CHAPTER 2
The Recording Process
ASSIGNMENT CLASSIFICATION TABLE
Learning Objectives
Questions
Brief
Exercises
Do It!
Exercises
A
Problems
1. Describe how accounts,
debits, and credits are
used to record business
transactions.
1, 2, 3, 4, 5, 6,
7, 8, 9, 10, 14,
19, 21
1, 2, 4, 5
1
1, 2, 4, 6, 7,
14
1A, 2A, 3A,
5A
11, 12
14, 15
ASSIGNMENT CHARACTERISTICS TABLE
Problem
Number
Description
Difficulty
Level
Time Allotted
(min.)
1A
Journalize a series of transactions.
Simple
20–30
Journalize transactions, post, and prepare a trial balance.
Journalize and post transactions and prepare a trial balance.
4A
Prepare a correct trial balance.
30–40
Journalize transactions, post, and prepare a trial balance.
WEYGANDT FINANCIAL AND MANAGERIAL ACCOUNTING 2E
CHAPTER 2
THE RECORDING PROCESS
Number
LO
BT
Difficulty
Time (min.)
BE1
1
C
Simple
6–8
BE2
1
C
Simple
4–6
BE3
2
AP
Simple
4–6
BE4
1
C
4–6
BE5
1
C
Simple
6–8
BE6
2
AP
Simple
4–6
BE7
3
AP
Simple
4–6
BE8
3
AP
Simple
4–6
BE9
4
AP
Simple
4–6
BE10
4
AN
6–8
DI1
1
C
Simple
3–5
DI2
2
AP
Simple
3–5
DI3
3
AP
Simple
2–4
DI4
4
AP
Simple
6–8
EX1
1
K
Simple
2–4
EX2
1
C
Simple
EX3
2
AP
Simple
8–10
EX4
1
C
Simple
6–8
EX5
2
AP
Simple
6–8
EX6
AP
Simple
6–8
EX7
AP
Simple
8–10
EX8
3
K
Simple
2–4
EX9
AP
Simple
EX10
AP
EX11
AP
EX12
AP
EX13
4
AN
6–8
EX14
AP
Simple
8–10
EX15
4
C
Simple
4–6
THE RECORDING PROCESS (Continued)
Number
LO
BT
Difficulty
Time (min.)
P1A
1, 2
AP
Simple
20–30
P2A
1–4
AP
Simple
30–40
P3A
1–4
AP
Moderate
40–50
P4A
AN
30–40
P5A
1–4
AP
Moderate
40–50
Simple
1, 2
AN
Simple
AP
Simple
15–20
3, 4
Moderate
20–30
1, 3
10–15
Simple
10–15
Moderate
15–20
Moderate
15–20
BYP10
Moderate
15–20
BLOOM’ S TAXONOMY TABLE
Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of–Chapter Exercises and Problems
Learning Objective
Knowledge
Comprehension
Application
Analysis
Synthesis
Evaluation
1. Describe how accounts,
debits, and credits are used to
record business transactions.
Q2–21
Q2-1
Q2–10
E2-1
Q2-2
Q2-3
Q2-4
Q2-5
Q2-6
Q2-7
Q2-8
Q2-9
Q2–14
Q2–19
BE2-1
BE2-2
BE2-4
BE2-5
DI2-1
E2-2
E2-4
E2-6
E2-7
E2–14
P2–1A
P2–2A
P2–3A
P2–5A
BE2-2
BE2-5
DI2-1
E2-2
E2-4
E2-6
E2-7
E2–14
P2–1A
P2–2A
P2–3A
P2–5A
E2-3
P2–1A
Q2–17
DI2-3
E2–15
Financial Reporting
ANSWERS TO QUESTIONS
10. The basic steps in the recording process are:
Questions Chapter 2 (Continued)
11. The advantages of using the journal in the recording process are:
Questions Chapter 2 (Continued)
18. A trial balance is a list of accounts and their balances at a given time. The primary purpose of a
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 2-1
(a)
Debit
Effect
(b)
Credit
Effect
(c)
Normal
Balance
BRIEF EXERCISE 2-2
Account Debited
Account Credited
Equipment
Accounts Payable
Rent Expense
Cash
BRIEF EXERCISE 2-3
Advertising Expense
Accounts Receivable
BRIEF EXERCISE 2-4
The basic steps in the recording process are:
BRIEF EXERCISE 2-5
(a)
Effect on Accounting Equation
(b)
Debit-Credit Analysis
credit Common Stock $5,000.
credit Cash $1,800.
credit Service Revenue $1,900.
credit Cash $1,000.
