Cornerstones of Financial Accounting - With CengageNow
4th Edition
ISBN: 9781337760959
Author: Rich
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 2, Problem 69.1C
To determine
Journal Entries:
Journal entries are medium of recording business transactions. A business enterprise must record all the business transaction to evaluate net income or loss and analyze the financial performance of a company during a specified accounting period.
Journalize transactions which occurred during the month of January.
Expert Solution & Answer
Answer to Problem 69.1C
| Date | Accounts and Explanation | Debit | Credit |
| Jan. | |||
| 1 | Cash | $16,000 | |
| Common Stock | $16,000 | ||
| 1 | Cash | 25,000 | |
| Notes Payable | 25,000 | ||
| 1 | Legal Expense | 1,200 | |
| Cash | 1,200 | ||
| 1 | Equipment | 7,000 | |
| Cash | 7,000 | ||
| 1 | Rent Expense | 800 | |
| Cash | 800 | ||
| 3 | Prepaid Insurance | 3,600 | |
| Cash | 3,600 | ||
| 3 | Supplies | 2,500 | |
| Accounts Payable | 2,500 | ||
| 5 | No | ||
| 8 | Prepaid Rent | 10,000 | |
| Cash | 10,000 | ||
| 12 | Advertising Expense | 4,500 | |
| Cash | 4,500 | ||
| 18 | Accounts Payable | 1,000 | |
| Cash | 1,000 | ||
| 25 | Cash | 400 | |
| 600 | |||
| Sales Revenue | 1,000 | ||
| 25 | Artist Fee Expense | 800 | |
| Cash | 800 | ||
| 28 | Cash | 3,800 | |
| Unearned Sales Revenue | 3,800 | ||
| 30 | Cash | 200 | |
| Accounts Receivable | 200 | ||
| 30 | Salaries Expense | 2,400 | |
| Cash | 2,400 | ||
Explanation of Solution
| Date | Assets | Liabilities | Equity |
| Jan. | |||
| 1 | Cash (Increase) | Common Stock (Increase) | |
| 1 | Cash (Increase) | Notes Payable (Increase) | |
| 1 | Cash (Decrease) | Legal Expense (Decrease) | |
| 1 | Equipment (Increase) | ||
| Cash (Decrease) | |||
| 1 | Cash (Decrease) | Rent Expense (Decrease) | |
| 3 | Prepaid Insurance (Increase) | ||
| Cash (Decrease) | |||
| 3 | Supplies (Increase) | Accounts Payable (Increase) | |
| 8 | Prepaid Rent (Increase) | ||
| Cash (Decrease) | |||
| 12 | Cash (Decrease) | Advertising Expense (Decrease) | |
| 18 | Cash (Decrease) | Accounts Payable (Decrease) | |
| 25 | Cash (Increase) | Sales Revenue (Increase) | |
| Accounts Receivable (Increase) | |||
| 25 | Cash (Decrease) | Artist Fee Expense (Decrease) | |
| 28 | Cash (Increase) | Unearned Sales Revenue (Increase) | |
| 30 | Cash (Increase) | ||
| Accounts Receivable (Decrease) | |||
| 30 | Cash (Decrease) | Salaries Expense (Decrease) | |
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Victoria, Wilda and Xenia are partners in a consultancy firm which commenced its operation on July 1, 2018. Victoria is the managing partner. As per agreement for sharing profits, the managing partner will receive a salary of P12,000 per month and the remaining profit will be shared by the partners equally. On December 31, 2018, the firm determined that its income was P 300,000. How much will Wilda receive as her share in the profit?
