Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
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
(2)
Sep. 2
Land
6,400
(3)
Sep. 4
Advertising Expense
500
(4)
Sep. 8
Accounts Receivable
6,000
(5)
Sep. 10
Supplies
1,100
(6)
Sep. 13
Notes Payable
4,000
(7)
Sep. 18
Cash
5,000
(8)
Sep. 20
Rent Expense
900
(9)
Sep. 30
Utilities Expense
2,000
Problem 2-8A (continued)
(10)
Sep. 30
Salaries Expense
4,000
(11)
Sep. 30
Dividends
1,100
Problem 2-8A (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Supplies
Bal. 6,500
(1) 4,700
4,000 (6)
900 (8)
Bal. 2,500
(4) 6,000
5,000 (7)
Bal. 7,600
(5) 1,100
Land
Accounts Payable
Notes Payable
Bal. 11,200
(2) 6,400
7,500 Bal.
500 (3)
(6) 4,000
3,000 Bal.
6,400 (2)
Common Stock
Retained Earnings
Dividends
9,000 Bal.
8,300 Bal.
(11) 1,100
Service Revenue
Salaries Expense
Rent Expense
4,700 (1)
(10) 4,000
(8) 900
Advertising Expense
Utilities Expense
(3) 500
(9) 2,000
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
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
(2)
December 5
Cash
2,800
(3)
December 8
Cash
10,000
(4)
December 12
(5)
December 13
Cash
20,000
(6)
December 15
Salaries Expense
1,200
(7)
December 17
Advertising Expense
1,000
(8)
December 22
Accounts Receivable
3,200
Problem 2-9A (continued)
(9)
December 26
(10)
December 28
(11)
December 31
Problem 2-9A (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Prepaid Insurance
Bal. 9,200
(2) 2,800
900 (1)
1,200 (6)
Bal. 4,500
(8) 3,200
3,500 (4)
Bal. 400
Equipment
Land
Accounts Payable
Bal. 24,100
Bal. 170,000
(10) 1,500
3,300 Bal.
Notes Payable
Common Stock
Retained Earnings
50,000 Bal.
120,000 Bal.
14,100 Bal.
Dividends
Service Revenue
Advertising Expense
Bal. 5,000
75,000 Bal.
Bal. 11,000
Salaries Expense
Rent Expense
Bal. 28,300
Bal. 9,900
2-48 Financial Accounting, 4e
Problem 2-9A (continued)
Requirement 4
RiverHawk Expeditions
Trial Balance
December 31
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
2. Purchase a machine to
use in operations for
cash.
No effect*
=
No effect
+
No effect
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
2. Obtain a loan from the bank
for $9,000.
+$9,000
=
+$9,000
+
$0
Problem 2-3B (LO 2-3)
Accounts
Type of Account
Normal Balance
(Debit or Credit)
1. Supplies
Asset
Debit
3. Prepaid Insurance
Asset
Debit
Problem 2-4B (LO 2-4)
Transactions for Eli’s Insurance Services
May 2
Debit
Credit
Cash
300
May 5
Repairs and Maintenance Expense
425
Accounts Payable
425
(Receive maintenance services on account)
May 7
Cash
500
May 14
No entry for Eli.
May 19
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
May 7
Notes Receivable
500
Cash
500
(Loan cash and issue note receivable)
May 14
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
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
Prepaid Insurance
5,000
Equipment
28,000
2-56 Financial Accounting, 4e
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)
(2)
June 2
Cash
40,000
Common Stock
40,000
(Issue common stock)
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-7B (continued)
(9)
June 29
Salaries Expense
950
Problem 2-7B (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Supplies
(1) 70,000
75,000 (3)
(8) 6,000
(4) 8,000
(5) 5,000
500 (7)
Notes Payable
Common Stock
Dividends
70,000 (1)
40,000 (2)
(11) 600
Utilities Expense
(10) 1,400
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
