Problem 2. Mabel Wong began a professional practice as system analyst on July 1. She plans to prepare monthly financial statements. During July the owner completed these transactions: July 1 Owner invested P50,000 cash along with furniture and fixtures that had a P20,000 market value two years ago but now worth P10,000 only Paid P25,000 cash for July rent (including P500 water bill of a fully furnished office space at the Madrigal Building 4 Purchased P120,000 worth of state of the art equipment on credit for thirty monthly instalment payments 6. Purchased office supplies for cash, P2,500 Completed work for a client and immediately collected the P32,000 cash earned 10 Completed work for a client and sent a bill for P27,000 to be paid within thirty days Paid an assistant P6,200 cash as wages for 15 days Collected P15,000 cash on the amount owed by the client 15 18 25 Completed work for another client who paid only P40,000 or 40% of the total computerized system. The client promised to pay the balance in thirty days 28 Owner withdrew P5,000 cash for personal use 28 Paid the first instalment to settle the liability on the equipment purchased
Q: On September 1" 2020 Mr. SAM started new repair service business. Listed below are the transactions…
A:
Q: Ms. May Putok opened her business, "Putok Accounting Service" in the month of March 2022. March 3 –…
A: Journal Entry The purpose preparing the journal entry to enter the required transaction into debit…
Q: Problem 1: a. The assets of the business at the start of the month total P1, 000,000. Owner's equity…
A: The accounting equation helps to keep the balance sheet the same with the help of the double-entry…
Q: Carl Redmon completed the following transactions during December: Dec 2 Invested $25,000 to start a…
A: Since you have asked 3 questions under a single question. We have solved the first question of it.…
Q: Jimmy Flores completed this transactions during the first half of December Dec 2 Invested P120,000…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Journal…
Q: Mr. Josh Edinburgh started a company titled “Ryerson Computers” that specialized in computer…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Prepare the journal entry required for each transaction: Oct. 01, 2022: Mr. Alberto invested…
A: The question is related to Journal Entries for the month October 30th, 2022.
Q: PROBLEM On January 1 of the current year, Juan David opened the " J.D Men's Wear Shop", and during…
A: Adjusted Trial Balance is the ending balances of the ledger accounts at the end of the period after…
Q: Q1: Ahmad started his own Computer service on January 1, 2020. The following transactions occurred…
A: The accounting equation is as follows Assets=Liabilities+owner's equity
Q: Use the Following information for the Question Numbers 5 to 10. Mr. Salah opened the accounting…
A: Accounting equation is the one which is the foundation of the accounting system named double entry.…
Q: Oriole Clark opened Oriole’s Cleaning Service on July 1, 2020. During July, the following…
A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…
Q: Problem 2-4 Assume that you are the owner of Aurora Café, a specialty coffee shop in Baler. At the…
A: Profit is the amount of income earned by business after deducting expenses to run the operations of…
Q: Tollow ansacti books of • Mr. Anwar decide to start a business of Computer Service Business that…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Since you are already done answering the previous activities, I think you are now ready to make your…
A: Every company must keep accurate books of accounts in order to assess and analyse results at the…
Q: July 1 Asif opened the business by investing OMR 192,000. July 2 Purchased Computers for OMR 20,000…
A: As per protocol we provide solution to one question but as you have asked multiple and the journal…
Q: PROBLEM: Mr. Min Jimin established the MinJi Car Rental Services in August 1, 2021. During the first…
A: Accounting cycle is a cycle through which the process of accounting is performed and it includes…
Q: QUESTION ONE Juan Cruz began professional practice as a system analyst on July 1. He plans to…
A: Adjusted Trial Balance- The second type of trial balance in the accounting cycle is adjusted trial…
Q: Problem 1. Mr. Amer started his Car Repair Business in Muscat in June 2020. During the month of…
A: Book of Accounts: A book of accounts contains exchange records for business accounts. Twofold…
Q: A B Loida Cardenas recently established her own business, which she called Cardenas Delivery…
A:
Q: 5. On September 1ª 2020 Mr. SAM started new repair service business. Listed below are the…
A: Trial balance is the statement prepared to get the balance of all the accounts at one single place.…
Q: Carla Quentin started her own consulting firm, Quentin Consulting, on May 1, 2020. The following…
A: SOLUTION- JOURNAL ENTRY IS USED TO RECORD A BUSINESS TRANSACTION IN THE ACCOUNTING RECORDS OF A…
Q: Mr. Josh Edinburgh started a company titled “Ryerson Computers" that specialized in computer…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Illustrative Problem 1: Mr. Jackson Mob.opened his business, "LabanderaMOb" Laundry service in the…
A: Date Account Titles and Explanation Debit Credit Jan'8 Cash 40,000 Equipment…
Q: Ahmad started his own Computer service on January 1, 2020. The following transactions occurred…
A: 1) Accounting Equation: Assets - liabilities = owners' Equity. Owner's Equity = $ 203000.
