EXERCISE 2-10
(a)
General Journal
Date
Account Titles and Explanation
Ref.
Debit
Credit
Apr. 1
cash in business)
Cash …………………………………………….
Owner’s Capital …………………………
12,000
12,000
12
Cash …………………………………………….
Service Revenue ……………………….
(Received cash for
services performed)
900
900
15
Salaries and Wages Expense …………
Cash …………………………………………
(Paid salaries to date)
1,300
1,300
25
Accounts Payable ………………………….
Cash …………………………………………
(Paid creditors on account)
1,500
1,500
29
Cash …………………………………………….
Accounts Receivable …………………
(Received cash in payment
of account)
400
400
30
Cash …………………………………………….
1,000
EXERCISE 2-10 (Continued)
(b) DAGGETT LANDSCAPING COMPANY
Trial Balance
April 30, 2017
Debit Credit
Cash ……………………………………………………………….. $11,500
Accounts Receivable ……………………………………….. 2,800
Supplies ………………………………………………………….. 1,800
EXERCISE 2-11
(a) Oct. 1 Cash ……………………………………………………. 3,000
Owner’s Capital ……………………………… 3,000
(Owner’s investment of cash in
business)
10 Cash ……………………………………………………. 750
10 Cash ……………………………………………………. 4,000
Notes Payable………………………………… 4,000
(Obtained loan from bank)
20 Cash ……………………………………………………. 500
20 Accounts Receivable ……………………………. 940
Service Revenue ……………………………. 940
(Billed clients for services
performed)
EXERCISE 2-11 (Continued)
(b) SHUMWAY CO.
Trial Balance
October 31, 2017
Debit Credit
Cash …………………………………………………………… $ 7,200
Accounts Receivable …………………………………… 1,240
Supplies …………………………………………………….. 400
EXERCISE 2-12
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Sept. 1
Cash ……………………………………………
Owner’s Capital …………………….
101
301
10,000
10,000
5
Equipment …………………………………..
Cash …………………………………….
157
101
12,000
4,000
EXERCISE 2-12 (Continued)
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
J1
10,000
10,000
5
J1
4,000
6,000
J1
3,000
3,000
J1
700
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 5
J1
12,000
12,000
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 5
J1
8,000
8,000
25
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 1
J1
10,000
10,000
Date
Explanation
Ref.
Debit
Credit
Balance
Sept. 30
J1
EXERCISE 2-13
Error
(a)
In Balance
(b)
Difference
(c)
Larger Column
1.
No
$525
Debit
2.
Yes
—
—
3.
4.
5.
Yes
—
—
6.
No
Debit
EXERCISE 2-14
OVERNITE DELIVERY SERVICE
Trial Balance
July 31, 2017
Debit Credit
Cash ($78,821 – Debit total without Cash
$66,340) …………………………………………………………. $12,481
Accounts Receivable …………………………………………. 7,642
Prepaid Insurance ……………………………………………… 1,968
Equipment…………………………………………………………. 49,360
Notes Payable ……………………………………………………. $17,000
Accounts Payable ……………………………………………… 8,396
SOLUTIONS TO PROBLEMS
PROBLEM 2-1A
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 1
Cash ………………………………………………..
20,000
Owner’s Capital …………………………
20,000
(Owner’s investment of cash
in business)
3
Land …………………………………………………
12,000
Buildings ………………………………………….
2,000
Equipment ………………………………………..
1,000
Cash …………………………..…………….
(Purchased Rainbow’s Golf Land)
5
Advertising Expense …………………………
900
Cash …………………………..…………….
900
(Paid for advertising)
6
Prepaid Insurance …………………………….
600
Cash …………………………..…………….
(Paid for one-year insurance
policy)
10
Equipment ………………………………………..
1,050
Accounts Payable ……………………..
1,050
(Purchased equipment on
account)
18
Cash ………………………………………………..
1,100
Service Revenue ……………………….
1,100
(Received cash for services
performed)
19
Cash ………………………………………………..
1,500
Unearned Service Revenue ………..
1,500
(Received cash for coupon
books sold)
PROBLEM 2-1A (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 25
Owner’s Drawings ………………………….
Cash ………………………………………
(Withdrew cash for personal
use)
800
800
PROBLEM 2-2A
(a)
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Apr. 1
Cash ………………………………………………..
101
301
20,000
in business)
1
No entry—not a transaction.
2
Rent Expense …………………………………..
729
1,100
Cash ………………………………………..
101
1,100
(Paid monthly office rent)
3
Supplies …………………………………………..
126
4,000
Accounts Payable ……………………..
201
4,000
(Purchased supplies on
account from Dazzle Company)
10
Accounts Receivable ………………………..
112
5,100
Service Revenue ……………………….
400
5,100
(Billed clients for services
performed)
11
Cash ………………………………………………..
101
1,000
Unearned Service Revenue………..
209
1,000
(Received cash for future
service)
20
Cash ………………………………………………..
101
2,100
Service Revenue ……………………….
400
2,100
(Received cash for services
performed)
30
Salaries and Wages Expense …………….
