College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 2PA
B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts:
The following transactions occurred during the month:
- a. Kelso deposited $45,000 in a bank account in the name of the business.
- b. Paid the rent for the current month, $1,800, Ck. No. 2001.
- c. Bought office desks and filing cabinets for cash, $790, Ck. No. 2002.
- d. Bought a computer and printer from Cyber Center for use in the business, $2,700, paying $1,700 in cash and placing the balance on account, Ck. No. 2003.
- e. Bought a neon sign on account from Signage Co., $1,350.
- f. Kelso invested her personal computer software with a fair market value of $600 in the business.
- g. Received a bill from Country News for newspaper advertising, $365.
- h. Sold services for cash, $1,245.
- i. Received and paid the electric bill, $345, Ck. No. 2004.
- j. Paid on account to Country News, a creditor, $285, Ck. No. 2005.
- k. Sold services for cash, $1,450.
- l. Paid wages to an employee, $925, Ck. No. 2006.
- m. Received and paid the bill for the city business license, $75, Ck. No. 2007.
- n. Kelso withdrew cash for personal use, $850, Ck. No. 2008.
- o. Kelso withdrew cash for personal use, $850, Ck. No. 2008.
Required
- 1. Record the owner’s name in the Capital and Drawing T accounts.
- 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
- 3. Record the transactions in T accounts. Write the letter of each entry to identify the transaction.
- 4. Foot the T accounts and show the balances.
- 5. Prepare a
trial balance , with a three-line heading, dated November 30, 20--.
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Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
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Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - Prob. 1ECh. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - What Would You Say? A fellow accounting student...Ch. 2 - Prob. 3A
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