INTERMEDIATE ACCT.CUSTOM W/CONNECT
10th Edition
ISBN: 9781307690804
Author: SPICELAND
Publisher: MCG/CREATE
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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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ACB10103 BUSINESS ACCOUNTING 2021/22
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Memories Forever Trading is à basiness selling souvenirs. The following transactions took place
in the mouth of September 20x7.
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Owner invested cash into the business bank account RM100,000
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Purchased a motor van from Lim Motors costing RM70,000. Deposit of RM10,000 was
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Sold goods on credit to Zulaikha RM4,800 and Khaira RM3,600
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September 20 Received a cheque from Pelangi Berhad for investment income of RM15,000
September 23 Paid RM1,200 to Tenaga Nasional Berhad for electricity expense
September 26 Received a cheque for cash sales amounting to RM10,000
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Required:
A…
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…
4:00 & O
O X G lll 59%
E TRANSACTION-NO.2docx
TRANSACTION NO.2
Instructions:
a. Journalize the above transactions
b. Post to ledger
c. Make a trial balance
On April 1, 2018, Nels Ferrer organized a business called Friendly
Trucking. During April, the company entered into the following
transactions:
Apr 1 Nels Ferrer deposited Php500,000 cash in a bank account in
the name of the business.
Apr 1 Purchased for Php250,000 a transportation equipment to be
use in the business. Nels paid 50% as down payment while the
balance will be paid on May 15, 2016
Apr 1 Paid rental for the month of April, Php5,000
Apr 5 Earned and collected trucking income from Ryan, Php8,000
Apr 8 Earned trucking income from Jesper, Php30,000 on account.
Jesper will pay on May 8, 2016
Apr 10 Paid salaries of drivers, Php10,000
Apr 15 Rented the vehicle to Joshua for Php35,000, Joshua paid
Php20,000 on that date and the balance on April 20
Apr 18 Paid electric bills for the month, Php2,000
Apr 20 Collected from Joshua…
Chapter 2 Solutions
INTERMEDIATE ACCT.CUSTOM W/CONNECT
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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