Chapter 2, Problem 4APSA

To determine

Concept Introduction

Journal Entry: The journal entries are accounting entries made in a chronological order in the general ledger to record business transactions. Journal entries are logged with the debit amounts and credit amounts with their respective dates and account names.

T Account: A T-account is the graphical representation of a general ledger that records business transactions. A T-Account looks like the letter T, where the debit entries are recorded at the left side, the credit entries are recorded on the right side and the account title is at the top.

Trial Balance: The Trial Balance is a list of closing balance of all ledger accounts on a particular date. It is a summary of all T-Account balances in the ledger and the total of debit and credit balances should always match.

1.

To Prepare: The journal entries for the transactions given for HV Consulting.

Explanation of Solution

The journal entries for the transactions given are prepared as below for HV Consulting.

Date	Account	Debit ($)	Credit (S)
a	Cash	60,000
	Office Equipment	25,000
	H. Venedict, Capital		85,000
b	Land	40,000
	Building	160,000
	Cash		30,000
	Note Payable		170,000
c	Office Supplies	2,000
	Account Payable		2,000
d	Automobiles	16,500
	H. Venedict, Capital		16,500
e	Office Equipment	5,600
	Account Payable		5,600
f	Salary Expenses	1,800
	Cash		1,800
g	Account Receivable	8,000
	Fee Earned		8,000
h	Utilities Expenses	325
	Cash		325
i	Account Payable	2,000
	Cash		2,000
j	Office Equipment	20,300
	Cash		20,300
k	Account Receivable	6,250
	Fee Earned		6,250
l	Salary Expenses	1,800
	Cash		1,800
m	Cash	4,000
	Account Receivable		4,000
n	H. Venedict, Withdrawals	2,800
	Cash		2,800

2.

To determine

To Prepare: The T-accounts for the transactions given for HV Consulting.

Explanation of Solution

T-accounts prepared as below for HV Consulting.

Cash Account (101)
Debit	Amount ($)	Credit	Amount ($)
H. Venedict, Capital	60,000	Land	30,000
Fee Earned	8,000	Salary Expenses	1,800
Account receivable	4,000	Utilities Expenses	635
		Account Payable	2,000
		Office Equipment	20,300
		Salary Expenses	1,800
		H. Venedict, Withdrawals	2,800
Closing Balance	12,665

Account receivable Account (106)
Debit	Amount ($)	Credit	Amount ($)
Fee Earned	6,250	Cash	4,000
Closing Balance	2,250

Office Supplies Account (108)
Debit	Amount ($)	Credit	Amount ($)
Account Payable	2,000
Closing Balance	2,000

Office Equipment Account (163)
Debit	Amount ($)	Credit	Amount ($)
H. Venedict, Capital	25,000
Account Payable	5,600
Cash	20,300
Closing Balance	50,900

Automobiles Account (164)
Debit	Amount ($)	Credit	Amount ($)
H. Venedict, Capital	16,500
Closing Balance	16,500

Building Account (170)
Debit	Amount ($)	Credit	Amount ($)
Notes Payable	1,60,000
Closing Balance	160,000

Land Account (172)
Debit	Amount ($)	Credit	Amount ($)
Cash	30,000
Note Payable	10,000
Closing Balance	40,000

Account Payable Account (201)
Debit	Amount ($)	Credit	Amount ($)
Cash	2,000	Office Supplies	2,000
		Office Equipment	5,600
		Closing Balance	5,600

Notes Payable Account (250)
Debit	Amount ($)	Credit	Amount ($)
		Land	10,000
		Building	160,000
		Closing Balance	170,000

H. Venedict, Capital Account (301)
Debit	Amount ($)	Credit	Amount ($)
		Cash	60,000
		Office Equipment	25,000
		Automobiles	16,500
		Closing Balance	101,500

H. Venedict, Withdrawals Account (302)
Debit	Amount ($)	Credit	Amount ($)
Cash	2,800
Closing Balance	2,800

Fee Earned Account (402)
Debit	Amount ($)	Credit	Amount ($)
		Cash	8,000
		Account receivable	6,250
		Closing Balance	14,250

Salary Expenses Account (601)
Debit	Amount ($)	Credit	Amount ($)
Cash	1,800
Cash	1,800
Closing Balance	3,600

Utilities Expenses Account (602)
Debit	Amount ($)	Credit	Amount ($)
Cash	635
Closing Balance	635

3.

To determine

To Prepare: The trial balance for the transactions given for HV Consulting as of April 30.

Explanation of Solution

The trail balance prepared as below for HV Consulting.

HV Consulting
Trail balance as on September 30
Account	Debit ($)	Credit ($)
Cash	12,665
Account receivable	1,250
Office Supplies	2,000
Office Equipment	50,900
Automobiles	16,500
Building	160,000
Land	40,000
Account Payable		5,600
Notes Payable		170,000
H. Venedict, Capital		101,500
H. Venedict, Withdrawals	2,800
Fee Earned		14,250
Salary Expenses	3,600
Utilities Expenses	635
Total	291,350	291,350