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
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
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
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
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2014
Account: Peyton Smith, Capital
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. 32
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 50
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
2014
Date
Balance
Peyton Smith, Drawing
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
Account No. 56
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 59
Post.
Item Ref. Debit Credit Debit Credit
2014
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
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
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
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
12 52
2014 2014 2014
13 53
2014 2014 2014
Cash Service Revenue
Supplies ExpenseAccounts Receivable
Supplies
Wages Expense
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
CP 2–6
Note to Instructors: The purpose of this activity is to familiarize students with the
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…
CHAPTER 2 Analyzing Transactions
CP 2–6 (Continued)
JOB SNAPSHOT:
Location: North East metro Atlanta area, GA Experience: 3 to 8 years
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
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 very strongly
preferred!
NO CALLS PLEASE, AND LOCAL CANDIDATES ONLY need apply by emailing confidential
resume as soon as possible. All qualified 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%
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.
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
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.
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