Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 2, Problem 13E
Wyoming Tours Co. is a travel agency. The nine transactions recorded by Wyoming Tours during June 2016, its first month of operations, are indicated in the following T accounts:
Indicate for each debit and each credit: (a) whether an asset, liability, owner’s equity, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased (−). Present your answers in the following form, with transaction (1) given as an example:
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Napa Tours Co. is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indicated in the following T accounts:
Indicate for each debit and each credit: (A) whether an asset, liability, stockholders’ equity, dividend, revenue, or expense account was affected and (B) whether the account was increased (+) or decreased (–). Present your answers in the following form, with transaction (1) given as an example:
Dao Vang, CPA, was retained by Universal Cable to prepare financial statements for April 2015. Vang accumulated all the ledger balances per Universal’s records and found the following.
UNIVERSAL CABLE
Trial Balance
April 30, 2015
Debit
Credit
Cash
$4,024
Accounts Receivable
3,303
Supplies
746
Equipment
10,682
Accumulated Depreciation-Equip.
$1,350
Accounts Payable
2,047
Salaries and Wages Payable
723
Unearned Service Revenue
881
Common Stock
8,762
Retained Earnings
3,691
Service Revenue
5,867
Salaries and Wages Expense
3,202
Advertising Expense
583
Miscellaneous Expense
260
Depreciation Expense
521
$23,321
$23,321
Dao Vang reviewed the records and found the following errors.
1.
Cash received from a customer on account was recorded as $830 instead of $380.
2.
A payment of $76 for advertising expense was entered as a debit to Miscellaneous Expense $76 and a credit to Cash $76.
3.
The first salary payment this month…
The trial balance of Dunn Service Center, Inc., on March 1, 2018, lists the entity’s assets, liabilities, and stockholders’ equity on that date.During March, the business completed the following transactions: a. Borrowed $45,000 from the bank, with Dunn signing a note payable in the name of the business. b. Paid cash of $40,000 to a real estate company to acquire land. c. Performed a service for a customer and received cash of $5,000. d. Purchased supplies on credit, $300. e. Performed a service for a customer and earned $2,600 of revenue on account. f. Paid $1,200 on account. g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i. Received a $200 utility bill that will be paid next week.j. Declared and paid a dividend of $1,800Requirements■ Assets—Cash, $26,000; Accounts Receivable, $4,500; Supplies, no balance; Land, no balance ■ Liabilities—Accounts Payable, $2,000; Note Payable, no balance ■ Stockholders’…
Chapter 2 Solutions
Financial Accounting
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Assume that a trial balance is prepared with an...Ch. 2 - Assume that when a purchase of supplies of 2,650...Ch. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are a common form of deposits...
Ch. 2 - State for each account whether it is likely to...Ch. 2 - State for each account whether it is likely to...Ch. 2 - Prob. 2PEACh. 2 - Prob. 2PEBCh. 2 - Prepare a journal entry on March 16 for fees...Ch. 2 - Prepare a journal entry on August 13 for cash...Ch. 2 - Prepare a journal entry on December 23 for the...Ch. 2 - Prepare a journal entry on June 30 for the...Ch. 2 - Prob. 5PEACh. 2 - On August 1, the supplies account balance was...Ch. 2 - For each of the following errors, considered...Ch. 2 - For each of the following errors, considered...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following errors took place in journalizing...Ch. 2 - Prob. 8PEACh. 2 - Two income statements for Paragon Company follow:...Ch. 2 - The following accounts appeared in recent...Ch. 2 - Innerscape Interiors is owned and operated by...Ch. 2 - LeadCo School is a newly organized business that...Ch. 2 - The following table summarizes the rules of debit...Ch. 2 - During the month, Gates Labs Co. has a substantial...Ch. 2 - Identify each of the following accounts of Kaiser...Ch. 2 - Jardine Consulting Co. has the following accounts...Ch. 2 - On January 7, 2016, Captec Company purchased 4,175...Ch. 2 - The following selected transactions were completed...Ch. 2 - During the month, Warwick Co. received 515,000 in...Ch. 2 - a. During February, 186,500 was paid to creditors...Ch. 2 - As of January 1, Terrace Waters, Capital had a...Ch. 2 - Wyoming Tours Co. is a travel agency. The nine...Ch. 2 - Based upon the T accounts in Exercise 2-13,...Ch. 2 - Based upon the data presented in Exercise 2-13,...Ch. 2 - The accounts in the ledger of Hickory Furniture...Ch. 2 - Indicate which of the following errors, each...Ch. 2 - The following preliminary unadjusted trial balance...Ch. 2 - The following errors occurred in posting from a...Ch. 2 - Identify the errors in the following trial...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following errors took place in journalizing...Ch. 2 - The following data (in millions) are taken from...Ch. 2 - Prob. 24ECh. 2 - Kimberly Manis, an architect, opened an office on...Ch. 2 - On August 1, 2016, Bill Hudson established...Ch. 2 - On November 1, 2016, Patty Cosgrove established an...Ch. 2 - Elite Realty acts as an agent in buying, selling,...Ch. 2 - The Colby Group has the following unadjusted trial...Ch. 2 - Ken Jones, an architect, opened an office on April...Ch. 2 - On August 1, 2016, Rafael Masey established Planet...Ch. 2 - On October 1, 2016, Jay Pryor established an...Ch. 2 - Prob. 4PBCh. 2 - Tech Support Services has the following unadjusted...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - At the end of the current month, Gil Frank...Ch. 2 - Prob. 2CPCh. 2 - The following discussion took place between Tony...Ch. 2 - Prob. 5CP
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