Chapter 2 Homework Journalize transactions, post, and prepare a trial balance.

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

Asset

Increase

Service

Increase

Advertising

Increase

Asset

Increase

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