offerings and are responsible for ensuring the development and execution of the
strategic plan for their respective market. Their goal is to drive the development of the Solution Area with
the goal of significant growth and profitability. They provide technical expertise and leverage a network
of clients and contacts. The Director plays a critical role in the leadership and development of our
Engagement Managers and Professional Consultants.
Directors create and implement the Marketing Operating Plan, as well as create revenue strategies to meet
revenue targets. They drive development and execution of effective client solutions to key targets.
Directors work closely with Business Development Managers on proposals and business development
calls. Directors serve as the business advisor to clients to ensure quality assurance standards are met. The
y
manage, direct, and monitor multiple client services teams on client engagements. They maintain strong
communication with clients to manage expectations, ensure client satisfaction and adherence to deadlines.
Other key success factors include:
●Solid history of excellent performance, management capability, and revenue growth
●Proven ability to drive a business including selling, work plan development, proposal writing, and
overseeing service delivery
The East Region Financial Institutions Director works under the general supervision of the East Region
Vice President and has a dotted line relationship to the Managing Directors in the region. This Director
will be recognized as a financial institution industry leader with expertise in the areas of commercial and
EAST REGION FINANCIAL INSTITUTIONS DIRECTOR
Jefferson Wells
2-68
CHAPTER 2 Analyzing Transactions
CP 2–6 (Concluded)
Jefferson Wells (www.jeffersonwells.com) delivers professional services in the areas of internal
audit and controls, technology risk management, tax, and finance and accounting-related services.
The firm’s unique, agile structure aligns experienced professionals with proven processes to deliver
p
ragmatic and cost-effective results. Headquartered in Milwaukee, Jefferson Wells serves clients,
including Fortune 500 and Global 1000 companies, from offices worldwide. Jefferson Wells is an
independently operating, wholly owned subsidiary of ManpowerGroup. (NYSE: MAN).
Jefferson Wells is an Equal Opportunity Employer.
REQUIREMENTS:
●Minimum 12 years or more of clearly progressive, professional development in the general
area of accounting services/internal auditing, including a mix of public accounting and
managerial level financial institution industry experience
2-69
