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Chapter 2 - The Accounting Cycle: During the Period
Problem 2-8A (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1)
Sep. 1
Debit
Credit
Cash
4,700
(4)
Sep. 8
Accounts Receivable
6,000
Service Revenue
6,000
(Provide services on account)
(5)
Sep. 10
Supplies
1,100
Accounts Payable
1,100
(Purchase supplies on account)
(9)
Sep. 30
Utilities Expense
2,000
Cash
2,000
(Pay utilities for current month)
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-8A (continued)
(10)
Sep. 30
Salaries Expense
4,000
Cash
4,000
(Pay salaries for current month)
Problem 2-8A (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Supplies
Bal. 6,500
(1) 4,700
(7) 5,000
4,000 (6)
900 (8)
2,000 (9)
4,000 (10)
1,100 (11)
Bal. 2,500
(4) 6,000
5,000 (7)
Bal. 7,600
(5) 1,100
4,200
3,500
8,700
Service Revenue
Salaries Expense
Rent Expense
4,700 (1)
6,000 (4)
(10) 4,000
(8) 900
10,700
4,000
900
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-8A (continued)
Requirement 4
Pirates Incorporated
Trial Balance
September 30
Accounts
Debit
Credit
Cash
$ 4,200
Accounts Receivable
3,500
Supplies
8,700
Land
17,600
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-9A (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1)
December 1
Debit
Credit
Rent Expense
900
Cash
900
(Pay rent for December)
(5)
December 13
Cash
20,000
Common Stock
20,000
(Issue shares of common stock)
(6)
December 15
Salaries Expense
1,200
Cash
1,200
(Pay salaries for December)
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-9A (continued)
(9)
December 26
Equipment
28,500
Cash
28,500
(Purchase equipment)
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-9A (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Prepaid Insurance
Bal. 9,200
900 (1)
Bal. 4,500
3,500 (4)
Bal. 400
Equipment
Land
Accounts Payable
Bal. 24,100
(9) 28,500
Bal. 170,000
(10) 1,500
3,300 Bal.
52,600
170,000
1,800
Notes Payable
Common Stock
Retained Earnings
Dividends
Service Revenue
Advertising Expense
Bal. 5,000
75,000 Bal.
Bal. 11,000
Chapter 2 - The Accounting Cycle: During the Period
2-48 Financial Accounting, 5e
Problem 2-9A (continued)
Requirement 4
RiverHawk Expeditions
Trial Balance
December 31, 2021
Accounts
Debit
Credit
Cash
$ 10,400
Accounts Receivable
4,200
Prepaid Insurance
400
Equipment
52,600
Chapter 2 - The Accounting Cycle: During the Period
PROBLEMS: SET B
Problem 2-1B (LO 2-2)
Transaction
Assets
=
Liabilities
+
Stockholders’
Equity
1. Obtain a loan at the
bank
Increase
=
Increase
+
No effect
4. Pay employee salaries
for the current month.
Decrease
=
No effect
+
Decrease
5. Repay loan from the
bank in (1) above.
Decrease
=
Decrease
+
No effect
6. Customers pay cash in
advance of services.
Increase
=
Increase
+
No effect
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-2B (LO 2-2)
Transaction
Assets
=
Liabilities
+
Stockholders’
Equity
1. Issue common stock in
exchange for cash, $15,000.
+$15,000
=
$0
+
+$15,000
5. Pay one year of rent in
advance, $12,000.
+$12,000
−$12,000
=
$0
+
$0
6. Provide services to customers
on account, $3,000.
+$3,000
=
$0
+
+$3,000
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-3B (LO 2-3)
Accounts
Type of Account
Normal Balance
(Debit or Credit)
1. Supplies
Asset
Debit
2. Advertising Expense
Expense
Debit
7. Dividends
Dividends
Debit
8. Accounts Receivable
Asset
Debit
9. Retained Earnings
Stockholders’ equity
Credit
Chapter 2 - The Accounting Cycle: During the Period
2-52 Financial Accounting, 5e
Problem 2-4B (LO 2-4)
Transactions for Eli’s Insurance Services
May 2
Debit
Credit
Cash
300
Deferred Revenue
300
(Receive cash in advance from customer)
May 5
May 14
No entry for Eli.
May 19
Accounts Payable
425
Cash
425
(Pay cash on account)
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-5B (LO 2-2, 2-4)
Transactions for Olivia’s Maintenance Services
May 2
Debit
Credit
Prepaid Insurance
300
Cash
300
(Pay for insurance services in advance)
May 14
Supplies
200
Cash
200
(Purchase maintenance supplies with cash)
May 19
Cash
425
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-5B (concluded)
Eli’s Insurance Services
Olivia’s Maintenance Services
Assets
=
Liabilities
+
Stockholders’
Equity
Assets
=
Liabilities
+
Stockholders’
Equity
May 2
+$300
=
+$300
+
$0
+$300
−$300
=
$0
+
$0
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-6B (LO 2-6)
Ducks Company
Trial Balance
September 30
Accounts
Debit
Credit
Cash
$ 25,000
Accounts Receivable
14,000
Supplies
7,000
Retained Earnings
13,000
Dividends
4,000
Service Revenue
55,100
Salaries Expense
9,000
Chapter 2 - The Accounting Cycle: During the Period
2-56 Financial Accounting, 5e
Problem 2-7B (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1)
June 1
Debit
Credit
Cash
70,000
Notes Payable
70,000
(Obtain loan from bank)
(Purchase equipment)
(4)
June 10
Supplies
8,000
Accounts Payable
8,000
(Purchase cleaning supplies on account)
(5)
June 12
Cash
5,000
Service Revenue
5,000
(Provide car washes for cash)
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-7B (continued)
(9)
June 29
Salaries Expense
950
Cash
950
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-7B (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Supplies
(1) 70,000
75,000 (3)
(8) 6,000
(4) 8,000
Notes Payable
Common Stock
Dividends
70,000 (1)
40,000 (2)
(11) 600
70,000
40,000
600
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-7B (concluded)
Requirement 4
Salukis Car Cleaning
Trial Balance
June 30
Accounts
Debit
Credit
Cash
$ 35,650
Accounts Receivable
6,000
Supplies
8,000
