Name Exercises 2-1 and 2-3

Section
Date

E2-1

1 1. 1
2 2
3 3
4 2. 4
5 5
6 3. 6
7 7
8 8
9 4. 9
10 10
11 5. 11
12 12

E2-3 General Journal J1

Date Account Titles and Explanation Ref. Debit Credit

1 Jan. 2 1
2 2
3 3
4 3 4
5 5
6 6
7 9 7
8 8
9 9
10 11 10
11 11
12 12
13 16 13
14 14
15 15
16 20 16
17 17
18 18
19 23 19
20 20
21 21
22 28 22
23 23
24 24
60
60
Name
Section
Date

E2.2  
Identify debits, credits, and normal balances.
Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows.
Jan. 2 Invested $10,000 cash in business.
3 Purchased used car for $3,000 cash for use in business.
9 Purchased supplies on account for $600.
11 Billed customers $2,400 for services performed.
16 Paid $350 cash for advertising.
20 Received $900 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Withdrew $1,000 cash for personal use by owner.
Instructions
For each transaction, indicate the following.
(a)  The basic type of account debited and credited (asset, liability, owner's equity).
(b)  The specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.).
(c)  Whether the specific account is increased or decreased.
(d)  The normal balance of the specific account.
Use the following format, in which the January 2 transaction is given as an example.

Account Debited Account Credited

(a) (b) (c) (d) (a) (b) (c)
Date Basic Specific Normal Basic Specific
Effect Effect
Type Account Balance Type Account
2 Jan-02 Asset Cash Increase Debit Owner's Owner's Increase
3 Equity Capital
4 Jan-03 Asset Equipment Increase Debit Asset Cash Decreased
5 Jan-09 Asset Supplies Increase Debit Liability Account Increase
6 Payable
61
 7 Jan-11 Asset Account Increase Debit Owner's Service Increase
8 Receivable Equity Rvenue
9 Jan-16 Owner's Adveristing Increase Debit Asset Cash Decreased
10 Equity expense
11 Jan-20 Asset Cash Increase Debit Asset Accounts Decreased
12 receivable
13 Jan-23 Liability Account Decreased Debit Asset Cash Decreased
14 Payable
15 Jan-28 Owner's Capitall Increase Debit Asset Cash Decreased
16 Equity Acount
17
18
19
20
21
22
23
24
25

61
 Exercise 2-2

M. Acosta

d
(d)
Normal
Balance
Credit 2
3
Credit 4
Credit 5
6

61
Credit 7
8
Credit 9
10
Credit 11
12
Credit 13
14
Credit 15
16
17
18
19
20
21
22
23
24
25

61
Name Exercises 2-4 and 2-5
Section
Date

E2-4

Date
1 Oct. 1
2
3
4
5 2
6
7 3
8
9
10 6
11
12
13 27
14
15
16 30
17
18

E2.5  
Journalize transactions.
Analyze transactions and determine their effect on accounts.
The following information relates to Royale Real Estate Agency.
Oct. 1 James Royale begins business as a real estate agent with a cash investment of $17,000.
2 Hires an administrative assistant.
3 Purchases office furniture for $1,900, on account.
6 Sells a house and lot for C. Rouse; bills C. Rouse $3,800 for realty services performed.
27 Pays $1,300 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,500 in salary for October.
Instructions
Journalize the transactions. (You may omit explanations.)
E2-5

Date Account Titles Ref. Debit Credit

1 Oct. 1
2
3
4 2
5

62
 6 3
7
8
9 6
10
11
12 27
13
14
15 30
16
17

62
s 2-4 and 2-5

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

of $17,000.

s performed.

1
2
3
4
5

62
6
7
8
9
10
11
12
13
14
15
16
17

62
Name Exercises 2-6 and 2-10
Section
Date

E2.6  
Analyze transactions and journalize.
Lennon Industries had the following transactions.
·         1.Borrowed $5,000 from the bank by signing a note.
·         2.Paid $3,900 cash for a computer.
·         3.Purchased $650 of supplies on account.
Instructions
(a)  Indicate what accounts are increased and decreased by each transaction.
(b)  Journalize each transaction. (Omit explanations.)

