
Concept explainers
Concept Introduction:
General Ledger:
The grouping of similar nature transactions of a business that helps to prepare the financial statement is known as General ledger.
Subsidiary Ledger:
It is the supporting ledger for preparing the general ledger that gives detailed information.
Requirement 1:
To Prepare:
Open all the general ledger accounts concerned with the transactions which occurred in the month of March and prepare all the
Concept Introduction:
Sales Journal:
Sales journal is concerned with all the credit sales occurred during an accounting period.
Cash Receipt Journal:
The specific journal where all the
Purchase Journal:
The journal where all the credit purchases are recorded is termed as purchase journal.
Cash Payment Journal:
Cash payment journal shows all the cash payment made by the business organization.
Requirement 2:
To Show:
Show all these transactions in a sales journal, purchase journal, cash receipts journal, cash payments journal, or general journal.
Concept Introduction:
The listing of all accounts in debits and credits is known as Trial balance.
Requirement 3:
To Prepare:
(a) Prepare a trial balance of the general ledger.
(b) Prove the accuracy of the subsidiary ledgers by preparing schedule of both accounts receivable and accounts payable.

Want to see the full answer?
Check out a sample textbook solution
Chapter 7 Solutions
Fundamental Accounting Principles
- Evergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Date Placed in Asset Service Original Basis Machinery October 25 $ 120,000 Computer equipment February 3 47,500 Used delivery truck* August 17 Furniture April 22 60,500 212,500 *The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. b. What is the allowable depreciation on Evergreen's property in the current year if Evergreen does not elect out of bonus depreciation and elects out of §179 expense? Depreciation $ 440,500arrow_forwardLina purchased a new car for use in her business during 2024. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2024 and 2025 (Lina doesn't want to take bonus depreciation for 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) e. The vehicle cost $85,000, and she used it 20 percent for business. Year Depreciation deduction 2024 2025arrow_forwardLina purchased a new car for use in her business during 2024. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2024 and 2025 (Lina doesn't want to take bonus depreciation for 2024) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) b. The vehicle cost $85,000, and business use is 100 percent. Year Depreciation deduction 2024 2025arrow_forward
- What adjusting journal entry should be recorded to account for the expiration of this asset on these financial accounting question?arrow_forwardAssume that ACW Corporation has 2024 taxable income of $1,720,000 for purposes of computing the §179 expense. The company acquired the following assets during 2024 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Asset Machinery Placed in Service September 12 Basis $ 492,000 Computer equipment Delivery truck February 10 August 21 Qualified real property (MACRS, 15 year, 150% DB) April 2 Total 92,000 115,000 1,402,000 $ 2,101,000 a. What is the maximum amount of §179 expense ACW may deduct for 2024? b. What is the maximum total depreciation that ACW may deduct in 2024 on the assets it placed in service in 2024? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2024 b. Maximum total deductible depreciation for 2024arrow_forwardSolve fastlyarrow_forward
- What is the return on common stockholders equity for these financial accounting question?arrow_forwardEvergreen Corporation (calendar-year-end) acquired the following assets during the current year: (Use MACRS Table 1 and Table 2.) Date Placed in Asset Machinery Service October 25 Original Basis $ 120,000 Computer equipment February 3 47,500 Used delivery truck* August 17 Furniture April 22 60,500 212,500 The delivery truck is not a luxury automobile. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. What is the allowable depreciation on Evergreen's property in the current year, assuming Evergreen does not elect §179 expense and elects out of bonus depreciation? Depreciation $ 69,096arrow_forwardwhat is the question answer ? general accounting questionarrow_forward
- Financial Accountingarrow_forwardsubject: general accounting questionarrow_forwardNicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $ 40,500 March 1-March 30 wages March 30 6,550 March 1-March 30 rent Stock issuance costs March 30 2,850 April 1-May 30 wages Note: Leave no answer blank. Enter zero if applicable. April 1 May 30 24,000 16,375 a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation? Start-up costs Organizational expendituresarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





