Explanation a. Date Account Title and Explanation Post ref Debit($) Credit($) Cash 100,750 Common stock 100,750 ( Being owner's investment in common stock recorded.) Table (1) Cash is an asset and owner's investment of cash in exchange for common stock increases the assets, hence debit cash account. Common stock is part of equity and investment in common stock increases the same hence it is credited. b. Date Account Title and Explanation Post ref Debit($) Credit($) Office supplies 1,250 Cash 1,250 ( Being office supplies purchased ) Table (2) Office supplies is an asset and purchase of office supplies increases the asset hence it is debited. Cash is an asset and it is decreased for purchasing office supplies hence it is credited. c. Date Account Title and Explanation Post ref Debit($) Credit($) Office equipment 10,500 Accounts payable 10,500 ( Being office equipment purchased on credit.) Table (3) Office equipment is an asset and purchase of asset increases the asset, hence it is debited. Accounts payable is a liability and the equipment purchased on credit increases the liability, hence credit the accounts payable. d. Date Account Title and Explanation Post ref Debit($) Credit($) Cash 15,500 Service revenue earned 15,500 ( Being service revenue earned in cash ) Table (4) Cash is an asset and it is increased by earning service revenue, hence it is debited. Service revenue earned is an income hence it is credited. e. Date Account Title and Explanation Post ref Debit($) Credit($) Accounts payable 10,050 Cash 10,050 ( Being payment made for purchase of office equipment due ) Table (5) Accounts payable is a liability and is decreased by debit hence debit accounts payable as the due amount is paid.. Cash is an asset and for paying off the liability it is decreased hence cash account is credited f. Date Account Title and Explanation Post ref Debit($) Credit($) Accounts receivable 2,700 Service fees 2,700 ( Being services provided to customers on credit.) Table (6) Accounts receivable is an asset and the amount due to be received increases the asset hence debit the accounts receivable. Service fees is an income and it is generated here by providing services hence credit all incomes. g. Date Account Title and Explanation Post ref Debit($) Credit($) Rent 1,225 Cash 1,225 ( Being rent paid in cash ) Table (7) Rent is an expense which decreases the assets therefore it is debited. Cash is an asset which is decreased by payment of rent expense and hence it is credited. h. Date Account Title and Explanation Post ref Debit($) Credit($) Cash 1,125 Accounts receivable 1,125 ( Being partial amount of accounts receivable received) Table (8) Cash is an asset which is increased by receiving the due payment from the customers hence, debit cash account. Accounts receivable is an asset and when amount is paid by the customers it is decreased, hence credit accounts receivable. i. Date Account Title and Explanation Post ref Debit($) Credit($) Withdrawals 10,000 Cash 10,000 (Being cash dividends paid to the owner(sole shareholder)) Table (9) Withdrawals for giving cash dividends to sole shareholder are expenses for the company and it is increased hence, debit withdrawals account...

Loose-Leaf for Financial and Managerial Accounting

7th Edition

ISBN: 9781260004861

Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Question

Chapter 2, Problem 9E

To determine

Journal Entries:

Journal entries are the basic entries recoded as per the transactions being entered into by the business in its day to day operations in a chronological order.

Accounting Rules Regarding Journal Entries:

Balance increases when: assets, losses and expenses are debited and liabilities, gains and incomes get credited.

Balance decreases when: assets, losses and expenses get credited and liabilities, gains and incomes are debited

General Ledger:

The general ledger records all accounts relevant to depict its assets, liabilities, and equities along with the incomes, expenses, and losses etc in a summarized form. It includes the debit and credit values of all the accounts, of which both, the total of all debit values and credit values should equalize. All the accounts are allotted a unique identifying numbers of the account to be more record friendly for its end users in later stages of preparation of financial statements.

To prepare: Journal entries and post them in T-accounts as general ledger.

Expert Solution & Answer

Chapter 2 Solutions

Loose-Leaf for Financial and Managerial Accounting

Ch. 2 - Prob. 1MCQ Ch. 2 - Prob. 2MCQ Ch. 2 - Prob. 3MCQ Ch. 2 - Prob. 4MCQ Ch. 2 - Bonaventure Company has total assets of...Ch. 2 - Provide the names of two (a) asset accounts, (b)...Ch. 2 - Prob. 2DQ Ch. 2 - Prob. 3DQ Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ

Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Prob. 8DQ Ch. 2 - Prob. 9DQ Ch. 2 - Prob. 10DQ Ch. 2 - Prob. 11DQ Ch. 2 - Prob. 12DQ Ch. 2 - Prob. 13DQ Ch. 2 - Prob. 14DQ Ch. 2 - Prob. 15DQ Ch. 2 - APPLE Review the Apple balance sheet in Appendix...Ch. 2 - Prob. 17DQ Ch. 2 - Prob. 18DQ Ch. 2 - QS 2-1 Identifying source documents C1 Identifying...Ch. 2 - Prob. 2QS Ch. 2 - Reading a chart of accounts C3 A chart of accounts...Ch. 2 - Prob. 4QS Ch. 2 - Prob. 5QS Ch. 2 - Prob. 6QS Ch. 2 - Prob. 7QS Ch. 2 - identifying a posting error P2 A trial balance has...Ch. 2 - Prob. 9QS Ch. 2 - Prob. 10QS Ch. 2 - Prob. 11QS Ch. 2 - Prob. 12QS Ch. 2 - Exercise 2-1 Steps in analyzing and recording...Ch. 2 - Prob. 2E Ch. 2 - Prob. 3E Ch. 2 - Prob. 4E Ch. 2 - Prob. 5E Ch. 2 - Prob. 6E Ch. 2 - Prob. 7E Ch. 2 - Prob. 8E Ch. 2 - Prob. 9E Ch. 2 - Prob. 10E Ch. 2 - Prob. 11E Ch. 2 - Prob. 12E Ch. 2 - Prob. 13E Ch. 2 - Prob. 14E Ch. 2 - Prob. 15E Ch. 2 - Prob. 16E Ch. 2 - Prob. 17E Ch. 2 - Prob. 18E Ch. 2 - Exercise 2-19 Analyzing changes in a company’s...Ch. 2 - Exercise 2-20 Identifying effects of posting...Ch. 2 - Prob. 21E Ch. 2 - Prob. 22E Ch. 2 - Prob. 23E Ch. 2 - Prob. 1PSA Ch. 2 - Problem 2-2A Preparing and posting journal...Ch. 2 - Prob. 3PSA Ch. 2 - Prob. 4PSA Ch. 2 - Prob. 5PSA Ch. 2 - Prob. 6PSA Ch. 2 - Prob. 1PSB Ch. 2 - Prob. 2PSB Ch. 2 - Prob. 3PSB Ch. 2 - Prob. 4PSB Ch. 2 - Prob. 5PSB Ch. 2 - Prob. 6PSB Ch. 2 - Prob. 2SP Ch. 2 - Prob. 1GLP Ch. 2 - Prob. 2GLP Ch. 2 - Prob. 3GLP Ch. 2 - Prob. 1BTN Ch. 2 - Prob. 2BTN Ch. 2 - Prob. 3BTN Ch. 2 - Prob. 4BTN Ch. 2 - Prob. 5BTN Ch. 2 - Prob. 6BTN Ch. 2 - Prob. 7BTN Ch. 2 - Prob. 8BTN Ch. 2 - Prob. 9BTN Ch. 2 - Prob. 10BTN

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