12th Edition

ISBN: 9780134486444

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

Concept explainers

The Effect Of Prepaid Taxes On Assets And Liabilities

Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can resu…

Final Accounts

Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

Ledger Posting

A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the a…

Trial Balance and Final Accounts

In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately…

Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

Videos

Textbook Question

Chapter 2, Problem P2.32APGA

Journalizing transactions, posting journal entries to four-column accounts and preparing a trial balance
Learning Objectives 3, 4
3. Cash Balance $12,500
The trial balance of Shawn Merry, CPA, I5 dated March 31, 2018:

SHAWN MERRY, CPA Trial Balance March 31, 2018
Balance
Account Title	Debit	Credit
Cash	$11,000
Accounts Receivable	16,500
Office Supplies	400
Land	30,000
Furniture	0
Automobile	0
Accounts Payable		$3,800
Unearned Revenue		0
Merry, Capital		52,300
Merry, Withdrawals	0
Service Revenue		82,000
Salaries Expense	5,600
Rent Expense	800
Total	$64,300	$64,300

During April, the business completed the following transactions:

Apr.4	Collected $2,500 cash from a client on account.
8	Performed tax senrices for a client on account, $5,400.
13	Paid $3,000 on account.
14	Purchased furniture on account, $3,600.
15	Merry contributed his personal automobile to the business in exchange for capital. The automobile had a market value of $9,500.
18	Purchased office supplies on account, $900.
19	Received $2,700 for tax services performed on April 8.
20	Merry withdrew cash of $6,500.
21	Received $5,700 cash for consulting work completed.
24	Received $2,400 cash for accounting sen/ices to he completed next month.
27	Paid office rent, $600.
28	Paid employee salary, $1,700.

Requirements

Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Furniture; Automobile; Accounts Payable; Unearned Revenue; Merry; Capital; Merry; Withdrawals; Sen/ice Revenue; Salaries Expense; and Rent Expense. lnclude an explanation for each entry.
Open the four-column ledger accounts listed in the trial balance; together with their balances as of March 31. Use the following account numbers: Cash; 11; Accounts Receivable, 12; Of?ce Supplies; 13; Land; 14; Furniture; 15; Automobile, 16; Accounts Payable; 21; Unearned Revenue; 22; Merry; Capital, 31; Merry; Withdrawals, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense; 52.
Post the joumal entries to four-column accounts in the ledger; using dates, account numbers; joumal references, and posting references. Assume the journal entries were recorded on page 5 of the journal.
Prepare the trial balance of Shawn Merry; CPA; at April 30; 2018.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 2, Problem P2.31APGA

Chapter 2, Problem P2.33APGA

Students have asked these similar questions

Learning Objective 2 S9-3 Applying the direct write-off method to account for uncollectibles S Shawna Valley is an attorney in Los Angeles. Valley uses the direct write-off methoin account for uncollectible receivables. At April 30, 2018, Valley's accounts receivable totaled $19,000. During May, she eama revenue of $22,000 on account and collected $15,000 on account. She also wrote off uncollectible receivables of $1,100 on May 31, 2018. Requirements 1. Use the direct write-off method to journalize Valley's write-off of the uncollecihe receivables. 2. What is Valley's balance of Accounts Receivable at May 31, 2018?

Please provide answer in text (Without image), every entry should have narration please

please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)

Chapter 2 Solutions

Horngren's Accounting (12th Edition)

Ch. 2 - The detailed record of the changes in a particular...Ch. 2 - Which of the following accounts is a liability?...Ch. 2 - The left side of an account is used to record...Ch. 2 - Which of the following statements is correct?...Ch. 2 - Your business purchased office supplies of $2,500...Ch. 2 - Sedlor Properties puchased office supplies on...Ch. 2 - Posting a $2,500 purchase of office supplies on...Ch. 2 - Pixel Copies recorded a cash collection on account...Ch. 2 - Which sequence correctly summarizes the accounting...Ch. 2 - Nathvile Laundry reported assets of $800 and...

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.