Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done. To calculate: Journal entries, trial balance and general ledgers of the accounts.

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Answer 1

Question

Chapter 2, Problem 2PSA

1.

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

1.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Sr. No.	Particulars	PR	Amount	Amount
a.	Cash	101	$100,000
	Office equipment	163	$5,000
	Drafting Equipment	164	$60,000
	Common stock	307		$165,000
	(Being owner Invested cash and equipment)

b.	Land	172	$49,000
	Cash	101		$6,300
	Note payable	250		$42,700
	(Being land purchased with cash and note payable)

c.	Building	170	$55,000
	Cash	101		$55,000
	(Being building purchased)

d.	Prepaid Insurance	108	$3,000
	Cash	101		$3,000
	(Being insurance policy for 18 month purchased)

e.	Cash	101	$6,200
	Engineering fees earned	402		$6,200
	(Being cash collected after completion of work)

f.	Drafting equipment	164	$20,000
	Cash	101		$9,500
	Note Payable	250		$10,500
	(Being equipment purchased for cash and notes payable)

g.	Accounts receivable	106	$14,000
	Engineering fees earned	402		$14,000
	(Being client services completed)

h.	Office equipment	163	$1,150
	Account payable	201		$1,150
	(Being Equipment purchased on credit)

i.	Account Receivable	106	$22,000
	Engineering fees earned	402		$22,000
	(Being Client billed for completed work)

j.	Equipment Rental expense	602	$1,333
	Accounts payable	201		$1,333
	(Being rental expense incurred on equipment)

k.	Cash	101	$7,000
	Accounts receivable	106		$7,000
	(Being cash collected on account)

l.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

m.	Accounts payable	201	$1,150
	Cash	101		$1,150
	(Being amount due on account)

n.	Repairs Expenses	604	$925
	Cash	101		$925
	(Being expense paid for repair of equipment)

o.	Dividends	319	$9,480
	Cash	101		$9,480
	(being cash drawn for personal use)

p.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

q.	Advertising Expenses	603	$2,500
	Cash	101		$2,500
	(Being Advertising expenses paid)

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Cash Ledger- A/c No. 101

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$100,000		$100,000
b.	G1		$6,300	$93,700
c.	G1		$55,000	$38,700
d.	G1		$3,000	$35,700
e.	G1	$6,200		$41,900
f.	G1		$9,500	$32,400
k.	G1	$7,000		$39,400
l.	G1		$1,200	$38,200
m.	G1		$1,150	$37,050
n.	G1		$925	$36,125
o.	G1		$9,480	$26,645
p.	G1		$1,200	$25,445
q.	G1		$2,500	$22,945

Account Receivable -A/c. No. 106

Sr. No.	PR	Debit	Credit	Balance
g.	G1	$14,000		$14,000
i.	G1	$22,000		$36,000
k.	G1		$7,000	$29,000

Prepaid Insurance- A/c. No. 108

Sr. No.	PR	Debit	Credit	Balance
d.	G1	$3,000		$3,000

Office Equipment- A/c No. 163

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$5,000		$5,000
h.	G1	$1,150		$6,150

Drafting Equipment − A/C No. 164

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$60,000		$60,000
f.	G1	$20,000		$80,000

Building - A/c No. 170

Sr. No.	PR	Debit	Credit	Balance
c.	G1	$55,000		$55,000

Land - A/c No. 172

Sr. No.	PR	Debit	Credit	Balance
b.	G1	$49,000		$49,000

Account payable − A/c No. 201

Sr. No.	PR	Debit	Credit	Balance
h.	G1		$1,150	$1,150
j.	G1		$1,333	$2,483
m.	G1	$1,150		$1,150

Notes Payable − A/c No. 250

Sr. No.	PR	Debit	Credit	Balance
b.	G1		$42,700	$42,000
f.	G1		$10,500	$53,200

Common Stock −A/c No. 307

Sr. No.	PR	Debit	Credit	Balance
a.	G1		$165,000	$165,000

Dividends _A/c No. 319

Sr. No.	PR	Debit	Credit	Balance
o.	G1	$9,480		$9,480

Engineering Fees earned - A/c No. 402

Sr. No.	PR	Debit	Credit	Balance
e.	G1		$6,200	$6,200
g.	G1		$14,000	$20,200
i.	G1		$22,000	$42,200

Equipment rental expenses-A/c No. 602

Sr. No.	PR	Debit	Credit	Balance
j.	G1	$1,333		$1,333

Wages expenses −A/c No. 601

Sr. No.	PR	Debit	Credit	Balance
l.	G1	$1,200		$1,200
p.	G1	$1,200		$2,400

Repair expenses

Sr. No.	PR	Debit	Credit	Balance
n.	G1	$925		$925

Advertising Expenses − A/c No. 106

Sr. No.	PR	Debit	Credit	Balance
q.	G1	$2,500		$2,500

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Trial Balance (As on June 30)

