Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 2PSA
1.
Summary Introduction
Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas
To calculate: Journal entries, trial balance and general ledgers of the accounts.
1.
Expert Solution
Answer to Problem 2PSA
All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.
Explanation of Solution
| Sr. No. | Particulars | PR | Amount | Amount |
| a. | Cash | 101 |
| |
| Office equipment | 163 |
| ||
| Drafting Equipment | 164 |
| ||
| Common stock | 307 |
| ||
| (Being owner Invested cash and equipment) | ||||
| b. | Land | 172 |
| |
| Cash | 101 |
| ||
| Note payable | 250 |
| ||
| (Being land purchased with cash and note payable) | ||||
| c. | Building | 170 |
| |
| Cash | 101 |
| ||
| (Being building purchased) | ||||
| d. | Prepaid Insurance | 108 |
| |
| Cash | 101 |
| ||
| (Being insurance policy for 18 month purchased) | ||||
| e. | Cash | 101 |
| |
| Engineering fees earned | 402 |
| ||
| (Being cash collected after completion of work) | ||||
| f. | Drafting equipment | 164 |
| |
| Cash | 101 |
| ||
| Note Payable | 250 |
| ||
| (Being equipment purchased for cash and notes payable) | ||||
| g. | Accounts receivable | 106 |
| |
| Engineering fees earned | 402 |
| ||
| (Being client services completed) | ||||
| h. | Office equipment | 163 |
| |
| Account payable | 201 |
| ||
| (Being Equipment purchased on credit) | ||||
| i. | Account Receivable | 106 |
| |
| Engineering fees earned | 402 |
| ||
| (Being Client billed for completed work) | ||||
| j. | Equipment Rental expense | 602 |
| |
| Accounts payable | 201 |
| ||
| (Being rental expense incurred on equipment) | ||||
| k. | Cash | 101 |
| |
| Accounts receivable | 106 |
| ||
| (Being cash collected on account) | ||||
| l. | Wages expenses | 601 |
| |
| Cash | 101 |
| ||
| (Being wages paid to assistant) | ||||
| m. | Accounts payable | 201 |
| |
| Cash | 101 |
| ||
| (Being amount due on account) | ||||
| n. | Repairs Expenses | 604 |
| |
| Cash | 101 |
| ||
| (Being expense paid for repair of equipment) | ||||
| o. | Dividends | 319 |
| |
| Cash | 101 |
| ||
| (being cash drawn for personal use) | ||||
| p. | Wages expenses | 601 |
| |
| Cash | 101 |
| ||
| (Being wages paid to assistant) | ||||
| q. | Advertising Expenses | 603 |
| |
| Cash | 101 |
| ||
| (Being Advertising expenses paid) | ||||
Summary Introduction
Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.
To calculate: Journal entries, trial balance and general ledgers of the accounts.
Expert Solution
Answer to Problem 2PSA
All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.
Explanation of Solution
Cash Ledger- A/c No. 101
| Sr. No. | PR | Debit | Credit | Balance |
| a. | G1 |
|
| |
| b. | G1 | $6,300 | $93,700 | |
| c. | G1 | $55,000 | $38,700 | |
| d. | G1 | $3,000 | $35,700 | |
| e. | G1 | $6,200 | $41,900 | |
| f. | G1 | $9,500 | $32,400 | |
| k. | G1 | $7,000 | $39,400 | |
| l. | G1 | $1,200 | $38,200 | |
| m. | G1 | $1,150 | $37,050 | |
| n. | G1 | $925 | $36,125 | |
| o. | G1 | $9,480 | $26,645 | |
| p. | G1 | $1,200 | $25,445 | |
| q. | G1 | $2,500 | $22,945 | |
Account Receivable -A/c. No. 106
| Sr. No. | PR | Debit | Credit | Balance |
| g. | G1 | $14,000 | $14,000 | |
| i. | G1 | $22,000 | $36,000 | |
| k. | G1 | $7,000 | $29,000 |
Prepaid Insurance- A/c. No. 108
| Sr. No. | PR | Debit | Credit | Balance |
| d. | G1 | $3,000 | $3,000 | |
Office Equipment- A/c No. 163
| Sr. No. | PR | Debit | Credit | Balance |
| a. | G1 | $5,000 | $5,000 | |
| h. | G1 | $1,150 | $6,150 |
Drafting Equipment − A/C No. 164
| Sr. No. | PR | Debit | Credit | Balance |
| a. | G1 | $60,000 | $60,000 | |
| f. | G1 | $20,000 | $80,000 |
Building - A/c No. 170
| Sr. No. | PR | Debit | Credit | Balance |
| c. | G1 | $55,000 | $55,000 |
Land - A/c No. 172
| Sr. No. | PR | Debit | Credit | Balance |
| b. | G1 | $49,000 | $49,000 |
Account payable − A/c No. 201
| Sr. No. | PR | Debit | Credit | Balance |
| h. | G1 | $1,150 | $1,150 | |
| j. | G1 | $1,333 | $2,483 | |
| m. | G1 | $1,150 | $1,150 |
Notes Payable − A/c No. 250
| Sr. No. | PR | Debit | Credit | Balance |