A. P 76,000
B. P 96,000
C. P 52,000
D. P 84,000
Nita and Bona's entrepreneurs agreed to invest cash to put up a business selling signature bags. They agreed to share profits based on the legal provision. The following are the ledger postings for 2019
Please Do not Give image format
Chapter 2 Solutions
Cornerstones of Financial Accounting - With CengageNow
Ch. 2 - What is the conceptual framework of accounting?Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the constraint on providing useful...Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Of all the events that occur each day, how would...Ch. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - In analyzing a transaction, can a transaction only...Ch. 2 - How do revenues and expenses affect the accounting...Ch. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - The words debit and credit are used in two ways in...Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 19DQCh. 2 - Prob. 20DQCh. 2 - Prob. 21DQCh. 2 - Prob. 22DQCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Which principle requires that expenses be recorded...Ch. 2 - Taylor Company recently purchased a piece of...Ch. 2 - Prob. 8MCQCh. 2 - The effects of paying salaries for the current...Ch. 2 - Which of the following statements is false? The...Ch. 2 - Which of the following statements are true? Debits...Ch. 2 - Debits will: increase assets. expenses, and...Ch. 2 - Which of the following statements are true? A...Ch. 2 - Posting: involves transferring the information in...Ch. 2 - A trial balance: lists only revenue and expense...Ch. 2 - CORNERSTONE 2.1 Cornerstone Exercise 2-16...Ch. 2 - Prob. 17CECh. 2 - CORNERSTONE 2.1 Four statements are given below....Ch. 2 - Prob. 19CECh. 2 - Cornerstone Exercise 2-20 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-21 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-22 Transaction Analysis The...Ch. 2 - Cornerstone Exercise 2-23 Debit and Credit...Ch. 2 - Cornerstone Exercise 2-24 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-25 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-26 Preparing a Trial...Ch. 2 - Prob. 27BECh. 2 - Brief Exercise 2-28 Assumptions and Principles...Ch. 2 - Brief Exercise 2-2? Events and Transactions...Ch. 2 - Brief Exercise 2-30 Transaction Analysis Galle...Ch. 2 - Brief Exercise 2-31 Debit and Credit Procedures...Ch. 2 - Brief Exercise 2-32 Journalize Transactions Galle...Ch. 2 - Brief Exercise 2-33 Posting Journal Entries Listed...Ch. 2 - Brief Exercise 2-34 Preparing a Trial Balance The...Ch. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Exercise 2-37 Events and Transactions Several...Ch. 2 - Exercise 2-38 Events and Transactions The...Ch. 2 - Exercise 2-39 Transaction Analysis OBJECTIVE e The...Ch. 2 - Exercise 2-40 Transaction Analysis Amanda Webb...Ch. 2 - Exercise 2-41 Transaction Analysis and Business...Ch. 2 - Exercise 2-42 Inferring Transactions from Balance...Ch. 2 - Exercise 2-43 Transaction Analysis Goal Systems, a...Ch. 2 - Exercise 2-44 Transaction Analysis OBJECTIVE 9...Ch. 2 - Prob. 45ECh. 2 - Exercise 2-46 Normal Balances and Financial...Ch. 2 - OBJECTIVE 9 Exercise 2-47 Debit and Credit Effects...Ch. 2 - Prob. 48ECh. 2 - Exercise 2-49 Journalizing Transactions Kauai...Ch. 2 - Exercise 2-50 Journalizing Transactions Remington...Ch. 2 - Exercise 2-51 Transaction Analysis and Journal...Ch. 2 - Exercise 2-52 Accounting Cycle Rosenthal...Ch. 2 - Exercise 2-53 Preparing a Trial Balance...Ch. 2 - Exercise 2-54 Effect of Errors on a Trial Balance...Ch. 2 - Problem 2-55A Events and Transactions The...Ch. 2 - Problem 2-56A Analyzing Transactions Luis Madero,...Ch. 2 - Problem 2-57A Inferring Transactions from...Ch. 2 - Prob. 58APSACh. 2 - Problem 2-59A Journalizing Transactions Monroe...Ch. 2 - Problem 2-60A Journalizing and Posting...Ch. 2 - Problem 2-61A The Accounting Cycle Karleens...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 55BPSBCh. 2 - Prob. 56BPSBCh. 2 - Prob. 57BPSBCh. 2 - Problem 2-58B Debit and Credit Procedures A list...Ch. 2 - Problem 2-593 Journalizing Transactions Monilast...Ch. 2 - Problem 2-603 Journalizing and Posting...Ch. 2 - Problem 2-6B The Accounting Cycle Sweetwater...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 63.1CCh. 2 - Prob. 63.2CCh. 2 - Prob. 63.3CCh. 2 - Prob. 64.1CCh. 2 - Prob. 64.2CCh. 2 - Case 2-64 Analysis of the Effects of Current Asset...Ch. 2 - Prob. 64.4CCh. 2 - Prob. 65.1CCh. 2 - Prob. 65.2CCh. 2 - Prob. 66.1CCh. 2 - Prob. 66.2CCh. 2 - Prob. 66.3CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Prob. 67.2CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Case 2-68 Accounting for Partially Completed...Ch. 2 - Prob. 68.2CCh. 2 - Prob. 69.1CCh. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...Ch. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...