Q: Oriole Clark opened Oriole’s Cleaning Service on July 1, 2020. During July, the following…
A:
Q: Mr. Josh Edinburgh started a company titled "Ryerson Computers" that specialized in computer…
A: Journal - It refers to the primary books of accounts in which transactions and events are recorded…
Q: Oriole Clark opened Oriole’s Cleaning Service on July 1, 2020. During July, the following…
A: Journal is a book where all the entries has been recorded in chronological order. Required journal…
Q: In March, Abby's Employment Agency had the following transactions: 2022 1 Abby Todd invested $5,000…
A: Here in this question, we are required to prepare journal entries. Journal entry is made for record…
Q: Mabel Wong began a professional practice as system analyst on July 1. She plans to prepare monthly…
A: Financial Statements in simple words are those written statements which you can say on paper records…
Q: Use the Following information for the Question Numbers 5 to 10. Mr. Salah opened the accounting…
A: 5. Analyze the transaction by using an accounting equation : Transaction Assets…
Q: Q1: Ahmad started his own Computer service on January 1, 2020. The following transactions occurred…
A: Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by…
Q: Carla Quentin started her own consulting firm, Quentin Consulting, on May 1, 2020. The following…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Mr. Josh Edinburgh started a company titled "Ryerson Computers" that specialized in computer…
A: Adjusting entries are those entries which are passed at the end of the year to accurately reflect…
Q: Problem 1. Mr. Asif started his Computer Repair Business in Salalah in July 2020. During the month…
A: Accounting is the detailed process of bookkeeping. Under this process, various steps are performed…
Q: Record journal entries for the following purchase transactions of Apex Industries, assuming…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: After all of the transactions, what is the amount of total liabilities?
A: A liability can be defined as the financial obligation which is to be paid in future, for which the…
Q: Carla Quentin started her own consulting firm, Quentin Consulting, on May 1, 2020. The following…
A: As posted multiple questions we are answering only first question kindly repost the unanswered…
Q: Problem 1 Ms. Shaima, a professional accountant, started to practice her profession in Nizwa on May…
A: a) Journal Enteries
Q: After taking into account the transactions of Choy, please answer Questions 1 -10. Choy, after…
A:
Q: 5. On September 1ª 2020 Mr. SAM started new repair service business. Listed below are the…
A: Three golden rules of accounting that are used in preparing journal entries are: Debit the receiver…
Q: Mr. Josh Edinburgh started a company titled “Ryerson Computers” that specialized in computer…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: On June 1" 2020 Mr. Tocks started new repair service business. Listed below are the transactions for…
A: As posted multiple questions we are answering only first question kindly repost the unanswered…
Q: PERFORMANCE TASK The accounts and transactions of Evelyn Jia, Systems Consultant, are shown below:…
A: The journal book is the book in which the company will enter the transactions in a chronological…
Q: After taking into account the transactions of Choy, please answer Questions 1 -10. Choy, after…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: On June 1 2020 Mr. Tocks started new repair service business. Listed below are the transactions for…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On September 1st 2020 Mr. SAM started new repair service business. Listed below are the transactions…
A: Journal entry: Journal is a book of prime entry or a book of original entry in which transactions…
Q: . On September 1" 2020 Mr. SAM started new repair service business. Listed below are the…
A: JOURNAL ENTRY DATE PARTICULARS L.F. DEBIT CREDIT Sep 1 Cash A/C Dr. To Capital…
Q: Question 1. Mrs. Blue, the owner of Blue Moon Company, formed an architectural office at the…
A: Journal entries shows the recording of transaction during an accounting year.
Q: 1. On November 1, Chris Clark opens a new business and deposits $25,000 in a bank account in the…
A: Journal- It is a book of primary entry in which transactions are recorded in chronological order.…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The transactions completed by PS Music during June 2019 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 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 cash from customers 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 to creditors 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. July 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, 2019. 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, 2019. 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.Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, 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, 2019.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Music's 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 cash from customers 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 SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO 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 to creditors 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. 11. 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. July 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, 2019. 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, 2019. 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. Withdrew l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts receivable 1,000 14 Supplies 170 15 Prepaid insurance 17 Office Equipment 21 Accounts payable 250 23 Unearned Revenue 31 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies Expense 300 54 music Expense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1.Enter the July 1, 2019, 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, 2019.Brief Exercise 2-30 Transaction Analysis Galle Inc. entered into the following transactions during January. Borrowed $50,000 from First Street Bank by signing a new payable. Purchased $25,000 of equipment for cash. (Continued) Paid $500 to landlord for rent for January. Performed services for customers on account, $10,000. Collected $31000 from customers for services performed in Transaction d. Paid salaries of $2,500 for the current month. Required: Show the effect of each transaction using the following model.