| b. | G1 | $42,700 | $42,000 | |
| f. | G1 | $10,500 | $53,200 |
Common Stock −A/c No. 307
| Sr. No. | PR | Debit | Credit | Balance |
| a. | G1 | $165,000 | $165,000 |
Dividends _A/c No. 319
| Sr. No. | PR | Debit | Credit | Balance |
| o. | G1 | $9,480 | $9,480 |
Engineering Fees earned - A/c No. 402
| Sr. No. | PR | Debit | Credit | Balance |
| e. | G1 | $6,200 | $6,200 | |
| g. | G1 | $14,000 | $20,200 | |
| i. | G1 | $22,000 | $42,200 |
Equipment rental expenses-A/c No. 602
| Sr. No. | PR | Debit | Credit | Balance |
| j. | G1 | $1,333 | $1,333 |
Wages expenses −A/c No. 601
| Sr. No. | PR | Debit | Credit | Balance |
| l. | G1 | $1,200 | $1,200 | |
| p. | G1 | $1,200 | $2,400 |
Repair expenses
| Sr. No. | PR | Debit | Credit | Balance |
| n. | G1 | $925 | $925 |
Advertising Expenses − A/c No. 106
| Sr. No. | PR | Debit | Credit | Balance |
| q. | G1 | $2,500 | $2,500 |
Summary Introduction
Introduction: Journal means recording the transactions made during the course of business in a chronological manner. Whereas journal entry means recording the transaction in a journal or by maintaining a book of accounts for future verification and taking other measures. Trial balance refers to a listing of all the accounts and later on matching with the other accounts so that complete verification is done.
To calculate: Journal entries, trial balance and general ledgers of the accounts.
Expert Solution
Answer to Problem 2PSA
All the journal entries required are maintained and the ledger of the accounts is maintained with trial balance.
Explanation of Solution
Trial Balance (As on June 30)
| Particulars | Debit | Credit |
| Cash | $22,945 | |
| Account Receivable | $29,000 | |
| Prepaid Expenses | $3,000 | |
| Office Equipment | $6,150 | |
| Drafting Equipment | $80,000 | |
| Building | $55,000 | |
| Land | $49,000 | |
| Accounts Payable | $1,333 | |
| Notes Payable | $53,200 | |
| Common Stock | $165,000 | |
| Dividends | $9,480 | |
| Engineering Fees Earned | $42,200 | |
| Equipmenmt Rental Expenses | $1,333 | |
| Wages Expenses | $2,400 | |
| Repair Expenses | $925 | |
| Adverstising Expenses | $2,500 | |
| Total | $261,733 | $261,733 |
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Chapter 2 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Should a transaction be recorded first in a...Ch. 2 - Prob. 7DQCh. 2 - Why does the recordkeeper prepare a trial balance?Ch. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Review the Apple balance sheet in Appendix A....Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Identify the items from the following list that...Ch. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - In a recent year’s financial statements, Home...Ch. 2 - Prob. 13QSCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Enter the number for the item that best completes...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prepare general journal entries for the following...Ch. 2 - Prob. 12ECh. 2 - Assume the following Taccounts reflect Belle Co.’s...Ch. 2 - Prob. 14ECh. 2 - A corporation had the following assets and...Ch. 2 - Prob. 16ECh. 2 - Use the information in Exercise 216 to prepare an...Ch. 2 - Prob. 18ECh. 2 - Compute the missing amount for each of the...Ch. 2 - Prob. 20ECh. 2 - You are told the column totals in a trial balance...Ch. 2 - a. Calculate the debt ratio and the return on...Ch. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 6PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Nuncio Consulting complete the following...Ch. 2 - Prob. 5PSBCh. 2 - Prob. 6PSBCh. 2 - Prob. 2SPCh. 2 - Prob. 1GLPCh. 2 - Prob. 2GLPCh. 2 - Prob. 3GLPCh. 2 - Prob. 4GLPCh. 2 - Prob. 5GLPCh. 2 - Prob. 6GLPCh. 2 - Prob. 7GLPCh. 2 - Using transactions from the following assignments,...Ch. 2 - Prob. 1FSACh. 2 - Prob. 2FSACh. 2 - Prob. 3FSACh. 2 - Assume that you are a cashier and your manager...Ch. 2 - Prob. 2BTNCh. 2 - Access EDGAR online (SEC.gov) and locate the 2016...Ch. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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