{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lecture_Notes_-_Assign_2

Solution to activity a journal pos t date description

Info icon This preview shows pages 7–13. Sign up to view the full content.

View Full Document Right Arrow Icon
monthly – straight to expense.
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
Solution to Activity A: JOURNAL POS T DATE DESCRIPTION REF. DEBIT CREDIT 1 1 1 Supplies 300 1 2 Cash 300 2 3 (purchased supplies for cash) 3 4 2 Utilities Expense 300 4 5 Cash 300 5 6 (paid gas bill) 6 7 3 Accounts receivable 2000 7 8 Fees earned 2000 8 9 (billed customers) 9 10 4 Equipment 1500 10 11 Accounts payable 1500 11 12 (purchased equipment) 12 13 5 Cash 2000 13 14 Accounts receivable 2000 14 15 (received cash from customers) 15 16 6 Equipment 700 16 17 Cash 700 17 18 (purchased equipment) 18 19 7 Cash 2500 19 20 Fees earned 2500 20 21 (received cash from customers) 21 22 8 Accounts payable 900 22 23 Cash 900 23 24 (partial payment on equipment) 24 25 9 Supplies 500 25 26 Accounts payable 500 26 27 10 Rent expense 1000 27 28 Cash 1000 28
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Notice that #4 and #8 go together. What amount is still owed on the equipment after journal entry 8? $1500 – $900 = $600 is still owed Activity B : Now try more. This one has some twists to it. 12. Billed customers for fees earned on account, $5,000. 13. Withdrawal of cash by owner, $800. 14. Paid creditors on account, $500. 15.Paid telephone bill, $100. 16.final payment for equipment purchased on account, $600. 17.Paid cash for miscellaneous expenses, $1,000. 18.Purchased a building with an appraised value of $250,000. the original offer was for $225,000 and the final agreed price was $240,000. A mortgage was secured for $200,000 and the remainder paid in cash. 19.Received cash from customers on account, $3,200. 20.Purchased computer on account, $2,000. 21.Returned defective computer receiving full credit, $2,000. 22.Purchased automobile for $15,000 with a $12,000 car loan and the remainder in cash. 23.Paid auto insurance for year, $1,500. 24.The tax assessor values the building purchased in #18, $265,000. 25.Received cash fee in advance for services to be provided next month, $900. 26.Purchased supplies on account, $100.
Image of page 10
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Solution to Activity B: JOURNAL POST . DA TE DESCRIPTION REF. DEBIT CREDIT 1 1 12 Accounts Receivable 5000 1 2 Fees Earned 5000 2 3 13 Drawing (or withdrawals) 800 3 4 Cash 800 4 5 14 Accounts payable 500 5 6 Cash 500 6 7 15 Utilities expense 100 7 8 Cash 100 8 9 16 Accounts payable 600 9 10 Cash 600 10 11 17 Miscellaneous expense 1000 11 12 Cash 1000 12 13 18 Building 24000 0 13 14 Notes payable 20000 0 14 15 cash 40000 15 16 19 Cash 3200 16 17 Accounts Receivable 3200 17 18 20 Equipment 2000 18 19 Accounts payable 2000 19 20 21 Accounts payable 2000 20 21 Equipment 2000 21 22 (Reverse the previous entry to take it off the books) 22 23 22 Vehicles 15000 23 24 Notes payable 12000 24 25 Cash 3000 25 26 23 Insurance expense 1500 26 27 cash 1500 27 No entry - cost concept -
Image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern