ch.2 HW PDF

Chapter 2 Homework Problems-Kevin Robert https://xlitemprod.pearsoncmg.
com/api/v1/print/accounting
Instructor: Stacey Vera

Student: Kevin Robert Assignment: Chapter 2 Homework
Course: SJR - ACG2021C Financial
Date: 09/18/19 Problems
Accounting - Online Fall 2019
1. Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the
following transactions:
1(Click the icon to view the transactions.) 2(Click the icon to view the accounts used by the business.)
Read the requirements3.
Requirement 1. Journalize each transaction. Explanations are not required. (Record debits first, then credits. Exclude
explanations from journal entries.)
July 1: York contributed $63,000 cash to the business in exchange for common stock.
Date Accounts Debit Credit
Jul. 1 Cash 63,000

Common Stock 63,000
July 5: Paid monthly rent on medical equipment, $510.
Jul. 5 Rent Expense 510

Cash 510
July 9: Paid $23,000 cash to purchase land to be used in operations.
Jul. 9 Land 23,000

Cash 23,000
July 10: Purchased office supplies on account, $1,600.
Jul. 10 Office Supplies 1,600

Accounts Payable 1,600
July 19: Borrowed $22,000 from the bank for business use.
1 of 124 9/18/2019, 6:36 PM

Chapter 2 Homework Problems-Kevin Robert https://xlitemprod.pearsoncmg.com/api/v1/print/accounting
Jul. 19 Cash 22,000

Notes Payable 22,000
July 22: Paid $1,100 on account.
Jul. 22 Accounts Payable 1,100

Cash 1,100
July 28: The business received a bill for advertising in the daily newspaper to be paid in August, $240.
Jul. 28 Advertising Expense 240

Advertising Payable 240
July 31: Revenues earned during the month included $6,400 cash and $6,000 on account. Record as a compound entry.
Jul. 31 Accounts Receivable 6,000

Cash 6,400
Service Revenue 12,400
July 31: Paid employees' salaries $2,200, office rent $1,900, and utilities $560. Record these entries as a compound entry.
Jul. 31 Salaries Expense 2,200

Rent Expense 1,900
Utilities Expense 560
Cash 4,660
July 31: The business received $1,120 for medical screening services to be performed next month.
Jul. 31 Cash 1,120

Unearned Revenue 1,120
2 of 124 9/18/2019, 6:36 PM

July 31: Paid cash dividends of $7,200.
Jul. 31 Dividends 7,200

Cash 7,200
Requirement 2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger
accounts. Label the balance of each account Bal.
We will post to the accounts one transaction at a time. Begin by posting the events from the 1st.
July 1: York contributed $63,000 cash to the business in exchange for Common Stock. (We will post to the accounts one
transaction at a time. Post only the transaction from July 1 in this step.)
Review the July 1 journal entry that you prepared in Requirement 1.4
Cash Accounts Payable Service Revenue
Advertising Payable Salaries Expense

Jul. 1 63,000
Accounts Receivable Unearned Revenue Rent Expense
Office Supplies Notes Payable Utilities Expense
Land Common Stock Advertising Expense

63,000 Jul. 1
Dividends
July 5: Paid monthly rent on medical equipment, $510. (Post only the transaction from July 5 in this step.)
3 of 124 9/18/2019, 6:36 PM


Jul. 1 63,000

510 Jul. 5

Jul. 5 510

63,000 Jul. 1
Dividends
July 9: Paid $23,000 cash to purchase land to be used in operations. (Post only the transaction from July 9 in this step.)
4 of 124 9/18/2019, 6:36 PM


Jul. 1 63,000 510 Jul. 5
23,000 Jul. 9

Jul. 5 510

Jul. 9 23,000 63,000 Jul. 1
Dividends
July 10: Purchased office supplies on account, $1,600. (Post only the transaction from July 10 in this step.)
5 of 124 9/18/2019, 6:36 PM


Jul. 1 63,000 510 Jul. 5
23,000 Jul. 9 1,600 Jul. 10

Jul. 5 510

Jul. 10 1,600

Jul. 9 23,000 63,000 Jul. 1
Dividends
July 19: Borrowed $22,000 from the bank for business use. (Post only the transaction from July 19 in this step.)
6 of 124 9/18/2019, 6:36 PM


Jul. 1 63,000 510 Jul. 5 1,600 Jul. 10
Jul. 19 22,000 23,000 Jul. 9

Jul. 5 510

Jul. 10 1,600 22,000 Jul. 19

Jul. 9 23,000 63,000 Jul. 1
Dividends
July 22: Paid $1,100 on account. (Post only the transaction from July 22 in this step.)
7 of 124 9/18/2019, 6:36 PM


Jul. 1 63,000 510 Jul. 5 Jul. 22 1,100 1,600 Jul. 10
Jul. 19 22,000 23,000 Jul. 9
1,100 Jul. 22

Jul. 5 510

Jul. 10 1,600 22,000 Jul. 19

Jul. 9 23,000 63,000 Jul. 1
Dividends
July 28: The business received a bill for advertising in the daily newspaper to be paid in August, $240. (Post only the transaction
from July 28 in this step.)
8 of 124 9/18/2019, 6:36 PM


Jul. 1 63,000 510 Jul. 5 Jul. 22 1,100 1,600 Jul. 10
Jul. 19 22,000 23,000 Jul. 9
1,100 Jul. 22
240 Jul. 28

Jul. 5 510

Jul. 10 1,600 22,000 Jul. 19

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Dividends
July 31: Revenues earned during the month included $6,400 cash and $6,000 on account. (Post only the first transaction from
July 31 in this step.)
9 of 124 9/18/2019, 6:36 PM


Jul. 1 63,000 510 Jul. 5 Jul. 22 1,100 1,600 Jul. 10 12,400 Jul. 31
Jul. 19 22,000 23,000 Jul. 9

Jul. 31 6,400 1,100 Jul. 22
240 Jul. 28

Jul. 31 6,000 Jul. 5 510

Jul. 10 1,600 22,000 Jul. 19

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Dividends
July 31: Paid employees' salaries $2,200, office rent $1,900, and utilities $560. Record as a compound entry. (Post only the
second transaction from July 31 in this step.)
10 of 124 9/18/2019, 6:36 PM


Jul. 19 22,000 23,000 Jul. 9
Jul. 31 6,400 1,100 Jul. 22
4,660 Jul. 31 Advertising Payable Salaries Expense
240 Jul. 28 Jul. 31 2,200

Jul. 31 6,000 Jul. 5 510
Jul. 31 1,900

Jul. 10 1,600 22,000 Jul. 19 Jul. 31 560

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Dividends
July 31: The business received $1,120 for medical screening services to be performed next month. (Post only the third
transaction from July 31 in this step.)
11 of 124 9/18/2019, 6:36 PM


Jul. 19 22,000 23,000 Jul. 9
Jul. 31 6,400 1,100 Jul. 22
Jul. 31 1,120 4,660 Jul. 31 Advertising Payable Salaries Expense
240 Jul. 28 Jul. 31 2,200

Jul. 31 6,000 1,120 Jul. 31 Jul. 5 510
Jul. 31 1,900

Jul. 10 1,600 22,000 Jul. 19 Jul. 31 560

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Dividends
July 31: Paid cash dividends of $7,200. (Post only the fourth transaction from July 31 in this step.)
12 of 124 9/18/2019, 6:36 PM


Jul. 19 22,000 23,000 Jul. 9
Jul. 31 6,400 1,100 Jul. 22
7,200 Jul. 31 240 Jul. 28 Jul. 31 2,200

Jul. 31 6,000 1,120 Jul. 31 Jul. 5 510
Jul. 31 1,900

Jul. 10 1,600 22,000 Jul. 19 Jul. 31 560

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Dividends
Jul. 31 7,200
Calculate the account balances. Use a "Bal." posting reference on the proper side of each account to show the ending balances
of the accounts.
13 of 124 9/18/2019, 6:36 PM

Jul. 19 22,000 23,000 Jul. 9 500 Bal. 12,400 Bal.
Jul. 31 6,400 1,100 Jul. 22

7,200 Jul. 31 240 Jul. 28 Jul. 31 2,200
Bal. 56,050 240 Bal. Bal. 2,200

Jul. 31 6,000 1,120 Jul. 31 Jul. 5 510
Jul. 31 1,900
Bal. 6,000 1,120 Bal. Bal. 2,410

Jul. 10 1,600 22,000 Jul. 19 Jul. 31 560
Bal. 1,600 22,000 Bal. Bal. 560

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Bal. 23,000 63,000 Bal. Bal. 240
Dividends
Jul. 31 7,200
Bal. 7,200
Requirement 3. Prepare the trial balance of Vince York, M.D. as of July 31, 2018.
Review the ending balances of the T-account that you prepared in Requirement 2.15
14 of 124 9/18/2019, 6:36 PM

Vince York, M.D.

Trial Balance
July 31, 2018
Balance
Account Title Debit Credit
Cash $ 56,050
Accounts Receivable 6,000
Office Supplies 1,600
Land 23,000
Accounts Payable $ 500
Common Stock 63,000
Dividends 7,200
Salaries Expense 2,200
Rent Expense 2,410
Advertising Expense 240
$ 99,260 $ 99,260
Total
1: More Info
Jul. 1 York contributed $63,000 cash to the business in exchange for common stock.
5 Paid monthly rent on medical equipment, $510.
9 Paid $23,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $1,600.
19 Borrowed $22,000 from the bank for business use.
22 Paid $1,100 on account.
28 The business received a bill for advertising in the daily newspaper to be paid in August, $240.
31 Revenues earned during the month included $6,400 cash and $6,000 on account.
31 Paid employees' salaries $2,200, office rent $1,900, and utilities $560. Record as a compound entry.
31 The business received $1,120 for medical screening services to be performed next month.
31 Paid cash dividends of $7,200.
2: Accounts
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising
Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense;
Utilities Expense; and Advertising Expense.
3: Requirements
15 of 124 9/18/2019, 6:36 PM

1. Journalize each transaction. Explanations are not required.

2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the
balance of each account Bal.
3. Prepare the trial balance of Vince York, M.D. as of July 31, 2018.
4: Journal entry
Jul. 1 Cash 63,000

