Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 5P
Nordtown Company is a marketing firm. The company’s
During the month of September, the company completed the following transactions:
Sept. 2 Paid rent for September, $650.
3 Received cash from customers on account, $2,300.
7 Ordered supplies, $380.
10 Billed customers for services provided, $2,800.
12 Made a payment on accounts payable, $1,300.
14 Received the supplies ordered on September 7 and agreed to pay for them in 30 days, $380.
17 Discovered some of the supplies were not as ordered and returned them for full credit, $80.
19 Received cash from a customer for services provided, $4,800.
24 Paid the utility bill for September, $250.
26 Received a bill, to be paid in October, for advertisements placed in the local newspaper during the month of September to promote Nordstrom Company, $700.
29 Billed a customer for services provided, $2,700.
30 Paid salaries for September, $3,800.
30 Made a cash withdrawal of $1,200.
Required
- 1. Open accounts in the ledger for the accounts in the trial balance plus the following accounts: D. Guetta, Withdrawals (313); Marketing Fees (411); Salaries Expense (511); Utilities Expense (512); Rent Expense (514); and Advertising Expense (516).
- 2. Enter the August 31, 2014, account balances from the trial balance.
- 3. Enter the September transactions in the general journal (page 22).
- 4.
Post the journal entries to the ledger accounts. Be sure to make the appropriate posting references in the journal and ledger as you post. - 5. Prepare a trial balance as of September 30, 2014.
- 6. Business Application ▶ Examine the transactions for September 3, 10, 19, and 29. What were the revenues, and how much cash was received from the revenues? What business issues might you see arising from the differences in these numbers?
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Chapter 2 Solutions
Principles of Accounting
Ch. 2 - A company incurs a cost for a part that is needed...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - How are assets and expenses related, and why are...Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Tell whether each of the following accounts is an...Ch. 2 - Prob. 2SE
Ch. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Prob. 5SECh. 2 - Prob. 6SECh. 2 - Prob. 7SECh. 2 - Prepare a general journal form like the one in...Ch. 2 - Prepare three ledger account forms like the one in...Ch. 2 - Prob. 10SECh. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Which of the following events would be recognized...Ch. 2 - You are given the following list of accounts with...Ch. 2 - The following ledger accounts are for Afocentric...Ch. 2 - Prob. 4EACh. 2 - The accounts that follow are applicable to Harolds...Ch. 2 - Prob. 6EACh. 2 - Prob. 7EACh. 2 - Prob. 8EACh. 2 - After recording the transactions in E6A, prepare a...Ch. 2 - The list that follows presents Shah Companys...Ch. 2 - Which of the following errors would cause a trial...Ch. 2 - Prob. 12EACh. 2 - Record the transactions in E6A in the general...Ch. 2 - Prob. 14EACh. 2 - Prob. 15EACh. 2 - Prob. 16EACh. 2 - Highland Design Company creates radio and...Ch. 2 - The following accounts are applicable to Georges...Ch. 2 - Jennifer Lopez opened a school for administrative...Ch. 2 - Sid Patel bid for and won a concession to rent...Ch. 2 - Nordtown Company is a marketing firm. The companys...Ch. 2 - Prob. 6APCh. 2 - The following accounts are applicable to Raymonds...Ch. 2 - Prob. 8APCh. 2 - David Roberts began an upholstery cleaning...Ch. 2 - Prob. 10APCh. 2 - Prob. 1CCh. 2 - Prob. 2CCh. 2 - Prob. 3CCh. 2 - Prob. 4CCh. 2 - Prob. 5CCh. 2 - Prob. 6CCh. 2 - Prob. 7C
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