Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 2, Problem 5GLP
1.
Summary Introduction
Introduction:
To prepare: The general
1.
Expert Solution
Explanation of Solution
| Date (June) | Particular | PR | Dr. | Cr. |
| a. | Cash | 101 | 100,000 | |
| Office Equipment | 163 | 5,000 | ||
| Drafting equipment | 164 | 60,000 | ||
| To Common stock | 165,000 | |||
| (Owner’s investment) | ||||
| b. | Land | 172 | 49,000 | |
| To cash | 101 | 6300 | ||
| To note payable | 290 | 42,700 | ||
| (Land purchase for cash and note payable ) | ||||
| c. | Portable building | 170 | 55000 | |
| To cash | 101 | 55000 | ||
| (Portable building purchase for cash) | ||||
| d. | Insurance paid | 108 | 3000 | |
| To cash | 101 | 3000 | ||
| (Cash paid for insurance) | ||||
| e. | Cash | 101 | 6200 | |
| Service revenue | 402 | 6200 | ||
| (cash received against service render) | ||||
| f. | Drafting Equipment | 164 | 20000 | |
| To cash | 101 | 9500 | ||
| To note payable | 290 | 10500 | ||
| g. | 106 | 14000 | ||
| Service revenue | 402 | 14000 | ||
| (service render on credit) | ||||
| h. | Office equipment | 163 | 1150 | |
| To purchase | 201 | 1150 | ||
| (Purchase of office equipment on credit) | ||||
| i. | Account receivable | 106 | 22000 | |
| Service revenue | 402 | 22000 | ||
| (Provide service on credit) | ||||
| j. | Rent | 602 | 1333 | |
| To account payable | 201 | 1333 | ||
| (rent to be paid in 30 days) | ||||
| k. | Cash | 101 | 7000 | |
| To Account receivable | 106 | 7000 | ||
| (Received cash) | ||||
| l. | Wages | 601 | 1200 | |
| To cash | 101 | 1200 | ||
| (Wages paid to drafting Assistant) | ||||
| m. | Office equipment | 201 | 1150 | |
| To cash | 101 | 1150 | ||
| n. | Repair equipment | 604 | 925 | |
| To cash | 101 | 925 | ||
| o. | Dividends | 319 | 9480 | |
| Cash | 101 | 9480 | ||
| (to record the payment of cash as dividend) | ||||
| p. | Drafting assistant | 601 | 1200 | |
| Cash | 101 | 1200 | ||
| q. | Advertisement | 603 | 2500 | |
| Cash | 101 | 2500 | ||
| (Paid cash for advertise) |
2.
Summary Introduction
Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.
To prepare: Ledger for the following transactions.
2.
Expert Solution
Answer to Problem 5GLP
Balance of cash ledger is $22945, account receivable $29000, prepaid insurance is $3000, land 49000, Drafting equipment 80000, building 55000,note payable 53200,advertisement 2500, repair expense 925.
Explanation of Solution
| Cash Account No.101 | ||||
| Date | PR | Debit | Credit | Balance |
| a. | G1 | 100000 | 100000 | |
| b. | G1 | 6300 | 93700 | |
| c. | G1 | 55000 | 38700 | |
| d. | G1 | 3000 | 35700 | |
| e. | G1 | 6200 | 41900 | |
| f. | G1 | 9500 | 32400 | |
| k. | G1 | 7000 | 39400 | |
| l. | G1 | 1200 | 38200 | |
| m. | 1150 | 37050 | ||
| n. | 925 | 36125 | ||
| o. | 9480 | 26645 | ||
| p. | 1200 | 25445 | ||
| q. | 2500 | 22945 | ||
| Account receivable | Account no.106 | |||
| Date | PR | Debit | Credit | Balance |
| g. | G1 | 14000 | 14000 | |
| i. | G1 | 22000 | 36000 | |
| k. | G1 | 7000 | 29000 | |
| Prepaid Insurance | Account no. 128 | |||
| Date | PR | Debit | Credit | Balance |
| d. | G1 | 3000 | 3000 | |
| Office equipment | Account no. 163 | |||
| Date | PR | Debit | Credit | Balance |
| a. | G1 | 5000 | ||
| b. | 1150 | 6150 | ||
| Drafting equipment | Account no. 163 | |||
| Date | PR | Debit | Credit | Balance |
| a. | G1 | 60000 | ||
| f. | G1 | 20000 | 80000 |
| Building | Account no. 170 | |||
| Date | PR | Debit | Credit | Balance |
| c. | G1 | 55000 | 55000 | |
| Account payable | Account no. 201 | |||
| Date | PR | Debit | Credit | Balance |
| m. | G1 | 1150 | 1150 | |
| h. | G1 | 1150 | 0 | |
| j. | G1 | 1333 | 1333 |
| Common stock | Account no. 307 | |||
| Date | PR | Debit | Credit | Balance |
| a. | G1 | 165000 | ||
| 165000 |
| Engineering fees earned | Account no. 402 | |||