- A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?P. Schwartz, Attorney at Law, opened his office on October 1. The account headings are presented below. Transactions completed during the month follow. a. Schwartz deposited 25,000 in a bank account in the name of the business. b. Bought office equipment on account from QuipCo, 9,670. c. Schwartz invested his personal law library, which cost 2,800. d. Paid the office rent for the month, 1,700, Ck. No. 2000. e. Bought office supplies for cash, 418, Ck. No. 2001. f. Bought insurance for two years, 944, Ck. No. 2002. g. Sold legal services for cash, 8,518. h. Paid the salary of the part-time receptionist, 1,820, Ck. No. 2003. i. Received and paid the telephone bill, 388, Ck. No. 2004. j. Received and paid the bill for utilities, 368, Ck. No. 2005. k. Sold legal services for cash, 9,260. l. Paid on account to QuipCo, 2,670, Ck. No. 2006. m. Schwartz withdrew cash for personal use, 2,500, Ck. No. 2007. 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.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.
- 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.Entries into T accounts and trial balance Marjorie Knaus, an architect, organized Knaus Architects on January 1, 20Y4. During the month, Knaus Architects completed the following transactions: a. Issued common stock to Marjorie Knaus in exchange for 30,000. b. Paid January rent for office and workroom, 2,500. c. Purchased used automobile for 28,500, paying 6,000 cash and giving a note payable for the remainder. d. Purchased office and computer equipment on account, 8,000. e. Paid cash for supplies, 2,100. f. Paid cash for annual insurance policies, 3,600. g. Received cash from client for plans delivered, 9,000. h. Paid cash for miscellaneous expenses, 2,600. i. Paid cash to creditors on account, 4,000. j. Paid installment due on note payable, 1,875. k. Received invoice for blueprint service, due in February, 5,500. l. Recorded fees earned on plans delivered, payment to be received in February, 31,400. m. Paid salary of assistants, 6,000. n. Paid gas, oil, and repairs on automobile for January, 1,300. Instructions 1. Record these transactions directly in the following T accounts, without journalizing: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Automobiles, Equipment, Notes Payable, Accounts Payable, Common Stock, Professional Fees, Salary Expense, Blueprint Expense, Rent Expense, Automobile Expense, Miscellaneous Expense. To the left of the amount entered in the accounts, place the appropriate letter to identify the transaction. 2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. 3. Prepare an unadjusted trial balance for Knaus Architects as of January 31, 20Y4. 4. Determine the net income or net loss for January.Journal entries and trial balance On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 40,000. b. Paid rent on office and equipment for the month, 4,800. c. Purchased supplies on account, 2,150. d. Paid creditor on account, 1,100. e. Earned sales commissions, receiving cash, 18,750. f. Paid automobile expenses (including rental charge) for month, 1,580, and miscellaneous expenses, 800. g. Paid office salaries, 3,500. h. Determined that the cost of supplies used was 1,300. i. Paid dividends, 1,500. 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. 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 October 31, 20Y6. 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 October. 5. Determine the increase or decrease in retained earnings for October.
- 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.In April, J. Rodriguez established an apartment rental service. The account headings are presented below. Transactions completed during the month of April follow. a. Rodriguez deposited 70,000 in a bank account in the name of the business. b. Paid the rent for the month, 2,000, Ck. No. 101 (Rent Expense). c. Bought supplies on account, 150. d. Bought a truck for 23,500, paying 2,500 in cash and placing the remainder on account. e. Bought insurance for the truck for the year, 2,400, Ck. No. 102. f. Sold services on account, 4,700 (Service Income). g. Bought office equipment on account from Stern Office Supply, 1,250. h. Sold services for cash for the first half of the month, 8,250 (Service Income). i. Received and paid the bill for utilities, 280, Ck. No. 103 (Utilities Expense). j. Received a bill for gas and oil for the truck, 130 (Gas and Oil Expense). k. Paid wages to the employees, 2,680, Ck. Nos. 104106 (Wages Expense). l. Sold services for cash for the remainder of the month, 3,500 (Service Income). m. Rodriguez withdrew cash for personal use, 4,000, Ck. No. 107. 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.B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts: The following transactions occurred during the month: a. Kelso deposited 45,000 in a bank account in the name of the business. b. Paid the rent for the current month, 1,800, Ck. No. 2001. c. Bought office desks and filing cabinets for cash, 790, Ck. No. 2002. d. Bought a computer and printer from Cyber Center for use in the business, 2,700, paying 1,700 in cash and placing the balance on account, Ck. No. 2003. e. Bought a neon sign on account from Signage Co., 1,350. f. Kelso invested her personal computer software with a fair market value of 600 in the business. g. Received a bill from Country News for newspaper advertising, 365. h. Sold services for cash, 1,245. i. Received and paid the electric bill, 345, Ck. No. 2004. j. Paid on account to Country News, a creditor, 285, Ck. No. 2005. k. Sold services for cash, 1,450. l. Paid wages to an employee, 925, Ck. No. 2006. m. Received and paid the bill for the city business license, 75, Ck. No. 2007. n. Kelso withdrew cash for personal use, 850, Ck. No. 2008. o. Kelso withdrew cash for personal use, 850, Ck. No. 2008. 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 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, with a three-line heading, dated November 30, 20--.