MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)

5th Edition

ISBN: 9780133877281

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…

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Textbook Question

Chapter 2, Problem 2.32AP

Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance

The trial balance of Steve Mentz, CPA, is dated March 31, 2017:

Chapter 2, Problem 2.32AP, Journalizing transactions, posting journal entries to four-column accounts, and preparing a trial

During April, the business completed the following transactions:

Apr. 4	Collected $ 1,000 cash from a client on account.
8	Performed tax services for a client on account, $5,800.
13	Paid $1,500 on account.
14	Purchased furniture on account, $4,600.
15	Mentz contributed his persona l automobile to the business in exchange for common stock. The automobile had a market value of $8,000.
18	Purchased office supplies on account, $500.
19	Received $2,900 for tax services performed on April 8.
20	Paid cash dividends of $8,000.
21	Received $5,400 cash for consulting work completed.
24	Received $1,200 cash for accounting services to be completed next month.
27	Paid office rent, $700.
28	Paid employee salary, $1,600.

Requirements

1. Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Furniture; Automobile; Land; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry.
2. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Furniture, 14; Automobile, 15; Land, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31;
1. Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52.
2. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.
3. Prepare the trial balance of Steve Mentz, CPA, at April 30, 2017.

3. Cash Balance $16,700

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Chapter 2, Problem 2.31AP

Chapter 2, Problem 2.33AP

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Chapter 2 Solutions

MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Financial & Managerial Accounting, The Financial Chapters (My Accounting Lab)

Ch. 2 - The detailed record of the changes in a particular...Ch. 2 - Which of the following accounts is a liability? a....Ch. 2 - The left side of an account is used to record...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 5QC Ch. 2 - Prob. 6QC Ch. 2 - Posting a 2,500 purchase of office supplies on...Ch. 2 - Prob. 8QC Ch. 2 - Which sequence correctly summarizes the accounting...Ch. 2 - Nathville Laundry reported assets of 800 and...

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Solution Summary: The author explains that journal entry is a set of economic events which can be measured in monetary terms.

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