Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 2.2BE
• LO2–2
Prepare journal entries for each of the transactions listed in BE 2–1.
BE 2–1
Transaction analysis
• LO2–1
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $120,000 to credit customers for $200,000; (4) collected $180,000 in cash from credit customers; and (5) paid suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the
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Serial Problem Business Solutions LO P1, A1
Selected ledger account balances for Business Solutions follow.
For Three MonthsEnded December 31, 2019
For Three MonthsEnded March 31, 2020
Office equipment
$
8,100
$
8,100
Accumulated depreciation—Office equipment
405
810
Computer equipment
20,000
20,000
Accumulated depreciation—Computer equipment
1,250
2,500
Total revenue
31,334
44,900
Total assets
83,360
121,668
Required:1. Assume that Business Solutions does not acquire additional office equipment or computer equipment in 2020. Compute amounts for the year ended December 31, 2020, for Depreciation expense—Office equipment and for Depreciation expense—Computer equipment (assume use of the straight-line method).2. Given the assumptions in part 1, what is the book value of both the office equipment and the computer equipment as of December 31, 2020?3. Compute the three-month total asset turnover for Business…
Q # 3 The accounts in the ledger of Donald Brown, with the adjusted balance on Dec 30, the end of the current fiscal year, are as follows
Account Title
Debit
Credit
Cash
170,000
Account Receivable
70,000
Merchandise Inventory-Beg
60,000
Office Supplies
5,000
Land
50,000
Store Equipment
40,000
Accumulated Dep. -Store Equipment
30,000
Office Equipment
50,000
Accumulated. Dep.-Office Equipment
25,000
Account Payable
38,850
Salaries Payable
22,000
Donald Brown, Capital
125,000
Sales
500,000
Sales Discounts
6,000
Purchases
250,000
Purchase returned
18,000
Purchase Discounts
12,000
Transportation In
11,550
Advertising Expense
18,000
Bad debts expense
16,520
Dep. Exp. -Store Equipment
13,500
Allowance for bad debts…
PRACTICE Q 4
Current Attempt in Progress
This information relates to Sunland Co.
1.
On April 5, purchased merchandise on account from Sarasota Company for $ 22,400, terms 2/10, net/30, FOB shipping point.
2.
On April 6, paid freight costs of $ 950 on merchandise purchased from Sarasota Company.
3.
On April 7, purchased equipment on account for $ 27,800.
4.
On April 8, returned some of April 5 merchandise, which cost $ 3,200, to Sarasota Company.
5.
On April 15, paid the amount due to Sarasota Company in full.
(a)
Prepare the journal entries to record these transactions on the books of Sunland Co. using a periodic inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
choose a transaction date
enter an account title
enter a…
Chapter 2 Solutions
Intermediate Accounting
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Income determination LO24 If none of the...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Closing entries LO27 The year-end adjusted trial...Ch. 2 - Prob. 2.13BECh. 2 - Transaction analysis LO21 The following...Ch. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Journal entries LO22 The following transactions...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Transaction analysis; debits and credits LO22...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; solving for unknowns LO24,...Ch. 2 - Adjusting entries LO25 The Mazzanti Wholesale...Ch. 2 - Financial statements and closing entries LO26,...Ch. 2 - Closing entries LO27 American Chip Corporations...Ch. 2 - Prob. 2.14ECh. 2 - Cash versus accrual accounting; adjusting entries ...Ch. 2 - External transactions and adjusting entries LO22,...Ch. 2 - Accrual accounting income determination LO24,...Ch. 2 - Cash versus accrual accounting LO28 Stanley and...Ch. 2 - Prob. 2.19ECh. 2 - Worksheet Appendix 2A The December 31, 2018,...Ch. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.25ECh. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Adjusting entries LO25 Pastina Company sells...Ch. 2 - Accounting cycle; adjusting entries through...Ch. 2 - Adjusting entries LO25 Howarth Companys fiscal...Ch. 2 - Accounting cycle LO22 through LO27 The general...Ch. 2 - Adjusting entries and income effects LO22, LO25...Ch. 2 - Adjusting entries LO25 Excalibur Corporation...Ch. 2 - Accounting cycle; unadjusted trial balance through...Ch. 2 - Prob. 2.10PCh. 2 - Prob. 2.11PCh. 2 - Cash versus accrual accounting LO28 Zambrano...Ch. 2 - Worksheet Appendix 2A Using the information from...Ch. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Prob. 2.2BYPCh. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Continuing Cases Target Case LO24, LO28 Target...
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- All journals and general ledger; trial balance The transactions completed by AM Express Company during March, the first month of the fiscal year, were as follows: Mar. 1. Issued Check No. 205 for March rent, 2,450. 2. Purchased a vehicle on account from McIntyre Sales Co., 26,900. 3. Purchased office equipment on account from Office Mate Inc., 1,570. 5. Issued Invoice No. 91 to Ellis Co., 7,000. 6. Received check for 7,950 from Chavez Co. in payment of invoice. Mar. 7. Issued Invoice No. 92 to Trent Co., 9,840. 9. Issued Check No. 206 for fuel expense, 820. 10. Received check for 10,000 from Sajeev Co. in payment of invoice. 10. Issued Check No. 207 to Office City in payment of 450 invoice. 10. Issued Check No. 208 to Bastille Co. in payment of 1,890 invoice. 11. Issued Invoice No. 93 to Jarvis Co., 7,200. 11. Issued Check No. 209 to Porter Co. in payment of 415 invoice. 12. Received check for 7,000 from Ellis Co. in payment of March 5 invoice. 13. 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Receivable CR Sales DR COGS CR Merchandise Inventory 2019 Jul. 1 Palm Springs Inc. (312) 12 2,000.00 Jul. 8 Smith Mfg (178) 14 2,500.00 ASH RECEIPTS…arrow_forward
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