1. Explanation T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit, and the right hand side is known as credit. Prepare T-accounts for the given transactions as follows: Cash Aug. 1 6,500 Aug. 2 2,100 20 3,331 5 880 31 675 Balance 6,176 Office supplies Aug. 5 880 Prepaid Insurance Aug. 2 2100 Photography Equipment Aug. 1 33500 Common Stock Aug. 1 40,000 Photography Fees Earned Aug. 20 3,331 Utilities Expense Aug. 31 675 Working note: August, 1 – Owner invested $6,500 cash and $33,500 of photography equipment in the exchange for common stock Date Account Title and Explanation Post Ref. Debit ($) Credit ($) August, 1 Cash 6,500 Photography equipment 33,500 Common Stock 40,000 (To record owner invested cash and equipment for stock) Table (1) Cash is an asset account, and it increases the value of assets by $6,500. Hence, debit the cash account for $6,500. Photography equipment is an asset account, and it increases the value of assets by $33,500. Hence, debit the photography equipment account for $33,500. Common stock is a component of equity, and it increases the value of equity by $40,000. Hence, credit the common stock account for $40,000. August, 2 – The Company paid $2,100 cash for an insurance policy covering the next 24 months. Date Account Title and Explanation Post Ref. Debit ($) Credit ($) August, 2 Prepaid insurance 2,100 Cash 2,100 (To record prepaid insurance paid in cash) Table (2) Prepaid insurance is an asset account, and it increases the value of assets by $2,100... 2. To determine Prepare trial balance of Company P on August, 31

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ISBN: 9780077632892

Author: John J. Wild

Publisher: McGraw Hill

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Chapter 2, Problem 8E

To determine

Prepare T-accounts for the given transactions.

To determine

Prepare trial balance of Company P on August, 31

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Chapter 2, Problem 7E

Chapter 2, Problem 9E

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Chapter 2 Solutions

Principles of Financial Accounting.

Ch. 2 - Amalia Company received its utility bill for the...Ch. 2 - On May 1, Mattingly Lawn Service collected 2,500...Ch. 2 - Prob. 3MCQ Ch. 2 - A trial balance prepared at year-end shows total...Ch. 2 - Prob. 5MCQ Ch. 2 - Prob. 1DQ Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Are debits or credits typically listed first in...

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 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 2 - Which financial statement is sometimes called the...Ch. 2 - APPLE Review the Apple balance sheet in Appendix...Ch. 2 - Prob. 17DQ Ch. 2 - Prob. 18DQ Ch. 2 - Prob. 1QS Ch. 2 - Identifying financial statement accounts C2...Ch. 2 - Prob. 3QS Ch. 2 - Prob. 4QS Ch. 2 - Linking debit or credit with normal balance C4...Ch. 2 - Analyzing transactions and preparing journal...Ch. 2 - Prob. 7QS Ch. 2 - Identifying a posting error A trial balance has...Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS Ch. 2 - Prob. 1E 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 - Identifying effects of posting errors on the trial...Ch. 2 - Analyzing a trial balance error You are told the...Ch. 2 - Prob. 22E Ch. 2 - Prob. 23E Ch. 2 - Prob. 5AP Ch. 2 - Prob. 6AP Ch. 2 - Prob. 5BP Ch. 2 - Prob. 6BP Ch. 2 - Prob. 2SP Ch. 2 - Prob. 1BTN Ch. 2 - Prob. 2BTN Ch. 2 - Prob. 3BTN Ch. 2 - COMMUNICATING IN PRACTICE Lila Corentine is an...Ch. 2 - Prob. 5BTN Ch. 2 - Prob. 7BTN Ch. 2 - Prob. 8BTN Ch. 2 - Prob. 10BTN

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