Financial Accounting for Undergraduates
Financial Accounting for Undergraduates
2nd Edition
ISBN: 9781618530400
Author: FERRIS
Publisher: Cambridge
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Chapter 2, Problem 17BP

a.

To determine

Prepare journal entries and record the above transactions in T-account.

a.

Expert Solution
Check Mark

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Accounting rules for Journal entries:

  • To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.
  • To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

T-account:

T-account is the form of the ledger account, where the journal entries are posted to this account. It is referred to as the T-account, because the alignment of the components of the account resembles the capital letter ‘T’.

Record the journal entries for the month of May date from May 1 to May 15.

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 1Cash 50,000
Common Stock50,000
( To record the issue of
Common stock.)

Table (1)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 2Equipment4,200
Accounts Payable4,200
(To record the purchase of
Equipment on account.)

Table (2)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 3Accounts Payable 200
Equipment200
(To record the return of
Equipment.)

Table (3)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 4Supplies860
Accounts Payable860
(To record the purchase of
Supplies on account.)

Table (4)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 5Truck10,500
Cash 5,500
Note Payable5,000
(To record the purchase of
Cash and note payable.)

Table (5)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 6Rent875
Cash875
( To record the payment
Of rent.)

Table (6)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 7Truck expense$60
Cash$60
( To record the expense
of fuel cost made for the
Truck.)

Table (7)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 8Accounts Receivable 13,700
Service Revenue13,700
(To record the billing made
For the services rendered.)

Table (8)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 9Accounts Payable3,000
Cash3,000
(To record the payment for
the purchase of
Equipment.)

Table (9)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 10Utilities expense210
Cash210
(To record the utilities
Expense.)

Table (10)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 11Advertising Expense280
Accounts Payable280
( To record the advertising
expense to be paid on
June.)

Table (11)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 12Employee Wages3,350
Cash3,350
( To record the payment
Of employee wages.)

Table (12)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 13Cash8,600
Account Receivables8,600
(To record the collection
Of account receivables.)

Table (13)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 14Dividends1,500
Cash1,500
(To record the payment of
Dividends amount.)

Table (14)

DateAccount Title and Explanation

Debit

($)

Credit ($)
May 15Interest Expenses80
Cash80
(To record the payment
Of interest expenses.)

Table (15)

Record the above transactions in to T-accounts:

Prepare T- accounts

Financial Accounting for Undergraduates, Chapter 2, Problem 17BP , additional homework tip  1

Financial Accounting for Undergraduates, Chapter 2, Problem 17BP , additional homework tip  2

Financial Accounting for Undergraduates, Chapter 2, Problem 17BP , additional homework tip  3

Financial Accounting for Undergraduates, Chapter 2, Problem 17BP , additional homework tip  4

b.

To determine

Prepare trial balance of Company J

b.

Expert Solution
Check Mark

Explanation of Solution

Trial balance:

Trial balance is the summary of accounts, and their debit and credit balances at a given time.  It is usually prepared at end of the accounting period.  Debit balances are listed in left   column and credit balances are listed in right column.  The totals of debit and credit column should be equal.  Trial balance is useful in the preparation of the financial statements.

JB Company
Trial Balance as of May 31
ParticularsAmount ($)Amount ($)
Cash44,025
Accounts Receivable5,100
Supplies860
Equipment4,000
Truck10,500
Accounts Payable2,140
Notes Payable5,000
Common Stock50,000
Dividends1,500
Service Revenue13,700
Rent Expense875
Wage Expense3,350
Utilities Expense210
Truck Expense60
Advertising Expense280
Interest Expense80
Total70,84070,840

Table (16)

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Chapter 2 Solutions

Financial Accounting for Undergraduates

Ch. 2 - Prob. 11SSQCh. 2 - Prob. 12SSQCh. 2 - Prob. 13SSQCh. 2 - Prob. 14SSQCh. 2 - Prob. 15SSQCh. 2 - Prob. 16SSQCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - Prob. 19QCh. 2 - Prob. 20QCh. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - Prob. 23QCh. 2 - Prob. 1SECh. 2 - Prob. 2SECh. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Prob. 5SECh. 2 - Prob. 6SECh. 2 - Prob. 7SECh. 2 - Prob. 8SECh. 2 - Prob. 9SECh. 2 - Prob. 10SECh. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Prob. 13SECh. 2 - Prob. 1AECh. 2 - Prob. 2AECh. 2 - Prob. 3AECh. 2 - Prob. 4AECh. 2 - Prob. 5AECh. 2 - Prob. 6AECh. 2 - Prob. 7AECh. 2 - Prob. 8AECh. 2 - Prob. 9AECh. 2 - Prob. 10AECh. 2 - Prob. 11AECh. 2 - Prob. 12AECh. 2 - Prob. 13AECh. 2 - Prob. 14AECh. 2 - Prob. 1BECh. 2 - Prob. 2BECh. 2 - Prob. 3BECh. 2 - Prob. 4BECh. 2 - Prob. 5BECh. 2 - Prob. 6BECh. 2 - Prob. 7BECh. 2 - Prob. 8BECh. 2 - Prob. 9BECh. 2 - Prob. 10BECh. 2 - Prob. 11BECh. 2 - Prob. 12BECh. 2 - Prob. 13BECh. 2 - Prob. 14BECh. 2 - Prob. 1APCh. 2 - Prob. 2APCh. 2 - Prob. 3APCh. 2 - Prob. 4APCh. 2 - Prob. 5APCh. 2 - Prob. 6APCh. 2 - Prob. 7APCh. 2 - Prob. 8APCh. 2 - Prob. 9APCh. 2 - Prob. 10APCh. 2 - Prob. 11APCh. 2 - Prob. 12APCh. 2 - Prob. 13APCh. 2 - Prob. 14APCh. 2 - Prob. 15APCh. 2 - Prob. 16APCh. 2 - Prob. 17APCh. 2 - Prob. 1BPCh. 2 - Prob. 2BPCh. 2 - Prob. 3BPCh. 2 - Prob. 4BPCh. 2 - Prob. 5BPCh. 2 - Prob. 6BPCh. 2 - Prob. 7BPCh. 2 - Prob. 8BPCh. 2 - Prob. 9BPCh. 2 - Prob. 10BPCh. 2 - Prob. 11BPCh. 2 - Prob. 12BPCh. 2 - Prob. 13BPCh. 2 - Prob. 14BPCh. 2 - Prob. 15BPCh. 2 - Prob. 16BPCh. 2 - Prob. 17BPCh. 2 - Prob. 2SPCh. 2 - Prob. 1EYKCh. 2 - Prob. 2EYKCh. 2 - Prob. 3EYKCh. 2 - Prob. 4EYKCh. 2 - Prob. 5EYKCh. 2 - Prob. 6EYKCh. 2 - Prob. 7EYKCh. 2 - Prob. 8EYKCh. 2 - Prob. 9EYKCh. 2 - Prob. 10EYKCh. 2 - Prob. 11EYK
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