BRIEF EXERCISE 2-6
BRIEF EXERCISE 2-7
BRIEF EXERCISE 2-8
BRIEF EXERCISE 2-8 (Continued)
BRIEF EXERCISE 2-9
FAVRE COMPANY
Trial Balance
June 30, 2017
BRIEF EXERCISE 2-10
ERIKA COMPANY
Trial Balance
December 31, 2017
SOLUTIONS FOR DO IT! REVIEW EXERCISES
DO IT! 2-1
DO IT! 2-2
DO IT! 2-3
DO IT! 2-4
CHILLIN’ COMPANY
Trial Balance
December 31, 2017
SOLUTIONS TO EXERCISES
EXERCISE 2-1
EXERCISE 2-2
Account Debited
Account Credited
Transaction
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
(a)
Basic
Type
(b)
Specific
Account
(c)
Effect
(d)
Normal
Balance
Debit
Asset
Increase
Increase
Asset
Increase
Service
Increase
Advertising
Increase
Asset
Asset
Increase
Asset
Asset
Increase
Asset
EXERCISE 2-3
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
EXERCISE 2-4
EXERCISE 2-4 (Continued)
EXERCISE 2-5
General Journal
Date
Account Titles and Explanation
Ref.
Debits
Credit
EXERCISE 2-6
EXERCISE 2-7
EXERCISE 2-8
EXERCISE 2-9
(a)
(b) KATI TILLMAN, INVESTMENT BROKER
Trial Balance
August 31, 2017
EXERCISE 2-10
(a)
General Journal
Date
Account Titles and Explanation
Ref.
Debit
Credit
EXERCISE 2-10 (Continued)
(b) SANTANA LANDSCAPING COMPANY
Trial Balance
April 30, 2017
EXERCISE 2-11
EXERCISE 2-11 (Continued)
(b) HIGGS CO.
Trial Balance
October 31, 2017
$12,940 $12,940
EXERCISE 2-12
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
EXERCISE 2-12 (Continued)
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Credit
Balance
8,000
EXERCISE 2-13
Error
(a)
In Balance
(b)
Difference
(c)
Larger Column
EXERCISE 2-14
TIME IS MONEY DELIVERY SERVICE
Trial Balance
July 31, 2017
EXERCISE 2-15
SOLUTIONS TO PROBLEMS
PROBLEM 2-1A
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
PROBLEM 2-1A (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Credit
PROBLEM 2-2A
(a) J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
PROBLEM 2-2A (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Credit
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 2-2A (Continued)
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
(c) JULIA DUMARS, INC.
Trial Balance
May 31, 2017
Explanation
Ref.
Debit
Credit
Explanation
Ref.
Debit
Credit
Balance
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 2-3A
(a) & (c)
Cash
Common Stock
PROBLEM 2-3A (Continued)
(b)
Trans.
Account Titles and Explanation
Debit
Credit
PROBLEM 2-3A (Continued)
(d) TABLETTE REPAIR SERVICE, INC.
Trial Balance
January 31, 2017
PROBLEM 2-4A
DOMINIC COMPANY
Trial Balance
May 31, 2017
PROBLEM 2-5A
(a) & (c)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 2-5A (Continued)
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Debit
Credit
Balance
Explanation
Ref.
Debit
Credit
Balance
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 2-5A (Continued)
Advertising Expense No. 610
(b) J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
No entry—not a transaction.
Date
Explanation
Credit
Balance
Date
Explanation
Credit
Balance
PROBLEM 2-5A (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Credit
No entry—not a transaction.
PROBLEM 2-5A (Continued)
(d) PALACE THEATER
Trial Balance
April 30, 2017
BYP 2-1 FINANCIAL REPORTING PROBLEM
(a)
Account
(1)
Increase
Side
(1)
Decrease
Side
(2)
Normal
Balance
BYP 2-2 COMPARATIVE ANALYSIS PROBLEM
PepsiCo Coca-Cola
(b)
BYP 2-3 COMPARATIVE ANALYSIS PROBLEM
Amazon Wal-Mart
(b) The following other accounts are ordinarily involved:
BYP 2-4 REAL–WORLD FOCUS
BYP 2-5 REAL–WORLD FOCUS
(a) The reason the Green Bay Packers’ issue an annual report is because
BYP 2-6 DECISION MAKING ACROSS THE ORGANIZATION
$14,211
BYP 2-7 COMMUNICATION ACTIVITY
Date: May 25, 2017
To: Accounting Instructor
From: Student
BYP 2-8 ETHICS CASE
(a) The stakeholders in this situation are:
(c) Meredith’s alternatives are:
BYP 2-9 ETHICS CASE
The decision whether to fire Mr. Edmondson was the responsibility of
BYP 2-10 ALL ABOUT YOU
(c) It is important to provide accurate and complete documentation of all
BYP 2-11 CONSIDERING PEOPLE, PLANET AND PROFIT
(a) The existence of three different forms of certification would most
IFRS 2-1 INTERNATIONAL FINANCIAL REPORTING PROBLEM
Account
Financial Statement
Position in Financial
and operating
operating profit
Consolidated Balance
Current assets