Common Stock 63,000
5: Journal entry
Jul. 5 Rent Expense 510

Cash 510
6: Journal entry
Jul. 9 Land 23,000

Cash 23,000
7: Journal entry
Jul. 10 Office Supplies 1,600

8: Journal entry
Jul. 19 Cash 22,000

9: Journal entry
Jul. 22 Accounts Payable 1,100

Cash 1,100
10: Journal entry
Jul. 28 Advertising Expense 240

16 of 124 9/18/2019, 6:36 PM

11: Journal entry
Date Accounts and Explanation Debit Credit
Jul. 31 Cash 6,400

12: Journal entry
Jul. 31 Salaries Expense 2,200

Rent Expense 1,900
Cash 4,660
13: Journal entry
Jul. 31 Cash 1,120

14: Journal entry
Jul. 31 Dividends 7,200

Cash 7,200
15: T-accounts
17 of 124 9/18/2019, 6:36 PM

Jul. 19 22,000 23,000 Jul. 9 500 Bal. 12,400 Bal.
Jul. 31 6,400 1,100 Jul. 22
7,200 Jul. 31 240 Jul. 28 Jul. 31 2,200
Bal. 56,050 240 Bal. Bal. 2,200

Jul. 31 6,000 1,120 Jul. 31 Jul. 5 510
Jul. 31 1,900
Bal. 6,000 1,120 Bal. Bal. 2,410

Jul. 10 1,600 22,000 Jul. 19 Jul. 31 560
Bal. 1,600 22,000 Bal. Bal. 560

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Bal. 23,000 63,000 Bal. Bal. 240
Dividends
Jul. 31 7,200
Bal. 7,200
18 of 124 9/18/2019, 6:36 PM

YOU ANSWERED: Date Accounts Debit Credit
Jul. 5 Accounts Payable 510 nothing

nothing nothing 510
nothing nothing nothing
Jul. 28 Advertising Payable 240 nothing

Advertising Expense nothing 240
Jul. 31 Service Revenue nothing nothing

Cash nothing 6400
Service Revenue nothing nothing
Accounts Receivable nothing 6000
Jul. 31 Service Revenue nothing 1120

Cash nothing 1120
19 of 124 9/18/2019, 6:36 PM


nothing 63000 nothing nothing nothing nothing nothing nothing nothing nothing nothing nothing
nothing nothing nothing nothing nothing nothing nothing nothing nothing nothing nothing nothing
nothing nothing nothing nothing
nothing nothing nothing nothing Advertising Payable Salaries Expense



Dividends

Jul. 1 63,000 nothing nothing nothing nothing nothing nothing nothing nothing nothing nothing
Jul. 5 510 nothing nothing nothing nothing nothing nothing nothing nothing nothing nothing
nothing nothing nothing nothing Advertising Payable Salaries Expense

nothing nothing nothing nothing nothing nothing nothing nothing Jul. 5 510 nothing nothing


nothing nothing nothing nothing nothing nothing 63,000 Jul. 1 nothing nothing nothing nothing
Dividends
20 of 124 9/18/2019, 6:36 PM

Jul. 19 22,000 23,000 Jul. 9 Bal. . . 1100 1600 Bal. Bal. 0 12400 Bal.
Jul. 31 6,400 1,100 Jul. 22
7,200 Jul. 31 240 Jul. 28 Jul. 31 2,200
Bal. 92520 36470 Bal. . . Bal. 0 240 Bal. Bal. 2200 0 Bal.

Jul. 31 6,000 1,120 Jul. 31 Jul. 5 510
Jul. 31 1,900
Bal. 6000 0 Bal. Bal. 0 1120 Bal. Bal. 2410 0 Bal.

Jul. 10 1,600 22,000 Jul. 19 Jul. 31 560

Jul. 9 23,000 63,000 Jul. 1 Jul. 28 240
Dividends
Jul. 31 7,200
Bal. 7200 0 Bal.
21 of 124 9/18/2019, 6:36 PM

2. Ann Simpson started her practice as a design consultant on September 1, 2018. During the first month of operations, the
business completed the following transactions:
16(Click the icon to view the transactions.)
Requirement 1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable;
Office Supplies; Prepaid Insurance; Land; Furniture; Accounts Payable; Utilities Payable; Unearned Revenue; Common
Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
(Record debits first, then credits. Exclude explanations from journal entries.)
Sep. 1: Received $48,000 cash and issued common stock to Simpson.
Sep. 1 Cash 48,000

Common Stock 48,000
Sep. 4: Purchased office supplies, $1,200, and furniture, $1,300, on account.
Sep. 4 Furniture 1,300

Sep. 6: Performed services for a law firm and received $1,900 cash.
Sep. 6 Cash 1,900

Sep. 7: Paid $18,000 cash to acquire land to be used in operations.
Sep. 7 Land 18,000

Cash 18,000
Sep. 10: Performed services for a hotel and received its promise to pay the $1,200 within one week.
22 of 124 9/18/2019, 6:36 PM

Sep. 10 Accounts Receivable 1,200

Sep. 14: Paid for the furniture purchased on September 4 on account.
Sep. 14 Accounts Payable 1,300

Cash 1,300
Sep. 15: Paid assistant's semimonthly salary, $1,500.
Sep. 15 Salaries Expense 1,500

Cash 1,500
Sep. 17: Received cash on account, $1,000. (Assume the collection was received from a customer for a previous sale on
account.)
Sep. 17 Cash 1,000

Sep. 20: Prepared a design for a school on account, $650.
Sep. 20 Accounts Receivable 650

Service Revenue 650
Sep. 25: Received $2,100 cash for design services to be performed in October.
Sep. 25 Cash 2,100

23 of 124 9/18/2019, 6:36 PM

Sep. 28: Received $2,900 cash for consulting with Plummer & Gordon.
Sep. 28 Cash 2,900

Sep. 29: Paid $600 cash for a 12-month insurance policy starting on October 1.
Sep. 29 Prepaid Insurance 600

Cash 600
Sep. 30: Paid assistant's semimonthly salary, $1,500.
Sep. 30 Salaries Expense 1,500

Cash 1,500
Sep. 30: Paid monthly rent expense, $600.
Sep. 30 Rent Expense 600

Cash 600
Sep. 30: Received a bill for utilities, $350. The bill will be paid next month.
Sep. 30 Utilities Expense 350

Utilities Payable 350
Sep. 30: Paid cash dividends of $3,700.
Sep. 30 Dividends 3,700

Cash 3,700
24 of 124 9/18/2019, 6:36 PM

Requirement 2. T-accounts have been opened for each of the accounts. Post the journal entries to the T-accounts, using
transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
Sep. 1: Received $48,000 cash and issued common stock to Simpson. (We will post to the accounts one transaction at a time.
Post only the transaction from September 1 in this step.)
Review the September 1 journal entry that you prepared in Requirement 1.

Sep. 1 48,000
Accounts Receivable Utilities Payable Salaries Expense
Office Supplies Unearned Revenue Rent Expense
Prepaid Insurance Common Stock Utilities Expense

48,000 Sep. 1
Land Dividends
Furniture
Sep. 4: Purchased office supplies, $1,200, and furniture, $1,300, on account. (Post only the transaction from September 4 in
this step.)
25 of 124 9/18/2019, 6:36 PM


Sep. 1 48,000 2,500 Sep. 4

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Furniture
Sep. 4 1,300
Sep. 6: Performed services for a law firm and received $1,900 cash. (Post only the transaction from September 6 in this step.)
26 of 124 9/18/2019, 6:36 PM


Sep. 1 48,000 2,500 Sep. 4 1,900 Sep. 6
Sep. 6 1,900

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Furniture
Sep. 4 1,300
Sep. 7: Paid $18,000 cash to acquire land to be used in operations. (Post only the transaction from September 7 in this step.)
27 of 124 9/18/2019, 6:36 PM


Sep. 1 48,000 18,000 Sep. 7 2,500 Sep. 4 1,900 Sep. 6
Sep. 6 1,900

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 10: Performed services for a hotel and received its promise to pay the $1,200 within one week. (Post only the transaction
from September 10 in this step.)
28 of 124 9/18/2019, 6:36 PM


Sep. 1 48,000 18,000 Sep. 7 2,500 Sep. 4 1,900 Sep. 6
Sep. 6 1,900 1,200 Sep. 10

Sep. 10 1,200

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 14: Paid for the furniture purchased on September 4 on account. (Post only the transaction from September 14 in this
step.)
29 of 124 9/18/2019, 6:36 PM


Sep. 1 48,000 18,000 Sep. 7 Sep. 14 1,300 2,500 Sep. 4 1,900 Sep. 6
Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10

Sep. 10 1,200

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 15: Paid assistant's semimonthly salary, $1,500. (Post only the transaction from September 15 in this step.)
30 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
1,500 Sep. 15

Sep. 10 1,200 Sep. 15 1,500

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 17: Received cash on account, $1,000. (Post only the transaction from September 17 in this step.)
31 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15

Sep. 10 1,200 1,000 Sep. 17 Sep. 15 1,500

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 20: Prepared a design for a school on account, $650. (Post only the transaction from September 20 in this step.)
32 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20

Sep. 10 1,200 1,000 Sep. 17 Sep. 15 1,500
Sep. 20 650

Sep. 4 1,200

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 25: Received $2,100 cash for design services to be performed in October. (Post only the transaction from September 25 in
this step.)
33 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
Sep. 25 2,100

Sep. 10 1,200 1,000 Sep. 17 Sep. 15 1,500
Sep. 20 650

Sep. 4 1,200 2,100 Sep. 25

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 28: Received $2,900 cash for consulting with Plummer & Gorden. (Post only the transaction from September 28 in this
step.)
34 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
Sep. 25 2,100 2,900 Sep. 28
Sep. 28 2,900

Sep. 10 1,200 1,000 Sep. 17 Sep. 15 1,500
Sep. 20 650

Sep. 4 1,200 2,100 Sep. 25

48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 29: Paid $600 cash for a 12-month insurance policy starting on October 1. (Post only the transaction from September 29 in
this step.)
35 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
Sep. 25
... 2,100 600 Sep. 29 2,900 Sep. 28
Sep. 28 2,900

Sep. 10 1,200 1,000 Sep. 17 Sep. 15 1,500
Sep. 20 650

Sep. 4 1,200 2,100 Sep. 25

Sep. 29 600 48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 30: Paid assistant's semimonthly salary, $1,500. (Post only the first transaction from September 30 in this step.)
36 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
Sep. 25
... 2,100 600 Sep. 29 2,900 Sep. 28
Sep. 28 2,900 1,500 Sep. 30

Sep. 10 1,200 1,000 Sep. 17 Sep. 15 1,500
Sep. 20 650 Sep. 30 1,500

Sep. 4 1,200 2,100 Sep. 25

Sep. 29 600 48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 30: Paid monthly rent expense, $600. (Post only the second transaction from September 30 in this step.)
37 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
Sep. 25
... 2,100 600 Sep. 29 2,900 Sep. 28
Sep. 28 2,900 1,500 Sep. 30
600 Sep. 30

