Financial Accounting
5th Edition
ISBN: 9781618531650
Author: Thomas Dyckman
Publisher: Cambridge Business Publishers
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Chapter 2, Problem 57P
a.
To determine
Report the effects for each of the separate transactions and prove that assets equal liabilities plus equity and revenues less expenses equal net income.
b.
To determine
Prepare an income statement for the month of December.
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Dallas Parsons, CPA, began an accounting practice and completed these transactions during September 2015.
Sept 1 Invested $15,000 of his personal savings into a bank account opened in the name of the accounting practice.
Sept 2 Purchased office equipment for $12,500, paying $800 cash and agreeing to pay the balance in one year.
Sept 3 Rented office space and paid cash for two months in advance, $11,200.
Sept 4 Completed accounting work for a client and immediately collected $1,500 in cash for the work done.
Sept 8 Purchased office supplies for cash, $150.
Sept 15 Completed accounting services for a client on credit, $2,300.
Sept 20 Received $2,300 from the above client for the work completed on September 15.
Sept 30 Paid utilities expense for month of $1,300.
Sept 30 Paid the office secretary's salary, $400.
Sept 30 Paid $100 for repairs to the photocopier.
Show the effects of the above transactions on the balance sheet items of Dallas Parsons, CA. Use the following…
On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $30,000 from personal funds.
b. Purchased office supplies on account, $3,010.
c. Paid creditor on account, $1,900.
d. Earned sales commissions, receiving cash, $30,690.
During 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31.
1.
Issued common shares to investors in exchange for $ 90,000 in cash.
2.
Borrowed $ 46,000 cash from the bank, due 2020.
3.
Purchased delivery vehicles for $ 61,000 cash.
4.
Received $ 24,000 from customers for services provided.
5.
Purchased supplies for $ 3,700 on account.
6.
Paid rent of $ 5,500.
7.
Performed services on account for $ 9,000.
8.
Paid salaries of $ 28,000.
9.
Declared and paid a dividend of $ 12,000 to shareholders.
10.
Paid income taxes of $ 200 for the month.
Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Sr No
Account Titles and…
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5Q
Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 26MECh. 2 - Prob. 27MECh. 2 - Prob. 28MECh. 2 - Prob. 29MECh. 2 - Prob. 30MECh. 2 - Prob. 31MECh. 2 - Prob. 32MECh. 2 - Prob. 33MECh. 2 - Prob. 34ECh. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Prob. 37ECh. 2 - Prob. 38ECh. 2 - Prob. 39ECh. 2 - Prob. 40ECh. 2 - Prob. 41ECh. 2 - Prob. 42ECh. 2 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 45ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 48ECh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Prob. 70PCh. 2 - Prob. 71CPCh. 2 - Prob. 72CP
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