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HWSoultions2 - I PROBLEM 2-2B(a J1 Date Account Titles and...

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Unformatted text preview: I PROBLEM 2-2B (a) J1 Date Account Titles and Explanation Ref. Debit Credit Apr. 1 lCash 101 25,000 Common Stock 311 25,000 (Issued shares of stock for cash) 1 No entry—not a transaction. 2 Rent Expense 729 1,200 Cash 101 1,200 (Paid monthly office rent) 3 Supplies 126 2,000 Accounts Payable 201 2,000 (Purchased supplies on ac- count from S.M.U. Company) 10 Accounts Receivable 112 900 Service Revenue 400 900 (Billed client for services rendered) 11 Cash 101 800 Unearned Revenue 205 800 (Received cash advance for future service} 20 lCash 101 1,?50 Service Revenue 400 1,750 (Received cash for services rendered) 30 Salaries Expense 726 2,000 Cash 101 2,000 (Paid monthly salary} PROBLEM 2-2B (Continued) Date Account Titles and Explanation Ref. Debit Credit Apr. 30 Accounts Payable 201 900 Cash 1 01 900 (Paid S.M.U. Company on account) 0)) Cash No. 101 Date Explanation Ref. Debit Credit Balance Apr. 1 J1 25,000 25,000 2 J1 1,200 23,800 1 1 J1 800 24,600 20 J1 1,750 26,350 30 J1 2,000 24,350 30 J1 900 23,450 Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance Apr. 1 0 J1 900 900 Supplies No. 126 Date Explanation Ref. Debit Credit Balance Apr. 3 J1 2,000 2,000 Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance Apr. 3 J1 2,000 2,000 30 J1 900 1,100 Unearned Revenue No. 205 Date Explanation Ref. Debit Credit Balance Apr. 1 1 J1 800 800 PROBLEM 2-23 (Continued) Common Stock No. 311 Date Explanation Ref. Debit Credit Balance Apr. 1 J1 25,000 25,000 Service Revenue No. 400 Date Explanation Ref. Debit Credit Balance Apr. 10 J1 900 900 20 J1 1,?50 2,650 Salaries Expense No. 726 Date Explanation Ref. Debit Credit Balance Apr. 30 J1 2,000 2,000 Rent Expense No. 729 Date Explanation Ref. Debit Credit Balance Apr. 2 J1 1,200 1 ,200 (c) KELLY MCGILLEN, INC., ARCHITECT Trial Balance April 30, 2002 Debit Credit Cash ..................................................................... $23,450 Accounts Receivable .......................................... 900 Supplies ............................................................... 2,000 Accounts Payable ............................................... $ 1,100 Unearned Revenue ............................................. 800 Common Stock .................................................... 25,000 Service Revenue ................................................. 2,650 Salaries Expense ................................................ 2,000 Rent Expense ...................................................... 1,200 £29,550 £29,550 I PROBLEM 2-53 (a) Errors in the trial balance are: 1. The trial balance should be dated at a specific point in time, not for “the year ended.” Machinery and Equipment should be a debit. Accounts Payable should be a credit. Prepaid Fient should be a debit. Common Stock should be a credit. Wages Expense should be a debit. Prepaid Insurance should be a debit. Notes Payable should be a credit. Accounts are not arranged in the proper sequence: (1} assets, (2} liabilities, (3) stockholders’ equity (common stock and dividends}, and (4) temporary accounts (revenues and expenses). 10. The columns are added incorrectly. 11. The totals should be equal. 5999249591wa (b) ANDRETI'I AUTOMOTIVE SERVICES Trial Balance December 31, 2002 Debit Credit Cash ........................................................................... $ 15 Accounts Receivable ................................................ 35 Prepaid Flent .............................................................. 5 Prepaid Insurance ..................................................... 8 Machinery and Equipment ....................................... 89 Accounts Payable ..................................................... $ 38 Note Payable .............................................................. 45 Common Stock .......................................................... 42 Dividends ................................................................... 20 Service Flevenues ..................................................... 198 Miscellaneous Expense ............................................ 45 Wages Expense ......................................................... 76 Advertising Expense ................................................. 30 $23 \E‘ ...
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