726
2,800
PROBLEM 2-2A (Continued)
Date
Account Titles and Explanation
Ref.
Debits
Credit
Apr. 30
Accounts Payable …………………………
201
2,400
Cash …………………………..…………
101
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
J1
20,000
20,000
2
J1
1,100
18,900
J1
19,900
J1
2,100
22,000
J1
2,800
19,200
J1
16,800
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 10
J1
5,100
5,100
Supplies No. 126
Date
Explanation
Apr. 3
J1
4,000
4,000
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 3
J1
4,000
Unearned Service Revenue No. 209
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 11
J1
1,000
1,000
PROBLEM 2-2A (Continued)
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
J1
20,000
20,000
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 10
J1
5,100
J1
2,100
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 30
J1
2,800
2,800
Date
Explanation
Ref.
Debit
Credit
Apr. 2
J1
1,100
1,100
(c) EMILY VALLEY, DENTIST
Trial Balance
April 30, 2017
Debit
Credit
Cash ………………………………………………………….. $16,800
Accounts Receivable ………………………………….. 5,100
Supplies …………………………………………………….. 4,000
PROBLEM 2-3A
(a)
Trans.
Account Titles and Explanation
Debit
Credit
1.
Cash …………………………………………….
40,000
Owner’s Capital …………………….
40,000
2.
No entry—Not a transaction.
3.
Prepaid Rent …………………………………
24,000
Cash …………………………………….
24,000
4.
Equipment ……………………………………
30,000
Cash …………………………………….
10,000
Accounts Payable …………………
20,000
5.
Prepaid Insurance …………………………
1,800
Cash …………………………………….
1,800
6.
Supplies ……………………………………….
420
Cash …………………………………….
420
7.
Supplies ……………………………………….
1,500
Accounts Payable …………………
1,500
8.
Cash …………………………………………….
8,000
Accounts Receivable …………………….
12,000
Service Revenue …………………..
20,000
9.
Accounts Payable …………………………
400
Cash …………………………………….
400
10.
Cash …………………………………………….
3,000
Accounts Receivable …………….
3,000
11.
Utilities Expense …………………………..
380
Accounts Payable …………………
380
PROBLEM 2-3A (Continued)
Trans.
Account Titles and Explanation
Debit
Credit
12.
Salaries and Wages Expense ……….
6,100
Cash ……………………………………
6,100
(b)
Cash
(1) 40,000
(3) 24,000
(4) 10,000
(5) 1,800
(6) 420
30,000
(8) 8,000
(9) 400
(10) 3,000
(12) 6,100
8,280
(8) 12,000
(10) 3,000
(1) 40,000
40,000
Supplies
(6) 420
(7) 1,500
1,920
(5) 1,800
1,800
(12) 6,100
6,100
Prepaid Rent
(3) 24,000
24,000
Equipment
(4) 30,000
(4) 20,000
(7) 1,500
(9) 400
(11) 380
21,480
Service Revenue
(8) 20,000
20,000
Utilities Expense
(11) 380
380
PROBLEM 2-3A (Continued)
(c) MAQUOKETA SERVICES
Trial Balance
May 31, 2017
Debit
Credit
Cash ……………………………………………………….. $ 8,280
Accounts Receivable ……………………………….. 9,000
Supplies …………………………………………………. 1,920
PROBLEM 2-4A
AVTAR SANDHU CO.
Trial Balance
June 30, 2017
Debit
Credit
Cash ($3,340 + $270) …………………………..…………….. $ 3,610
Accounts Receivable ($2,812 – $270) …………………. 2,542
PROBLEM 2-5A
(a) & (c)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
Balance
3,000
2
J1
1,500
1,500
9
J1
4,300
5,800
10
J1
4,100
12
J1
20
J1
5,800
20
J1
2,000
31
J1
3,100
31
J1
450
31
J1
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
J1
450
450
Land No. 140
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
24,000
Buildings No. 145
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
Balance
10,000
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 2-5A (Continued)
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
Balance
7,000
2
J1
J1
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 9
J1
4,300
4,300
J1
J1
Rent Revenue No. 429
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
J1
900
900
Advertising Expense No. 610
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 12
J1
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
J1
3,100
PROBLEM 2-5A (Continued)
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 2
J1
3,500
3,500
20
J1
2,000
5,500
(b)
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 2
Rent Expense …………………………………
729
3,500
Accounts Payable …………………..
201
Cash ………………………………………
101
(Rented films for cash and
on account)
3
No entry.
9
Cash ………………………………………………
101
4,300
Service Revenue ……………………..
400
4,300
(Received cash for services
performed)
10
Accounts Payable ($2,000 + $2,100) ……
201
4,100
Cash ………………………………………
101
(Paid creditors on account)
11
No entry.
12
Advertising Expense ……………………….
610
900
Cash ………………………………………
101
900
(Paid advertising expense)
20
Cash ………………………………………………
101
5,000
Service Revenue ……………………..
400
(Received cash for services
performed)
20
Rent Expense …………………………………
729
2,000
Cash ………………………………………
101