Sep. 10 1,200 1,000 Sep. 17 Sep. 15 1,500
Sep. 20 650 Sep. 30 1,500

Sep. 4 1,200 2,100 Sep. 25 Sep. 30 600

Sep. 29 600 48,000 Sep. 1
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 30: Received a bill for utilities, $350. The bill will be paid next month. (Post only the third transaction from September 30 in
this step.)
38 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
Sep. 25
... 2,100 600 Sep. 29 2,900 Sep. 28
Sep. 28 2,900 1,500 Sep. 30
600 Sep. 30

Sep. 10 1,200 1,000 Sep. 17 350 Sep. 30 Sep. 15 1,500
Sep. 20 650 Sep. 30 1,500

Sep. 4 1,200 2,100 Sep. 25 Sep. 30 600

Sep. 29 600 48,000 Sep. 1 Sep. 30 350
Land Dividends
Sep. 7 18,000
Furniture
Sep. 4 1,300
Sep. 30: Paid cash dividends of $3,700. (Post only the fourth transaction from September 30 in this step.)
39 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
...
Sep. 25
... 2,100 600 Sep. 29 2,900 Sep. 28
...
Sep. 28 2,900 1,500 Sep. 30
600 Sep. 30
3,700 Sep. 30

Sep. 10 1,200 1,000 Sep. 17 350 Sep. 30 Sep. 15 1,500
Sep. 20 650 Sep. 30 1,500

Sep. 4 1,200 2,100 Sep. 25 Sep. 30 600

Sep. 29 600 48,000 Sep. 1 Sep. 30 350
Land Dividends
Sep. 7 18,000 Sep. 30 3,700
Furniture
Sep. 4 1,300
of the accounts.
40 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
...
Sep. 25
... 2,100 600 Sep. 29 2,900 Sep. 28
...
Sep. 28 2,900 1,500 Sep. 30
600 Sep. 30
3,700 Sep. 30
Bal. 28,700 1,200 Bal. 6,650 Bal.

Sep. 10 1,200 1,000 Sep. 17 350 Sep. 30 Sep. 15 1,500
Sep. 20 650 Sep. 30 1,500
Bal. 850 350 Bal. Bal. 3,000

Sep. 4 1,200 2,100 Sep. 25 Sep. 30 600
Bal. 1,200 2,100 Bal. Bal. 600

Sep. 29 600 48,000 Sep. 1 Sep. 30 350
Bal. 600 48,000 Bal. Bal. 350
Land Dividends
Sep. 7 18,000 Sep. 30 3,700
Bal. 18,000 Bal. 3,700
Furniture
Sep. 4 1,300
Bal. 1,300
Requirement 3. Prepare the trial balance of Ann Simpson, Designer, as of September 30, 2018.
Review the ending balances of the T-account that you prepared in Requirement 2.
41 of 124 9/18/2019, 6:36 PM

Ann Simpson, Designer

Trial Balance
September 30, 2018
Balance
Cash $ 28,700
Accounts Receivable 850
Prepaid Insurance 600
Land 18,000
Furniture 1,300
Accounts Payable $ 1,200
Common Stock 48,000
Dividends 3,700
Rent Expense 600
$ 58,300 $ 58,300
Total
16: More Info

Sep. 1 Received $48,000 cash and issued common stock to Simpson.
4 Purchased office supplies, $1,200, and furniture, $1,300, on account.
6 Performed services for a law firm and received $1,900 cash.
7 Paid $18,000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to pay the $1,200 within one week.
14 Paid for the furniture purchased on September 4 on account.
15 Paid assistant's semimonthly salary, $1,500.
17 Received cash on account, $1,000.
20 Prepared a design for a school on account, $650.
25 Received $2,100 cash for design services to be performed in October.
28 Received $2,900 cash for consulting with Plummer & Gordon.
29 Paid $600 cash for a 12-month insurance policy starting on October 1.
30 Paid monthly rent expense, $600.
30 Received a bill for utilities, $350. The bill will be paid next month.
17: Requirements
42 of 124 9/18/2019, 6:36 PM

1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies;
Prepaid Insurance; Land; Furniture; Accounts Payable; Utilities Payable; Unearned Revenue; Common Stock; Dividends;
Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. T-accounts have been opened for each of the accounts. Post the journal entries to the T-accounts, using transaction
dates as posting references in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balance of Ann Simpson, Designer, as of September 30, 2018.
43 of 124 9/18/2019, 6:36 PM

Sep. 4 Cash 1200 nothing

Office Supplies nothing 1200
Accounts Payable 1300 nothing
Accounts Payable nothing 1300
Sep. 17 Service Revenue 1000 nothing

Sep. 30 Utilities Payable 350 nothing

Utilities Expense nothing 350
44 of 124 9/18/2019, 6:36 PM


Sep. 6 1,900 1,300 Sep. 14 1,200 Sep. 10
Sep. 17 1,000 1,500 Sep. 15 650 Sep. 20
Sep. 25 2,100 600 Sep. 29 2,900 Sep. 28
Sep. 28 2,900 1,500 Sep. 30
600 Sep. 30
3,700 Sep. 30
Bal. 28700 nothing nothing nothing nothing 1200 Bal. nothing nothing 6650 Bal.

Sep. 10 1,200 1,000 Sep. 17 350 Sep. 30 Sep. 15 1,500
Sep. 20 650 Sep. 30 1,500
nothing nothing 850 Bal. nothing nothing 350 Bal. Bal. 1500 nothing nothing

Sep. 4 1,200 2,100 Sep. 25 Sep. 30 600
Bal. 1200 nothing nothing nothing nothing 2100 Bal. Bal. 600 nothing nothing

Sep. 29 600 48,000 Sep. 1 Sep. 30 350
Bal. 600 nothing nothing nothing nothing 48000 Bal. Bal. 350 nothing nothing
Land Dividends
Sep. 7 18,000 Sep. 30 3,700
Bal. 18000 nothing nothing Bal. 3700 nothing nothing
Furniture
Sep. 4 1,300
Bal. 1300 nothing nothing
45 of 124 9/18/2019, 6:36 PM

3. Terrence Murphy opened a law office on January 1, 2018. During the first month of operations, the business completed the
18(Click the icon to view the transactions.)
Review Only
Click the icon to see the Worked Solution.
Requirement 1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable;
Office Supplies; Prepaid Insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common
Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
(Record debits first, then credits. Exclude explanations from journal entries.)
Jan. 1: Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business issued common stock
to Murphy.
Jan. 1 Cash 78,000

Common Stock 78,000
Jan. 3: Purchased office supplies, $600, and furniture, $1,700, on account.
Jan. 3 Office Supplies 600

Furniture 1,700
Jan. 4: Performed legal services for a client and received $1,000 cash.
Jan. 4 Cash 1,000

Jan. 7: Purchased a building with a market value of $130,000, and land with a market value of $25,000. The business paid
$25,000 cash and signed a note payable to the bank for the remaining amount.
Jan. 7 Building 130,000

Land 25,000
Cash 25,000
Jan. 11: Prepared legal documents for a client on account, $400.
46 of 124 9/18/2019, 6:36 PM

Jan. 11 Accounts Receivable 400

Service Revenue 400
Jan. 15: Paid assistant's semimonthly salary, $1,120.
Jan. 15 Salaries Expense 1,120

Cash 1,120
Jan. 16: Paid for the office supplies purchased on January 3 on account.
Jan. 16 Accounts Payable 600

Cash 600
Jan. 18: Received $2,700 cash for helping a client sell real estate.
Jan. 18 Cash 2,700

Jan. 19: Defended a client in court and billed the client for $1,800.
Jan. 19 Accounts Receivable 1,800

Jan. 25: Received a bill for utilities, $600. The bill will be paid next month.
Jan. 25 Utilities Expense 600

47 of 124 9/18/2019, 6:36 PM

Jan. 29: Received cash on account, $1,500. (Assume the collection was received from a customer for a previous sale on
account.)
Jan. 29 Cash 1,500

Jan. 30: Paid $1,200 cash for a 12-month insurance policy starting on February 1.
Jan. 30 Prepaid Insurance 1,200

Cash 1,200
Jan. 30 Salaries Expense 1,120

Cash 1,120
Jan. 31: Paid monthly rent expense, $1,800.
Jan. 31 Rent Expense 1,800

Cash 1,800
Jan. 31: Paid cash dividends of $2,200.
Jan. 31 Dividends 2,200

Cash 2,200
Requirement 2. The following four-column accounts have been opened: Cash, 101; Accounts Receivable, 111; Office Supplies,
121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes
Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and
Utilities Expense, 531. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal
references, and posting references. Assume the journal entries were recorded on page 1 of the journal.
(If a box is not used in
the table, leave the box empty; do not enter a zero. Compute the new balance for each account after posting the transaction.)
Jan. 1: Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business issued common stock to
48 of 124 9/18/2019, 6:36 PM

Murphy.
Review the journal entry you prepared above.
CASH Account No. 101

Balance
Date Item Post. Ref. Debit Credit Debit Credit
2018
Jan. 1 J1 78,000 78,000
COMMON STOCK Account No. 301

Balance
2018
Jan. 1 J1 78,000 78,000
Now select the posting references in the journal for the transaction you posted in the preceding step.
Date Accounts Post. Ref. Debit Credit
Jan. 1 Cash 101 78,000

Common Stock 301 78,000
Jan. 3: Purchased office supplies, $600, and furniture, $1,700, on account.
OFFICE SUPPLIES Account No. 121

Balance
2018
Jan. 3 J1 600 600
FURNITURE Account No. 161

Balance
2018
Jan. 3 J1 1,700 1,700
ACCOUNTS PAYABLE Account No. 201

Balance
2018
Jan. 3 J1 2,300 2,300
49 of 124 9/18/2019, 6:36 PM

Date Accounts and Explanation Post. Ref. Debit Credit
Jan. 3 Office Supplies 121 600

Furniture 161 1,700
Accounts Payable 201 2,300
Jan. 4: Performed legal services for a client and received $1,000 cash.

Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
SERVICE REVENUE Account No. 411

Balance
2018
Jan. 4 J1 1,000 1,000
Jan. 4 Cash 101 1,000

Service Revenue 411 1,000
Jan. 7: Purchased a building with a market value of $130,000, and land with a market value of $25,000. The business paid
$25,000 cash and signed a note payable to the bank for the remaining amount.

Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
LAND Account No. 141

Balance
2018
Jan. 7 J1 25,000 25,000
50 of 124 9/18/2019, 6:36 PM

BUILDING Account No. 151

Balance
2018
Jan. 7 J1 130,000 130,000
NOTES PAYABLE Account No. 221
Balance
2018
Jan. 7 J1 130,000 130,000
Jan. 7 Building 151 130,000

Land 141 25,000
Cash 101 25,000
Notes Payable 221 130,000
Jan. 11: Prepared legal documents for a client on account, $400.
ACCOUNTS RECEIVABLE Account No. 111

Balance
2018
Jan. 11 J1 400 400

Balance
2018
Jan. 4 J1 1,000 1,000
Jan. 11 J1 400 1,400
Jan. 11 Accounts Receivable 111 400

Service Revenue 411 400
51 of 124 9/18/2019, 6:36 PM


Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
SALARIES EXPENSE Account No. 511

Balance
2018
Jan. 15 J1 1,120 1,120
Jan. 15 Salaries Expense 511 1,120

Cash 101 1,120
Jan. 16: Paid for the office supplies purchased on January 3 on account.

Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
Jan. 16 J1 600 52,280

Balance
2018
Jan. 3 J1 2,300 2,300
Jan. 16 J1 600 1,700
52 of 124 9/18/2019, 6:36 PM

Jan. 16 Accounts Payable 201 600

Cash 101 600
Jan. 18: Received $2,700 cash for helping a client sell real estate.

Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
Jan. 16 J1 600 52,280
Jan. 18 J1 2,700 54,980

Balance
2018
Jan. 4 J1 1,000 1,000
Jan. 11 J1 400 1,400
Jan. 18 J1 2,700 4,100
Jan. 18 Cash 101 2,700

Jan. 19: Defended a client in court and billed the client for $1,800.

Balance
2018
Jan. 11 J1 400 400
Jan. 19 J1 1,800 2,200
53 of 124 9/18/2019, 6:36 PM


Balance
2018
Jan. 4 J1 1,000 1,000
Jan. 11 J1 400 1,400
Jan. 18 J1 2,700 4,100
Jan. 19 J1 1,800 5,900
Jan. 19 Accounts Receivable 111 1,800

Jan. 25: Received a bill for utilities, $600. The bill will be paid next month.
UTILITIES EXPENSE Account No. 531

Balance
2018
Jan. 25 J1 600 600
UTILITIES PAYABLE Account No. 211

Balance
2018
Jan. 25 J1 600 600
Jan. 25 Utilities Expense 531 600

Utilities Payable 211 600
Jan. 29: Received cash on account, $1,500.
54 of 124 9/18/2019, 6:36 PM


Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
Jan. 16 J1 600 52,280
Jan. 18 J1 2,700 54,980
Jan. 29 J1 1,500 56,480

Balance
2018
Jan. 11 J1 400 400
Jan. 19 J1 1,800 2,200
Jan. 29 J1 1,500 700
Jan. 29 Cash 101 1,500

Accounts Receivable 111 1,500
Jan. 30: Paid $1,200 cash for a 12-month insurance policy starting on February 1.

Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
Jan. 16 J1 600 52,280
Jan. 18 J1 2,700 54,980
Jan. 29 J1 1,500 56,480
Jan. 30 J1 1,200 55,280
55 of 124 9/18/2019, 6:36 PM

PREPAID INSURANCE Account No. 131

Balance
2018
Jan. 30 J1 1,200 1,200
Jan. 30 Prepaid Insurance 131 1,200

Cash 101 1,200

Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
Jan. 16 J1 600 52,280
Jan. 18 J1 2,700 54,980
Jan. 29 J1 1,500 56,480
Jan. 30 J1 1,200 55,280
Jan. 30 J1 1,120 54,160

Balance
2018
Jan. 15 J1 1,120 1,120
Jan. 30 J1 1,120 2,240
Jan. 30 Salaries Expense 511 1,120

Cash 101 1,120
Jan. 31: Paid monthly rent expense, $1,800.
56 of 124 9/18/2019, 6:36 PM


Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
Jan. 16 J1 600 52,280
Jan. 18 J1 2,700 54,980
Jan. 29 J1 1,500 56,480
Jan. 30 J1 1,200 55,280
Jan. 30 J1 1,120 54,160
Jan. 31 J1 1,800 52,360
RENT EXPENSE Account No. 521

Balance
2018
Jan. 31 J1 1,800 1,800
Jan. 31 Rent Expense 521 1,800

Cash 101 1,800
Jan. 31: Paid cash dividends of $2,200.
57 of 124 9/18/2019, 6:36 PM


Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 25,000 54,000
Jan. 15 J1 1,120 52,880
Jan. 16 J1 600 52,280
Jan. 18 J1 2,700 54,980
Jan. 29 J1 1,500 56,480
Jan. 30 J1 1,200 55,280
Jan. 30 J1 1,120 54,160
Jan. 31 J1 1,800 52,360
Jan. 31 J1 2,200 50,160
DIVIDENDS Account No. 311

Balance
2018
Jan. 31 J1 2,200 2,200
Jan. 31 Dividends 311 2,200

Cash 101 2,200
Requirement 3. Prepare the trial balance of Terrence Murphy, Attorney, at January 31, 2018.
Review the ledger accounts for the month of January.
58 of 124 9/18/2019, 6:36 PM

Terrence Murphy, Attorney

Trial Balance
January 31, 2018
Balance
Cash $ 50,160
Office Supplies 600
Prepaid Insurance 1,200
Land 25,000
Building 130,000
Furniture 1,700
Common Stock 78,000
Dividends 2,200
Rent Expense 1,800
$ 216,200 $ 216,200
Total
18: More Info

Jan. 1 Murphy contributed $78,000 cash to the business, Terrence Murphy, Attorney. The business issued common
stock to Murphy.
3 Purchased office supplies, $600, and furniture, $1,700, on account.
4 Performed legal services for a client and received $1,000 cash.
7 Purchased a building with a market value of $130,000, and land with a market value of $25,000. The business
paid $25,000 cash and signed a note payable to the bank for the remaining amount.
11 Prepared legal documents for a client on account, $400.
16 Paid for the office supplies purchased on January 3 on account.
18 Received $2,700 cash for helping a client sell real estate.
19 Defended a client in court and billed the client for $1,800.
25 Received a bill for utilities, $600. The bill will be paid next month.
29 Received cash on account, $1,500.
30 Paid $1,200 cash for a 12-month insurance policy starting on February 1.
31 Paid monthly rent expense, $1,800.
59 of 124 9/18/2019, 6:36 PM

19: Requirements
1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies;
Prepaid Insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common Stock;
Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. The following four-column accounts have been opened: Cash, 101; Accounts Receivable, 111; Office Supplies, 121;
Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes
Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521;
and Utilities Expense, 531. Post the journal entries to four-column accounts in the ledger, using dates, account numbers,
journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal.
3. Prepare the trial balance of Terrence Murphy, Attorney, at January 31, 2018.
Jan. 7 Building 130000 nothing

Land 25000 nothing
Notes Payable nothing 130000
Cash 25000 nothing
Jan. 16 Office Supplies 600 nothing


Balance
2018
Jan. 1 J1 78000 nothing nothing nothing

Balance
2018
Jan. 1 J1 nothing 78000 nothing nothing

Balance
2018
Jan. 1 J1 78,000 78,000
Jan. 4 J1 1,000 79,000
Jan. 7 J1 nothing 25000 nothing 25000
60 of 124 9/18/2019, 6:36 PM

4.
The trial balance of Shawn Merry, CPA, is dated March 31, During April, the business completed the following
2018: transactions:
20(Click the icon to view the March 31 trial balance.) 21(Click the icon to view the transactions.)
Requirement 1. Record the April transactions in the journal. Include an explanation for each entry. (Record debits first, then
credits. Select the explanations on the last line of the journal entry table.)
Apr. 4: Collected $2,500 cash from a client on account.
Apr. 4 Cash 2,500

Received cash on account.
Apr. 8: Performed tax services for a client on account, $5,400.
Apr. 8 Accounts Receivable 5,400

Performed services on account.
Apr. 13: Paid $3,000 on account.
Apr. 13 Accounts Payable 3,000

Cash 3,000
Paid cash on account.
Apr. 14: Purchased furniture on account, $3,600.
Apr. 14 Furniture 3,600

Purchased furniture on account.
Apr. 15: Merry contributed his personal automobile to the business in exchange for common stock. The automobile had a
market value of $9,500.
61 of 124 9/18/2019, 6:36 PM

Apr. 15 Automobile 9,500

Common Stock 9,500
Issued common stock in exchange for automobile.
Apr. 18: Purchased office supplies on account, $900.
Apr. 18 Office Supplies 900

Accounts Payable 900
Purchased office supplies on account.
Apr. 19: Received $2,700 for tax services performed on April 8.
Apr. 19 Cash 2,700

Apr. 20: Paid cash dividends of $6,500.
Apr. 20 Dividends 6,500

Cash 6,500
Paid cash dividends.
Apr. 21: Received $5,700 cash for consulting work completed.
Apr. 21 Cash 5,700

Performed services and received cash.
Apr. 24: Received $2,400 cash for accounting services to be completed next month.
62 of 124 9/18/2019, 6:36 PM

Apr. 24 Cash 2,400

Collected cash for future services.
Apr. 27: Paid office rent, $600.
Apr. 27 Rent Expense 600

Cash 600
Paid cash expenses.
Apr. 28: Paid employee salary, $1,700.
Apr. 28 Salaries Expense 1,700

Cash 1,700
Paid cash expenses.
Requirement 2. The four-column ledger accounts listed in the trial balance, together with their balances as of March 31, have
been opened for you and utilize the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Land,
14; Furniture, 15; Automobile, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33; Service
Revenue, 41; Salaries Expense, 51; and Rent Expense, 52. Post the journal entries to four-column accounts in the ledger, using
dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 5 of the
journal. (Compute the new balance for each account after posting the transaction.)
Apr. 4: Collected $2,500 cash from a client on account.

Review the journal entry you prepared in Requirement 1.
CASH Account No. 11

Balance
2018
Mar. 31 Balance 11,000
Apr. 4 J5 2,500 13,500
63 of 124 9/18/2019, 6:36 PM


Balance
2018
Apr. 4 J5 2,500 14,000
Apr. 4 Cash 11 2,500

Apr. 8: Performed tax services for a client on account, $5,400.


Balance
2018
Apr. 4 J5 2,500 14,000
Apr. 8 J5 5,400 19,400

Balance
2018
Apr. 8 J5 5,400 13,600
Apr. 8 Accounts Receivable 12 5,400

Performed services on account.
Apr. 13: Paid $3,000 on account.

