Exercise 2. Analyzing and journalizing transactions The following transactions occurred for DEF: Jul 2 Paid utilities expense of $400. 5 Purchased equipment on account, $2,100. 10 Performed service for a client on account, $2,000. 12 Borrowed $7,000 cash, signing a note payable. 19 Sold for $29,000 land that had cost this same amount. Requirement 1. 21 Purchased supplies for $800 and paid cash. 27 Paid the liability from July 5. 2. Identify and perform the three steps to record the previously described transactions. Open the following T-accounts with their July 1 balances: Cash $4,000; Accounts receivable $0; Equipment $0; Land $29,000; Supplies $0; Accounts payable $0; Notes payable $0; Common stock $33,000; Service revenue $0; Utilities expense $0. 3. Post the transactions of Exercise 2 to the T-accounts. Use the dates as posting references. Start with July 2. 4. Compute the July 31, 2022, balance for each account, and prove that total debits equal total credits by preparing a trial balance. Text

Exercise 2. Analyzing and journalizing transactions The following transactions occurred for DEF: Jul 2 Paid utilities expense of $400. 5 Purchased equipment on account, $2,100. 10 Performed service for a client on account, $2,000. 12 Borrowed $7,000 cash, signing a note payable. 19 Sold for $29,000 land that had cost this same amount. Requirement 1. 21 Purchased supplies for $800 and paid cash. 27 Paid the liability from July 5. 2. Identify and perform the three steps to record the previously described transactions. Open the following T-accounts with their July 1 balances: Cash $4,000; Accounts receivable $0; Equipment $0; Land $29,000; Supplies $0; Accounts payable $0; Notes payable $0; Common stock $33,000; Service revenue $0; Utilities expense $0. 3. Post the transactions of Exercise 2 to the T-accounts. Use the dates as posting references. Start with July 2. 4. Compute the July 31, 2022, balance for each account, and prove that total debits equal total credits by preparing a trial balance. Text

Name: S1 Exercise 2.2 Analyzing and journalizing transactions34 The followi
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Description: S1 Exercise 2.2 Analyzing and journalizing transactions34 The following transactions occurred for DEF:56789101112Jul 2 Paid utilities expense of $400.5 Purchased equipment on account, $2,100.10 Performed service for a client on account, $2,000.15 1.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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