Concept explainers
COACHED PROBLEMS
Recording Nonquantitative Journal Entries
The following list includes a series of accounts for B-ball Corporation, which has been operating for three years. These accounts are listed alphabetically and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. If no
TIP: In transaction (h), remember what the expense recognition principle says.
TIP: Think of transaction (j) as two transactions: (1) incur expenses and liability and (2) pay part of the liability.
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FUNDAMENTALS OF FINANCIAL ACCOUNTING
- Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Event External event Internal event Transaction Source document Account Chart of accounts General ledger Debit Credit Double-entry system Journal Posting Journalizing General journal Trial balance A numerical list of all accounts used by a company. A list of each account and its balance; used to prove equality of debits and credits. A happening of consequence to an entity. An entry on the right side of an account. An event occurring entirely within an entity. A piece of paper that is used as evidence to record a transaction. The act of recording journal entries. An entry on the left side of an account. The process of transferring amounts from a journal to the ledger accounts. An event involving interaction between an entity and its environment. A record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders equity. A book, a file, a hard drive, or another device containing all of the accounts. A chronological record of transactions. Any event that is recognized in a set of financial statements. The journal used in place of a specialized journal. A system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance.arrow_forwardAccounts Used to Record Transactions A list of accounts, with an identifying number for each, is provided. Following the list of accounts is a series of transactions entered into by a company during its first year of operations. Required For each transaction, indicate the account or accounts that should be debited and credited. Cash Accounts Receivable Prepaid Insurance Office Supplies Automobiles Land Accounts Payable Income Taxes Payable Notes Payable Capital Stock Retained Earnings Service Revenue Wage and Salary Expense Utilities Expense Income Tax Expensearrow_forwardTrial Balance The following list of accounts was taken from the general ledger of Spencer Corporation on December 31. The bookkeeper thought it would be helpful if the accounts were arranged in alphabetical order. Each account contains the balance that is normal for that type of account; for example, Cash normally has a debit balance. Prepare a trial balance as of this date with the accounts arranged in the following order: (1) assets, (2) liabilities, (3) stockholders equity, (4) revenues, (5) expenses, and (6) dividends.arrow_forward
- Complete accounting cycle For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y6, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud entered into the following transactions during April: Record the following transactions on Page 2 of the journal: Instructions 1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). (a) Insurance expired during April is 350. (b) Supplies on hand on April 30 are 1,225. (c) Depreciation of office equipment for April is 400. (d) Accrued receptionist salary on April 30 is 275. (e) Rent expired during April is 2,000. (f) Unearned fees on April 30 are 2,350. 5. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.arrow_forwardTransactions and T Accounts The following selected transactions were completed during August of the current year: Billed customers for fees earned, $62,750. Purchased supplies on account, $2,700. Received cash from customers on account, $58,990. Paid creditors on account, $1,630. a. Journalize these transactions in a two-column journal, using the appropriate number to identify the transactions. If an amount box does not require an entry, leave it blank. (1) fill in the blank b7d701fb8004fee_2 fill in the blank b7d701fb8004fee_3 fill in the blank b7d701fb8004fee_5 fill in the blank b7d701fb8004fee_6 (2) fill in the blank b7d701fb8004fee_8 fill in the blank b7d701fb8004fee_9 fill in the blank b7d701fb8004fee_11 fill in the blank b7d701fb8004fee_12 (3) fill in the blank b7d701fb8004fee_14 fill in the blank b7d701fb8004fee_15 fill in the blank b7d701fb8004fee_17 fill in the blank b7d701fb8004fee_18 (4) fill in the blank b7d701fb8004fee_20 fill…arrow_forwardRequired: 1. Journalize each transaction, in chronological order, in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. If there is more than one entry on the same date, be sure to enter the transactions in the exact order as presented in the data. (Do not insert the account numbers in the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank. 11 Cash 31 Jeff Horton, Capital 12 Accounts Receivable 32 Jeff Horton, Drawing 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Supplies Expense 18 Office Equipment 53 Rent Expense 19 Accumulated Depreciation 54 Depreciation Expense 21 Accounts Payable 55 Insurance Expense 22 Salaries Payable 59 Miscellaneous Expense 23 Unearned Fees You will use the attached spreadsheet to complete several of the remaining…arrow_forward
- The following selected transactions were completed during August of the current year:1. Billed customers for fees earned, $73,900.2. Purchased supplies on account, $1,960.3. Received cash from customers on account, $62,770.4. Paid creditors on account, $820.a. Journalize these transactions in a two-column journal, using the appropriate numberto identify the transactions. Journal entry explanations may be omitted.arrow_forwardTransactions Birdy Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for January 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Date Transactions Jan. 1. Paid rent for the month, $5,900. 4. Paid advertising expense, $3,750. 5. Paid cash for supplies, $1,610. 6. Purchased office equipment on account, $24,600. 12. Received cash from customers on account, $8,030. 20. Paid creditor on account, $2,350. 27. Paid cash for miscellaneous expenses, $1,020. 30. Paid utility (heating) bill for the month, $370. 31. Fees earned and billed to customers for the month, $53,500. 31. Paid utility (electricity) bill for the month, $640. 31.…arrow_forward3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Using the balances from the spreadsheet, prepare an unadjusted trial balance of the ledger as of August 31, 20Y8. List all accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses. If an amount box does not require an entry, leave it blank. The following business transactions were completed by Valley Realty during August 20Y8: Aug. 1. Purchased office supplies on account, $1,010. 2. Paid rent on office for month, $3,880. 3. Received cash from clients on account, $19,380. 5. Paid insurance premiums, $2,790. 9. Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, $160. 17. Paid advertising expense, $1,550. 23. Paid creditors on account, $3,490. 29. Paid miscellaneous expense, $350. 30. Paid automobile expense (including rental charges for an automobile), $1,160. 31.…arrow_forward
- Journal entries and trial balance On October 1, 2019, jay Pryor established an interior decoratingbusiness, Pioneer Designs. During the month, jay completed theattached transactions related to the business: Instructions1. Journalize each transaction in a two-column journal beginning onPage 1, referring to the following chart of accounts in selecting theaccounts to be debited and credited. (Do not insert the account numbersin the journal at this time.) Journal entry explanations may be omitted. 11 Cash12 Accounts Receivable13 Supplies 14 Prepaid Insurance16 Equipment18 Truck21 Notes Payable 22 Accounts PayableSI Jay Pryor, Capital$2 Jay Pryor, Drawing 41 Fees Earned51 Wages Expense53 Rent Expense 54 Utilities Expense55 Truck Expense59 Miscellaneous Expense 2. Post the journal to a ledger of four-column accounts, insertingappropriate posting references as each item is posted. Extend thebalances to the appropriate balance columns after each transaction is posted.3. Prepare an unadjusted…arrow_forwardJournalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance The trial balance of John Menning, CPA, is dated March 31, 2018: During April, the business completed the following transactions: Requirements Record the April transactions in the journal using the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Furniture; Automobile; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; and Rent Expense. Include an explanation for each entry. Open the four-column ledger accounts listed in the trial balance, together with their balances as of March 31. Use the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Land, 14; Furniture, 15; Automobile, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33; Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52. Post the journal entries to four-column accounts in the ledger,…arrow_forward(a) Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent manually. (b) Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (c) Show the balance sheet presentation of notes and interest payable at December 31 . Sheridan Company Balance Sheet (Partial) (d) What is the total interest expense for the year ? need answer for all or skip do not waste time or question by giving incomplete or incorrect answer please solve with workingarrow_forward
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