Particulars	Debit	Credit
Cash	$22,945
Account Receivable	$29,000
Prepaid Expenses	$3,000
Office Equipment	$6,150
Drafting Equipment	$80,000
Building	$55,000
Land	$49,000
Accounts Payable		$1,333
Notes Payable		$53,200
Common Stock		$165,000
Dividends	$9,480
Engineering Fees Earned		$42,200
Equipmenmt Rental Expenses	$1,333
Wages Expenses	$2,400
Repair Expenses	$925
Adverstising Expenses	$2,500

Total	$261,733	$261,733

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Sunland Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $15,200 $24,800 Accumulated depreciation $6,700 Estimated annual operating costs $24,700 $19,600 Remaining useful life 5 years 5 years If sold now, the current machine would have a salvage value of $10,100. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column,…

Answer 2

Question

Chapter 2, Problem 2PSA

1.

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

1.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Sr. No.	Particulars	PR	Amount	Amount
a.	Cash	101	$100,000
	Office equipment	163	$5,000
	Drafting Equipment	164	$60,000
	Common stock	307		$165,000
	(Being owner Invested cash and equipment)

b.	Land	172	$49,000
	Cash	101		$6,300
	Note payable	250		$42,700
	(Being land purchased with cash and note payable)

c.	Building	170	$55,000
	Cash	101		$55,000
	(Being building purchased)

d.	Prepaid Insurance	108	$3,000
	Cash	101		$3,000
	(Being insurance policy for 18 month purchased)

e.	Cash	101	$6,200
	Engineering fees earned	402		$6,200
	(Being cash collected after completion of work)

f.	Drafting equipment	164	$20,000
	Cash	101		$9,500
	Note Payable	250		$10,500
	(Being equipment purchased for cash and notes payable)

g.	Accounts receivable	106	$14,000
	Engineering fees earned	402		$14,000
	(Being client services completed)

h.	Office equipment	163	$1,150
	Account payable	201		$1,150
	(Being Equipment purchased on credit)

i.	Account Receivable	106	$22,000
	Engineering fees earned	402		$22,000
	(Being Client billed for completed work)

j.	Equipment Rental expense	602	$1,333
	Accounts payable	201		$1,333
	(Being rental expense incurred on equipment)

k.	Cash	101	$7,000
	Accounts receivable	106		$7,000
	(Being cash collected on account)

l.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

m.	Accounts payable	201	$1,150
	Cash	101		$1,150
	(Being amount due on account)

n.	Repairs Expenses	604	$925
	Cash	101		$925
	(Being expense paid for repair of equipment)

o.	Dividends	319	$9,480
	Cash	101		$9,480
	(being cash drawn for personal use)

p.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

q.	Advertising Expenses	603	$2,500
	Cash	101		$2,500
	(Being Advertising expenses paid)

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Cash Ledger- A/c No. 101

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$100,000		$100,000
b.	G1		$6,300	$93,700
c.	G1		$55,000	$38,700
d.	G1		$3,000	$35,700
e.	G1	$6,200		$41,900
f.	G1		$9,500	$32,400
k.	G1	$7,000		$39,400
l.	G1		$1,200	$38,200
m.	G1		$1,150	$37,050
n.	G1		$925	$36,125
o.	G1		$9,480	$26,645
p.	G1		$1,200	$25,445
q.	G1		$2,500	$22,945

Account Receivable -A/c. No. 106

Sr. No.	PR	Debit	Credit	Balance
g.	G1	$14,000		$14,000
i.	G1	$22,000		$36,000
k.	G1		$7,000	$29,000

Prepaid Insurance- A/c. No. 108

Sr. No.	PR	Debit	Credit	Balance
d.	G1	$3,000		$3,000

Office Equipment- A/c No. 163

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$5,000		$5,000
h.	G1	$1,150		$6,150

Drafting Equipment − A/C No. 164

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$60,000		$60,000
f.	G1	$20,000		$80,000

Building - A/c No. 170

Sr. No.	PR	Debit	Credit	Balance
c.	G1	$55,000		$55,000

Land - A/c No. 172

Sr. No.	PR	Debit	Credit	Balance
b.	G1	$49,000		$49,000

Account payable − A/c No. 201

Sr. No.	PR	Debit	Credit	Balance
h.	G1		$1,150	$1,150
j.	G1		$1,333	$2,483
m.	G1	$1,150		$1,150

Notes Payable − A/c No. 250

Sr. No.	PR	Debit	Credit	Balance
b.	G1		$42,700	$42,000
f.	G1		$10,500	$53,200

Common Stock −A/c No. 307

Sr. No.	PR	Debit	Credit	Balance
a.	G1		$165,000	$165,000

Dividends _A/c No. 319

Sr. No.	PR	Debit	Credit	Balance
o.	G1	$9,480		$9,480

Engineering Fees earned - A/c No. 402

Sr. No.	PR	Debit	Credit	Balance
e.	G1		$6,200	$6,200
g.	G1		$14,000	$20,200
i.	G1		$22,000	$42,200

Equipment rental expenses-A/c No. 602

Sr. No.	PR	Debit	Credit	Balance
j.	G1	$1,333		$1,333

Wages expenses −A/c No. 601

Sr. No.	PR	Debit	Credit	Balance
l.	G1	$1,200		$1,200
p.	G1	$1,200		$2,400

Repair expenses

Sr. No.	PR	Debit	Credit	Balance
n.	G1	$925		$925

Advertising Expenses − A/c No. 106

Sr. No.	PR	Debit	Credit	Balance
q.	G1	$2,500		$2,500

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Trial Balance (As on June 30)

Particulars	Debit	Credit
Cash	$22,945
Account Receivable	$29,000
Prepaid Expenses	$3,000
Office Equipment	$6,150
Drafting Equipment	$80,000
Building	$55,000
Land	$49,000
Accounts Payable		$1,333
Notes Payable		$53,200
Common Stock		$165,000
Dividends	$9,480
Engineering Fees Earned		$42,200
Equipmenmt Rental Expenses	$1,333
Wages Expenses	$2,400
Repair Expenses	$925
Adverstising Expenses	$2,500

Total	$261,733	$261,733

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Answer 3

Question

Chapter 2, Problem 2PSA

1.

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

1.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Sr. No.	Particulars	PR	Amount	Amount
a.	Cash	101	$100,000
	Office equipment	163	$5,000
	Drafting Equipment	164	$60,000
	Common stock	307		$165,000
	(Being owner Invested cash and equipment)

b.	Land	172	$49,000
	Cash	101		$6,300
	Note payable	250		$42,700
	(Being land purchased with cash and note payable)

c.	Building	170	$55,000
	Cash	101		$55,000
	(Being building purchased)

d.	Prepaid Insurance	108	$3,000
	Cash	101		$3,000
	(Being insurance policy for 18 month purchased)

e.	Cash	101	$6,200
	Engineering fees earned	402		$6,200
	(Being cash collected after completion of work)

f.	Drafting equipment	164	$20,000
	Cash	101		$9,500
	Note Payable	250		$10,500
	(Being equipment purchased for cash and notes payable)

g.	Accounts receivable	106	$14,000
	Engineering fees earned	402		$14,000
	(Being client services completed)

h.	Office equipment	163	$1,150
	Account payable	201		$1,150
	(Being Equipment purchased on credit)

i.	Account Receivable	106	$22,000
	Engineering fees earned	402		$22,000
	(Being Client billed for completed work)

j.	Equipment Rental expense	602	$1,333
	Accounts payable	201		$1,333
	(Being rental expense incurred on equipment)

k.	Cash	101	$7,000
	Accounts receivable	106		$7,000
	(Being cash collected on account)

l.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

m.	Accounts payable	201	$1,150
	Cash	101		$1,150
	(Being amount due on account)

n.	Repairs Expenses	604	$925
	Cash	101		$925
	(Being expense paid for repair of equipment)

o.	Dividends	319	$9,480
	Cash	101		$9,480
	(being cash drawn for personal use)

p.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

q.	Advertising Expenses	603	$2,500
	Cash	101		$2,500
	(Being Advertising expenses paid)

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Cash Ledger- A/c No. 101

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$100,000		$100,000
b.	G1		$6,300	$93,700
c.	G1		$55,000	$38,700
d.	G1		$3,000	$35,700
e.	G1	$6,200		$41,900
f.	G1		$9,500	$32,400
k.	G1	$7,000		$39,400
l.	G1		$1,200	$38,200
m.	G1		$1,150	$37,050
n.	G1		$925	$36,125
o.	G1		$9,480	$26,645
p.	G1		$1,200	$25,445
q.	G1		$2,500	$22,945

Account Receivable -A/c. No. 106

Sr. No.	PR	Debit	Credit	Balance
g.	G1	$14,000		$14,000
i.	G1	$22,000		$36,000
k.	G1		$7,000	$29,000

Prepaid Insurance- A/c. No. 108

Sr. No.	PR	Debit	Credit	Balance
d.	G1	$3,000		$3,000

Office Equipment- A/c No. 163

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$5,000		$5,000
h.	G1	$1,150		$6,150

Drafting Equipment − A/C No. 164

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$60,000		$60,000
f.	G1	$20,000		$80,000

Building - A/c No. 170

Sr. No.	PR	Debit	Credit	Balance
c.	G1	$55,000		$55,000

Land - A/c No. 172

Sr. No.	PR	Debit	Credit	Balance
b.	G1	$49,000		$49,000

Account payable − A/c No. 201

Sr. No.	PR	Debit	Credit	Balance
h.	G1		$1,150	$1,150
j.	G1		$1,333	$2,483
m.	G1	$1,150		$1,150