| Date | PR | Debit | Credit | Balance |
| e. | G1 | 6200 | 6200 | |
| g. | 14000 | 20200 | ||
| i. | 22000 | 42200 |
| Rental expense | Account no. 602 | |||
| Date | PR | Debit | Credit | Balance |
| j. | G1 | 1333 | 1333 |
| Repair | Account no. 604 | |||
| Date | PR | Debit | Credit | Balance |
| n. | G1 | 925 | 925 |
| Land | Account no. 172 | |||
| Date | PR | Debit | Credit | Balance |
| b. | G1 | 49000 | 49000 |
| Note payable | Account no. 250 | |||
| Date | PR | Debit | Credit | Balance |
| b. | G1 | 42700 | 42700 | |
| F | 10500 | 53200 |
| Dividends | Account no. 319 | |||
| Date | PR | Debit | Credit | Balance |
| o. | G1 | 9480 |
| Wages Expense | Account no. 601 | |||
| Date | PR | Debit | Credit | Balance |
| l. | G1 | 1200 | ||
| p. | G1 | 1200 |
| Advertisement Expense | Account no. 601 | |||
| Date | PR | Debit | Credit | Balance |
| q | G1 | 2500 | 2500 | |
3.
Summary Introduction
Introduction: Cash Flow Analysis is a technique used by the company to know the overall worth of the company as well as its subsidiary or branches. Cash flow analysis helps in analyzing the company’s cash outflow and inflow through different activities like financing activities, investing activities, operating activities. This analysis shows how the company generates money or revenue for its working.
To prepare: Trail balance.
3.
Expert Solution
Answer to Problem 5GLP
Total of trail balance is $261733
Explanation of Solution
| HTrail balance30thNov. | ||
| Particular | Dr. | Cr. |
| Cash | 22954 | |
| Account receivable | 29000 | |
| Prepaid insurance | 3000 | |
| Office equipment | 6150 | |
| Drafting equipment | 80000 | |
| Building | 55000 | |
| Land | 49000 | |
| Account payable | 133 | |
| Notes payable | 5300 | |
| Common stock | 165000 | |
| Engineering fees | 42200 | |
| Dividend | 9480 | |
| Wages | 2400 | |
| Equipment rental | 1333 | |
| Advertisement | 2500 | |
| Repair | 925 | |
| Total | 261733 | 261733 |
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Can someone please check my work on this?
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Chapter 2 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
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Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Review the Apple balance sheet in Appendix A....Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Identify the items from the following list that...Ch. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - In a recent year’s financial statements, Home...Ch. 2 - Prob. 13QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Enter the number for the item that best completes...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prepare general journal entries for the following...Ch. 2 - Prob. 12ECh. 2 - Assume the following Taccounts reflect Belle Co.’s...Ch. 2 - Prob. 14ECh. 2 - A corporation had the following assets and...Ch. 2 - Prob. 16ECh. 2 - Use the information in Exercise 216 to prepare an...Ch. 2 - Prob. 18ECh. 2 - Compute the missing amount for each of the...Ch. 2 - Prob. 20ECh. 2 - You are told the column totals in a trial balance...Ch. 2 - a. Calculate the debt ratio and the return on...Ch. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 6PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Nuncio Consulting complete the following...Ch. 2 - Prob. 5PSBCh. 2 - Prob. 6PSBCh. 2 - Prob. 2SPCh. 2 - Prob. 1GLPCh. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Using transactions from the following assignments,...Ch. 2 - Prob. 1FSACh. 2 - Prob. 2FSACh. 2 - Prob. 3FSACh. 2 - Assume that you are a cashier and your manager...Ch. 2 - Prob. 2BTNCh. 2 - Access EDGAR online (SEC.gov) and locate the 2016...Ch. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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