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
Land
Accounts Payable
$ 9,100
Notes Payable
5,400
Common Stock
9,000
Retained Earnings
8,300
Dividends
Service Revenue
Salaries Expense
4,000
Rent Expense
Advertising Expense
Totals
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
Cash
(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
December 23
No journal entry required
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
7,000
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
Land
Accounts Payable
$ 1,800
Notes Payable
60,000
Common Stock
Retained Earnings
Dividends
7,000
Service Revenue
Advertising Expense
Salaries Expense
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
=
+
4. Purchase supplies on account,
=
+
6. Provide services to customers
on account, $3,000.
=
+
7. Repay $4,000 of the loan in
=
+
$0
9. Provide services to customers
in (3) above.
=
+
=
+
Problem 2-3B (LO 2-3)
Accounts
Type of Account
Normal Balance
(Debit or Credit)
1. Supplies
Asset
Debit
2. Advertising Expense
Debit
3. Prepaid Insurance
Asset
Debit
4. Supplies Expense
Debit
6. Equipment
Asset
Debit
7. Dividends
Debit
8. Accounts Receivable
Asset
Debit
9. Retained Earnings
Problem 2-4B (LO 2-4)
Transactions for Eli’s Insurance Services
May 2
Debit
Credit
Cash
300
(Receive cash in advance from customer)
May 5
Repairs and Maintenance Expense
425
Accounts Payable
425
(Receive maintenance services on account)
May 7
Cash
500
Notes Payable
(Receive cash and sign note payable)
May 14
No entry for Eli.
May 19
(Pay cash on account)
May 25
Cash
May 28
Service Revenue
May 31
Cash
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 5
Accounts Receivable
Service Revenue
(Provide services on account)
May 7
Notes Receivable
500
Cash
500
(Loan cash and issue note receivable)
May 14
Cash
(Purchase maintenance supplies with cash)
May 19
Cash
Accounts Receivable
(Receive cash on account)
May 25
No entry for Olivia.
May 28
Prepaid Insurance
300
May 31
Notes Receivable
500
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
Accounts Payable
$ 7,000
Salaries Payable
Utilities Payable
Revenue
Common Stock
29,000
Retained Earnings
13,000
Dividends
Service Revenue
Salaries Expense
9,000
Insurance Expense
Advertising Expense
Supplies Expense
10,000
Entertainment Expense
6,000
Utilities Expense
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)
(3)
June 7
Equipment
75,000
Cash
75,000
(Purchase equipment)
(4)
June 10
Supplies
Accounts Payable
(Purchase cleaning supplies on account)
(5)
June 12
Cash
Service Revenue
(Provide car washes for cash)
(6)
June 16
Salaries Expense
Cash
(Pay salaries to employees)
(7)
June 19
Advertising Expense
Cash
(Pay for current advertising)
(8)
June 23
Accounts Receivable
Service Revenue
(Provide car washes on account)
Chapter 2 – The Accounting Cycle: During the Period
Problem 2-7B (continued)
(9)
June 29
Salaries Expense
950
(10)
June 30
Utilities Expense
(11)
June 30
Problem 2-7B (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Supplies
(1) 70,000
75,000 (3)
(8) 6,000
(4) 8,000
(2) 40,000
900 (6)
(5) 5,000
500 (7)
950 (9)
600 (11)
8,000
Notes Payable
Common Stock
Dividends
70,000 (1)
40,000 (2)
(11) 600
70,000
40,000
6,000 (8)
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
Equipment
Notes Payable
Common Stock
Dividends
Service Revenue
Advertising Expense
Utilities Expense