Notes Payable − A/c No. 250

Sr. No.	PR	Debit	Credit	Balance
b.	G1		$42,700	$42,000
f.	G1		$10,500	$53,200

Common Stock −A/c No. 307

Sr. No.	PR	Debit	Credit	Balance
a.	G1		$165,000	$165,000

Dividends _A/c No. 319

Sr. No.	PR	Debit	Credit	Balance
o.	G1	$9,480		$9,480

Engineering Fees earned - A/c No. 402

Sr. No.	PR	Debit	Credit	Balance
e.	G1		$6,200	$6,200
g.	G1		$14,000	$20,200
i.	G1		$22,000	$42,200

Equipment rental expenses-A/c No. 602

Sr. No.	PR	Debit	Credit	Balance
j.	G1	$1,333		$1,333

Wages expenses −A/c No. 601

Sr. No.	PR	Debit	Credit	Balance
l.	G1	$1,200		$1,200
p.	G1	$1,200		$2,400

Repair expenses

Sr. No.	PR	Debit	Credit	Balance
n.	G1	$925		$925

Advertising Expenses − A/c No. 106

Sr. No.	PR	Debit	Credit	Balance
q.	G1	$2,500		$2,500

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Trial Balance (As on June 30)

Particulars	Debit	Credit
Cash	$22,945
Account Receivable	$29,000
Prepaid Expenses	$3,000
Office Equipment	$6,150
Drafting Equipment	$80,000
Building	$55,000
Land	$49,000
Accounts Payable		$1,333
Notes Payable		$53,200
Common Stock		$165,000
Dividends	$9,480
Engineering Fees Earned		$42,200
Equipmenmt Rental Expenses	$1,333
Wages Expenses	$2,400
Repair Expenses	$925
Adverstising Expenses	$2,500

Total	$261,733	$261,733

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Answer 4

Question

Chapter 2, Problem 2PSA

1.

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

1.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Sr. No.	Particulars	PR	Amount	Amount
a.	Cash	101	$100,000
	Office equipment	163	$5,000
	Drafting Equipment	164	$60,000
	Common stock	307		$165,000
	(Being owner Invested cash and equipment)

b.	Land	172	$49,000
	Cash	101		$6,300
	Note payable	250		$42,700
	(Being land purchased with cash and note payable)

c.	Building	170	$55,000
	Cash	101		$55,000
	(Being building purchased)

d.	Prepaid Insurance	108	$3,000
	Cash	101		$3,000
	(Being insurance policy for 18 month purchased)

e.	Cash	101	$6,200
	Engineering fees earned	402		$6,200
	(Being cash collected after completion of work)

f.	Drafting equipment	164	$20,000
	Cash	101		$9,500
	Note Payable	250		$10,500
	(Being equipment purchased for cash and notes payable)

g.	Accounts receivable	106	$14,000
	Engineering fees earned	402		$14,000
	(Being client services completed)

h.	Office equipment	163	$1,150
	Account payable	201		$1,150
	(Being Equipment purchased on credit)

i.	Account Receivable	106	$22,000
	Engineering fees earned	402		$22,000
	(Being Client billed for completed work)

j.	Equipment Rental expense	602	$1,333
	Accounts payable	201		$1,333
	(Being rental expense incurred on equipment)

k.	Cash	101	$7,000
	Accounts receivable	106		$7,000
	(Being cash collected on account)

l.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

m.	Accounts payable	201	$1,150
	Cash	101		$1,150
	(Being amount due on account)

n.	Repairs Expenses	604	$925
	Cash	101		$925
	(Being expense paid for repair of equipment)

o.	Dividends	319	$9,480
	Cash	101		$9,480
	(being cash drawn for personal use)

p.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

q.	Advertising Expenses	603	$2,500
	Cash	101		$2,500
	(Being Advertising expenses paid)

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Cash Ledger- A/c No. 101

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$100,000		$100,000
b.	G1		$6,300	$93,700
c.	G1		$55,000	$38,700
d.	G1		$3,000	$35,700
e.	G1	$6,200		$41,900
f.	G1		$9,500	$32,400
k.	G1	$7,000		$39,400
l.	G1		$1,200	$38,200
m.	G1		$1,150	$37,050
n.	G1		$925	$36,125
o.	G1		$9,480	$26,645
p.	G1		$1,200	$25,445
q.	G1		$2,500	$22,945

Account Receivable -A/c. No. 106

Sr. No.	PR	Debit	Credit	Balance
g.	G1	$14,000		$14,000
i.	G1	$22,000		$36,000
k.	G1		$7,000	$29,000

Prepaid Insurance- A/c. No. 108

Sr. No.	PR	Debit	Credit	Balance
d.	G1	$3,000		$3,000

Office Equipment- A/c No. 163

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$5,000		$5,000
h.	G1	$1,150		$6,150

