Bundle: College Accounting: A Career Approach (with QuickBooks Online), Loose-leaf Version, 13th + LMS Integrated CengageNOWV2, 1 term (6 months) Printed Access
13th Edition
ISBN: 9781337587358
Author: Cathy J. Scott
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 1PA
During December of this year, G. Elden established Ginny’s Gym. The following asset, liability, and owner’s equity accounts are included in the chart of accounts:
During December, the following transactions occurred:
- a. Elden deposited $35,000 in a bank account in the name of the business.
- b. Bought exercise equipment for cash, $8,150, Ck. No. 1001.
- c. Bought advertising on account from Hazel Company, $105.
- d. Bought a display rack on account from Cyber Core, $790.
- e. Bought office equipment on account from Office Aids, $185.
- f. Elden invested her exercise equipment with a fair market value of $1,200 in the business.
- g. Made a payment to Cyber Core, $200, Ck. No. 1002.
- h. Sold services for the month of December for cash, $800.
Required
- 1. Write the account classifications (Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental
accounting equation , as well as the plus and minus signs and Debit and Credit. - 2. Write the account names on the T accounts under the classifications, place the plus and minus signs for each T account, and label the debit and credit sides of the T accounts
- 3. Record the amounts in the proper positions in the T accounts. Write the letter next to each entry to identify the transaction.
- 4. Foot and balance the accounts.
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On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
Opened a business bank account with a deposit of $33,000 in exchange for common stock.
Purchased supplies on account, $3,320.
Paid creditor on account, $2,100.
Earned sales commissions, receiving cash, $33,920.
Paid rent on office and equipment for the month, $6,650.
Paid dividends, $11,000.
Paid automobile expenses for month, $3,190, and miscellaneous expenses, $1,530.
Paid office salaries, $4,000.
Determined that the cost of supplies on hand was $1,120; therefore, the cost of supplies used was $2,200.
Required:
Question Content Area
1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers using a minus sign.
Chapter 2 Solutions
Bundle: College Accounting: A Career Approach (with QuickBooks Online), Loose-leaf Version, 13th + LMS Integrated CengageNOWV2, 1 term (6 months) Printed Access
Ch. 2 - Determine the balance of the following T account:
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