64 of 124 9/18/2019, 6:36 PM

CASH Account No. 11

Balance
2018
Apr. 4 J5 2,500 13,500
Apr. 13 J5 3,000 10,500

Balance
2018
Mar. 31 3,800
Apr. 13 J5 3,000 800
Select the posting references in the journal for the transaction you posted in the preceding step.
Apr. 13 Accounts Payable 21 3,000

Cash 11 3,000
Paid cash on account.
Apr. 14: Purchased furniture on account, $3,600.

FURNITURE Account No. 15

Balance
2018
Mar. 31 Balance 0
Apr. 14 J5 3,600 3,600

Balance
2018
Mar. 31 3,800
Apr. 13 J5 3,000 800
Apr. 14 J5 3,600 4,400
65 of 124 9/18/2019, 6:36 PM

Apr. 14 Furniture 15 3,600

Accounts Payable 21 3,600
Purchased furniture on account.
Apr. 15: Merry contributed his personal automobile to the business in exchange for common stock. The automobile had a
AUTOMOBILE Account No. 16

Balance
2018
Mar. 31 Balance 0
Apr. 15 J5 9,500 9,500

Balance
2018
Apr. 15 J5 9,500 61,800
Apr. 15 Automobile 16 9,500

Common Stock 31 9,500
Issued common stock in exchange for automobile.
Apr. 18: Purchased office supplies on account, $900.

OFFICE SUPPLIES Account No. 13
Balance
2018
Mar. 31 Balance 400
Apr. 18 J5 900 1,300
66 of 124 9/18/2019, 6:36 PM


Balance
2018
Mar. 31 3,800
Apr. 13 J5 3,000 800
Apr. 14 J5 3,600 4,400
Apr. 18 J5 900 5,300
Apr. 18 Office Supplies 13 900

Accounts Payable 21 900
Purchased office supplies on account.
Apr. 19: Received $2,700 for tax services performed on April 8.

CASH Account No. 11

Balance
2018
Apr. 4 J5 2,500 13,500
Apr. 13 J5 3,000 10,500
Apr. 19 J5 2,700 13,200

Balance
2018
Apr. 4 J5 2,500 14,000
Apr. 8 J5 5,400 19,400
Apr. 19 J5 2,700 16,700
Apr. 19 Cash 11 2,700

67 of 124 9/18/2019, 6:36 PM

Apr. 20: Paid cash dividends of $6,500.

CASH Account No. 11

Balance
2018
Apr. 4 J5 2,500 13,500
Apr. 13 J5 3,000 10,500
Apr. 19 J5 2,700 13,200
Apr. 20 J5 6,500 6,700
DIVIDENDS Account No. 33

Balance
2018
Mar. 31 Balance 0
Apr. 20 J5 6,500 6,500
Apr. 20 Dividends 33 6,500

Cash 11 6,500
Paid cash dividends.
Apr. 21: Received $5,700 cash for consulting work completed.

CASH Account No. 11

Balance
2018
Apr. 4 J5 2,500 13,500
Apr. 13 J5 3,000 10,500
Apr. 19 J5 2,700 13,200
Apr. 20 J5 6,500 6,700
Apr. 21 J5 5,700 12,400
68 of 124 9/18/2019, 6:36 PM


Balance
2018
Apr. 8 J5 5,400 13,600
Apr. 21 J5 5,700 19,300
Apr. 21 Cash 11 5,700

Performed services and received cash.
Apr. 24: Received $2,400 cash for accounting services to be completed next month.
CASH Account No. 11

Balance
2018
Apr. 4 J5 2,500 13,500
Apr. 13 J5 3,000 10,500
Apr. 19 J5 2,700 13,200
Apr. 20 J5 6,500 6,700
Apr. 21 J5 5,700 12,400
Apr. 24 J5 2,400 14,800
UNEARNED REVENUE Account No. 22

Balance
2018
Mar. 31 Balance 0
Apr. 24 J5 2,400 2,400
Apr. 24 Cash 11 2,400

Unearned Revenue 22 2,400
Collected cash for future services.
69 of 124 9/18/2019, 6:36 PM

Apr. 27: Paid office rent, $600.

CASH Account No. 11

Balance
2018
Apr. 4 J5 2,500 13,500
Apr. 13 J5 3,000 10,500
Apr. 19 J5 2,700 13,200
Apr. 20 J5 6,500 6,700
Apr. 21 J5 5,700 12,400
Apr. 24 J5 2,400 14,800
Apr. 27 J5 600 14,200
RENT EXPENSE Account No. 52

Balance
2018
Mar. 31 Balance 800
Apr. 27 J5 600 1,400
Apr. 27 Rent Expense 52 600

Cash 11 600
Paid cash expenses.
Apr. 28: Paid employee salary, $1,700.

70 of 124 9/18/2019, 6:36 PM

CASH Account No. 11

Balance
2018
Apr. 4 J5 2,500 13,500
Apr. 13 J5 3,000 10,500
Apr. 19 J5 2,700 13,200
Apr. 20 J5 6,500 6,700
Apr. 21 J5 5,700 12,400
Apr. 24 J5 2,400 14,800
Apr. 27 J5 600 14,200
Apr. 28 J5 1,700 12,500

Balance
2018
Apr. 28 J5 1,700 7,300
Apr. 28 Salaries Expense 51 1,700

Cash 11 1,700
Paid cash expenses.
Requirement 3. Prepare the trial balance of Shawn Merry, CPA, at April 30, 2018.
Review the ledger accounts for the month of April.
71 of 124 9/18/2019, 6:36 PM

Shawn Merry, CPA

Trial Balance
April 30, 2018
Balance
Cash $ 12,500
Land 30,000
Furniture 3,600
Automobile 9,500
Common Stock 61,800
Dividends 6,500
Rent Expense 1,400
$ 88,800 $ 88,800
Total
20: Data Table
72 of 124 9/18/2019, 6:36 PM

Shawn Merry, CPA

Trial Balance
March 31, 2018
Balance
Cash $ 11,000
Office Supplies 400
Land 30,000
Furniture 0
Automobile 0
Unearned Revenue 0
Common Stock 52,300
Dividends 0
Rent Expense 800
$ 64,300 $ 64,300
Total
21: More Info
Apr. 4 Collected $2,500 cash from a client on account.

8 Performed tax services for a client on account, $5,400.
14 Purchased furniture on account, $3,600.
15 Merry contributed his personal automobile to the business in exchange for common stock. The automobile had a
18 Purchased office supplies on account, $900.
19 Received $2,700 for tax services performed on April 8.
21 Received $5,700 cash for consulting work completed.
24 Received $2,400 cash for accounting services to be completed next month.
27 Paid office rent, $600.
28 Paid employee salary, $1,700.
22: Requirements
73 of 124 9/18/2019, 6:36 PM

1. Record the April transactions in the journal. Use the following accounts: Cash; Accounts Receivable; Office Supplies;
Land; Furniture; Automobile; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue;
Salaries Expense; and Rent Expense. Include an explanation for each entry.
2. The four-column ledger accounts listed in the trial balance, together with their balances as of March 31, have been
opened for you and utilize the following account numbers: Cash, 11; Accounts Receivable, 12; Office Supplies, 13; Land,
14; Furniture, 15; Automobile, 16; Accounts Payable, 21; Unearned Revenue, 22; Common Stock, 31; Dividends, 33;
Service Revenue, 41; Salaries Expense, 51; and Rent Expense, 52. Post the journal entries to four-column accounts in
the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were
recorded on page 5 of the journal.
3. Prepare the trial balance of Shawn Merry, CPA, at April 30, 2018.
YOU ANSWERED: Date Accounts and Explanation Debit Credit
Apr. 4 Service Revenue 2500 nothing

Accounts Receivable nothing 2500
nothing
74 of 124 9/18/2019, 6:36 PM

5.
The trial balance of Beautiful Tots Child Care does not The following errors are detected:
24
balance. (Click the icon to view the errors.)
23(Click the icon to view the trial balance.)
Prepare the corrected trial balance at August 31, 2018.
Journal entries are not required.
Review Only
Click the icon to see the Worked Solution.
75 of 124 9/18/2019, 6:36 PM

Beautiful Tots Child Care

Trial Balance
August 31, 2018
Balance
Cash $ 10,900
Equipment 83,000
Common Stock 57,000
Dividends 3,200
Rent Expense 750
$ 123,250 $ 123,250
Total
76 of 124 9/18/2019, 6:36 PM

23: Data Table
Beautiful Tots Child Care

Trial Balance
August 31, 2018
Balance
Cash $ 7,900
Prepaid Insurance 300
Equipment 91,500
Common Stock 57,000
Dividends 5,000
Rent Expense 750
$ 117,550 $ 117,750
Total
24: More Info

a. Cash is understated by $1,500.
b. A $4,100 debit to Accounts Receivable was posted as a credit.
c. A $1,400 purchase of office supplies on account was neither journalized nor posted.
d. Equipment was incorrectly transferred from the ledger as $91,500. It should have been transferred as $83,000.
e. Salaries Expense is overstated by $700.
f. A $300 cash payment for advertising expense was neither journalized nor posted.
g. A $200 cash dividend was incorrectly journalized as $2,000.
h. Service Revenue was understated by $4,100.
i. A 12-month insurance policy was posted as a $1,900 credit to Prepaid Insurance. Cash was posted correctly.
77 of 124 9/18/2019, 6:36 PM

YOU ANSWERED: Beautiful Tots Child Care

Trial Balance
August 31, 2018
Balance
Cash 10700 nothing

Accounts Receivable 14900 nothing
Office Supplies 2400 nothing
Prepaid Insurance 2200 nothing
Equipment 83000 nothing
Notes Payable nothing 45000
Common Stock nothing 57000
Dividends 3200 nothing
Service Revenue nothing 16450
Salaries Expense 4400 nothing
Rent Expense 750 nothing
Advertising Expense 300 nothing
121850 121850
Total
78 of 124 9/18/2019, 6:36 PM

6. The trial balance as of July 31, 2018, for Sara Simon, Registered Dietician, is presented below:
Requirement 1. Prepare the income statement for the month ended July 31, 2018. (If a box is not used in the statement,
leave the box empty; do not select a label or enter a zero.)
Sara Simon, Registered Dietician

Income Statement
Month Ended July 31, 2018
Revenues:
Service Revenue $ 17,888
Expenses:
Salaries Expense $ 1,700
Rent Expense 1,100
Total Expenses 3,300
$ 14,588
Net Income
Requirement 2. Prepare the statement of retained earnings for the month ended July 31, 2018. The beginning balance of
retained earnings was $0. (Enter any increases in retained earnings prior to the subtotal and any decreases to retained
earnings below the subtotal. Enter a "0" for any zero balances.)

