College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Chapter 2, Problem 4PA
On May 1, B. Bangle opened Self-Wash Laundry. His accountant listed the following chart of accounts:
The following transactions were completed during May:
- a. Bangle deposited $35,000 in a bank account in the name of the business.
- b. Bought chairs and tables, paying cash, $1,870, Ck. No. 1000.
- c. Bought supplies on account from Barnes Supply Company, $225.
- d. Paid the rent for the current month, $875, Ck. No. 1001.
- e. Bought washing machines and dryers from Lara Equipment Company, $12,500, paying $3,600 in cash and placing the balance on account, Ck. No. 1002.
- f. Sold services for cash for the first half of the month, $1,925.
- g. Bought insurance for one year, $1,560, Ck. No. 1003.
- h. Paid on account to Lara Equipment Company, $1,800, Ck. No. 1004.
- i. Received and paid electric bill, $285, Ck. No. 1005.
- j. Sold services for cash for the second half of the month, $1,835.
- k. Paid wages to an employee, $940, Ck. No. 1006.
- l. Bangle withdrew cash for his personal use, $800, Ck. No. 1007.
- m. Paid on account to Barnes Supply Company, $225, Ck. No. 1008.
- n. Received and paid bill from the county for sidewalk repair assessment, $280, Ck. No. 1009.
Required
- 1. Record the owner’s name in the Capital and Drawing T accounts.
- 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.
- 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction.
- 4. Foot the T accounts and show the balances.
- 5. Prepare a
trial balance as of May 31, 20--. - 6. Prepare an income statement for May 31, 20--.
- 7. Prepare a statement of owner’s equity for May 31, 20--.
- 8. Prepare a balance sheet as of May 31, 20--.
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Chapter 2 Solutions
College Accounting (Book Only): A Career Approach
Ch. 2 - Determine the balance of the following T account:
...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 3QYCh. 2 - R. Nelson invests his personal computer, with a...Ch. 2 - When preparing a trial balance, which of the...Ch. 2 - What would be the net income for Floress Catering?...Ch. 2 - On which financial statement(s) would R. Flores,...Ch. 2 - What is the amount of ending capital shown on the...Ch. 2 - Floress Catering purchased equipment that cost...Ch. 2 - Prob. 1DQ
Ch. 2 - Explain why the term debit doesnt always mean...Ch. 2 - Prob. 3DQCh. 2 - How are the three financial statements shown in...Ch. 2 - Prob. 5DQCh. 2 - List two reasons why the debits and credits in the...Ch. 2 - Prob. 7DQCh. 2 - What do we mean when we say that capital, drawing,...Ch. 2 - Prob. 1ECh. 2 - List the classification of each of the following...Ch. 2 - R. Dalberg operates Dalbergs Tours. The company...Ch. 2 - During the first month of operation, Graham...Ch. 2 - Speedy Sewing Services, owned by T. Nguyen, hired...Ch. 2 - During the first month of operations, Landish...Ch. 2 - The following errors were made in journalizing...Ch. 2 - Would the following errors cause the trial balance...Ch. 2 - During December of this year, G. Elden established...Ch. 2 - B. Kelso established Computer Wizards during...Ch. 2 - S. Myers, a speech therapist, opened a clinic in...Ch. 2 - On May 1, B. Bangle opened Self-Wash Laundry. His...Ch. 2 - The financial statements for Daniels Custom...Ch. 2 - During February of this year, H. Rose established...Ch. 2 - J. Carrie established Carries Photo Tours during...Ch. 2 - D. Johnston, a physical therapist, opened...Ch. 2 - On July 1, K. Resser opened Ressers Business...Ch. 2 - The financial statements for Baker Custom Catering...Ch. 2 - Prob. 1ACh. 2 - What Would You Say? A fellow accounting student...Ch. 2 - Prob. 3A
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