J.A. Motzek SA has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illus- trated on pages 65–70. Aug. 1 Opens an office as a financial advisor, investing R$5,000 in cash in exchange for ordinary shares. 4 Pays insurance in advance for 6 months, R$1,800 cash. 16 Receives R$1,100 from clients for services performed. 27 Pays secretary R$1,000 salary. BE2-6 Using the data in BE2-5, journalize the transactions. (You may omit explanations.)
Q: Below are the balance sheet items of Arius Cleaning Services for the month ended January 2021.…
A: Accounting equations states that every transaction has two aspects, that is, debit and credit. It…
Q: At the beginning of April, Owl Corporation has a balance of $13,000 in the Retained Earnings…
A: Retained Earnings means earnings retained in the business after distributing dividend for equity…
Q: The following is the trial balance of J. Jamieson as on 31 October 2021. You are to draw up a…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: ohn Sullivan started a business. During the first month (February 20--), the following transactions…
A: Accounting equation is the basic tool of accounting i.e., Assets=Liabilities + Owner’s equity.
Q: B. Haas established Computer Wizards during November of this year. The accountant prepared the…
A: For determing + and - of accounts, the following rules need to be remembereda) All expenses and…
Q: Show the effects of each transaction on the accounting equation by indicating under the proper…
A: As per the Accounting Equation,Assets =Liabilities +Shareholder's Equity
Q: The following are the transactions of Spotlighter, Incorporated, for the month of January. Borrowed…
A: Journal entries are used by the business entity to record the financial transections in the books of…
Q: The following table contains several business transactions for the current month. Required:…
A: Account which is affected and element of financial statement has been answered.
Q: The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity’s assets,…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: On July 1, K Resser opened Resser’s Business Services. Accountant listed the following chart of…
A:
Q: Show the effects of each transaction on the accounting equation by indicating under the proper…
A: The accounting equation is written as: Assets = Liabilities + owner's equity
Q: The following are the transactions of Spotlighter, Inc., for the month of January. Borrowed…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: The following seven transactions produced the account balances shown above. a. Y. Min invested…
A:
Q: Sonya Jared opened a law offi ce on July 1, 2020, On July 31, the Balance Sheet showed Cash $5,000,…
A: (a) The statement of tabular analysis of the August transaction Particulars Amount $ Amount $…
Q: Hart, Attorney at Law, experienced the following transactions in Year 1, the first year of…
A: The financial transactions of the business effects different financial statements of the business.…
Q: Journalize the following selected transactions for January in good form. Jan. 1 Received cash…
A: Journal Entries are recorded chronologically following the rules of debit and credit.
Q: Transactions, financial statementsOn August 1, 2089, Brooke Kline established Western Realty.…
A: The transaction effect in accounting is usually shown as per the double-entry system with the help…
Q: . In the T accounts, record the following transactions of Potter Pool Services for June,…
A: The financial statements of the business are prepared with the balances of trial balance.
Q: Prepare balance sheet for this transaction. Don Pedro’s Accounting Firm has the following account…
A: Balance sheet is the financial statements of the organization prepared at the end of the year. It…
Q: Katerina's Boutique is a business registered for GST and it lodges its Business Activity Statement…
A: Introduction: GST Paid: The GST (goods and services tax) is a ten percent tax on almost all goods,…
Q: Read: From the Ledger balances below, listed in alphabetical order, Prepare a Trial Balance for…
A: Trial balance is the summary of all general ledger account balances in the business.
Q: Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online…
A: Lets understand the basics. As per balance sheet equation, total assets is always equal to total of…
Q: Ms. P put up an accounting firm on November 1, 2011. The registered name of the business is “P…
A: Financial statement means the trading and profit and loss account and balance sheet of the company…
Q: Ms. P put up an accounting firm on November 1, 2011. The registered name of the business is “P…
A: Closing entries are prepared to close the incomes and expenses to income statement and dividend…
Q: M. Gonzales has the following transactions during August of the current year. Aug 1 Opens an office…
A: Increase in assets should be debited and decrease in assets should be credited. Increase in expenses…
Q: Journalize the following selected transactions for January in good form. Jan. 1 Received cash…
A: The journal entries are a crucial step of the accounting process as it records the accounting…
Q: The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity's assets,…
A: Since you have asked a question with multiple subparts, we will solve the first three subparts for…
Q: Prepare journal entries to record the following transactions: A. December 1, collected balance due…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
Q: Mary Smith opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $ 5,000,…
A: The owners' equity statement represents the equity for the shareholders.
Q: Hart, Attorney at Law, experlenced the following transactions In Year 1, the first year of…
A: The horizontal analysis model arranges the balance sheet, income statement, and cash flows elements…
Q: Show the effects of each transaction on the accounting equation by indicating under the proper…
A: 1. Purchase of supplies on account and amount payable for equipment in six months both are credited…
Q: Complete accounting cycleFor the past several years, Steffy Lopez has operated a part-timeconsulting…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: John Sullivan started a business. During the first month (February 20--), the following transactions…
A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income…
Q: The following transactions occurred during July: Received $1,020 cash for services provided to a…
A: Revenue means the income earned or generated by a business by carrying out the business activity. It…
Q: Using the Transaction Analysis table provided, analyze the effect of the transactions listed below…
A: Accounting equation states that assets is equal to sum of liabilities and Owner's equity. Assets =…
Q: Nova communications was organized on December 1 of the current year and had the following account…
A: The accounting equation is given by: Equity + liabilities = Assets It means that all assets of the…
Q: Luis Madero, after working for several years with a large public accounting firm, decided to open…
A: The accounting equation is considered as a mathematical representation of the transaction. It…
Q: Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently…
A: ExpectedTransaction 1. Incorrect 2. Correct 3. Incorrect 4. Incorrect 5. Incorrect
Q: Required: The following are the transactions of Spotlighter, Incorporated, for the month of January.…
A: The accounting equation is a mathematical representation of financial transactions. The accounting…
Q: Following is the chart of accounts of Elden Realty Company: Assets Revenue 111 Cash 411…
A: 1. Prepare the journal entries for the month of April.(April 1 to April 15).