Drafting Equipment − A/C No. 164

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$60,000		$60,000
f.	G1	$20,000		$80,000

Building - A/c No. 170

Sr. No.	PR	Debit	Credit	Balance
c.	G1	$55,000		$55,000

Land - A/c No. 172

Sr. No.	PR	Debit	Credit	Balance
b.	G1	$49,000		$49,000

Account payable − A/c No. 201

Sr. No.	PR	Debit	Credit	Balance
h.	G1		$1,150	$1,150
j.	G1		$1,333	$2,483
m.	G1	$1,150		$1,150

Notes Payable − A/c No. 250

Sr. No.	PR	Debit	Credit	Balance
b.	G1		$42,700	$42,000
f.	G1		$10,500	$53,200

Common Stock −A/c No. 307

Sr. No.	PR	Debit	Credit	Balance
a.	G1		$165,000	$165,000

Dividends _A/c No. 319

Sr. No.	PR	Debit	Credit	Balance
o.	G1	$9,480		$9,480

Engineering Fees earned - A/c No. 402

Sr. No.	PR	Debit	Credit	Balance
e.	G1		$6,200	$6,200
g.	G1		$14,000	$20,200
i.	G1		$22,000	$42,200

Equipment rental expenses-A/c No. 602

Sr. No.	PR	Debit	Credit	Balance
j.	G1	$1,333		$1,333

Wages expenses −A/c No. 601

Sr. No.	PR	Debit	Credit	Balance
l.	G1	$1,200		$1,200
p.	G1	$1,200		$2,400

Repair expenses

Sr. No.	PR	Debit	Credit	Balance
n.	G1	$925		$925

Advertising Expenses − A/c No. 106

Sr. No.	PR	Debit	Credit	Balance
q.	G1	$2,500		$2,500

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Trial Balance (As on June 30)

Particulars	Debit	Credit
Cash	$22,945
Account Receivable	$29,000
Prepaid Expenses	$3,000
Office Equipment	$6,150
Drafting Equipment	$80,000
Building	$55,000
Land	$49,000
Accounts Payable		$1,333
Notes Payable		$53,200
Common Stock		$165,000
Dividends	$9,480
Engineering Fees Earned		$42,200
Equipmenmt Rental Expenses	$1,333
Wages Expenses	$2,400
Repair Expenses	$925
Adverstising Expenses	$2,500

Total	$261,733	$261,733

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Answer 5

Chapter 2, Problem 2PSA

1.

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

1.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Sr. No.	Particulars	PR	Amount	Amount
a.	Cash	101	$100,000
	Office equipment	163	$5,000
	Drafting Equipment	164	$60,000
	Common stock	307		$165,000
	(Being owner Invested cash and equipment)

b.	Land	172	$49,000
	Cash	101		$6,300
	Note payable	250		$42,700
	(Being land purchased with cash and note payable)

c.	Building	170	$55,000
	Cash	101		$55,000
	(Being building purchased)

d.	Prepaid Insurance	108	$3,000
	Cash	101		$3,000
	(Being insurance policy for 18 month purchased)

e.	Cash	101	$6,200
	Engineering fees earned	402		$6,200
	(Being cash collected after completion of work)

f.	Drafting equipment	164	$20,000
	Cash	101		$9,500
	Note Payable	250		$10,500
	(Being equipment purchased for cash and notes payable)

g.	Accounts receivable	106	$14,000
	Engineering fees earned	402		$14,000
	(Being client services completed)

h.	Office equipment	163	$1,150
	Account payable	201		$1,150
	(Being Equipment purchased on credit)

i.	Account Receivable	106	$22,000
	Engineering fees earned	402		$22,000
	(Being Client billed for completed work)

j.	Equipment Rental expense	602	$1,333
	Accounts payable	201		$1,333
	(Being rental expense incurred on equipment)

k.	Cash	101	$7,000
	Accounts receivable	106		$7,000
	(Being cash collected on account)

l.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

m.	Accounts payable	201	$1,150
	Cash	101		$1,150
	(Being amount due on account)

n.	Repairs Expenses	604	$925
	Cash	101		$925
	(Being expense paid for repair of equipment)

o.	Dividends	319	$9,480
	Cash	101		$9,480
	(being cash drawn for personal use)

p.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

q.	Advertising Expenses	603	$2,500
	Cash	101		$2,500
	(Being Advertising expenses paid)

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Cash Ledger- A/c No. 101

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$100,000		$100,000
b.	G1		$6,300	$93,700
c.	G1		$55,000	$38,700
d.	G1		$3,000	$35,700
e.	G1	$6,200		$41,900
f.	G1		$9,500	$32,400
k.	G1	$7,000		$39,400
l.	G1		$1,200	$38,200
m.	G1		$1,150	$37,050
n.	G1		$925	$36,125
o.	G1		$9,480	$26,645
p.	G1		$1,200	$25,445
q.	G1		$2,500	$22,945

Account Receivable -A/c. No. 106

Sr. No.	PR	Debit	Credit	Balance
g.	G1	$14,000		$14,000
i.	G1	$22,000		$36,000
k.	G1		$7,000	$29,000

Prepaid Insurance- A/c. No. 108

Sr. No.	PR	Debit	Credit	Balance
d.	G1	$3,000		$3,000

Office Equipment- A/c No. 163

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$5,000		$5,000
h.	G1	$1,150		$6,150

Drafting Equipment − A/C No. 164

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$60,000		$60,000
f.	G1	$20,000		$80,000

Building - A/c No. 170

Sr. No.	PR	Debit	Credit	Balance
c.	G1	$55,000		$55,000

Land - A/c No. 172

Sr. No.	PR	Debit	Credit	Balance
b.	G1	$49,000		$49,000

Account payable − A/c No. 201

Sr. No.	PR	Debit	Credit	Balance
h.	G1		$1,150	$1,150
j.	G1		$1,333	$2,483
m.	G1	$1,150		$1,150

Notes Payable − A/c No. 250

Sr. No.	PR	Debit	Credit	Balance
b.	G1		$42,700	$42,000
f.	G1		$10,500	$53,200

Common Stock −A/c No. 307

Sr. No.	PR	Debit	Credit	Balance
a.	G1		$165,000	$165,000

Dividends _A/c No. 319

Sr. No.	PR	Debit	Credit	Balance
o.	G1	$9,480		$9,480

Engineering Fees earned - A/c No. 402

Sr. No.	PR	Debit	Credit	Balance
e.	G1		$6,200	$6,200
g.	G1		$14,000	$20,200
i.	G1		$22,000	$42,200

Equipment rental expenses-A/c No. 602

Sr. No.	PR	Debit	Credit	Balance
j.	G1	$1,333		$1,333

Wages expenses −A/c No. 601

Sr. No.	PR	Debit	Credit	Balance
l.	G1	$1,200		$1,200
p.	G1	$1,200		$2,400

Repair expenses

Sr. No.	PR	Debit	Credit	Balance
n.	G1	$925		$925

Advertising Expenses − A/c No. 106

Sr. No.	PR	Debit	Credit	Balance
q.	G1	$2,500		$2,500

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Trial Balance (As on June 30)

Particulars	Debit	Credit
Cash	$22,945
Account Receivable	$29,000
Prepaid Expenses	$3,000
Office Equipment	$6,150
Drafting Equipment	$80,000
Building	$55,000
Land	$49,000
Accounts Payable		$1,333
Notes Payable		$53,200
Common Stock		$165,000
Dividends	$9,480
Engineering Fees Earned		$42,200
Equipmenmt Rental Expenses	$1,333
Wages Expenses	$2,400
Repair Expenses	$925
Adverstising Expenses	$2,500

Total	$261,733	$261,733

Answer 6

Chapter 2, Problem 2PSA

1.

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

1.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Sr. No.	Particulars	PR	Amount	Amount
a.	Cash	101	$100,000
	Office equipment	163	$5,000
	Drafting Equipment	164	$60,000
	Common stock	307		$165,000
	(Being owner Invested cash and equipment)

b.	Land	172	$49,000
	Cash	101		$6,300
	Note payable	250		$42,700
	(Being land purchased with cash and note payable)

c.	Building	170	$55,000
	Cash	101		$55,000
	(Being building purchased)

d.	Prepaid Insurance	108	$3,000
	Cash	101		$3,000
	(Being insurance policy for 18 month purchased)

e.	Cash	101	$6,200
	Engineering fees earned	402		$6,200
	(Being cash collected after completion of work)

f.	Drafting equipment	164	$20,000
	Cash	101		$9,500
	Note Payable	250		$10,500
	(Being equipment purchased for cash and notes payable)

g.	Accounts receivable	106	$14,000
	Engineering fees earned	402		$14,000
	(Being client services completed)

h.	Office equipment	163	$1,150
	Account payable	201		$1,150
	(Being Equipment purchased on credit)

i.	Account Receivable	106	$22,000
	Engineering fees earned	402		$22,000
	(Being Client billed for completed work)

j.	Equipment Rental expense	602	$1,333
	Accounts payable	201		$1,333
	(Being rental expense incurred on equipment)

k.	Cash	101	$7,000
	Accounts receivable	106		$7,000
	(Being cash collected on account)

l.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

m.	Accounts payable	201	$1,150
	Cash	101		$1,150
	(Being amount due on account)

n.	Repairs Expenses	604	$925
	Cash	101		$925
	(Being expense paid for repair of equipment)

o.	Dividends	319	$9,480
	Cash	101		$9,480
	(being cash drawn for personal use)

p.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

q.	Advertising Expenses	603	$2,500
	Cash	101		$2,500
	(Being Advertising expenses paid)

Answer 7

Chapter 2, Problem 2PSA

1.

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Answer 8

1.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Sr. No.	Particulars	PR	Amount	Amount
a.	Cash	101	$100,000
	Office equipment	163	$5,000
	Drafting Equipment	164	$60,000
	Common stock	307		$165,000
	(Being owner Invested cash and equipment)

b.	Land	172	$49,000
	Cash	101		$6,300
	Note payable	250		$42,700
	(Being land purchased with cash and note payable)

c.	Building	170	$55,000
	Cash	101		$55,000
	(Being building purchased)

d.	Prepaid Insurance	108	$3,000
	Cash	101		$3,000
	(Being insurance policy for 18 month purchased)

e.	Cash	101	$6,200
	Engineering fees earned	402		$6,200
	(Being cash collected after completion of work)

f.	Drafting equipment	164	$20,000
	Cash	101		$9,500
	Note Payable	250		$10,500
	(Being equipment purchased for cash and notes payable)

g.	Accounts receivable	106	$14,000
	Engineering fees earned	402		$14,000
	(Being client services completed)

h.	Office equipment	163	$1,150
	Account payable	201		$1,150
	(Being Equipment purchased on credit)

i.	Account Receivable	106	$22,000
	Engineering fees earned	402		$22,000
	(Being Client billed for completed work)

j.	Equipment Rental expense	602	$1,333
	Accounts payable	201		$1,333
	(Being rental expense incurred on equipment)

k.	Cash	101	$7,000
	Accounts receivable	106		$7,000
	(Being cash collected on account)

l.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

m.	Accounts payable	201	$1,150
	Cash	101		$1,150
	(Being amount due on account)

n.	Repairs Expenses	604	$925
	Cash	101		$925
	(Being expense paid for repair of equipment)

o.	Dividends	319	$9,480
	Cash	101		$9,480
	(being cash drawn for personal use)

p.	Wages expenses	601	$1,200
	Cash	101		$1,200
	(Being wages paid to assistant)

q.	Advertising Expenses	603	$2,500
	Cash	101		$2,500
	(Being Advertising expenses paid)

Answer 13

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Cash Ledger- A/c No. 101

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$100,000		$100,000
b.	G1		$6,300	$93,700
c.	G1		$55,000	$38,700
d.	G1		$3,000	$35,700
e.	G1	$6,200		$41,900
f.	G1		$9,500	$32,400
k.	G1	$7,000		$39,400
l.	G1		$1,200	$38,200
m.	G1		$1,150	$37,050
n.	G1		$925	$36,125
o.	G1		$9,480	$26,645
p.	G1		$1,200	$25,445
q.	G1		$2,500	$22,945

Account Receivable -A/c. No. 106

Sr. No.	PR	Debit	Credit	Balance
g.	G1	$14,000		$14,000
i.	G1	$22,000		$36,000
k.	G1		$7,000	$29,000

Prepaid Insurance- A/c. No. 108

Sr. No.	PR	Debit	Credit	Balance
d.	G1	$3,000		$3,000

Office Equipment- A/c No. 163

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$5,000		$5,000
h.	G1	$1,150		$6,150

Drafting Equipment − A/C No. 164

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$60,000		$60,000
f.	G1	$20,000		$80,000

Building - A/c No. 170

Sr. No.	PR	Debit	Credit	Balance
c.	G1	$55,000		$55,000

Land - A/c No. 172

Sr. No.	PR	Debit	Credit	Balance
b.	G1	$49,000		$49,000

Account payable − A/c No. 201

Sr. No.	PR	Debit	Credit	Balance
h.	G1		$1,150	$1,150
j.	G1		$1,333	$2,483
m.	G1	$1,150		$1,150

Notes Payable − A/c No. 250

Sr. No.	PR	Debit	Credit	Balance
b.	G1		$42,700	$42,000
f.	G1		$10,500	$53,200

Common Stock −A/c No. 307

Sr. No.	PR	Debit	Credit	Balance
a.	G1		$165,000	$165,000

Dividends _A/c No. 319

Sr. No.	PR	Debit	Credit	Balance
o.	G1	$9,480		$9,480

Engineering Fees earned - A/c No. 402

Sr. No.	PR	Debit	Credit	Balance
e.	G1		$6,200	$6,200
g.	G1		$14,000	$20,200
i.	G1		$22,000	$42,200

