INTERMEDIATE ACCOUNTING (ACCT 3200B)
10th Edition
ISBN: 9781307660647
Author: SPICELAND
Publisher: MCG/CREATE
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Textbook Question
Chapter 2, Problem 2.2E
• LO2–2
Prepare journal entries to record each of the transactions listed in E 2–1.
E 2–1
Transaction analysis
• LO2–1
The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
1. Issued 30,000 shares of common stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded
Required:
Analyze each transaction and show the effect of each on the
Example:
1. Assets + 300,000(cash) = Liabilities + Paid-In Capital +
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Chapter 5 Exercises i
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Required information
Part 4 of 7
(The following information applies to the questions displayed below.)
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:
Accounts
Debit
Credit
1
$ 26,100
14,700
Cash
points
Accounts Receivable
Allowance for Uncollectible Accounts
$ 3,000
Supplies
Notes Receivable (6, due in 2 years)
Land
Skipped
3,600
15,000
80,000
Accounts Payable
Conmon Stock
Retained Earnings
7,900
95,000
33,500
eBook
Totals
$139,400
$139,400
Print
During January 2021, the following transactions occur:
2 Provide services to customers for cash, $46,100.
6 Provide services to customers on account, $83,400.
January
January
January 15 write off accounts receivable as uncollectible, $2,500.
January 20 Pay cash for salaries, $32, 500.
January 22 Receive cash on accounts receivable, $81,000.
January 25 Pay cash on accounts payable, $6,600.
January 30 Pay cash for utilities during January, $14,800.
References…
ACB10103 BUSINESS ACCOUNTING 2021/22
QUESTION 2
31
Paid saiary amou
2. Below are transactions for April 20X3 for Mr Lam, a sole trader
Apr. 1
2 Bought goods worth RM1,000 on credit from Shaf
Paid rent amounting to RM200 in cash.
4 Deposited RM11,000 of the business cash into the bank accou
6 Sold goods worth RM600 on credit to Tan.
7 Bought stationery worth RM50 by cheque.
11 Made cash sales of RM100.
14 Returned goods worth RM150 to Shan.
15 Sold goods worth RM1,200 on credit to Ting.
18 Goods worth RM45 returned by Tan.
23 Paid RM850 to Shah by cheque.
25 Purchased goods worth RM250 by cash.
28 Received a cheque for RM500 from Ting.
31 Received RM100 commission in cash.
Started business with RM12,000 çash.
3.
Required:
(a) Record the above transactions in the relevant accounts.
(b) Balance off the accounts.
(c) Prepare a trial balance for Mr Lam as at 30 April 20X3.
TB 14150
%3D
Listed below are a few events and transactions of Kodax Company.
Year 1
January 2 Purchased 40,000 shares of Grecco Company common stock for $431,000 cash. Grecco has 120,000 shares of
common stock outstanding, and its activities will be significantly influenced by Kodax.
September 1 Grecco declared and paid a cash dividend of $1.70 per share.
December 31 Grecco announced that net income for the year is $489,900.
Year 2
June 1 Grecco declared and paid a cash dividend of $1.70 per share.
December 31 Grecco announced that net income for the year is $705,400.
December 31 Kodax sold 9,000 shares of Grecco for $160,000 cash.
Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and
round your final answers to the nearest dollar amount.)
View transaction list
Chapter 2 Solutions
INTERMEDIATE ACCOUNTING (ACCT 3200B)
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 - Prob. 2.12BECh. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.24ECh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.12PCh. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Prob. 2.1DA
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