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Problem 2-8B (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1)
Nov. 1
Debit
Credit
Cash
13,000
Common Stock
13,000
(Issue common stock)
(2)
Nov. 2
Equipment
3,500
Notes Payable
3,500
(Purchase equipment with note payable)
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-8B (continued)
(10)
Nov. 28
Utilities Expense
1,100
(11)
Nov. 30
Rent Expense
5,000
Problem 2-8B (continued)
Requirements 2 and 3
Cash
Accounts Receivable
Supplies
Bal. 3,200
(1) 13,000
1,100 (5)
3,000 (6)
Bal. 600
(4) 9,000
7,000 (9)
Bal. 700
(3) 1,000
Equipment
Accounts Payable
Notes Payable
Bal. 9,400
2,000 Bal.
(8) 1,400
4,000 Bal.
Common Stock
Retained Earnings
Service Revenue
7,000 Bal.
900 Bal.
9,000 (4)
Salaries Expense
Utilities Expense
Rent Expense
Chapter 2 - The Accounting Cycle: During the Period
Problem 2-8B (continued)
Requirement 4
Buckeye Incorporated
Trial Balance
November 30
Accounts
Debit
Credit
Cash
$22,600
Accounts Receivable
2,600
Supplies
1,700
Problem 2-9B (LO 2-4, 2-5, 2-6)
Requirement 1
Entries are numbered for posting.
(1)
December 1-31
Debit
Credit
Cash
27,400
Service Revenue
27,400
(Provide services for cash)
(2)
December 4
Supplies
2,900
Accounts Payable
2,900
(Purchase supplies on account)
Problem 2-9B (continued)
(10)
December 30
(11)
December 31
Dividends
3,000
Problem 2-9B (continued)
Requirements 2 and 3
Cash
Supplies
Prepaid Rent
Bal. 19,400
(1) 27,400
3,200 (3)
2,900 (4)
Bal. 1,500
(2) 2,900
Bal. 7,200
Equipment
Buildings
Accounts Payable
Bal. 83,700
Bal. 240,000
(4) 2,900
9,800 Bal.
UnearnedDeferred
Revenue
Common Stock
Retained Earnings
2,000 Bal.
125,000 Bal.
75,500 Bal.
Dividends
Service Revenue
Salaries Expense
Bal. 9,000
264,000 Bal.
Bal. 65,000
Advertising Expense
Utilities Expense
Bal. 18,200
Bal. 32,300
Problem 2-9B (continued)
Requirement 4
Thunder Cat Services
Trial Balance
December 31
Accounts
Debit
Credit
Cash
$ 19,500
Supplies
4,400
Prepaid Rent
7,200
Chapter 2 - The Accounting Cycle: During the Period
ADDITIONAL PERSPECTIVES
Additional Perspective 2-1
Requirement 1
Entries are numbered for posting.
(1)
July 1,
20152018
Debit
Credit
Cash
10,000
Common Stock
10,000
(Issue common stock to Suzie)
(2)
July 1,
20152018
Cash
10,000
Chapter 2 - The Accounting Cycle: During the Period
(8)
July 15,
20152018
Chapter 2 - The Accounting Cycle: During the Period
Additional Perspective 2-1 (continued)
Requirement 1 (concluded)
(9)
July 22,
20152018
Chapter 2 - The Accounting Cycle: During the Period
Additional Perspective P2-1 (continued)
Requirement 2
Cash
(1) 10,000
(2) 10,000
4,800 (3)
1,500 (4)
Prepaid Insurance
(3) 4,800
4,800
Supplies
(5) 1,800
1,800
UnearnedDeferred
Revenue
Common Stock
10,000 (1)
Service Revenue
2,000 (8)
Legal Fees Expense
(4) 1,500
Advertising Expense
(6) 300
Chapter 2 - The Accounting Cycle: During the Period
Additional Perspective 2-1 (concluded)
Requirement 3
Great Adventures, Inc.
Trial Balance
July 31, 20152018
Accounts
Debit
Credit
Cash
$ 9,000
Prepaid Insurance
4,800
Supplies
1,800
Chapter 2 - The Accounting Cycle: During the Period
Additional Perspective 2-2
Requirement 1
Percentage change in total assets = ($1,756,0531,696,908 − $1,950,8021,694,164) /
$1,950,8021,694,164 = -9.90.168%
Requirement 2
Percentage change in net income = ($232,10880,322 − $151,70582,983) /
$151,70582,983 = -53.003.207%
Chapter 2 - The Accounting Cycle: During the Period
2-74 Financial Accounting, 4e
Additional Perspective 2-3
Requirement 1
Percentage change in total assets = ($477,974542,993 − $531,539546,293) /
$531,539546,293 = --10.080.60%
Requirement 3
Based on the statement of stockholders’ equity, The Buckle did issue a small amount
of common stock in the most recent year.
Requirement 4
The terms “debit” and “credit” are not shown in the balance sheet. Asset accounts,
Chapter 2 - The Accounting Cycle: During the Period
Additional Perspective 2-4
American EagleBuckle has a higher decline in terms of total assets, but greater growth
in net sales and net income. One reason for American Eagle’sBuckle’s growth could
Chapter 2 - The Accounting Cycle: During the Period
2-76 Financial Accounting, 4e
Additional Perspective 2-5
What is the issue?
Larry should understand that if he reports the additional $75,000 of revenue, the
Who are the parties affected?
Robert, the company’s president, benefits from false reporting by maintaining the
company’s profitable appearance. The incentives could be income bonus plans, a
What factors should Larry consider in making his decision?
Chapter 2 - The Accounting Cycle: During the Period
Additional Perspective 2-6
(Note to instructor: Answers are based on items in Apple’s September 297, 20124
annual report. Dollar amounts are in millions)
Requirement 1
Accounts receivable = $10,93017,460. The accounts receivable account represents the
amount owed to Apple by its customers.
Requirement 2
Requirement 5
Assets ($176,064231,839) = Liabilities ($57,854120,292) + Stockholders’ equity
($118,210111,547)
Chapter 2 - The Accounting Cycle: During the Period
Additional Perspective 2-7
For transaction (a):
Step 1. Analyze customer invoice.
Step 2. Determine assets increase and stockholders’ equity increases (and
For transaction (b):
Step 1. Analyze employee paycheck.
For transaction (c):
Step 1. Analyze purchase receipt for equipment.