Q: The Trial Balance of Song Hae Kyo Service Center on July 1 2009, list the entity assets, liabilities…
A: The given problem can be solved by posting the relevant balances to the ledger accounts and passing…
Q: Sonya Jared opened a law office on July 1, 2022 On July 31, the balance sheet showed Cash$5.000,…
A: The shareholders' equity statement records the changes that effected the capital of owners such as…
Q: The following transactions for the month of March have been joumalized and posted to the proper…
A: Accounts Receivables: The revenues or money that the firm will receive from its customers who have…
Q: Ms. P put up an accounting firm on November 1, 2011. The registered name of the business is “P…
A: No. Account Debit (P) Credit (P) 1 Cash 30000 Ms. P 30000 (To record cash…
Q: The following seven transactions produced the account balances shown above. a. Y. Min invested…
A: If you have a cash account with such a brokerage firm, all securities transactions must be paid in…
Q: Journalize the transactions
A: Journal entry is the act of keeping or making records of transactions in the business
Q: Following is the chart of accounts of Smith Financial Services: Assets 111 Cash 113 Accounts…
A: Comment - Multiple Questions Asked. 1) Journal
Q: Liu Zhang operates Lawson Consulting, which began operations on June 1. The Retained Earnings…
A: Formula: Net income = Revenues - Expenses
Q: A sole trader has GH₵ 100 cash in hand and bank balance of GH₵ 2,400 at the beginning of the…
A: Here in this question, we are required to calculate the drawing made during a year. Drawing means a…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 17,500. b. Purchased supplies on account, 2,300. c. Earned sales commissions, receiving cash, 13,300. d. Paid rent on office and equipment for the month, 3,000. e. Paid creditor on account, 1,150. f. Paid dividends, 1,800. g. Paid automobile expenses (including rental charge) for month, 1,500, and miscellaneous expenses, 400. h. Paid office salaries, 2,800. i. Determined that the cost of supplies used was 1,050. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August.On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501 (Rent Expense). e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012 (Catering Income). g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307 (Catering Income). i. Received and paid the heating bill, 248, Ck. No. 504 (Utilities Expense). j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506 (Salary Expense). Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
- The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 20Y5. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 20Y5. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange. B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed. C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid. E. The electric bill in C is paid.EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.
- Entries Prepared from a Trial Balance and Proof of the Cash Balance Russell Company was incorporated on January 1 with the issuance of capital stock in return for $120,000 of cash contributed by the owners. The only other transaction entered into prior to beginning operations was the issuance of a $50,000 note payable in exchange for equipment and fixtures. The following trial balance was prepared at the end of the first month by the bookkeeper for Russell Company: Required Determine the balance in the Cash account. Identify all of the transactions that affected the Cash account during the month. Use a T account to prove what the balance in Cash will be after all transactions are recorded.Net income and dividends The income statement of a corporation for the month of February indicates a net income of $32,000. During the same period, $40,000 in cash dividends were paid. Would it be correct to say that the business Incurred a net loss of $8000 during the month? Discuss.On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501. e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307. i. Received and paid the heating bill, 248, Ck. No. 504. j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
- Financial statements Outlaw Realty, organized August 1. 20Y7, is owned and operated by Julie Baxter. How many errors can you find in the following financial statements for Outlaw Realty, prepared after its first month of operations? Assume that the cash balance on August 31, 20Y7, is $51,600 and that cash flows from operating activities is reported correctly.On July 1, K. Resser opened Ressers Business Services. Ressers accountant listed the following chart of accounts: The following transactions were completed during July: a. Resser deposited 25,000 in a bank account in the name of the business. b. Bought tables and chairs for cash, 725, Ck. No. 1200. c. Paid the rent for the current month, 1,750, Ck. No. 1201. d. Bought computers and copy machines from Ferber Equipment, 15,700, paying 4,000 in cash and placing the balance on account, Ck. No. 1202. e. Bought supplies on account from Wigginss Distributors, 535. f. Sold services for cash, 1,742. g. Bought insurance for one year, 1,375, Ck. No. 1203. h. Paid on account to Ferber Equipment, 700, Ck. No. 1204. i. Received and paid the electric bill, 438, Ck. No. 1205. j. Paid on account to Wigginss Distributors, 315, Ck. No. 1206. k. Sold services to customers for cash for the second half of the month, 820. l. Received and paid the bill for the business license, 75, Ck. No. 1207. m. Paid wages to an employee, 1,200, Ck. No. 1208. n. Resser withdrew cash for personal use, 700, Ck. No. 1209. Required 1. Record the owners name in the Capital and Drawing T accounts. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction. 4. Foot the T accounts and show the balances. 5. Prepare a trial balance as of July 31, 20--. 6. Prepare an income statement for July 31, 20--. 7. Prepare a statement of owners equity for July 31, 20--. 8. Prepare a balance sheet as of July 31, 20--. LO 1, 2, 3, 4, 5, 6Prepare journal entries to record the following transactions. Create a T-account for Cash, post any entries that affect the account, and calculate the ending balance for the account. Assume a Cash beginning balance of $16,333. A. February 2, issued stock to shareholders, for cash, $25,000 B. March 10, paid cash to purchase equipment, $16,000