Acct 101 - Ch 2 Workbook

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Metropolitan Community College, Kansas City *

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101

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Accounting

Date

Apr 3, 2024

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pdf

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Uploaded by ChefWren7087

Chapter 2 Workbook 1 For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) select debit ( Dr. ) or credit ( Cr .) to identify the kind of entry that would increase the account balance. Account Type of Account Normal Balance Increase (Dr. or Cr.) a Land ASSET DEBIT DEBIT b Cash ASSET DEBIT DEBIT c Legal Expense EXPENSE DEBIT DEBIT d Prepaid Insurance ASSET DEBIT DEBIT e Accounts Receivable ASSET DEBIT DEBIT f Tour Service Revenue REVENUE CREDIT CREDIT g Unearned Revenue LIABILITY CREDIT CREDIT h Services Revenue REVENUE CREDIT CREDIT i Equipment ASSET DEBIT DEBIT j Notes Payable LIABILITY CREDIT CREDIT

Chapter 2 Workbook 2 Identify whether a debit or credit results in the indicated change for each of the following accounts. a To increase land DEBIT b To decrease Cash CREDIT c To increase Consulting Revenue CREDIT d To increase Salaries Expense DEBIT e To decrease Unearned Revenue DEBIT f To decrease Prepaid Rent CREDIT g To increase Notes Payable CREDIT h To decrease Accounts Receivable CREDIT i To increase Accounts Payable CREDIT j To increase Store Equipment DEBIT

Chapter 2 Workbook 3 The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock. b. The company purchased supplies for $1,250 cash. c. The company purchased $10,500 of equipment on credit. d. The company received $15,500 cash for services provided to a customer. e. The company paid $10,050 cash to settle the payable for the equipment purchased in transaction c . f. The company billed a customer $2,700 for services provided. g. The company paid $1,225 cash for the monthly rent. h. The company collected $1,125 cash as partial payment for the account receivable created in transaction f . i. The company paid a $10,000 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

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Chapter 2 Workbook 4 Transaction General Journal Debit Credit 1/1/2024 CASH 100,750 COMMON STOCK 100,750 1/2/2024 OFFICE SUPPLIES 1,250 CASH 1,250 1/3/2024 OFFICE EQUIPMENT 10,050 ACCOUNTS PAYABLE 10,050 1/4/2024 CASH 15,500 FEES EARNED 15,500 1/5/2024 ACCOUNTS PAYABLE 10,050 CASH 10,050 1/6/2024 ACCOUNTS RECEIVABLE 2,700 FEES EARNED 2,700 1/7/2024 RENT EXPENSE 1,225 CASH 1,225 1/8/2024 CASH 1,125 ACCOUNTS RECEIVABLE 1,125 1/9/2024 DIVIDENDS 10,000 CASH 10,000

Chapter 2 Workbook 5 Cash Accounts Receivable 100,750 1,250 2,700 1,125 15,500 10,050 1,225 10,000 94,400 1,575 Supplies Equipment 1,250 10,050 1,250 10,050 Accounts Payable Common Stock 10,500 100,750 10,500 0 100,750 Dividends Fees Earned 10,000 15,500 2,700 10,000 18,200 Rent Expense 1,225 1,225

Chapter 2 Workbook 6 Prepare the Trial Balance. Use May 31 as its report date. Trial Balance May 31 Debit Credit CASH 94,400 ACCOUNTS RECEIVABLE 1,575 SUPPLIES 1,250 EQUIPMENT 10,050 ACCOUNTS PAYABLE 0 COMMON STOCK 100,750 DIVIDENDS 10,000 FEES EARNED 18,200 RENT EXPENSE 1,225 118,950 118,950

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Chapter 2 Workbook 7 Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations. April 1 Tanner invested $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock. April 2 The company prepaid $9,000 cash for 12 months’ rent for office space. Hint: Debit Prepaid Rent for $9,000. April 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days. April 6 The company completed services for a client and immediately received $4,000 cash. April 9 The company completed a $6,000 project for a client, who must pay within 30 days. April 13 The company paid $11,600 cash to settle the account payable created on April 3. April 19 The company paid $2,400 cash for the premium on a 12-month prepaid insurance policy. Hint: Debit Prepaid Insurance for $2,400. April 22 The company received $4,400 cash as partial payment for the work completed on April 9. April 25 The company completed work for another client for $2,890 on credit. April 28 The company paid a $5,500 cash dividend. April 29 The company purchased $600 of additional office supplies on credit. April 30 The company paid $435 cash for this month’s utility bill. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of April 30.

Chapter 2 Workbook 8 Transaction General Journal Debit Credit 4/1 Cash 80,000 Office Equipment 26,000 Common Stock 106,000 4/2 Prepaid Rent 9,000 Cash 9,000 4/3 Office Equipment 8,000 Office Supplies 3,600 Accounts Payable 11,600 4/6 Cash 4,000 Services Revenue 4,000 4/9 Accounts Receivable 6,000 Services Revenue 6,000 4/13 Accounts Payable 11,600 Cash 11,600 4/19 Prepaid Insurance 2,400 Cash 2,400 4/22 Cash 4,400 Accounts Receivable 4,400 4/25 Accounts Receivable 2,890 Services Revenue 2,890 4/28 Dividends 5,500

Chapter 2 Workbook 9 Transaction General Journal Debit Credit Cash 5,500 4/29 Office Supplies 600 Accounts Payable 600 4/30 Utilities Expense 435 Cash 435

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Chapter 2 Workbook 10 101: Cash 106: Accounts Receivable 80,000 9,000 6,000 4,400 4,000 11,600 2,890 4,400 2,400 5,500 435 59,465 4,490 124: Office Supplies 128: Prepaid Insurance 3,600 2400 600 4,200 2,400 131: Prepaid Rent 163: Office Equipment 9,000 26,000 8000 9,000 34,000 201: Accounts Payable 307: Common Stock 11,600 106,000 11,600 600 600 106,000 319: Dividends 403: Services Revenue 5,500 4,000 6,000 2890 5,500 12,890 690: Utilities Expense 435 435

Chapter 2 Workbook 11 LINKWORKS Trial Balance April 30 Debit Credit Cash 59,465 Accounts Receivable 4,490 Office Supplies 4,200 Prepaid Insurance 2,400 Prepaid Rent 9,000 Office Equipment 34,000 Accounts Payable 600 Common Stock 106,000 Dividends 5,500 Services Revenue 12,890 Utilities Expense 435 TOTAL 119,490 119,490