E2-6

(a)
1 1. 1
2 2
3 2. 3
4 4
5 3. 5
6 6
7 (b) Account Titles Debit Credit 7
8 1. 8
9 9
10 10
11 2. 11
12 12
13 13
14 3. 14
15 15
16 16
17 17
18 18

E2-10

1 1. 1
2 2
3 3
4 2. 4
5 5
6 3. 6
7 7

63
 8 8
9 9
10 4. 10
11 11
12 5. 12
13 13
14 14
15 15
16 16
17 17

63
Name Exercise 2-7
Section
Date Halladay Enterprises

(a) Assets = Liabilities + Owner's Equity

1 1.
2
3 2.
4
5 3.
6
7 4.
8
9
10 (b) Account Titles Debit Credit
11 1.
12
13
14 2.
15
16
17 3.
18
19
20 4.
21
22
23

64
Exercise 2-7

y Enterprises

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

64
Name Exercise 2-8
Section
Date Sophie's Dog Care

E2.8  
Journalize a series of transactions
Selected transactions for Sophie's Dog Care are as follows during the month of March.
March 1 Paid monthly rent of $1,200.
3 Performed services for $160 on account.
5 Performed services for cash of $75.
8 Purchased equipment for $600. The company paid cash of $90 and the balance was on account.
12 Received cash from customers billed on March 3.
14 Paid salaries and wages to employees of $525.
22 Paid utilities of $72.
24 Borrowed $1,500 from Grafton State Bank by signing a note.
27 Paid $220 to repair service for plumbing repairs.
28 Paid balance amount owed from equipment purchase on March 8.
30 Paid $1,800 for six months of insurance.
Instructions
Journalize the transactions. (Omit explanations.)
General Journal

Date Account Titles Ref. Debit Credit

1 March 1 1
2 2
3 3
4 3 4
5 5
6 6
7 5 7
8 8
9 9
10 8 10
11 11
12 12
13 13
14 12 14
15 15
16 16
17 14 17
18 18
19 19
20 22 20
21 21
22 22
23 24 23
24 24
25 25
26 27 26
27 27
28 28
29 28 29
30 30
31 31
32 30 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name Exercise 2-9
Section
Date Adventures Travel Agency

E2.9  
Record journal entries.
On April 1, Adventures Travel Agency began operations. The following transactions were completed during the month.
·         1.Owner invested $24,000 in the business.
·         2.Obtained a bank loan for $7,000 by issuing a note payable.
·         3.Paid $11,000 cash to buy equipment.
·         4.Paid $1,200 cash for April office rent.
·         5.Paid $1,450 for supplies.
·         6.Purchased $600 of advertising in the Daily Herald, on account.
·         7.Performed services for $18,000: cash of $2,000 was received from customers, and the balance of $16,000 was b
·         8.Cash withdrawal of $400 by owner for personal use.
·         9.Paid the utility bill for the month, $2,000.
·         10.Paid Daily Herald the amount due in transaction (6).
·         11.Paid $40 of interest on the bank loan obtained in transaction (2).
·         12.Paid employees' salaries and wages, $6,400.
·         13.Received $12,000 cash from customers billed in transaction (7).
Instructions
Journalize the transactions. (Omit explanations).
General Journal

Trans. Account Titles Ref. Debit Credit

1 1. 1
2 2
3 3
4 2. 4
5 5
6 6
7 3. 7
8 8
9 9
10 4. 10
11 11
12 12
13 5. 13
14 14
15 15
16 6. 16
17 17
18 18
19 7. 19
20 20
21 21
22 22
23 8. 23
24 24
25 25
26 9. 26
27 27
28 28
29 10. 29
30 30
31 31
32 11. 32
33 33
34 34
35 12. 35
36 36
37 37
38 13. 38
39 39
40 40
Name Exercise 2-11
Section
Date June Feldman, Investment Broker

(a)

1 CASH NOTES PAYABLE

2
3
4
5
6
7
8
9
10
11 OWNER'S
12 ACCOUNTS RECEIVABLE CAPITAL
13
14
15
16
17
18
19
20 EQUIPMENT SERVICE REVENUE
21
22
23
24
25

65
 Exercise 2-11

man, Investment Broker

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

65
Name Exercise 2-11 Concluded
Section
Date June Feldman, Investment Broker

(b)
June Feldman, Investment Broker
Trial Balance
August 31, 2020
Debit Credit
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10

66
Name Exercise 2-12
Section
Date Negrete Landscaping Company

(a) General Journal

Date Account Titles Ref. Debit Credit

1 Apr. 1 1
2 2
3 3
4 4
5 12 5
6 6
7 7
8 8
9 15 9
10 10
11 11
12 12
13 25 13
14 14
15 15
16 16
17 29 17
18 18
19 19
20 20
21 30 21
22 22
23 23
24 24
25 25
26 26

(b)
Negrete Landscaping Company
Trial Balance
April 30, 2020
Debit Credit
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
67
Name Exercise 2-13
Section
Date Shumway Co.

