ACC557 Week 2 Homework Exercise 2-6 a. 1. 2. 3. Increase the asset Cash, increase the liability Notes Payable. Increase the asset Equipment, decrease the asset Cash. Increase the asset Supplies, increase the liability Accounts Payable. b. 1. Cash ……………………………………………………………….... Notes Payable ................................................................. Equipment ................................................................................ Cash ................................................................................. Supplies ..................................................................................... Accounts Payable………………………………………. 2. 3. 450 Exercise 2-9 a. Aug. 1 10 31 Balance Cash 5,000 Aug. 12 2,700 850 7,550 Aug. 25 Balance Accounts Receivable 1,600 Aug. 31 750 Aug. 12 Equipment 5,000 1,000 850 Notes Payable Aug. 12 4,000 Common Stock Aug.1 5,000 5,000 5,000 2,500 2,500 450 Service Revenue Aug.10 25 Balance (b) 2,700 1,600 4,300 ROBERTA MENDEZ, INVESTMENT BROKER Trial Balance August 31, 2014 Debit Credit Cash.................................................................................................... Accounts Receivable .......................................................................... Equipment .......................................................................................... Notes Payable..................................................................................... Common Stock................................................................................... Service Revenue................................................................................. $ 7,550 750 5,000 $13,300 Exercise 2-11 $ 4,000 5,000 4,300 $13,300 Debit Credit Oct. Oct. Oct. Oct. 1 10 10 20 Cash............................................................................ Common Stock........................................................... (Issued shares of stock for cash) 5,000 Cash............................................................................ Service Revenue......................................................... (Received cash for services provided) 650 Cash.................................................................................... Notes Payable............................................................. (Obtained loan from bank) 3,000 Cash.................................................................................... 500 5,000 650 3,000 Accounts Receivable .................................................. (Received cash in payment of account) Oct. 20 500 Accounts Receivable ........................................................... Service Revenue......................................................... (Billed clients for services provided) 940 940 b. Sparks Co. Trial Balance October 31, 2014 Debit Credit Cash.............................................................................................. Accounts Receivable .................................................................... Supplies ........................................................................................ Equipment ................................................................................... Notes Payable............................................................................... Accounts Payable ......................................................................... Common Stock............................................................................. Dividends ..................................................................................... Service Revenue........................................................................... Salaries and Wages Expense ........................................................ Rent Expense ............................................................................... $ 8,170 1,240 400 2,000 $ 3,000 500 7,000 300 2,390 500 280 $12,890 $12,890 Problems P2-2A (a) . May 1 2 Cash ........................................................................... Common Stock ................................................. (Issued shares of stock for cash) No entry—not a transaction. Debit Credit 20,000 20,000 3 7 11 12 17 31 31 Supplies ..................................................................... Accounts Payable ............................................. (Purchased supplies on account) 1,500 Rent Expense............................................................. Cash .................................................................. (Paid office rent) 900 Accounts Receivable ................................................. Service Revenue ............................................... (Billed client for services provided) 2,800 Cash .......................................................................... Unearned Service Revenue .............................. (Received cash for future services) 3,500 Cash .......................................................................... Service Revenue ............................................... (Received cash for services provided) 1,200 Salaries and Wages Expense ..................................... Cash .................................................................. (Paid salaries) 2,000 Accounts Payable ($1,500 X 40%) ............................. Cash ................................................................. (Paid creditor on account) 600 1,500 900 2,800 3,500 1,200 2,000 600 (b) Cash Date May 1 7 12 Debit 20,000 Credit 900 3,500 Balance 20,000 19,100 22,600 17 31 31 1,200 2,000 600 23,800 21,800 21,200 Credit Balance Accounts Receivable Date Debit May 11 2,800 2,800 Supplies Date May Debit 3 Credit 1,500 Balance 1,500 Accounts Payable Date Explanation May 3 31 Debit Credit Balance 1,500 1500 900 Credit Balance 3,500 3,500 Credit Balance 20,000 20,000 Credit Balance 2,800 1,200 2,800 4,000 600 Unearned Service Revenue Date Debit May 12 Common Stock Date May Debit 1 Service Revenue Date May 11 17 Debit Salaries and Wages Expense Date Debit May 31 2,000 Credit Balance 2,000 Rent Expense Date Debit May 7 (c) Credit 900 Balance 900 KARA SHIN, INC. Trial Balance May 31, 2014 Debit Credit Cash.............................................................................................. Accounts Receivable .................................................................... Supplies ........................................................................................ Accounts Payable ......................................................................... Unearned Service Revenue .......................................................... Common Stock............................................................................. Service Revenue........................................................................... Salaries and Wages Expense ........................................................ Rent Expense ............................................................................... Chapter 2 homework screenshot Exercise 2-6 Your answer is correct. Elvira Industries had the following transactions. 1. Borrowed $5,000 from the bank by signing a note. 2. Paid $2,500 cash for a computer. $21,200 2,800 1,500 $ 900 3,500 20,000 4,000 2,000 900 $28,400 $28,400 3. Purchased $450 of supplies on account. (a) Indicate what accounts are increased and decreased by each transaction. Debit Analysis Credit Analysis 1 . Increase the asset Cash Increase the liability Notes Payable 2 . Increase the asset Equipment Decrease the asset Cash 3 . Increase the asset Supplies Increase the liability Accounts Pay (b) Journalize each transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation 1. Cash Debit 5000 Notes Payable 2. Equipment Supplies Accounts Pay Click here if you would like to Show Work for this question 5000 2500 Cash 3. Credit 2500 450 450 Question Attempts: 1 of 3 used . Exercise 2-9 Selected transactions from the journal of Roberta Mendez, investment broker, are presented below. Date Account Titles and Explanation Aug.1 Cash Ref. Debit Credit 5,000 Common Stock 5,000 (Investment of cash for stock) 10 Cash 2,700 Service Revenue 2,700 (Received cash for services provided) 12 Equipment 5,000 Cash 1,000 Notes Payable 4,000 (Purchased office equipment for cash and notes payable) 25 Accounts Receivable 1,600 Service Revenue 1,600 (Billed clients for services provided) 31 Cash Accounts Receivable 850 850 (Receipt of cash on account) (a) Your answer is correct. Post the transactions to T accounts. (Post entries in the order displayed in the problem statement.) Cash Aug. 1 5000 Aug. 10 2700 Aug. 31 850 Bal. 7550 Aug. 12 1000 Accounts Receivable Aug. 25 1600 Bal. 750 Aug. 31 850 Equipment Aug. 12 5000 Notes Payable Aug. 12 4000 Common Stock 5000 Aug. 1 Service Revenue Aug. 10 2700 Aug. 25 1600 Bal. 4300 Click here if you would like to Show Work for this question Attempts: 1 of 3 used (b) Your answer is correct. Prepare a trial balance at August 31, 2014. ROBERTA MENDEZ, INVESTMENT BROKER Trial Balance August 31, 2014 Debit Cash $ 7550 Accounts Rec 750 Equipment 5000 Credit $ Notes Payable 4000 Common Stock 5000 Service Reven 4300 $ 13300 $ 13300 Click here if you would like to Show Work for this question Attempts: 1 of 3 used Exercise 2-11 