Statement of Retained Earnings
Retained Earnings, July 1, 2018 $ 0
Net income for the month 14,588
14,588
Dividends (2,800)
$ 11,788
Retained Earnings, July 31, 2018
Requirement 3. Prepare the balance sheet as of July 31, 2018. (If a box is not used in the statement, leave the box empty;
do not select a label or enter a zero.)
79 of 124 9/18/2019, 6:36 PM


Balance Sheet
July 31, 2018
Assets Liabilities
Cash $ 38,000 Accounts Payable $ 3,000
Accounts Receivable 9,000 Unearned Revenue 3,912
Office Supplies 2,300 Notes Payable 31,000
Prepaid Insurance 2,400 Total Liabilities 37,912

Equipment 16,000 Stockholders' Equity
Common Stock 18,000
Retained Earnings 11,788
Total Stockholders' Equity 29,788
Total Assets $ 67,700 Total Liabilities and Stockholders' Equity $ 67,700
Requirement 4. Calculate the debt ratio as of July 31, 2018.
Select the debt ratio formula on the first line and then calculate the ratio.
Total liabilities / Total assets = Debt ratio

$ 37,912 / $ 67,700 = 56 %
25: Data Table
80 of 124 9/18/2019, 6:36 PM


Trial Balance
July 31, 2018
Balance
Cash $ 38,000
Equipment 16,000
Common Stock 18,000
Dividends 2,800
Rent Expense 1,100
$ 73,800 $ 73,800
Total
26: Requirements
1. Prepare the income statement for the month ended July 31, 2018.
2. Prepare the statement of retained earnings for the month ended July 31, 2018. The beginning balance of retained
earnings was $0.
3. Prepare the balance sheet as of July 31, 2018.
4. Calculate the debt ratio as of July 31, 2018.
81 of 124 9/18/2019, 6:36 PM

7. Victor Yang practices medicine under the business title Victor Yang, M.D. During March, the medical practice completed the
27(Click the icon to view the transactions.) 28(Click the icon to view the accounts used by the business.)
Requirement 1. Journalize each transaction. Explanations are not required. (Record debits first, then credits. Exclude
explanations from journal entries.)
March 1: Yang contributed $62,000 cash to the business in exchange for common stock.
Mar. 1 Cash 62,000

Common Stock 62,000
March 5: Paid monthly rent on medical equipment, $570.
Mar. 5 Rent Expense 570

Cash 570
March 9: Paid $14,000 cash to purchase land to be used in operations.
Mar. 9 Land 14,000

Cash 14,000
March 10: Purchased office supplies on account, $1,500.
Mar. 10 Office Supplies 1,500

March 19: Borrowed $27,000 from the bank for business use.
82 of 124 9/18/2019, 6:36 PM

Mar. 19 Cash 27,000

March 22: Paid $1,400 on account.
Mar. 22 Accounts Payable 1,400

Cash 1,400
March 28: The business received a bill for advertising in the daily newspaper to be paid in April, $220.
Mar. 28 Advertising Expense 220

March 31: Revenues earned during the month included $6,700 cash and $5,800 on account. Record as a compound entry.
Mar. 31 Cash 6,700

March 31: Paid employees' salaries $2,100, office rent $1,500, and utilities $350. Record these entries as a compound entry.
Mar. 31 Salaries Expense 2,100

Rent Expense 1,500
Cash 3,950
March 31: The business received $1,000 for medical screening services to be performed next month.
Mar. 31 Cash 1,000

83 of 124 9/18/2019, 6:36 PM

March 31: Paid cash dividends of $7,100.
Mar. 31 Dividends 7,100

Cash 7,100
Requirement 2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger
accounts. Label the balance of each account Bal.
March 1: Yang contributed $62,000 cash to the business in exchange for Common Stock. (We will post to the accounts one
transaction at a time. Post only the transaction from March 1 in this step.)
Review the March 1 journal entry that you prepared in Requirement 1.30

Mar. 1 62,000

62,000 Mar. 1
Dividends
March 5: Paid monthly rent on medical equipment, $570. (Post only the transaction from March 5 in this step.)
84 of 124 9/18/2019, 6:36 PM


Mar. 1 62,000 570 Mar. 5

Mar. 5 570

62,000 Mar. 1
Dividends
March 9: Paid $14,000 cash to purchase land to be used in operations. (Post only the transaction from March 9 in this step.)
85 of 124 9/18/2019, 6:36 PM


Mar. 1 62,000 570 Mar. 5
14,000 Mar. 9

Mar. 5 570

Mar. 9 14,000 62,000 Mar. 1
Dividends
March 10: Purchased office supplies on account, $1,500. (Post only the transaction from March 10 in this step.)
86 of 124 9/18/2019, 6:36 PM


Mar. 1 62,000 570 Mar. 5 1,500 Mar. 10
14,000 Mar. 9

Mar. 5 570

Mar. 10 1,500

Mar. 9 14,000 62,000 Mar. 1
Dividends
March 19: Borrowed $27,000 from the bank for business use. (Post only the transaction from March 19 in this step.)
87 of 124 9/18/2019, 6:36 PM


Mar. 1 62,000 570 Mar. 5 1,500 Mar. 10
Mar. 19 27,000 14,000 Mar. 9

Mar. 5 570

Mar. 10 1,500 27,000 Mar. 19

Mar. 9 14,000 62,000 Mar. 1
Dividends
March 22: Paid $1,400 on account. (Post only the transaction from March 22 in this step.)
88 of 124 9/18/2019, 6:36 PM


Mar. 1 62,000 570 Mar. 5 Mar. 22 1,400 1,500 Mar. 10
Mar. 19 27,000 14,000 Mar. 9
1,400 Mar. 22

Mar. 5 570

Mar. 10 1,500 27,000 Mar. 19

Mar. 9 14,000 62,000 Mar. 1
Dividends
March 28: The business received a bill for advertising in the daily newspaper to be paid in April, $220. (Post only the transaction
from March 28 in this step.)
89 of 124 9/18/2019, 6:36 PM


Mar. 1 62,000 570 Mar. 5 Mar. 22 1,400 1,500 Mar. 10
Mar. 19 27,000 14,000 Mar. 9
1,400 Mar. 22
220 Mar. 28

Mar. 5 570

Mar. 10 1,500 27,000 Mar. 19

Mar. 9 14,000 62,000 Mar. 1 Mar. 28 220
Dividends
March 31: Revenues earned during the month included $6,700 cash and $5,800 on account. (Post only the first transaction
from March 31 in this step.)
90 of 124 9/18/2019, 6:36 PM


Mar. 1 62,000 570 Mar. 5 Mar. 22 1,400 1,500 Mar. 10 12,500 Mar. 31
Mar. 19 27,000 14,000 Mar. 9

Mar. 31 6,700 1,400 Mar. 22
220 Mar. 28

Mar. 31 5,800 Mar. 5 570

Mar. 10 1,500 27,000 Mar. 19

Mar. 9 14,000 62,000 Mar. 1 Mar. 28 220
Dividends
March 31: Paid employees' salaries $2,100, office rent $1,500, and utilities $350. Record as a compound entry. (Post only the
second transaction from March 31 in this step.)
91 of 124 9/18/2019, 6:36 PM


Mar. 19 27,000 14,000 Mar. 9
Mar. 31 6,700 1,400 Mar. 22
3,950 Mar. 31 Advertising Payable Salaries Expense
220 Mar. 28 Mar. 31 2,100

Mar. 31 5,800 Mar. 5 570
Mar. 31 1,500

Mar. 10 1,500 27,000 Mar. 19 Mar. 31 350

Mar. 9 14,000 62,000 Mar. 1 Mar. 28 220
Dividends
March 31: The business received $1,000 for medical screening services to be performed next month. (Post only the third
transaction from March 31 in this step.)
92 of 124 9/18/2019, 6:36 PM


Mar. 19 27,000 14,000 Mar. 9
Mar. 31 6,700 1,400 Mar. 22
Mar. 31 1,000 3,950 Mar. 31 Advertising Payable Salaries Expense
220 Mar. 28 Mar. 31 2,100

Mar. 31 5,800 1,000 Mar. 31 Mar. 5 570
Mar. 31 1,500

Mar. 10 1,500 27,000 Mar. 19 Mar. 31 350

Mar. 9 14,000 62,000 Mar. 1 Mar. 28 220
Dividends
March 31: Paid cash dividends of $7,100. (Post only the fourth transaction from March 31 in this step.)
93 of 124 9/18/2019, 6:36 PM


Mar. 19 27,000 14,000 Mar. 9
Mar. 31 6,700 1,400 Mar. 22
7,100 Mar. 31 220 Mar. 28 Mar. 31 2,100

Mar. 31 5,800 1,000 Mar. 31 Mar. 5 570
Mar. 31 1,500

Mar. 10 1,500 27,000 Mar. 19 Mar. 31 350

Mar. 9 14,000 62,000 Mar. 1 Mar. 28 220
Dividends
Mar. 31 7,100
of the accounts.
94 of 124 9/18/2019, 6:36 PM

Mar. 19 27,000 14,000 Mar. 9 100 Bal. 12,500 Bal.
Mar. 31 6,700 1,400 Mar. 22

7,100 Mar. 31 220 Mar. 28 Mar. 31 2,100
Bal. 69,680 220 Bal. Bal. 2,100

Mar. 31 5,800 1,000 Mar. 31 Mar. 5 570
Mar. 31 1,500
Bal. 5,800 1,000 Bal. Bal. 2,070

Mar. 10 1,500 27,000 Mar. 19 Mar. 31 350
Bal. 1,500 27,000 Bal. Bal. 350

Mar. 9 14,000 62,000 Mar. 1 Mar. 28 220
Bal. 14,000 62,000 Bal. Bal. 220
Dividends
Mar. 31 7,100
Bal. 7,100
Requirement 3. Prepare the trial balance of Victor Yang, M.D. as of March 31, 2018.
Review the ending balances of the T-account that you prepared in Requirement 2.41
95 of 124 9/18/2019, 6:36 PM

Victor Yang, M.D.

