1. Explanation Journal entries to record the transactions a. Date Account Title and Explanation Post.ref Debit($) Credit($) Cash 60,000 Office equipment 25,000 Capital account 85,000 ( Being Cash and equipment has been invested by the owner.) Table (1) Cash is an asset account. Here, asset balance has increased. Hence cash account is debited. Office Equipment is an asset account. Here, asset balance has increased. Hence office equipment account is debited. As the equity is raised by investing cash and equipment resulted in increased equity so increased in equity account is credited. b. Date Account Title and Explanation Post.ref Debit($) Credit($) Land 40,000 Building 160,000 Cash 30,000 Notes payable 170,000 ( Being land and building has been purchased for cash and by issuing notes payable.) Table (2) Land belongs to asset accounts it has been debited as its purchase resulted in increase in assets. Building also belongs to asset accounts it has been debited as its purchase resulted in increase in assets. Cash is an asset account it has been credited for the purchase of building as it resulted in decrease in asset account. Notes payable are the part of liabilities they have been credited which signifies increase in liability account. c. Date Account Title and Explanation Post.ref Debit($) Credit($) Office supplies $2,000 Accounts payable $2,000 ( Being office supplies has been purchased on credit.) Table (3) Since, office supplies belong to asset accounts they have been debited as their purchase resulted in increase in assets. As the purchase is made on credit which causes increased liabilities account so it will record under accounts payable account. d. Date Account Title and Explanation Post.ref Debit($) Credit($) Automobile 16,500 Common stock 16,500 ( Being automobile exchanged for common stock.) Table (4) Automobile is an asset account. Here, asset balance has increased. Hence office equipment account is debited. As the equity is raised by investing cash and equipment resulted in increased equity so increased in equity account is credited. e. Date Account Title and Explanation Post.ref Debit($) Credit($) Office equipment 5,600 Accounts payable 5,600 ( Being purchase of office equipment on credit.) Table (5) Since, office equipment belongs to asset accounts they have been debited as their purchase resulted in increase in assets. As the purchase is made on credit which causes increased liabilities account so it will record under accounts payable account. f. Date Account Title and Explanation Post.ref Debit($) Credit($) Salary expense 1,800 Cash 1,800 ( Being salary paid to assistant.) Table (6) Salary expense account is an expense account. Since salary expense is increased, expense is to be increased. So, debit the salary expense account. Cash account is an asset account. Since cash is shrinked, so it is to be reduced. Therefore, cash account is to be credited. g. Date Account Title and Explanation Post.ref Debit($) Credit($) Cash 8,000 Fees earned 8,000 ( Being immediate collection of cash for provided services) Table (7) Cash is belonging to asset account so providing services in cash causes increase in asset account so debited... 2. To determine To prepare: Ledger accounts. 3. To determine To prepare: Trial balance .

FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD

9th Edition

ISBN: 9781266515071

Author: Wild

Publisher: MCG CUSTOM

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Question

Chapter 2, Problem 4PSA

To determine

To prepare: journal entry for September transactions.

To determine

To prepare: Ledger accounts.

To determine

To prepare: Trial balance.

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Chapter 2, Problem 3PSA

Chapter 2, Problem 5PSA

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Chapter 2 Solutions

FINANCIAL AND MANAGERIAL ACCTG W/ACC CRD

Ch. 2 - Prob. 1QS 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 - Prob. 8QS Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS

Ch. 2 - Prob. 11QS Ch. 2 - Prob. 12QS Ch. 2 - Prob. 13QS Ch. 2 - Prob. 14QS Ch. 2 - Prob. 15QS Ch. 2 - Prob. 16QS Ch. 2 - Prob. 17QS Ch. 2 - Prob. 18QS Ch. 2 - Prob. 19QS 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 - Prob. 19E Ch. 2 - Prob. 20E Ch. 2 - Prob. 21E Ch. 2 - Exercise 2-20 Identifying effects of posting...Ch. 2 - Prob. 23E Ch. 2 - Prob. 24E Ch. 2 - Prob. 25E Ch. 2 - Prob. 26E Ch. 2 - Prob. 27E Ch. 2 - Prob. 28E Ch. 2 - Prob. 29E 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. 7PSA 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. 7PSB Ch. 2 - Prob. 2SP Ch. 2 - Prob. 1GLP Ch. 2 - Prob. 2GLP Ch. 2 - Prob. 3GLP Ch. 2 - Prob. 4GLP Ch. 2 - Prob. 5GLP Ch. 2 - Prob. 6GLP Ch. 2 - Prob. 7GLP Ch. 2 - Prob. 1.1AA Ch. 2 - Prob. 1.2AA Ch. 2 - Prob. 1.3AA Ch. 2 - Prob. 1.4AA Ch. 2 - Prob. 2.1AA Ch. 2 - Prob. 2.2AA Ch. 2 - Prob. 2.3AA Ch. 2 - Prob. 3.1AA Ch. 2 - Prob. 3.2AA Ch. 2 - Prob. 3.3AA 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 - Prob. 1BTN Ch. 2 - Prob. 2BTN Ch. 2 - Prob. 3BTN Ch. 2 - Prob. 4BTN Ch. 2 - Prob. 5BTN Ch. 2 - Prob. 6BTN

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