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 of Company F are as follows: May, 1 – Cash borrowed from bank: Date Accounts Post Ref. Debit ($) Credit ($) May, 1 Cash 210,000 Notes payable 210,000 (To record cash borrowed from bank) Table (1) Cash is an assets account and it increased the value of asset by $210,000. Hence, debit the cash account for $210,000. Notes payable is a liability account, and it increased the value of liabilities by $210,000. Hence, credit the notes payable for $210,000. May, 3 –Building purchased in cash: Date Accounts Post Ref. Debit ($) Credit ($) May, 3 Building 145,000 Cash 145,000 (To record purchase of office building in cash) Table (2) Building is an assets account and it increased the value of asset by $145,000. Hence, debit the Building account for $145,000. Cash is an assets account and it decreased the value of asset by $145,000. Hence, credit the cash account for $145,000. May, 6 – Service performed on account: Date Accounts Post Ref. Debit ($) Credit ($) May, 6 Accounts receivable 14,100 Service revenue 14,100 (To record service performed to customer on account) Table (3) Accounts receivable is an assets account and it increased the value of asset by $14,100. Hence, debit the accounts receivable account for $14,100. Service revenue is a component of stockholder’s equity and it increased the value of stockholder’s equity by $14,100. Hence, debit the service revenue account for $14,100. May, 9 – Supplies purchased on account: Date Accounts Post Ref. Debit ($) Credit ($) May, 9 Supplies 275 Accounts payable 275 (To record purchase of supplies on account) Table (4) Supplies are an assets account and it increased the value of asset by $275. Hence, debit the supplies account for $275. Accounts payable is a liability account and it increased the value of liability by $275. Hence, credit the liability account by $275. May, 13 – Revenue earned in cash and on account: Date Accounts Post Ref. Debit ($) Credit ($) May, 13 Cash 6,800 Service revenue 6,800 (To record service performed in cash) Table (5) Cash is an assets account and it increased the value of asset by $6,800. Hence, debit the cash account for $6,800. Service revenue is a component of stockholder’s equity and it increased the value of stockholder’s equity by $6,800. Hence, debit the service revenue account for $6,800. May, 15 – Payment of dividend to stockholders Date Accounts Post Ref...

Financial Accounting, Student Value Edition (4th Edition)

4th Edition

ISBN: 9780134114811

Author: Robert Kemp, Jeffrey Waybright

Publisher: PEARSON

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Chapter 2, Problem 32AP

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To prepare: The journal entries for the given transactions.

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Chapter 2, Problem 31AP

Chapter 2, Problem 33AP

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Chapter 2 Solutions

Financial Accounting, Student Value Edition (4th Edition)

Ch. 2 - The order in which assets were listed and...Ch. 2 - Prob. 2DQ Ch. 2 - How is revenue related to retained earnings?Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Distinguish between journalizing and posting.Ch. 2 - True or false: If the trial balance is in balance,...Ch. 2 - When it is time to prepare the financial...

Ch. 2 - Which sequence of actions correctly summarizes the...Ch. 2 - Prob. 2SC Ch. 2 - Prob. 3SC Ch. 2 - Prob. 4SC Ch. 2 - Prob. 5SC Ch. 2 - Which journal entry records obtaining a bank loan...Ch. 2 - RV Wholesale, Inc., paid 1,200 for supplies and...Ch. 2 - Prob. 8SC Ch. 2 - Prob. 9SC Ch. 2 - Prob. 10SC Ch. 2 - Prob. 11SC Ch. 2 - Prob. 12SC Ch. 2 - Prob. 1SE Ch. 2 - Prob. 2SE Ch. 2 - Prob. 3SE Ch. 2 - Prob. 4SE Ch. 2 - Accounting terminology (Learning Objectives 2, 3, ...Ch. 2 - Effects of debits and credits on accounts...Ch. 2 - Balancing accounts and normal balances (Learning...Ch. 2 - Types of accounts and effects of debits and...Ch. 2 - Prob. 9SE Ch. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 11SE Ch. 2 - Prob. 12SE Ch. 2 - Prob. 13SE Ch. 2 - Accounting terminology (Learning Objectives 1, 2,...Ch. 2 - Prob. 15AE Ch. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 17AE Ch. 2 - Prob. 18AE Ch. 2 - Prob. 19AE Ch. 2 - Prob. 20AE Ch. 2 - Prob. 21AE Ch. 2 - Prob. 22AE Ch. 2 - Prob. 23BE Ch. 2 - Prob. 24BE Ch. 2 - Prob. 25BE Ch. 2 - Prob. 26BE Ch. 2 - Prob. 27BE Ch. 2 - Prob. 28BE Ch. 2 - Prob. 29BE Ch. 2 - Prob. 30BE Ch. 2 - Prob. 31AP Ch. 2 - Prob. 32AP Ch. 2 - Prob. 33AP Ch. 2 - Prob. 34AP Ch. 2 - Prob. 35AP Ch. 2 - Prob. 36AP Ch. 2 - Prob. 37BP Ch. 2 - Prob. 38BP Ch. 2 - Prob. 39BP Ch. 2 - Prob. 40BP Ch. 2 - Prob. 41BP Ch. 2 - Prob. 42BP Ch. 2 - Prob. 1CE Ch. 2 - Prob. 1CP Ch. 2 - Prob. 1CFSAP Ch. 2 - Prob. 1EIA Ch. 2 - Prob. 2EIA Ch. 2 - Prob. 1FA Ch. 2 - Prob. 1IA Ch. 2 - Prob. 1SBA Ch. 2 - Prob. 1WC

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