Trial Balance
March 31, 2018
Balance
Cash $ 69,680
Land 14,000
Accounts Payable $ 100
Common Stock 62,000
Dividends 7,100
Rent Expense 2,070
$ 102,820 $ 102,820
Total
27: More Info

Mar. 1 Yang contributed $62,000 cash to the business in exchange for common stock.
5 Paid monthly rent on medical equipment, $570.
9 Paid $14,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $1,500.
19 Borrowed $27,000 from the bank for business use.
28 The business received a bill for advertising in the daily newspaper to be paid in April, $220.
31 Revenues earned during the month included $6,700 cash and $5,800 on account.
31 Paid employees' salaries $2,100, office rent $1,500, and utilities $350. Record as a compound entry.
31 The business received $1,000 for medical screening services to be performed next month.
28: Accounts
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising
Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense;
Utilities Expense; and Advertising Expense.
29: Requirements
96 of 124 9/18/2019, 6:36 PM

1. Journalize each transaction. Explanations are not required.

2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the
balance of each account Bal.
3. Prepare the trial balance of Victor Yang, M.D. as of March 31, 2018.
30: Journal entry
Mar. 1 Cash 62,000

Common Stock 62,000
31: Journal entry
Mar. 5 Rent Expense 570

Cash 570
32: Journal entry
Mar. 9 Land 14,000

Cash 14,000
33: Journal entry
Mar. 10 Office Supplies 1,500

34: Journal entry
Mar. 19 Cash 27,000

35: Journal entry
Mar. 22 Accounts Payable 1,400

Cash 1,400
36: Journal entry
Mar. 28 Advertising Expense 220

97 of 124 9/18/2019, 6:36 PM

37: Journal entry
Mar. 31 Cash 6,700

38: Journal entry
Mar. 31 Salaries Expense 2,100

Rent Expense 1,500
Cash 3,950
39: Journal entry
Mar. 31 Cash 1,000

40: Journal entry
Mar. 31 Dividends 7,100

Cash 7,100
41: T-accounts
98 of 124 9/18/2019, 6:36 PM

Mar. 19 27,000 14,000 Mar. 9 100 Bal. 12,500 Bal.
Mar. 31 6,700 1,400 Mar. 22
7,100 Mar. 31 220 Mar. 28 Mar. 31 2,100
Bal. 69,680 220 Bal. Bal. 2,100

Mar. 31 5,800 1,000 Mar. 31 Mar. 5 570
Mar. 31 1,500
Bal. 5,800 1,000 Bal. Bal. 2,070

Mar. 10 1,500 27,000 Mar. 19 Mar. 31 350
Bal. 1,500 27,000 Bal. Bal. 350

Mar. 9 14,000 62,000 Mar. 1 Mar. 28 220
Bal. 14,000 62,000 Bal. Bal. 220
Dividends
Mar. 31 7,100
Bal. 7,100
Mar. 31 Cash 7100 nothing

Dividends nothing 7100
99 of 124 9/18/2019, 6:36 PM

8. The trial balance as of July 31, 2018, for Sheila Sanchez, Registered Dietician, is presented below:
Requirement 1. Prepare the income statement for the month ended July 31, 2018. (If a box is not used in the statement,
leave the box empty; do not select a label or enter a zero.)
Sheila Sanchez, Registered Dietician

Income Statement
Revenues:
Service Revenue $ 15,804
Expenses:
Salaries Expense $ 1,600
Rent Expense 700
$ 13,404
Net Income
Requirement 2. Prepare the statement of retained earnings for the month ended July 31, 2018. The beginning balance of
retained earnings was $0. (Enter any increases in retained earnings prior to the subtotal and any decreases to retained
earnings below the subtotal. Enter a "0" for any zero balances.)

Retained Earnings, July 1, 2018 $ 0
Net income for the month 13,404
13,404
Dividends (3,000)
$ 10,404
Retained Earnings, July 31, 2018
Requirement 3. Prepare the balance sheet as of July 31, 2018. (If a box is not used in the statement, leave the box empty;
do not select a label or enter a zero.)
100 of 124 9/18/2019, 6:36 PM

July 31, 2018

Assets Liabilities
Accounts Receivable 9,100 Unearned Revenue 1,296
Office Supplies 1,400 Notes Payable 34,000
Prepaid Insurance 2,600 Total Liabilities 38,696

Equipment 24,000 Stockholders' Equity
Common Stock 20,000
Requirement 4. Calculate the debt ratio as of July 31, 2018.
Select the debt ratio formula on the first line and then calculate the ratio.

$ 38,696 / $ 69,100 = 56 %
42: Data Table
101 of 124 9/18/2019, 6:36 PM


Trial Balance
July 31, 2018
Balance
Cash $ 32,000
Equipment 24,000
Common Stock 20,000
Dividends 3,000
Rent Expense 700
$ 74,500 $ 74,500
Total
43: Requirements
1. Prepare the income statement for the month ended July 31, 2018.
2. Prepare the statement of retained earnings for the month ended July 31, 2018. The beginning balance of retained
earnings was $0.
3. Prepare the balance sheet as of July 31, 2018.
4. Calculate the debt ratio as of July 31, 2018.
102 of 124 9/18/2019, 6:36 PM

9. Amber and Zack decide that they will create a new corporation, Canyon Canoe Company, or CCC for short. Canyon Canoe
Company is a service based company that rents canoes for use on local lakes and rivers. The business began operations
on November 1, 2018 and completed the following transactions in that first month.
44 45
(Click the icon to view the November transactions.) (Click the icon to view the transaction analysis chart from
November.)
In addition, Canyon Canoe Company completed the following transactions for December.
46
(Click the icon to view the December transactions.)
Requirement 1. Journalize the transactions for both November and December, using the following accounts: Cash;
Accounts Receivable; Office Supplies; Prepaid Rent; Land; Building; Canoes; Accounts Payable; Utilities Payable;
Telephone Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Canoe Rental Revenue; Rent
Expense; Utilities Expense; Wages Expense; and Telephone Expense. Explanations are not required. (Hint: For November
transactions refer to the transaction analysis chart for November.) (Record debits first, then credits. Exclude explanations
from journal entries.)
Nov. 1: Received $16,000 cash to begin the company and issued common stock to Amber and Zack.
Nov. 1 Cash 16,000

Common Stock 16,000
Nov. 2: Signed a lease for a building and paid $1,200 for the first month's rent.
Nov. 2 Rent Expense 1,200

Cash 1,200
Nov. 3: Purchased canoes for $4,800 on account.
Nov. 3 Canoes 4,800

Nov. 4: Purchased office supplies on account, $750.
Nov. 4 Office Supplies 750

Nov. 7: Earned $1,400 cash for rental of canoes.
103 of 124 9/18/2019, 6:36 PM

Nov. 7 Cash 1,400

Canoe Rental Revenue 1,400
Nov. 13: Paid $1,500 cash for wages.
Nov. 13 Wages Expense 1,500

Cash 1,500
Nov. 15: Paid $50 dividends to stockholders.
Nov. 15 Dividends 50
Cash 50
Nov. 16: Received a bill for $150 for utilities. (Use separate payable account.)
Nov. 16 Utilities Expense 150

Nov. 20: Received a bill for $175 for cell phone expenses. (Use separate payable account.)
Nov. 20 Telephone Expense 175

Telephone Payable 175
Nov. 22: Rented canoes to Early Start Daycare on account, $3,000.
Nov. 22 Accounts Receivable 3,000

104 of 124 9/18/2019, 6:36 PM

Nov. 26: Paid $1,000 on account related to the November 3 purchase.
Nov. 26 Accounts Payable 1,000

Cash 1,000
Nov. 28: Received $750 from Early Start Daycare for canoe rental on November 22.
Nov. 28 Cash 750

Nov. 30: Paid $100 dividends to stockholders.
Nov. 30 Dividends 100

Cash 100
Dec. 1: Amber and Zack contributed land on the river (worth $85,000) and a small building to use as a rental office (worth
$35,000) in exchange for common stock.
Dec. 1 Land 85,000

Building 35,000
Common Stock 120,000
Dec. 1: Prepaid $3,000 for three months' rent on the warehouse where the company stores the canoes.
Dec. 1 Prepaid Rent 3,000

Cash 3,000
Dec. 2: Purchased canoes signing a notes payable for $7,200.
105 of 124 9/18/2019, 6:36 PM

Dec. 2 Canoes 7,200

Notes Payable 7,200
Dec. 4: Purchased office supplies on account for $500.
Dec. 4 Office Supplies 500

Dec. 9: Received $4,500 cash for canoe rentals to customers.
Dec. 9 Cash 4,500

Dec. 15: Rented canoes to customers for $3,500, but will be paid next month.
Dec. 15 Accounts Receivable 3,500

Dec. 16: Received a $750 deposit from a canoe rental group that will use the canoes next month.
Dec. 16 Cash 750

Unearned Revenue 750
Dec. 18: Paid the utilities and telephone bills from last month. (Prepare a single compound journal entry.)
Dec. 18 Utilities Payable 150

Cash 325
106 of 124 9/18/2019, 6:36 PM

Dec. 19: Paid various accounts payable, $2,000.
Dec. 19 Accounts Payable 2,000

Cash 2,000
Dec. 20: Received bills for the telephone ($325) and utilities ($295) which will be paid later. (Prepare a single compound journal
entry, using separate payable accounts.)
Dec. 20 Telephone Expense 325

Dec. 31: Paid wages of $1,800.
Dec. 31 Wages Expense 1,800

Cash 1,800
Dec. 31: Paid cash dividend to stockholders, $300.
Dec. 31 Dividends 300

Cash 300
Requirement 2. T-accounts have been opened for you. Post the journal entries to the T-accounts, and calculate account
balances. Use the transaction dates as posting references.
We will post to the accounts a few transactions at a time. Begin by posting the events from November 1, 2, and 3. (We will post
to the accounts a few transactions at a time. Post only the transactions from November 1, 2, 3 in this step.)
(Click to view the November 1, 2, and 3 journal entries that you prepared in Requirement 1.)
107 of 124 9/18/2019, 6:36 PM

Cash Accounts Payable Canoe Rental Revenue

Nov. 1 16,000 1,200 Nov. 2 4,800 Nov. 3
Accounts Receivable Utilities Payable Rent Expense

Nov. 2 1,200
Office Supplies Telephone Payable Wages Expense
Prepaid Rent Unearned Revenue Utilities Expense
Canoes Notes Payable Telephone Expense

Nov. 3 4,800
Land Common Stock

16,000 Nov. 1
Building Dividends
Next, post the events from November 4, 7, and 13 to the T-accounts below. (Post only the transactions from November 4, 7, and
13 in this step.)
108 of 124 9/18/2019, 6:36 PM


Nov. 1 16,000 1,200 Nov. 2 4,800 Nov. 3 1,400 Nov. 7
Nov. 7 1,400 1,500 Nov. 13 750 Nov. 4

Nov. 2 1,200

Nov. 4 750 Nov. 13 1,500

Nov. 3 4,800
Land Common Stock

16,000 Nov. 1
Building Dividends
Post the transactions that took place on November 15, 16 and 20. (Post only the transactions from November 15, 16, and 20 in
this step.)
109 of 124 9/18/2019, 6:36 PM


