12th Edition

ISBN: 9781285637877

Author: NEEDLES

Publisher: Cengage

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Textbook Question

Chapter 2, Problem 9AP

David Roberts began an upholstery cleaning business on August 1 and engaged in the following transactions during the month:

Aug. 1 Began business by depositing $30,000 in a bank account in the name of the company.

2 Ordered cleaning supplies, $6,000.

3 Purchased cleaning equipment for cash, $5,600.

4 Made two months’ van lease payment in advance, $2,400.

7 Received the cleaning supplies ordered on August 2 and agreed to pay half the amount in 10 days and the rest in 30 days.

9 Paid for repairs on the van with cash, $2,160.

12 Received cash for cleaning upholstery, $1,920.

17 Paid half the amount owed on supplies received on August 7, $3,000.

21 Billed customers for cleaning upholstery, $2,680.

24 Paid cash for additional repairs on the van, $160.

27 Received $1,200 from the customers billed on August 21.

31 Made a cash withdrawal of $1,400.

REQUIRED

1. Set up the following T accounts: Cash; Accounts Receivable; Cleaning Supplies; Prepaid Lease; Cleaning Equipment; Accounts Payable; D. Roberts, Capital; D. Roberts, Withdrawals; Cleaning Revenue; and Repair Expense.
2. Record transactions directly in the T accounts. Identify each entry by date.
3. Prepare a trial balance for Roberts Upholstery Cleaning as of August 31, 2014.
4. CONCEPT ► Compare and contrast how the issues of recognition, valuation, and classification are settled in the transactions of August 7 and 9.

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Chapter 2, Problem 8AP

Chapter 2, Problem 10AP

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Chapter 2 Solutions

Principles Of Accounting

Ch. 2 - A company incurs a cost for a part that is needed...Ch. 2 - Prob. 2DQ Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - How are assets and expenses related, and why are...Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Prob. 8DQ Ch. 2 - Tell whether each of the following accounts is an...Ch. 2 - Prob. 2SE

Ch. 2 - Prob. 3SE Ch. 2 - Prob. 4SE Ch. 2 - Prob. 5SE Ch. 2 - Prob. 6SE Ch. 2 - Prob. 7SE Ch. 2 - Prepare a general journal form like the one in...Ch. 2 - Prepare three ledger account forms like the one in...Ch. 2 - Prob. 10SE Ch. 2 - Prob. 11SE Ch. 2 - Prob. 12SE Ch. 2 - Which of the following events would be recognized...Ch. 2 - You are given the following list of accounts with...Ch. 2 - The following ledger accounts are for Afocentric...Ch. 2 - Prob. 4EA Ch. 2 - The accounts that follow are applicable to Harolds...Ch. 2 - Prob. 6EA Ch. 2 - Prob. 7EA Ch. 2 - Prob. 8EA Ch. 2 - After recording the transactions in E6A, prepare a...Ch. 2 - The list that follows presents Shah Companys...Ch. 2 - Which of the following errors would cause a trial...Ch. 2 - Prob. 12EA Ch. 2 - Record the transactions in E6A in the general...Ch. 2 - Prob. 14EA Ch. 2 - Prob. 15EA Ch. 2 - Prob. 16EA Ch. 2 - Highland Design Company creates radio and...Ch. 2 - The following accounts are applicable to Georges...Ch. 2 - Jennifer Lopez opened a school for administrative...Ch. 2 - Sid Patel bid for and won a concession to rent...Ch. 2 - Nordtown Company is a marketing firm. The companys...Ch. 2 - Prob. 6AP Ch. 2 - The following accounts are applicable to Raymonds...Ch. 2 - Prob. 8AP Ch. 2 - David Roberts began an upholstery cleaning...Ch. 2 - Prob. 10AP Ch. 2 - Prob. 1C Ch. 2 - Prob. 2C Ch. 2 - Prob. 3C Ch. 2 - Prob. 4C Ch. 2 - Prob. 5C Ch. 2 - Prob. 6C Ch. 2 - Prob. 7C

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Solution Summary: The author compares the way the issues of recognition, valuation, and classification are settled in the transactions of August 7 and 9.

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