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
- Skip to question While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat (GTE), specializes in custom-sculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of 2023, and each contributed $140,000 in exchange for a 50 percent ownership interest. GTE also borrowed $560,000 from a local bank Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTE's 2023 activities: GTE uses the cash method of accounting (for both book and tax purposes) and reports income on a calendar-year basis. GTE received $900,000 of sales revenue and reported $420,000 of cost of goods sold (it did not have any ending inventory). GTE paid $75,000 compensation to James, $75,000 compensation to Paul, and $85,000 of compensation to…arrow_forwardsarrow_forwardDhapaarrow_forward
- 4. On July 1, 2020, Kyla and Niza formed Fashion and Style Partnership organized to train young fashion designers and help them gain confidence in their career with an initial investment of P1,000,000 and P2,000,000, respectively. Kyla is appointed as the managing partner. The articles of co-partnership provides that profit or loss shall be distributed accordingly: o 30% interest on original capital contribution ratio o Monthly salary of P20,000 and P10,000 respectively for Kyla and Niza. o Kyla shall be entitled to bonus equivalent to 20% of net income after interest, salary and bonus. o The remainder shall be distributed in the ratio of 3:2 for Kyla and Niza respectively For the year ended December 31, 2020, the partnership reported net income of P750,000. a. What is the share of Kyla in the net income of the partnership? b. What is the share of Niza in the net income of the partnership assuming the bonus is based on net income after interest and salary but before bonus?arrow_forwardOn April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau Lavoi Contribution $304,000 cash $202,000 land $144,900 building Profit sharing $184,800 salary allowance 5% of original capital investments 5% of original capital investments 40% of remaining 60% of remaining Cash withdrawal March 20, 2023 $129,800 Net Income during the year was $509,600 and was in the Income Summary account.On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity.Required:1. Prepare journal entries for the following dates.a. April 1, 2022arrow_forwardsarrow_forward
- Alford, Beeson, and Carlton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Alford Beeson Carlton Due to a cash shortage, Alford invests an additional $10,000 in the business on April 1, 2024. Each partner is allowed to withdraw $600 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: • Each partner is given the following compensation allowance for work done in the business: Alford, $14,000; Beeson, $30,000; and Carlton, $4,000. $ 94,000 74,000 20,000 • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. • Any remaining profit or loss is allocated 5.3.2 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $27,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showing calculations for the…arrow_forwardImportant Note! Before you start working on this problem, watch the Hint video. This video shows you exactly how to work this problem. Moss and Barber organize a partnership on January 1. Moss's initial net investment is $79,000, consisting of cash ($21,000), equipment ($73,000), and a note payable reflecting a bank loan for the new business ($15,000). Barber's initial investment is cash of $35,000. Prepare journal entries to record (1) Moss's investment and (2) Barber's investment. No A B Transaction (1) (2) Cash Equipment Note payable Moss, Capital Cash Barber, Capital Answer is not complete. General Journal 0000 30 Debit Creditarrow_forwardAlford, Beeson, and Carlton have operated a coffee shop for a number of years as a partnership. At the beginning of 2024, capital balances were as follows: Alford Beeson Carlton Due to a cash shortage, Alford invests an additional $10,000 in the business on April 1, 2024. Each partner is allowed to withdraw $800 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: Each partner is given the following compensation allowance for work done in the business: Alford, $15,000; Beeson, $25,000; and Carlton, $8,000. $ 84,000 64,000 20,000 • Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 5:2:3 to Alford, Beeson, and Carlton, respectively. The net income for 2024 is $26,000. Each partner withdraws the allotted amount each month. Required: Prepare a schedule showing calculations for the…arrow_forward
- Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2021, capital balances were as follows: Purkerson Smith Traynor ● Due to a cash shortage, Purkerson invests an additional $14,000 in the business on April 1, 2021. Each partner is allowed to withdraw $1,000 cash each month. The partners have used the same method of allocating profits and losses since the business's inception: $ 88,000 68,000 20,000 Each partner is given the following compensation allowance for work done in the business: Purkerson, $11,000; Smith, $27,000; and Traynor, $4,000. Each partner is credited with interest equal to 20 percent of the average monthly capital balance for the year without regard for normal drawings. Any remaining profit or loss is allocated 4:3:3 to Purkerson, Smith, and Traynor, respectively. The net income for 2021 is $30,000. Each partner withdraws the allotted amount each month. Prepare a schedule showing calculations for the…arrow_forwardCan I please get help with this question?(6.5) Ries, Bax, and Thomas invested $48,000, $64,000, and $72,000, respectively, in a partnership. During its first calendar year, the firm earned $416,100. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $416,100 net income under each of the following separate assumptions. 3. The partners agreed to share income and loss by providing annual salary allowances of $39,000 to Ries, $34,000 to Bax, and $46,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.arrow_forwardHardevarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License