Equipment rental expenses-A/c No. 602

Sr. No.	PR	Debit	Credit	Balance
j.	G1	$1,333		$1,333

Wages expenses −A/c No. 601

Sr. No.	PR	Debit	Credit	Balance
l.	G1	$1,200		$1,200
p.	G1	$1,200		$2,400

Repair expenses

Sr. No.	PR	Debit	Credit	Balance
n.	G1	$925		$925

Advertising Expenses − A/c No. 106

Sr. No.	PR	Debit	Credit	Balance
q.	G1	$2,500		$2,500

Answer 14

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Answer 15

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

Cash Ledger- A/c No. 101

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$100,000		$100,000
b.	G1		$6,300	$93,700
c.	G1		$55,000	$38,700
d.	G1		$3,000	$35,700
e.	G1	$6,200		$41,900
f.	G1		$9,500	$32,400
k.	G1	$7,000		$39,400
l.	G1		$1,200	$38,200
m.	G1		$1,150	$37,050
n.	G1		$925	$36,125
o.	G1		$9,480	$26,645
p.	G1		$1,200	$25,445
q.	G1		$2,500	$22,945

Account Receivable -A/c. No. 106

Sr. No.	PR	Debit	Credit	Balance
g.	G1	$14,000		$14,000
i.	G1	$22,000		$36,000
k.	G1		$7,000	$29,000

Prepaid Insurance- A/c. No. 108

Sr. No.	PR	Debit	Credit	Balance
d.	G1	$3,000		$3,000

Office Equipment- A/c No. 163

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$5,000		$5,000
h.	G1	$1,150		$6,150

Drafting Equipment − A/C No. 164

Sr. No.	PR	Debit	Credit	Balance
a.	G1	$60,000		$60,000
f.	G1	$20,000		$80,000

Building - A/c No. 170

Sr. No.	PR	Debit	Credit	Balance
c.	G1	$55,000		$55,000

Land - A/c No. 172

Sr. No.	PR	Debit	Credit	Balance
b.	G1	$49,000		$49,000

Account payable − A/c No. 201

Sr. No.	PR	Debit	Credit	Balance
h.	G1		$1,150	$1,150
j.	G1		$1,333	$2,483
m.	G1	$1,150		$1,150

Notes Payable − A/c No. 250

Sr. No.	PR	Debit	Credit	Balance
b.	G1		$42,700	$42,000
f.	G1		$10,500	$53,200

Common Stock −A/c No. 307

Sr. No.	PR	Debit	Credit	Balance
a.	G1		$165,000	$165,000

Dividends _A/c No. 319

Sr. No.	PR	Debit	Credit	Balance
o.	G1	$9,480		$9,480

Engineering Fees earned - A/c No. 402

Sr. No.	PR	Debit	Credit	Balance
e.	G1		$6,200	$6,200
g.	G1		$14,000	$20,200
i.	G1		$22,000	$42,200

Equipment rental expenses-A/c No. 602

Sr. No.	PR	Debit	Credit	Balance
j.	G1	$1,333		$1,333

Wages expenses −A/c No. 601

Sr. No.	PR	Debit	Credit	Balance
l.	G1	$1,200		$1,200
p.	G1	$1,200		$2,400

Repair expenses

Sr. No.	PR	Debit	Credit	Balance
n.	G1	$925		$925

Advertising Expenses − A/c No. 106

Sr. No.	PR	Debit	Credit	Balance
q.	G1	$2,500		$2,500

Answer 20

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Explanation of Solution

Trial Balance (As on June 30)

Particulars	Debit	Credit
Cash	$22,945
Account Receivable	$29,000
Prepaid Expenses	$3,000
Office Equipment	$6,150
Drafting Equipment	$80,000
Building	$55,000
Land	$49,000
Accounts Payable		$1,333
Notes Payable		$53,200
Common Stock		$165,000
Dividends	$9,480
Engineering Fees Earned		$42,200
Equipmenmt Rental Expenses	$1,333
Wages Expenses	$2,400
Repair Expenses	$925
Adverstising Expenses	$2,500

Total	$261,733	$261,733

Answer 21

Summary Introduction

Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.

To calculate: Journal entries, trial balance and general ledgers of the accounts.

Answer 22

Expert Solution

Answer to Problem 2PSA

All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.

Answer 23

Expert Solution

Answer 24

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Trial Balance (As on June 30)

Particulars	Debit	Credit
Cash	$22,945
Account Receivable	$29,000
Prepaid Expenses	$3,000
Office Equipment	$6,150
Drafting Equipment	$80,000
Building	$55,000
Land	$49,000
Accounts Payable		$1,333
Notes Payable		$53,200
Common Stock		$165,000
Dividends	$9,480
Engineering Fees Earned		$42,200
Equipmenmt Rental Expenses	$1,333
Wages Expenses	$2,400
Repair Expenses	$925
Adverstising Expenses	$2,500

Total	$261,733	$261,733

Answer 27

Ch. 2 - Provide the names of two (a) asset accounts, (b)...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 - Should a transaction be recorded first in a...Ch. 2 - Prob. 7DQ Ch. 2 - Why does the recordkeeper prepare a trial balance?Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ

Answer to Problem 2PSA

Explanation of Solution

Answer to Problem 2PSA

Explanation of Solution

Answer to Problem 2PSA

Explanation of Solution

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