BRIEF EXERCISE 3-8

(a) Basic Analysis (b) Debit-Credit Analysis

Aug. 1 The asset Cash is increased; Debits increase assets: debit Cash $10,000.
the stockholders equity account Common Stock is increased. Credits increase stockholders equity: credit Common Stock $10,000.

4 The asset Prepaid Insurance is increased; Debits increase assets: debit Prepaid Insurance $1,500.
the asset Cash is decreased. Credits decrease assets: credit Cash $1,500.

16 The asset Cash is increased; Debits increase assets: debit Cash $900.
the revenue Service Revenue is increased. Credits increase revenues: credit Service Revenue $900.

27 The expense Salaries and Wages Expense is increased; Debits increase expenses: debit Salaries and Wages Expense $620.
the asset Cash is decreased. Credits decrease assets: credit Cash $620.
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PROBLEM 3-5A
a) Journalise the transactions, including explanations (b) Post to ledger T accounts
Date Account Titles and Explanation Debit Credit Cash
Apr. 1 Cash 18,000 1-Apr 18000 4/2
Common Stock 18,000 11-Apr 700 4/30
(Issued shares of stock for cash) 20-Apr 2800 4/30
Bal. 18800
1 No entrynot a transaction.
Accounts Receivable
2 Rent Expense 900 4/10 1900
Cash 900 Bal. 1900
(Paid monthly office rent)
Supplies
3 Supplies 1,300 4/3 1300
Accounts Payable 1,300 Bal. 1300
(Purchased supplies on account
from Burlington Company) Accounts Payable
4/30 300 4/3
10 Accounts Receivable 1,900 Bal.
Service Revenue 1,900
(Billed clients for services rendered) Unearned Service Revenue
4/11
11 Cash 700 Bal.
Unearned Service Revenue 700
(Received cash advance for future Common Stock
service) 4/1
Bal.
20 Cash 2,800
Service Revenue 2,800 Service Revenue
(Received cash for revenue earned) 4/10
4/20
30 Salaries and Wages Expense 1,500 Bal.
Cash 1,500
(Paid monthly salary) Salaries and Wages Expense
30-Apr 1500
30 Accounts Payable 300 Bal. 1500
Cash 300
(Paid Burlington Company on account) Rent Expense
4/2 900
Bal. 900
 ledger T accounts c) Prepare Trial Balance as on April 30,2014
Cash FOYLE ARCHITECTS INC.
900 Trial Balance as on 30th April, 2014
1500 Debit ($) Credit ($)
300 Cash 18800
Accounts Receivable 1900
Supplies 1300
nts Receivable Accounts Payable 1000
Unearned Service Revenue 700
Common Stock 18000
Service Revenue 4700
Salaries and Wages Expense 1500
Rent Expense 900
24400 24400

unts Payable
1300
1000

Service Revenue
700
700

mmon Stock
18000
18000

ce Revenue
1900
2800
4700

d Wages Expense

nt Expense
BRIEF EXERCISE 4-1
Net
Cash Income
(a) Purchased $100 of supplies for cash 100 0
(b) Recorded adjustment entry to record use of $20 of above supplies 0 20
(c) Made sales of $1300 all on account 0 1,300
(d) Received $800 from customers in payment of their accounts 800 0
(e) Purchased Equipment for cash , $2500 2,500 0
(f) Recorded depreciation of building for period used $600 0 600