FINANCIAL ACCOUNTING ETEXT CARD
FINANCIAL ACCOUNTING ETEXT CARD
10th Edition
ISBN: 9781260918373
Author: Libby
Publisher: INTER MCG
Question
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Chapter 8, Problem 2COMP

1.

To determine

Pass necessary journal entries to record the transactions.

1.

Expert Solution
Check Mark

Explanation of Solution

Journal entry:

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Accounting rules for Journal entries:

  • To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.
  • To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.

Pass necessary journal entries to record the transactions.

FINANCIAL ACCOUNTING ETEXT CARD, Chapter 8, Problem 2COMP , additional homework tip  1

Table (2)

FINANCIAL ACCOUNTING ETEXT CARD, Chapter 8, Problem 2COMP , additional homework tip  2

Table (2)

2.

To determine

Prepare T accounts using the trial balance information and an adjusted trial balance.

2.

Expert Solution
Check Mark

Explanation of Solution

Prepare T accounts using the trial balance information and an adjusted trial balance.

Cash
Beginning balance   570  
  1. a.                        97
  
f.2                                3e.       4 
Ending balance       666  

Table (3)

Accounts Receivable
Beginning balance   373
  1. b.     3
 
Ending balance       370  

Table (3)

Allowance for doubtful accounts
 Balance 570 
b    3c               6 
Balance 21 

Table (3)

Inventories
Beginning balance   539
  1. d. 169
 
Ending balance       370  

Table (4)

Prepaid Expenses
Beginning balance   59  
Ending balance       59  

Table (5)

Land
Beginning balance   22  
Ending balance       22  

Table (6)

Building
Beginning balance   189  
Ending balance       189  

Table (7)

Equipment

Beginning balance   360

  1. e.                        14
f.2.       20 
Ending balance       354  

Table (8)

Accumulated Depreciation
Balance            222 
 f.1.                       4 
f.2                                16h.                        21 
Balance       231 

Table (9)

Software
Beginning balance   90
  1. g. 30
 
Ending balance       60  

Table (10)

Patents
Beginning balance        1  
Ending balance             1  

Table (11)

Goodwill
Beginning balance   161  
Ending balance       161  

Table (12)

Accounts Payable
Balance            252 
 e.                       10 
Balance            262 

Table (13)

Accrued Liabilities
Balance            182 
Balance            182 

Table (14)

Income Tax Payable
Balance              16 
 i.                        33 
Balance            49 

Table (15)

Long term Debt
Balance            49 
Balance            49 

Table (16)

Common Stock
Balance               3 
Balance               3 

Table (17)

Additional paid in capital
Balance            243 
Balance            243 

Table (18)

Retained Earnings
Balance             1,107 
Balance             1,107 

Table (19)

Sales Revenue

Balance             2,847

a.                          100

 
Balance             2,587 

Table (20)

Credit Card Discounts

Beginning balance   53

  1. a.                        3
  
Ending balance        56  

Table (21)

Cost of sales

Beginning balance 1,306

d.                         169

  
Ending balance      1,475  

Table (22)

Advertising Expense
Beginning balance   145  
Ending balance        145  

Table (23)

Utilities Expense
Beginning balance      85  
Ending balance           85  

Table (24)

Wages Expense
Beginning balance   625  
Ending balance        625  

Table (25)

Depreciation Expense

Beginning balance       0

f.1.                               4

h.                                21

  
Ending balance          25  

Table (26)

Amortisation Expense

Beginning balance       0

g.                                30

  
Ending balance          30  

Table (27)

Interest Expense
Beginning balance       1  
Ending balance            1  

Table (28)

Bad Debt Expense

Beginning balance       0

 C                                 6

  
Ending balance            6  

Table (28)

Loss of sale of equipment

Beginning balance       0

f.2.                                1

  
Ending balance            1  

Table (29)

Income Tax Expense

Beginning balance       0

f.2.                             33

  
Ending balance         33  

Table (30)

FINANCIAL ACCOUNTING ETEXT CARD, Chapter 8, Problem 2COMP , additional homework tip  3

Table (31)

3.

To determine

Prepare an income statement, statement of stockholders’ equity and a classified balance sheet.

3.

Expert Solution
Check Mark

Explanation of Solution

Prepare an income statement for OS Inc.

FINANCIAL ACCOUNTING ETEXT CARD, Chapter 8, Problem 2COMP , additional homework tip  4

Table (32)

Prepare a statement of stockholders’ equity for OS Inc.

FINANCIAL ACCOUNTING ETEXT CARD, Chapter 8, Problem 2COMP , additional homework tip  5

Table (33)

Prepare a balance sheet for OS Inc.

FINANCIAL ACCOUNTING ETEXT CARD, Chapter 8, Problem 2COMP , additional homework tip  6

Table (34)

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Chapter 8 Solutions

FINANCIAL ACCOUNTING ETEXT CARD

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