Principles of Accounting

Chapter 2 Accounting Problems

Due: Sunday 11:55PM (Only accept Word, Excel, or PDF file in blackboard)

159. Leonard Matson completed these transactions during December of the current year:

Dec. 1 Began a financial services practice by investing $15,000 cash and

office equipment having a $5,000 value.
2 Purchased $1,200 of office equipment on credit.
3 Purchased $300 of office supplies on credit.
4 Completed work for a client and immediately received a payment
of $900 cash.
8 Completed work for Acme Loan Co. on credit, $1,700.
10 Paid for the supplies purchased on credit on December 3.
14 Paid for the annual $960 premium on an insurance policy.
18 Received payment in full from Acme Loan Co. for the work
completed on December 8.
27 Leonard withdrew $650 cash from the practice to pay personal
expenses.
30 Paid $175 cash for the December utility bills.
30 Received $2,000 from a client for financial services to be rendered next year.

Prepare journal entries to record these transactions. Please see the answer of December 1st
journal entry and follow the same format.

Answer:

Dec. 1 Cash......................................................................... 15,000

Office Equipment.................................................... 5,000
L Matson, Capital......................................... 20,000
Owner invested in business.

Please continue your journal entry…

170. The balances for the accounts of Mike's Maintenance Co. for the year ended December 31
are shown below. Each account shown had a normal balance.
  
Accounts Wages
payable….. $ 6,500 expense……… 36,000
Accounts Rent
receivable... 7,000 expense………... 6,000
Cash………………
… 9,500
Maintenance
supplies. 1,200
Building…………
…. 125,000
Supplies Land………………
expense…… 21,500 …. 50,000
Unearned
maintenance
Mike
Capital……….. 118,700 fees………………… 4,000
Maintenance Mike,
revenue. 175,000 Withdrawals….. 48,000

Please prepare a trial balance. 

 174. Based on the following trial balance for Sal's Beauty Shop, prepare an income statement,
statement of owner's equity, and a balance sheet. Sal made no additional investments in the
company during the year.

Sal's Beauty Shop

Trial Balance
December 31