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 7GLP
1.
Summary Introduction
Introduction:
To prepare: The general
1.
Expert Solution
Explanation of Solution
| September | Particular | PR | Dr. | Cr. |
| a. | Cash | 101 | 60,000 | |
| Office Equipment | 163 | 25,000 | ||
| To capital | 301 | 85,000 | ||
| (Owner’s investment) | ||||
| b. | Land | 172 | 40000 | |
| Building | 170 | 16000 | ||
| Cash | 101 | 30000 | ||
| Notes payable | 250 | 170000 | ||
| (To record the purchase of land building with cash and notes payable) | ||||
| c. | Office supplies | 108 | 2000 | |
| To account payable | 201 | 2000 | ||
| (Purchased office equipment and office supplies) | ||||
| d. | Automobile | 164 | 16,500 | |
| Capital | 301 | 16,500 | ||
| (to record the owner’s investment | ||||
| e. | Office equipment | 163 | 5600 | |
| Account payable | 201 | 5600 | ||
| (to record the purchased office equipment on credit) | ||||
| f. | Salaries expense | 601 | 1800 | |
| To cash | 101 | 1800 | ||
| (to record the cash paid for salary) | ||||
| G | Cash | 101 | 8000 | |
| Fees earned | 402 | 8000 | ||
| h. | Utilities expense | 602 | 635 | |
| To Cash | 101 | 635 | ||
| (Paid cash for utilities) | ||||
| i. | Account payable | 201 | 2000 | |
| Cash | 101 | 2000 | ||
| (to record the cash paid that was due) | ||||
| j. | Office equipment | 163 | 20300 | |
| Cash | 101 | 20300 | ||
| (to record the purchase of office equipment by paying cash) | ||||
| K | 106 | 6250 | ||
| Fees earn | 406 | 6250 | ||
| (to record the service provided on credit) | ||||
| l. | Salaries expenses | 601 | 1800 | |
| Cash | 101 | 1800 | ||
| m. | Cash | 101 | 4000 | |
| Account receivable | 106 | 4000 | ||
| N | Withdrawals | 302 | 2800 | |
| Cash | 101 | 2800 | ||
| (being cash withdrawals ) | ||||
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 company generates money or revenue for its working.
To prepare: Ledger for the following transactions.
2.
Expert Solution
Answer to Problem 7GLP
Balance of cash ledger is $12665, account receivable $2250, office supplies $2000, office equipment $50900, salary $3600
Explanation of Solution
| Cash Account No.101 | ||||
| Date | PR | Debit | Credit | Balance |
| a. | G1 | 60000 | 60000 | |
| b. | G1 | 30000 | 30000 | |
| f. | G1 | 1800 | 28200 | |
| g. | G1 | 8000 | 36200 | |
| h. | G1 | 635 | 35565 | |
| i. | G1 | 2000 | 33565 | |
| j. | G1 | 2030 | 13265 | |
| l. | G1 | 1800 | 11465 | |
| m. | 4000 | 15465 | ||
| n. | 2800 | 12665 | ||
| Account receivable | Account no.106 | |||
| Date | PR | Debit | Credit | Balance |
| k. | G1 | 6250 | 6250 | |
| M | G1 | 4000 | 2250 | |
| Office supplies | Account no. 108 | |||
| Date | PR | Debit | Credit | Balance |
| c. | G1 | 2000 | 2000 |
| Office equipment | Account no. 163 | |||
| Date | PR | Debit | Credit | Balance |
| a. | G1 | 25000 | 25000 | |
| e. | G1 | 5600 | 30600 | |
| j. | G1 | 20300 | 50900 |
| Automobile | Account no. 164 | |||
| Date | PR | Debit | Credit | Balance |
| d. | G1 | 16500 | 16500 | |
| Building | Account no. 170 | |||
| Date | PR | Debit | Credit | Balance |
| b. | G1 | 160,000 | 160,000 | |
| Land | Account no. 172 | |||
| Date | PR | Debit | Credit | Balance |
| b. | G1 | 40000 | 40000 | |
| Account payable | Account no. 201 | |||
| Date | PR | Debit | Credit | Balance |
| c. | G1 | 2000 | 2000 | |
| e. | 5600 | 7600 | ||
| I | 2000 | 5600 |
| Note payable | Account no. 250 | |||
| Date | PR | Debit | Credit | Balance |
| b. | G1 | 170000 | 170000 |
| Capital | Account no. 301 | |||
| Date | PR | Debit | Credit | Balance |
| a. | G1 | 85000 | 85000 | |
| d. | G1 | 16500 | 101500 | |
| G1 | ||||
| Withdrawals | Account no. 302 | |||
| Date | PR | Debit | Credit | Balance |
| n. | G1 | 2800 | 2800 |
| Fees earn | Account no. 402 | |||
| Date | PR | Debit | Credit | Balance |
| g. | G1 | 8000 | 8000 | |
| k. | G1 | 6250 | 14250 |
| Utilities Expense | Account no. 602 | |||
| Date | PR | Debit | Credit | Balance |
| h. | G1 | 635 | 635 |
| Salaries | Account no. 601 | |||
| Date | PR | Debit | Credit | Balance |
| f. | G1 | 1800 | 1800 | |
| l. | G1 | 1800 | 3600 |
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 7GLP
Total of trail balance is $291,350
Explanation of Solution
| Trail balance | ||
| Particular | Dr. | Cr. |
| Cash | 12665 | |
| Account receivable | 2250 | |
| Office supplies | 2000 | |
| Land | 40,000 | |
| Automobile | 16,500 | |
| Office equipment | 50,900 | |
| Account payable | 5600 | |
| Note Payable | 170,000 | |
| Capital | 101,500 | |
| Withdrawals | 2800 | |
| Fees earn | 14,250 | |
| Utilities | 635 | |
| Salaries expense | 3600 | |
| Total | 291,350 | 291,350 |
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Chapter 2 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Should a transaction be recorded first in a...Ch. 2 - Prob. 7DQCh. 2 - Why does the recordkeeper prepare a trial balance?Ch. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
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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