Chapter_2 - Chapter 2 Self-Study Solution MGT120 (10-20...

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Chapter 2 Self-Study Solution MGT120 (10-20 min.) E 2-4 Req. 1 Analysis of Transactions ASSETS = LIABILITIES + SHAREHO Date Cash + Accounts Receivable + Medical Supplies + Land = Accounts Payable + Note Payable + Common Shares + Re Ea Oct. 6 40,000 40,000 9 (30,000) 30,000 12 2,000 2,000 15 Not a transaction of the business. 15-31 4,000 4,000 8 15-31 (1,400) (1 (1,000) (1 (300) 31 500 (500) 31 10,000 10,000 31 (1,500 ) (1,500 ) Bal. 20,300 4,000 1,500 30,000 500 10,000 40,000 5 $55,800 $55,800 (continued) E 2-4 Req. 2 a. $55,800 b. $4,000 c. $10,500 ($500 + $10,000)
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d. $45,300 ($55,800 – $10,500, or $40,000 + $5,300) e. $5,300 (Revenue, $8,000 minus total expenses of $2,700, equals net income, $5,300.)
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(10-20 min.) E 2-7 Req. 1 (journal entries) Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Aug. 1 Cash…………………………………………… 19,500 Common Shares…………………………. 19,500 Issued common shares to owner. 2 Office Supplies……………………………… 800 Accounts Payable………………………. . 800 Purchased office supplies on account. 4 Land…………………………………………… 14,000 Cash………………………………………. . 14,000 Paid cash for land. 6 Cash…………………………………………… 2,000 Service Revenue………………………… 2,000 Performed services for cash. 9 Accounts Payable…………………………. .. 100 Cash………………………………………. . 100 Paid cash on account. 17 Accounts Receivable………………………. 1,200 Service Revenue………………………… 1,200
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Performed service on account. 23
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Chapter_2 - Chapter 2 Self-Study Solution MGT120 (10-20...

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