Exercise 2-13 (LO 2-4)
Corrections
External Transaction
Accounts
Debit
Credit
3.
Pay a $500 utilities bill for the current
Utilities Expense
500
Exercise 2-14 (LO 2-5)
Cash
(1)
5,000
15,000
9,000
(2)
Exercise 2-15 (LO 2-5)
Cash
Accounts Receivable
3,400
4,200
Supplies
Accounts Payable
UnearnedDeferred
Revenue
Service Revenue
8,400
Advertising
Expense
0
Exercise 2-16 (LO 2-5)
Chapter 2 – The Accounting Cycle: During the Period
Exercise 2-17 (LO 2-6)
Sooner Company
Trial Balance
April 30
Accounts
Debit
Credit
Cash
$ 3,900
Accounts Receivable
6,100
Land
Accounts Payable
$ 4,300
Revenue
Retained Earnings
Service Revenue
Supplies Expense
9,400
Salaries Expense
8,200
Exercise 2-18 (LO 2-6)
Cobras Incorporated
Trial Balance
March 31
Accounts
Debit
Credit
Cash
$ 3,500
Accounts Receivable
4,200
Supplies
Prepaid Insurance
Accounts Payable
$ 2,200
Salaries Payable
500
Common Stock
Retained Earnings
Salaries Expense
6,400
Utilities Expense
3,700
Exercise 2-19 (LO 2-4, 2-5, 2-6)
Requirement 1
(1) January 1
Debit
Credit
(2) January 5
(3) January 9
(4) January 12
(5) January 18
(6) January 23
(7) January 31
Exercise 2-19 (continued)
Requirement 2
Cash
Common Stock
Land
Notes Payable
0
0
Equipment
Service Revenue
0
0
Supplies
Accounts Payable
0
0
Salaries Expense
0
Chapter 2 – The Accounting Cycle: During the Period
Exercise 2-19 (concluded)
Requirement 3
Green Wave Company
Trial Balance
Accounts
Debit
Credit
Cash
$37,000
Land
Equipment
9,000
Accounts Payable
Notes Payable
Service Revenue
Salaries Expense
9,000
Exercise 2-20 (LO 2-4, 2-5, 2-6)
Requirement 1
(1) September 3
Debit
Credit
Accounts Receivable
20,000
(2) September 8
Equipment
21,000
(3) September 12
Supplies
3,500
(4) September 15
Salaries Expense
4,200
(5) September 19
Advertising Expense
(6) September 22
Rent Expense
(7) September 26
Cash
(8) September 30
Cash
6,000
Chapter 2 – The Accounting Cycle: During the Period
Exercise 2-20 (continued)
Requirement 2
Accounts Receivable
Service Revenue
Equipment
Cash
Beg.
(2)
7,400
21,000
Beg.
46,100
21,000
(2)
Supplies
Accounts Payable
Beg.
500
1,200
Beg.
Salaries Expense
Advertising Expense
Beg.
0
Beg.
0
Rent Expense
UnearnedDeferred
Revenue
Beg.
0
0
Beg.
Common Stock
Retained Earnings
Beg.
Beg.
2-30 Financial Accounting, 4e
Exercise 2-20 (concluded)
Requirement 3
Boilermaker House Painting Company
Trial Balance
Accounts
Debit
Credit
Cash
$35,500
Accounts Receivable
6,700
Supplies
Equipment
Accounts Payable
Revenue
Common Stock
Retained Earnings
Service Revenue
Salaries Expense
Advertising Expense
Rent Expense
$85,200
$85,200
Chapter 2 – The Accounting Cycle: During the Period
PROBLEMS: SET A
Problem 2-1A (LO 2-2)
Transaction
Assets
=
Liabilities
+
Stockholders’
Equity
2. Purchase business
5. Pay employee salaries
7. Pay for advertising for
8. Repay loan from the
2-32 Financial Accounting, 4e
Problem 2-2A (LO 2-2)
Transaction
Assets
=
Liabilities
+
Stockholders’
Equity
1. Provide services to
customers on account,
$1,600.
+$1,600
=
$0
+
+$1,600
Chapter 2 – The Accounting Cycle: During the Period
Problem 2-3A (LO 2-3)
Accounts
Type of Account
Normal Balance
(Debit or Credit)
1. Salaries Payable
Liability
Credit
2. Common Stock
Credit
3. Prepaid Rent
4. Buildings
6. Equipment
7. Rent Expense
8. Notes Payable
Liability
Credit
9. Salaries Expense
Revenue
Credit
Chapter 2 – The Accounting Cycle: During the Period
Problem 2-4A (LO 2-4)
Transactions for Jake’s Lawn Maintenance Company
July 3
Debit
Credit
Accounts Receivable
500
July 6
Repairs and Maintenance Expense
450
July 9
Cash
500
July 14
Notes Receivable
July 18
Advertising Expense
July 20
July 27
No entry for Jake.
No entry for Jake.
July 31
Problem 2-5A (LO 2-2, 2-4)
Transactions for Luke’s Repair Shop
July 3
Debit
Credit
Repairs and Maintenance Expense
500
Accounts Payable
500
July 6
Accounts Receivable
450
450
Accounts Payable
500
500
July 14
Cash
600
July 18
July 20
800
300
600
2-36 Financial Accounting, 4e
Problem 2-5A (concluded)
Jake’s Lawn Maintenance Company
Luke’s Repair Shop
Assets
=
Liabilities
+
Stockholders’
Equity
Assets
=
Liabilities
+
Stockholders’
Equity
July 3
+$500
=
$0
+
+$500
$0
=
+$500
+
−$500
6
$0
=
+$450
+
−$450
+$450
=
$0
+
+$450
=
$0
+
=
$0
+
+
=
+
Chapter 2 – The Accounting Cycle: During the Period
Problem 2-6A (LO 2-6)
Bruins Company
Trial Balance
November 30
Accounts
Debit
Credit
Cash
$ 40,000
Accounts Receivable
50,000
Supplies
1,100
Accounts Payable
$ 17,000
Salaries Payable
5,000
Interest Payable
3,000
Notes Payable
Common Stock
50,000
Retained Earnings
35,000
Dividends
1,100
Salaries Expense
30,000
Rent Expense
Interest Expense
3,000
Supplies Expense
7,000
Totals
$214,000
$214,000
Problem 2-7A (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1)
March 1
Debit
Credit
Cash
3,000
(2)
March 3
Equipment
2,700
(3)
March 5
Rent Expense
600
March 7
No entry
(4)
March 12
Supplies
130
(5)
March 15
Cash
800
(6)
March 19
Cash
700
(7)
March 25
UnearnedDeferred Revenue
700
(8)
March 30
Utilities Expense
95
(9)
March 31
Dividends
150
Problem 2-7A (continued)
Requirements 2 and 3
Cash
Supplies
Equipment
(1) 3,000
600 (3)
(4) 130
(2) 2,700
(6) 700
150 (9)
3,655
Accounts Payable
UnearnedDeferred
Revenue
130 (4)
(7) 700
130
Notes Payable
Common Stock
Dividends
2,700 (2)
3,000 (1)
(9) 150
2,700
3,000
Rent Expense
2-40 Financial Accounting, 4e
Problem 2-7A (concluded)
Requirement 4
Ute Sewing Shop
Trial Balance
March 31
Accounts
Debit
Credit
Cash
$3,655
Supplies
130
Equipment
2,700
Accounts Payable
$ 130
Revenue
Notes Payable
2,700
Common Stock
3,000
Dividends
150
Rent Expense
Utilities Expense