Unable to effectively copy and paste instructions. Need E2.13 Ledgers also open.

(a) General Journal

Date Account Titles and Explanation Ref. Debit Credit

1 Oct. 1 1
2 2
3 3
4 4
5 10 5
6 6
7 7
8 8
9 10 9
10 10
11 11
12 12
13 20 13
14 14
15 15
16 16
17 20 17
18 18
19 19
20 20

(b)
Shumway Co.
Trial Balance
October 31, 2020
Debit Credit
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
68
12 12
13 13

68
Name Exercise 2-14
Section
Date Bonnie Donne Company

E2.14  
Prepare journal entries and post using standard account form.
Selected transactions for Bonnie Donne Company during its first month in business are presented below.
Sept. 1 Invested $10,000 cash in the business.
5 Purchased equipment for $14,000 paying $4,000 in cash and the balance on account.
25 Paid $3,000 cash on balance owed for equipment.
30 Withdrew $900 cash for personal use.
Donne's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 301 Owner's C
Instructions
(a)  Journalize the transactions on page J1 of the journal. (Omit explanations.)
(b)  Post the transactions using the standard account form.

(a) General Journal J1

Date Account Titles Ref. Debit Credit

1 Sept. 1 1
2 2
3 3
4 5 4
5 5
6 6
7 7
8 25 8
9 9
10 10
11 30 11
12 12
(b)

Cash No. 101

Date Explanation Ref. Debit Credit Balance

Equipment No. 157

Date Explanation Ref. Debit Credit Balance

Accounts Payable No. 201

Date Explanation Ref. Debit Credit Balance

69
Owner's Capital No. 301

Date Explanation Ref. Debit Credit Balance

Owner's Drawings No. 306

Date Explanation Ref. Debit Credit Balance

69
Name Exercises 2-15 and 2-16
Section
Date

E2-15

(a) (b) (c)

Error In Balance Difference Larger Column
1 1. A credit posting of $525 to Accounts No $525 Debit
2 Receivable was omitted.
3 2. A debit posting of $750 for Prepaid
4 Insurance was debited to Insurance
5 Expense.
6 3. A collection from a customer of $100 in
7 payment of its account owed was
8 journalized and posted as a debit to Cash
9 $100 and a credit to Service Revenue
10 $100.
11 4. A credit posting of $415 to Property Taxes
12 Payable was made twice.
13 5. A cash purchase of supplies for $250 was
14 journalized and posted as a debit to
15 Supplies $25 and a credit to Cash $25.
16 6. A debit of $625 to Advertising Expense
17 was posted as $652.

E2-16
Prompt Delivery Service
Trial Balance
July 31, 2020
Debit Credit
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

70
2-15 and 2-16

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

70
Name Exercise 2-17
Section
Date Beyers Security Company

(a) General Journal

Date Account Titles Ref. Debit Credit

1 Oct. 1 1
2 2
3 3
4 2 4
5 5
6 6
7 4 7
8 8
9 9
10 7 10
11 11
12 12
13 13
14 8 14
15 15
16 16
17 10 17
18 18
19 19
20 12 20
21 21
22 22
23 16 23
24 24
25 25
26 21 26
27 27
28 28
29 24 29
30 30
31 31
32 27 32
33 33
34 34
35 31 35
36 36
37 37
38 38
39 39
40 40
Name Exercise 2-17 Continued
Section
Date Beyers Security Company

(b)

1 CASH SALES REVENUE 1

2 2
3 3
4 4
5 ADVERTISING EXPENSE 5
6 6
7 7
8 8
9 SALARIES AND WAGES EXPENSE 9
10 ACCOUNTS RECEIVABLE 10
11 11
12 12
13 SUPPLIES MAINTENANCE AND REPAIRS EXPENSE 13
14 14
15 15
16 16
17 EQUIPMENT RENT EXPENSE 17
18 18
19 19
20 20
21 ACCOUNTS PAYABLE UTILITIES EXPENSE 21
22 22
23 23
24 24
25 25
26 26
27 OWNER'S CAPITAL 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name Exercise 2-17 Concluded
Section
Date Beyers Security Company

(c)
Beyers Security Company
Trial Balance
October 31, 2020
Debit Credit
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16