1. Explanation Journal entries to record the transactions a. Date Account Title and Explanation Post.ref Debit($) Credit($) Cash 35,000 Office Equipment 11,000 Capital account 46,000 ( Being cash and equipment has been invested by the owner.) 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. b. Date Account Title and Explanation Post.ref Debit($) Credit($) Land 7,500 Building 40,000 Cash 15,000 Notes payable 32,500 ( Being land and building has been purchased for cash and by issuing notes payable.) Land and building 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 land as it resulted in decrease in asset account whereas notes payable are the part of liabilities they have been credited which signifies increase in liabilities. c. Date Account Title and Explanation Post.ref Debit($) Credit($) Office supplies 500 Accounts payable 500 ( Being office supplies has been purchased for credit.) Office supplies belong to asset accounts it has been debited as their purchase resulted in increase in assets. Accounts payable is a liability account it has been credited for the purchase of office supplies as it resulted in increase in liability account. d. Date Account Title and Explanation Post.ref Debit($) Credit($) Automobile 8,000 Common stock 8,000 ( Being premium for insurance has been paid in advance) Automobile belongs to asset account so there is an increase in asset account so it is debited. While common stock is also a part of asset account it is credited because there is decrease in stock account for the exchange of automobile. e. Date Account Title and Explanation Post.ref Debit($) Credit($) Office equipment 1,200 Accounts payable 1,200 ( Being purchased on credit.) Equipment belongs to asset account they increase the asset account so debited. While accounts payable is a liability account so purchasing supplies on credit will increase them so credited. f. Date Account Title and Explanation Post.ref Debit($) Credit($) Wages expense 1,000 Cash 1,000 ( Being wages paid on cash.) Wages expense account is an expense account. Since wages expense is increased, expense is to be increased. So, debit the wages 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 3,200 Service fees earned 3,200 ( Being cash received for provided services... 2. To determine To prepare: Ledger accounts. 3. To determine To prepare: Trial balance .

9th Edition

ISBN: 9781266816123

Author: Wild

Publisher: MCG CUSTOM

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Question

Chapter 2, Problem 4PSB

To determine

To prepare: Journal entry for transactions.

To determine

To prepare: Ledger accounts.

To determine

To prepare: Trial balance.

Expert Solution & Answer

Chapter 2 Solutions

FINANCIAL+MANAGERIAL ACCT W/CONNECT

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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