1. Explanation Journal entries to record the transactions. Date Account Title and Explanation Post.ref Debit($) Credit($) Nov 1 Cash 30,000 Office equipment 15,000 Capital account 45,000 ( Being Cash and equipment has been invested by the owner.) Table (1) Cash and all the equipment has been converted into capital to invest in the business so the entire amount has been debited Amount invested in the business is actually generated from all the cash and equipment and owner invested the entire amount in business so credited. Date Account Title and Explanation Post.ref Debit($) Credit($) Nov 2 Prepaid rent 4,500 Cash 4,500 ( Being rent has been paid in advance.) Table (2) Prepaid expense belongs to asset account so there is an increase in asset account so it is debited. While cash is also a part of asset account it is credited because there is decrease in cash account for the payment of rent . Date Account Title and Explanation Post.ref Debit($) Credit($) Nov 4 Office supplies 2,500 Office equipment 600 Accounts payable 3,100 ( Being purchase made on credit) Table (3) Office supplies and equipment belongs to asset accounts it has been debited as their purchase resulted in increase in assets. Cash is an asset account it has been credited for the purchase of equipment and supplies as it resulted in decrease in asset account. Date Account Title and Explanation Post.ref Debit($) Credit($) Nov 8 Cash 5,000 Service revenue 5,000 ( Being cash received for providing services) Table (4) Cash belongs to asset account so there is an increase in asset account so it is debited. While service has been provided to the client which means there is decrease in stock account so credited. Date Account Title and Explanation Post.ref Debit($) Credit($) Nov 12 Accounts receivable 4,600 Services revenue 4,600 ( Being cash is going to receive later on for providing services.) Table (5) Accounts receivable is belonging to asset so providing services in credit causes increase in asset account so debited. Services have been provided so it recorded in credited account. Date Account Title and Explanation Post.ref Debit($) Credit($) Nov 13 Accounts payable 3,100 Cash 3,100 ( Being amount due.) Table (6) Accounts payable belongs to liabilities accounts it has been debited as there is in increase in liabilities... 2. To determine To prepare: Ledger accounts. 3. To determine To prepare: Trial balance .

7th Edition

ISBN: 9781307257991

Author: Wild

Publisher: MCG/CREATE

See similar textbooks

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Question

Chapter 2, Problem 3PSB

To determine

To prepare: Journal entry for September transactions.

To determine

To prepare: Ledger accounts.

To determine

To prepare: Trial balance.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 2, Problem 2PSB

Chapter 2, Problem 4PSB

Students have asked these similar questions

provide correct option

MCQ

Computer equipment was acquired at the beginning of the year at a cost of $72,450, with an estimated residual value of $3,250 and an estimated useful life of 6 years. Determine the second-year depreciation using the straight-line method.

Chapter 2 Solutions

FINANC. MANGERIAL ACCT. W/CONNECT (LL)

Ch. 2 - Prob. 1MCQ Ch. 2 - Prob. 2MCQ Ch. 2 - Prob. 3MCQ Ch. 2 - Prob. 4MCQ Ch. 2 - Bonaventure Company has total assets of...Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - Prob. 2DQ 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 - APPLE Review the Apple balance sheet in Appendix...Ch. 2 - Prob. 17DQ Ch. 2 - Prob. 18DQ Ch. 2 - QS 2-1 Identifying source documents C1 Identifying...Ch. 2 - Prob. 2QS Ch. 2 - Reading a chart of accounts C3 A chart of accounts...Ch. 2 - Prob. 4QS Ch. 2 - Prob. 5QS Ch. 2 - Prob. 6QS Ch. 2 - Prob. 7QS Ch. 2 - identifying a posting error P2 A trial balance has...Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS Ch. 2 - Prob. 11QS Ch. 2 - Prob. 12QS Ch. 2 - Exercise 2-1 Steps in analyzing and recording...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 - Exercise 2-20 Identifying effects of posting...Ch. 2 - Prob. 21E Ch. 2 - Prob. 22E Ch. 2 - Prob. 23E Ch. 2 - Prob. 1PSA Ch. 2 - Problem 2-2A Preparing and posting journal...Ch. 2 - Prob. 3PSA Ch. 2 - Prob. 4PSA Ch. 2 - Prob. 5PSA Ch. 2 - Prob. 6PSA Ch. 2 - Prob. 1PSB Ch. 2 - Prob. 2PSB Ch. 2 - Prob. 3PSB Ch. 2 - Prob. 4PSB Ch. 2 - Prob. 5PSB Ch. 2 - Prob. 6PSB Ch. 2 - Prob. 2SP Ch. 2 - Prob. 1GLP Ch. 2 - Prob. 2GLP Ch. 2 - Prob. 3GLP Ch. 2 - Prob. 1BTN 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

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education