Requirement – 1 Explanation Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit , all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. Journal entries for given transactions are as follows: February, 1– Service performed to a customer in cash: Date Accounts title and explanation Ref. Debit ($) Credit ($) February, 1 Cash 15,000 Service revenue 15,000 (To record cash received from customer for service) Table (1) Cash is an assets account and it increased the value of asset by $15,000. Hence, debit the cash account for $15,000. Service revenue is a revenue account and it increased the value of stockholder’s equity by $15,000. Hence, credit the service revenue account for $15,000. February, 2– Inventories purchased on account Date Accounts title and explanation Ref. Debit ($) Credit ($) February, 2 Inventory 11,000 Accounts payable 11,000 (To record purchase of inventory on account) Table (2) Inventory is an assets account and it increased the value of asset by $11,000. Hence, debit the inventory account for $11,000. Accounts payable is a liability account and it increased the value of liability by $11,000. Hence, credit the accounts payable account by $11,000. February, 2– Payment of advertising expense Date Accounts title and explanation Ref. Debit ($) Credit ($) February, 2 Advertising expense 2,000 Cash 2,000 (To record payment of advertising expense) Table (3) Advertising expense is an expenses account and it decreased the value of stockholder’s equity by $2,000. Hence, debit the advertising expense account for $2,000. Cash is an assets account and it decreased the value of asset by $2,000. Hence, credit the cash account for $2,000. February, 11 – Salary paid to employees Date Accounts title and explanation Ref. Debit ($) Credit ($) February, 11 Salary expense 75,000 Cash 75,000 (To record payment of salary expense to employees) Table (4) Salary expense is an expenses account and it decreased the value of stockholder’s equity by $75,000. Hence, debit the salary expense account for $75,000. Cash is an assets account and it decreased the value of asset by $75,000. Hence, credit the cash account for $75,000. February, 12– Cash borrowed from bank Date Accounts title and explanation Ref... Requirement – 2 To determine To discuss: The manner in which the given transactions are impacted in the assets, liabilities and equity of Company C.

MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

12th Edition

ISBN: 9780134727677

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Chapter 2, Problem 2.72SC

Requirement – 1

To determine

To prepare: The journal entries for the given transaction.

Requirement – 2

To determine

To discuss: The manner in which the given transactions are impacted in the assets, liabilities and equity of Company C.

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Chapter 2, Problem 2.71CEP

Chapter 2, Problem 2.73DC

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he University of Cincinnati Center for Business Analytics is an outreach center that collaborates with industry partners on applied research and continuing education in business analytics. One of the programs offered by the center is a quarterly Business Intelligence Symposium. Each symposium features three speakers on the real-world use of analytics. Each corporate member of the center (there are currently 10) receives twelve free seats to each symposium. Nonmembers wishing to attend must pay $75 per person. Each attendee receives breakfast, lunch, and free parking. The following are the costs incurred for putting on this event: Rental cost for the auditorium: $150 Registration Processing: $8.50 per person Speaker Costs: 3@$800 = $2,400 Continental Breakfast: $4.00 per person Lunch: $7.00 per person Parking: $5.00 per person (a) The Center for Business Analytics is considering a refund policy for no-shows. No refund would be given for members who do not…

The University of Cincinnati Center for Business Analytics is an outreach center that collaborates with industry partners on applied research and continuing education in business analytics. One of the programs offered by the center is a quarterly Business Intelligence Symposium. Each symposium features three speakers on the real-world use of analytics. Each of the corporate members of the center (there are currently 10) receives five free seats to each symposium. Nonmembers wishing to attend must pay $75 per person. Each attendee receives breakfast, lunch, and free parking. The following are the costs incurred for putting on this event: Rental cost for the auditorium: $150 Registration Processing: $8.50 per person Speaker Costs: 3@$800 $2,400 Continental Breakfast: $4.00 per person Lunch: $7.00 per person Parking: $5.00 per person (a) The Center for Business Analytics is considering a refund policy for no-shows. No refund would be given for members who do…

Chapter 2 Solutions

MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

Ch. 2 - All of the following events at a sandwich shop are...Ch. 2 - Identify the asset from the following list of...Ch. 2 - Amounts owed to a company by its customers would...Ch. 2 - Thorpe Corporation purchases a new delivery truck...Ch. 2 - Adam Corporation issues stock to Cara Riley in...Ch. 2 - Blake Company completed a consulting job and...Ch. 2 - Prob. 7QC Ch. 2 - Accounts Payable had a normal beginning balance of...Ch. 2 - Which of the following debit and credit rules is...Ch. 2 - A companys beginning Cash balance was 8,000. At...

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