Presented below is the ledger for Sparks Co. Cash No. 101 10/1 5,000 10/4 400 10/10 650 10/12 1,500 10/10 3,000 10/15 280 10/20 500 10/30 300 10/25 2,000 10/31 500 Accounts Receivable No. 112 10/6 800 10/20 10/20 940 500 Supplies No. 126 10/4 400 Equipment No. 157 10/3 2,000 Balance Notes Payable No. 200 10/10 3,000 Accounts Payable No. 201 10/12 1,500 10/3 2,000 Common Stock No. 311 10/1 5,000 10/25 2,000 Dividends No. 332 10/30 300 Service Revenue No. 400 10/6 800 10/10 650 10/20 940 Salaries and Wages Expense No. 726 10/31 500 Rent Expense No. 729 10/15 280 (a) Your answer is correct. Reproduce the journal entries for the transactions that occurred on October 1, 10, and 20 and provide explanations for each. (Record entries in the order displayed in the T-Accounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Oct. 1 Account Titles and Explanation Cash Debit Credit 5000 Common Stock 5000 (Issued shares of stock for cash) Oct. 10 Cash 650 Service Reven 650 (Received cash for services provided) Oct. 10 Cash 3000 Notes Payable 3000 (Obtained loan from bank) Oct. 20 Cash 500 Accounts Rec 500 (Received cash in payment of account) Oct. 20 Accounts Rec Service Reven (Billed clients for services provided) 940 940 Click here if you would like to Show Work for this question Attempts: 1 of 3 used (b) Your answer is correct. Determine the October 31 balance for each of the accounts above, and prepare a trial balance at October 31, 2014. SPARKS CO. Trial Balance October 31, 2014 Debit Cash $ 8170 Accounts Rec 1240 Supplies 400 Equipment 2000 Credit $ Notes Payable 3000 Accounts Pay 500 Common Stock 7000 Dividends 300 Service Reven 2390 Salaries and W 500 Rent Expense 280 $ 12890 $ 12890 Click here if you would like to Show Work for this question Attempts: 1 of 3 used Problem 2-2A Kara Shin is a licensed CPA. During the first month of operations of her business, Kara Shin, Inc., the following events and transactions occurred. May 1 Stockholders invested $20,000 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $1,500 of supplies on account from Hartig Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,800 for services provided. 12 Received $3,500 advance on a management consulting engagement. 17 Received cash of $1,200 for services completed for Lucille Co. 31 Paid secretary-receptionist $2,000 salary for the month. 31 Paid 40% of balance due Hartig Supply Company. Kara uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. (a) Your answer is correct. Journalize the transactions. (Record entries in the order displayed in the problem statement. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date May 1 Account Titles and Explanation Cash 20000 Common Stock May 2 No Entry 20000 0 No Entry May 3 Supplies 0 1500 Accounts Pay May 7 Rent Expense 1500 900 Cash May 11 Accounts Rec 900 2800 Service Reven May 12 Cash 2800 3500 Unearned Ser May 17 Cash 3500 1200 Service Reven May 31 Salaries and W 1200 2000 Cash May 31 Accounts Pay Cash Credit Debit 2000 600 600 Click here if you would like to Show Work for this question Attempts: 1 of 3 used (b) Your answer is correct. Cash Date Explanation Ref Debit Credit Post to the ledger accounts. (Post the entries into ledger No. 101 in the order displayed in Part Balance 1.) May 1 J1 May 7 J1 May 12 J1 3500 22600 May 17 J1 1200 23800 May 31 J1 2000 21800 May 31 J1 600 21200 20000 20000 900 19100 Accounts Receivable Date No. 112 Explanation Ref J1 May 11 Debit Credit 2800 Balance 2800 Supplies Date No. 126 Explanation Ref J1 May 3 Debit Credit 1500 1500 Accounts Payable Date Explanation Ref Balance No. 201 Debit Credit Balance May 3 J1 May 31 J1 1500 600 900 Unearned Service Revenue Date No. 209 Explanation Ref Debit J1 May 12 Credit 3500 Balance 3500 Common Stock Date No. 311 Explanation Ref Debit J1 May 1 Credit 20000 Balance 20000 Service Revenue Date No. 400 Explanation Ref Debit Credit Balance May 11 J1 2800 2800 May 17 J1 1200 4000 Salaries and Wages Expense Date No. 726 Explanation Ref J1 May 31 Debit Credit 2000 Balance 2000 Rent Expense Date Click here if you would like to Show Work for this question 1500 No. 729 Explanation Ref May 7 J1 Debit Credit 900 900 Attempts: 3 of 3 used (c) Your answer is correct. Balance Prepare a trial balance on May 31, 2014. KARA SHIN, INC. Trial Balance May 31, 2014 Debit Cash $ 21200 Accounts Rec 2800 Supplies 1500 Credit $ Accounts Pay 900 Unearned Ser 3500 Common Stock 20000 Service Reven 4000 Salaries and W 2000 Rent Expense 900 $ 28400 $ 28400 Click here if you would like to Show Work for this question Attempts: 2 of 3 used
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