Explanation The journal entries are passed; ledger accounts and trial balance is prepared. The debit-credit rules for recording the journal entries are as under – Debit what comes in, credit what goes out. Debit the receiver, credit the giver. Debit the expenses and assets, credit the incomes and liabilities. 1. The journal entries in the books of Softworks are passed as under- S. No Particulars Account No Debit ($) Credit ($) a. Cash account 101 65,000 Office equipment account 163 5,750 Computer equipment account 164 30,000 B. Grechus, capital account 301 100,750 b. Land account 172 22,000 Cash account 101 5,000 Notes payable account 250 17,000 c. Building account 170 34,500 Cash account 101 34,500 d. Prepaid insurance account 108 5,000 Cash account 101 5,000 e. Cash account 101 4,600 Fees earned account 402 4,600 f. Computer equipment account 164 4,500 Cash account 101 800 Notes payable account 250 3,700 g. Accounts receivable account 106 4,250 Fees earned account 402 4,250 h. Office equipment account 163 950 Accounts payable account 201 950 i. Accounts receivable account 106 10,200 Fees earned account 402 10,200 j. Computer rental expense account 602 580 Accounts payable account 201 580 k. Cash account 101 5,100 Accounts receivable account 106 5,100 l. Wages expense account 601 1,800 Cash account 101 1,800 m. Accounts payable account 201 950 Cash account 101 950 n. Repairs expense account 604 608 Cash account 101 608 o. B. Grechus withdrawals 302 6,230 Cash account 101 6,230 p. Wages expense account 601 1,800 Cash account 101 1,800 q. Advertising expense 603 750 Cash account 101 750 2. Ledger accounts in the books of Softworks are passed as under- Cash account Date Particulars Debit ($) Credit ($) Account #101 Balance (Dr) Opening balance --- B. Grechus, capital account 65,000 65,000 Land account 5,000 60,000 Building account 34,500 25,500 Prepaid insurance account 5,000 20,500 Fees earned account 4,600 25,100 Computer equipment account 800 24,300 Accounts receivable account 5,100 29,400 Wages expense account 1,800 27,600 Accounts payable account 950 26,650 Repairs expense account 608 26,042 B. Grechus, withdrawals account 6,230 19,812 Wages expense account 1,800 18,012 Advertising expense account 750 17,262 Accounts receivable account Date Particulars Debit ($) Credit ($) Account #106 Balance (Dr) Opening balance --- Fees earned account 4,250 4,250 Fees earned account 10,200 14,450 Cash account 5,100 9,350 Prepaid insurance account Date Particulars Debit ($) Credit ($) Account #108 Balance (Dr) Opening balance --- Cash account 5,000 5,000 Office equipment account Date Particulars Debit ($) Credit ($) Account #163 Balance (Dr) Opening balance --- B. Grechus, capital account 5,750 5,750 Accounts payable account 950 6,700 Computer equipment account Date Particulars Debit ($) Credit ($) Account #164 Balance (Dr) Opening balance --- B...

Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card

22nd Edition

ISBN: 9781259542169

Author: John J Wild

Publisher: McGraw-Hill Education

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Question

Chapter 2, Problem 2BPSB

To determine

Concept Introduction:

Journal entry: In double entry system of accounting, journalizing is the recording of the given accounting transactions by giving effects to debits and credits.

Ledger accounts: Ledger accounts are the refinement of journal entries by presenting them in an understandable form that helps in finding out the balance of an account at a given point in time.

Trial balance: Trial balance is the first step in the preparation of the final accounts and for ensuring that the arithmetical accuracy of the books of accounts prepared.

To write: The general journal entries, ledger accounts and the trial balance

Expert Solution & Answer

Chapter 2 Solutions

Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card

Ch. 2 - Prob. 1DQ Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Prob. 8DQ Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ

Ch. 2 - Prob. 11DQ Ch. 2 - Prob. 12DQ Ch. 2 - Prob. 13DQ Ch. 2 - Prob. 14DQ Ch. 2 - Prob. 15DQ Ch. 2 - Prob. 16DQ Ch. 2 - Prob. 17DQ Ch. 2 - Prob. 18DQ Ch. 2 - Prob. 1QS Ch. 2 - Prob. 2QS Ch. 2 - Prob. 3QS Ch. 2 - Prob. 4QS Ch. 2 - Prob. 5QS Ch. 2 - Prob. 6QS Ch. 2 - Prob. 7QS Ch. 2 - Prob. 8QS Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS Ch. 2 - Prob. 1E Ch. 2 - Prob. 2E Ch. 2 - Prob. 3E Ch. 2 - Prob. 4E Ch. 2 - Prob. 5E Ch. 2 - Prob. 6E Ch. 2 - Prob. 7E Ch. 2 - Prob. 8E Ch. 2 - Prob. 9E Ch. 2 - Prob. 10E Ch. 2 - Prob. 11E Ch. 2 - Prob. 12E Ch. 2 - Prob. 13E Ch. 2 - Prob. 14E Ch. 2 - Prob. 15E Ch. 2 - Prob. 16E Ch. 2 - Prob. 17E Ch. 2 - Prob. 18E Ch. 2 - Exercise 2-19 Analyzing changes in a company's...Ch. 2 - Prob. 20E Ch. 2 - Prob. 21E Ch. 2 - Prob. 22E Ch. 2 - Prob. 23E Ch. 2 - Prob. 1APSA Ch. 2 - Prob. 2APSA Ch. 2 - Prob. 3APSA Ch. 2 - Prob. 4APSA Ch. 2 - Prob. 5APSA Ch. 2 - Prob. 6APSA Ch. 2 - Prob. 1BPSB Ch. 2 - Prob. 2BPSB Ch. 2 - Prob. 3BPSB Ch. 2 - Prob. 4BPSB Ch. 2 - Prob. 5BPSB Ch. 2 - Prob. 6BPSB Ch. 2 - Prob. 2SP Ch. 2 - Prob. 1GLP Ch. 2 - Prob. 2GLP Ch. 2 - Prob. 3GLP Ch. 2 - Prob. 4GLP Ch. 2 - Prob. 5GLP Ch. 2 - Prob. 6GLP Ch. 2 - Prob. 7GLP Ch. 2 - Prob. 8GLP Ch. 2 - ( REPORTING IN ACTION A 1 A2...Ch. 2 - Prob. 2BTN Ch. 2 - Prob. 3BTN Ch. 2 - Prob. 4BTN Ch. 2 - Prob. 5BTN Ch. 2 - Prob. 6BTN Ch. 2 - Prob. 7BTN Ch. 2 - Prob. 8BTN Ch. 2 - Prob. 9BTN Ch. 2 - Prob. 10BTN

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