chpt 2 supp sol

chpt 2 supp sol - Chapter 2 Supplemental Solutions Exercise...

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Unformatted text preview: Chapter 2 Supplemental Solutions Exercise 2-1 Assets = Liabilities + Paid-in Capital + Retained Earnings 1. + 300,000 (cash) + 300,000 (common stock) 2.- 10,000 (cash) + 40,000 (equipment) + 30,000 (note payable) 3. + 90,000 (inventory) + 90,000 (accounts payable) 4. + 120,000 (accounts receivable) + 120,000 (revenue)- 70,000 (inventory) - 70,000 (expense) 5.- 5,000 (cash) - 5,000 (expense) 6.- 6,000 (cash) + 6,000 (prepaid insurance) 7.- 70,000 (cash)- 70,000 (accounts payable) 8. + 55,000 (cash)- 55,000 (accounts receivable) 9.- 1,000 (accumulated depreciation)- 1,000 (expense) Exercise 2-5 List A List B k 1. Source documents a. Records the dual effect of a transaction in debit/credit form. e 2. Transaction analysis b. Internal events recorded at the end of a reporting period. a 3. Journal c. Primary means of disseminating information to external decision makers. j 4. Posting d. To zero out the owners equity temporary accounts. f 5. Unadjusted trial balance e. Determine the dual effect on the accounting equation. b 6. Adjusting entries f. List of accounts and their balances before recording adjusting entries. h 7. Adjusted trial balance g. List of accounts and their balances after recording closing entries. c 8. Financial statements h. List of accounts and their balances after recording adjusting entries. d 9. Closing entries i. A means of organizing information; not part of the formal accounting system. g 10. Post-closing trial balance j. Transferring balances from the journal to the ledger. i 11. Worksheet k. Used to identify and process external transactions. Exercise 2-7 Account(s) Account(s) Debited Credited Example: Purchased inventory for cash 3 5 1. Paid a cash dividend. 10 5 2. Paid rent for the next three months. 8 5 3. Sold goods to customers on account. 4,16 9,3 4. Purchased inventory on account. 3 1 5. Purchased supplies for cash. 6 5 6. Paid employees wages for September. 15 5 7. Issued common stock in exchange for cash. 5 12 8. Collected cash from customers for goods sold in 3. 5 4 9. Borrowed cash from a bank and signed a note. 5 11 10. At the end of October, recorded the amount of supplies that had been used during the month. 7 6 11. Received cash for advance payment from customer. 5 13 12. Accrued employee wages for October. 17 15 Problem 2-5 Bad debt expense............................................................ 1,500 Allowance for uncollectible accounts......................... 1,500 Rent expense................................................................... 800 Prepaid rent ................................................................ 800 Supplies expense............................................................. 700 Supplies....................................................................... 700 Interest receivable .......................................................... 1,500 Interest revenue........................................................... 1,500 Depreciation expense......................................................Depreciation expense....
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This note was uploaded on 07/08/2009 for the course ACCT 351 taught by Professor Staff during the Spring '08 term at George Mason.

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chpt 2 supp sol - Chapter 2 Supplemental Solutions Exercise...

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