College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Textbook Question
Chapter 3, Problem 13SPB
T ACCOUNTS AND
The following transacrions occurred during August:
- (a) Invested cash in the business, $30,000.
- (b) Purchased a used van for cash, $8,000.
- (c) Purchased plumbing equipment on account, $4,000.
- (d) Received cash for services rendered, $3,000.
- (e) Paid cash on account owed from transaction (c), $1,000.
- (f) Paid rent for the month, $700.
- (g) Paid phone bill, $100.
- (h) Earned revenue on account, $4,000.
- (i) Purchased office supplies for cash, $300.
- (j) Paid wages to student, $500.
- (k) Purchased a one-year insurance policy, $800.
- (l) Received cash from services performed in transaction (h), $3,000.
- (m) Paid cash for advertising expense, $2,000.
- (n) Purchased additional plumbing equipment for $2,000, paying $500 cash and spreading the remaining payments over the next six months.
- (o) Earned revenue from services for the remainder of the month of $2,800: $1,100 in cash and $1,700 on account.
- (p) Withdrew cash at the end of the month, $3,000.
REQUIRED
- 1. Enter the transactions in T accounts, identifying each transaction with its responding letter.
- 2. Foot and balance the accounts where necessary.
- 3. Prepare a trial balance as of August 31, 20--.
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Consider each of the transaction below independently. All expenditures were made in cash
In march, the Cleanway Laundromat bought equipment. Cleanway paid $5,000 down and signed a noninterest-bearing note requiring the payment of $30,000 in nine months. The cash price for the equipment was $34,000.
Prepare all necessary journal entries to record each the transaction. Use this format:
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DR
CR
how to fill in the boxes
O In June, a local Amtrak office established a petty cash fund with Terrell Noman as its
custodian. Terrell received and cashed a company check of $175 to establish the fund.
During that month, Terrell paid cash from the fund for supplies ($30), delivery charges
($80), and other minor office expenses ($40). On July 10, he received a company check
for $150 to replenish the fund.
Required:
1. Prepare the journal entry required in June.
2. Prepare the journal entry required in July.
3. Explain why it may be appropriate or inappropriate to wait until July to record the
payments from the petty cash fund.
Chapter 3 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 3 - LO3 To debit an account is to enter an amount on...Ch. 3 - Liability accounts normally have debit balances.Ch. 3 - LO3 Increases in owners equity are entered as...Ch. 3 - Prob. 4TFCh. 3 - LO3 To credit an account is to enter an amount on...Ch. 3 - LO3 A debit to an asset account will decrease it.Ch. 3 - A common example of an asset is (a) Professional...Ch. 3 - The accounting equation may be expressed as (a)...Ch. 3 - LO3 Liability, owners equity, and revenue accounts...Ch. 3 - LO4 To record the payment of rent expense, an...
Ch. 3 - Prob. 5MCCh. 3 - Foot and balance the accounts receivable T account...Ch. 3 - LO3 Complete the following questions using either...Ch. 3 - Analyze the following transaction using the T...Ch. 3 - The following accounts have normal balances....Ch. 3 - What are the three major parts of a T account?Ch. 3 - Prob. 2RQCh. 3 - What is a footing?Ch. 3 - What is the relationship between the revenue and...Ch. 3 - What is the function of the trial balance?Ch. 3 - Prob. 1SEACh. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Richard Gibbs began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp started a business...Ch. 3 - TRANSACTION ANALYSIS Linda Kipp starred a business...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Charles Chadwick opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - Provided below is a trial balance for Juanitas...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Wilhelm Kohl started...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - FOOT AND BALANCE A T ACCOUNT Foot and balance the...Ch. 3 - DEBIT AND CREDIT ANALYSIS Complete the following...Ch. 3 - ANALYSIS OF T ACCOUNTS Roberto Alvarez began a...Ch. 3 - NORMAL BALANCE OF ACCOUNT Indicate the normal...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - TRANSACTION ANALYSIS George Atlas started a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - ANALYSIS OF TRANSACTIONS Nicole Lawrence opened a...Ch. 3 - TRIAL BALANCE The following accounts have normal...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - Provided below is a trial balance for Bills...Ch. 3 - T ACCOUNTS AND TRIAL BALANCE Sue Jantz started a...Ch. 3 - NET INCOME AND CHANGE IN OWNERS EQUITY Refer to...Ch. 3 - FINANCIAL STATEMENTS Refer to the trial balance in...Ch. 3 - Craig Fisher started a lawn service called Craigs...Ch. 3 - Your friend Chris Stevick started a part-time...
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