Journal: Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries. Procedure for debiting and crediting an account: Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited. Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited. All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction: Asset = Liabilities + Stockholders' equity The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

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Answer 1

Question

Chapter 2, Problem 2.5BE

(a)

To determine

Journal:

Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries.

Procedure for debiting and crediting an account:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

Asset = Liabilities + Stockholders' equity

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

(b)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

(c)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

(d)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

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Answer 2

Question

Chapter 2, Problem 2.5BE

(a)

To determine

Journal:

Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries.

Procedure for debiting and crediting an account:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

Asset = Liabilities + Stockholders' equity

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

(b)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

(c)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

(d)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

Expert Solution & Answer

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Answer 3

Question

Chapter 2, Problem 2.5BE

(a)

To determine

Journal:

Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries.

Procedure for debiting and crediting an account:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

Asset = Liabilities + Stockholders' equity

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

(b)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

(c)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

(d)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 2, Problem 2.5BE

(a)

To determine

Journal:

Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries.

Procedure for debiting and crediting an account:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

Asset = Liabilities + Stockholders' equity

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

(b)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

(c)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

(d)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 2, Problem 2.5BE

(a)

To determine

Journal:

Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries.

Procedure for debiting and crediting an account:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

Asset = Liabilities + Stockholders' equity

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

(b)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

(c)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

(d)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

Answer 6

Chapter 2, Problem 2.5BE

(a)

To determine

Journal:

Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries.

Procedure for debiting and crediting an account:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

Asset = Liabilities + Stockholders' equity

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

Answer 7

Chapter 2, Problem 2.5BE

(a)

To determine

Journal:

Journal refers to the logging of a transaction into accounting journal items. The journal entry consists of different recordings, each of which is a debit or credit. The first step in the accounting process is analyzing the transactions and recording them as journal entries.

Procedure for debiting and crediting an account:

Increase in assets account, increase in expenses account, and decrease in liabilities account should be debited.

Decrease in assets account, increase in revenue account, and increase in liabilities account should be credited.

All transactions affect the accounting equation that is displayed below. The accounting equation should always remain in balance at the time of recording a business transaction:

Asset = Liabilities + Stockholders' equity

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.”

Answer 8

(b)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

Answer 9

(b)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

Answer 10

(c)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

Answer 11

(c)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

Answer 12

(d)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

Answer 13

(d)

To determine

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 2 - Prob. 1Q Ch. 2 - Prob. 2Q Ch. 2 - 3. Tom Dingel, a fellow student contends that the...Ch. 2 - 4. Olga Conrad, a beginning accounting student,...Ch. 2 - Prob. 5Q Ch. 2 - Prob. 6Q Ch. 2 - 7. Indicate whether each of the following accounts...Ch. 2 - Prob. 8Q Ch. 2 - 9. Indicate whether the following accounts...Ch. 2 - Prob. 10Q

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The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays insurance in advance for 6 months, $1,800 cash.”

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Receives $1,900 from clients for services performed.”

The effect on the accounting equation and basic and debit-credit analysis by preparing journal entries of the transaction “Pays secretary $1,000 salary.”

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