Nov. 1 16,000 1,200 Nov. 2 4,800 Nov. 3 1,400 Nov. 7
Nov. 7 1,400 1,500 Nov. 13 750 Nov. 4
50 Nov. 15

150 Nov. 16 Nov. 2 1,200

Nov. 4 750 175 Nov. 20 Nov. 13 1,500

Nov. 16 150

Nov. 3 4,800 Nov. 20 175
Land Common Stock

16,000 Nov. 1
Building Dividends
Nov. 15 50
Now post the events from November 22, 26 and 28. (Post only the transactions from November 22, 26, and 28 in this step.)
(Click to view the November 22, 26 and 28 journal entries that you prepared in Requirement 1.)
110 of 124 9/18/2019, 6:36 PM


Nov. 1 16,000 1,200 Nov. 2 Nov. 26 1,000 4,800 Nov. 3 1,400 Nov. 7
Nov. 7 1,400 1,500 Nov. 13 750 Nov. 4 3,000 Nov. 22
Nov. 28 750 50 Nov. 15
1,000 Nov. 26

Nov. 22 3,000 750 Nov. 28 150 Nov. 16 Nov. 2 1,200

Nov. 4 750 175 Nov. 20 Nov. 13 1,500

Nov. 16 150

Nov. 3 4,800 Nov. 20 175
Land Common Stock

16,000 Nov. 1
Building Dividends
Nov. 15 50
Post the events from November 30 and the two transactions from December 1. (Post only the transactions from November 30
and December 1 in this step.)
(Click to view the November 30 and December 1 journal entries that you prepared in Requirement 1.)
111 of 124 9/18/2019, 6:36 PM


Nov. 7 1,400 1,500 Nov. 13 750 Nov. 4 3,000 Nov. 22
Nov. 28 750 50 Nov. 15
1,000 Nov. 26
100 Nov. 30
3,000 Dec. 1

Nov. 22 3,000 750 Nov. 28 150 Nov. 16 Nov. 2 1,200

Nov. 4 750 175 Nov. 20 Nov. 13 1,500

Dec. 1 3,000 Nov. 16 150

Nov. 3 4,800 Nov. 20 175
Land Common Stock

Dec. 1 85,000 16,000 Nov. 1
120,000 Dec. 1
Building Dividends
Dec. 1 35,000 Nov. 15 50
Nov. 30 100
Post the transactions from December 2, 4, and 9. (Post only the transactions from December 2, 4, and 9 in this step.)
(Click to view the December 2, 4, and 9 journal entries that you prepared in Requirement 1.)
112 of 124 9/18/2019, 6:36 PM


Nov. 7 1,400 1,500 Nov. 13 750 Nov. 4 3,000 Nov. 22
Nov. 28 750 50 Nov. 15 500 Dec. 4 4,500 Dec. 9
Dec. 9 4,500 1,000 Nov. 26
100 Nov. 30
3,000 Dec. 1

Nov. 22 3,000 750 Nov. 28 150 Nov. 16 Nov. 2 1,200

Nov. 4 750 175 Nov. 20 Nov. 13 1,500
Dec. 4 500

Dec. 1 3,000 Nov. 16 150

Nov. 3 4,800 7,200 Dec. 2 Nov. 20 175
Dec. 2 7,200
Land Common Stock

Dec. 1 85,000 16,000 Nov. 1
120,000 Dec. 1
Building Dividends
Dec. 1 35,000 Nov. 15 50
Nov. 30 100
Post the transactions from December 15, 16, and 18. (Post only the transactions from December 15, 16, and 18 in this step.)
113 of 124 9/18/2019, 6:36 PM


Nov. 7 1,400 1,500 Nov. 13 750 Nov. 4 3,000 Nov. 22
Nov. 28 750 50 Nov. 15 500 Dec. 4 4,500 Dec. 9
Dec. 9 4,500 1,000 Nov. 26 3,500 Dec. 15
Dec. 16 750 100 Nov. 30
3,000 Dec. 1
325 Dec. 18

Nov. 22 3,000 750 Nov. 28 Dec. 18 150 150 Nov. 16 Nov. 2 1,200
Dec. 15 3,500

Nov. 4 750 Dec. 18 175 175 Nov. 20 Nov. 13 1,500
Dec. 4 500

Dec. 1 3,000 750 Dec. 16 Nov. 16 150

Nov. 3 4,800 7,200 Dec. 2 Nov. 20 175
Dec. 2 7,200
Land Common Stock

Dec. 1 85,000 16,000 Nov. 1
120,000 Dec. 1
Building Dividends
Dec. 1 35,000 Nov. 15 50
Nov. 30 100
Post the transactions from December 19, 20, and the two transactions from December 31. (For transactions that occurred on
the same date that affect the same account, post to that account in the same order as you prepared the entries in Requirement
1. Post only the transactions from December 19, 20, and the two transactions from December 31 in this step.)
114 of 124 9/18/2019, 6:36 PM


Nov. 7 1,400 1,500 Nov. 13 Dec. 19 2,000 750 Nov. 4 3,000 Nov. 22
Nov. 28 750 50 Nov. 15 500 Dec. 4 4,500 Dec. 9
Dec. 9 4,500 1,000 Nov. 26 3,500 Dec. 15
Dec. 16 750 100 Nov. 30
3,000 Dec. 1
325 Dec. 18
2,000 Dec. 19
1,800 Dec. 31
300 Dec. 31

Dec. 15 3,500 295 Dec. 20

Nov. 4 750 Dec. 18 175 175 Nov. 20 Nov. 13 1,500
Dec. 4 500 325 Dec. 20 Dec. 31 1,800

Dec. 1 3,000 750 Dec. 16 Nov. 16 150
Dec. 20 295

Nov. 3 4,800 7,200 Dec. 2 Nov. 20 175
Dec. 2 7,200 Dec. 20 325
Land Common Stock

Dec. 1 85,000 16,000 Nov. 1
120,000 Dec. 1
Building Dividends
Dec. 1 35,000 Nov. 15 50
Nov. 30 100
Dec. 31 300
of the accounts.
115 of 124 9/18/2019, 6:36 PM


Nov. 7 1,400 1,500 Nov. 13 Dec. 19 2,000 750 Nov. 4 3,000 Nov. 22
Nov. 28 750 50 Nov. 15 500 Dec. 4 4,500 Dec. 9
Dec. 9 4,500 1,000 Nov. 26 3,050 Bal. 3,500 Dec. 15
Dec. 16 750 100 Nov. 30 12,400 Bal.
3,000 Dec. 1
325 Dec. 18
2,000 Dec. 19
1,800 Dec. 31
300 Dec. 31
Bal. 12,125
Dec. 15 3,500 295 Dec. 20 Bal. 1,200
Bal. 5,750 295 Bal.

Nov. 4 750 Dec. 18 175 175 Nov. 20 Nov. 13 1,500
Dec. 4 500 325 Dec. 20 Dec. 31 1,800
Bal. 1,250 325 Bal. Bal. 3,300

Dec. 1 3,000 750 Dec. 16 Nov. 16 150
Bal. 3,000 750 Bal. Dec. 20 295
Bal. 445
Nov. 3 4,800 7,200 Dec. 2 Nov. 20 175

Dec. 2 7,200 7,200 Bal. Dec. 20 325
Bal. 12,000 Bal. 500
Land Common Stock

Dec. 1 85,000 16,000 Nov. 1
Bal. 85,000 120,000 Dec. 1
136,000 Bal.
Building Dividends
116 of 124 9/18/2019, 6:36 PM

Requirement 3. Prepare a trial balance as of December 31, 2018.

(Click to view the T-accounts that you prepared in Requirement 2.)
Canyon Canoe Company

Trial Balance
December 31, 2018
Balance
Cash $ 12,125
Prepaid Rent 3,000
Canoes 12,000
Land 85,000
Building 35,000
Unearned Revenue 750
Notes Payable 7,200
Dividends 450
Rent Expense 1,200
Wages Expense 3,300
Telephone Expense 500
$ 160,020 $ 160,020
Total
Requirement 4. Prepare the income statement of Canyon Canoe Company for the two months ended December 31, 2018. (If a
box is not used in the statement leave the box empty; do not select a label or enter a zero.)
(Click to view the trial balance you prepared in Requirement 3.)
117 of 124 9/18/2019, 6:36 PM


Income Statement
Two Months Ended December 31, 2018
Revenues:
Canoe Rental Revenue $ 12,400
Expenses:
Rent Expense $ 1,200
Wages Expense 3,300
Telephone Expense 500
$ 6,955
Net Income
Requirement 5. Prepare the statement of retained earnings for the two months ended December 31, 2018.
Enter any increases in retained earnings prior to the subtotal and any decreases to retained earnings below the subtotal. (Enter
a "0" for any zero balances.)

Two Months Ended December 31, 2018
Retained Earnings, November 1, 2018 $ 0
Net income for the period 6,955
6,955
Dividends (450)
$ 6,505
Retained Earnings, December 31, 2018
Requirement 6. Prepare the balance sheet as of December 31, 2018. (If a box is not used in the statement leave the box
empty; do not select a label or enter a zero.)
118 of 124 9/18/2019, 6:36 PM


Balance Sheet
December 31, 2018
Assets Liabilities
Accounts Receivable 5,750 Utilities Payable 295
Office Supplies 1,250 Telephone Payable 325
Prepaid Rent 3,000 Unearned Revenue 750
Land 85,000 Notes Payable 7,200
Building 35,000 Total Liabilities 11,620

Canoes 12,000 Stockholders' Equity
Requirement 7. Calculate the debt ratio for Canyon Canoe Company at December 31, 2018. (Round the debt ratio to the
nearest tenth percent, X.X%.)

$ 11,620 / $ 154,125 = 7.5 %
44: More Info

Nov. 1 Received $16,000 cash to begin the company and issued common stock to Amber and Zack.
2 Signed a lease for a building and paid $1,200 for the first month's rent.
3 Purchased canoes for $4,800 on account.
4 Purchased office supplies on account, $750.
7 Earned $1,400 cash for rental of canoes.
13 Paid $1,500 cash for wages.
15 Paid $50 dividends to stockholders.
16 Received a bill for $150 for utilities. (Use separate payable account.)
20 Received a bill for $175 for cell phone expenses. (Use separate payable account.)
22 Rented canoes to Early Start Daycare on account, $3,000.
26 Paid $1,000 on account related to the November 3 purchase.
28 Received $750 from Early Start Daycare for canoe rental on November 22.
30 Paid $100 dividends to stockholders.
45: Reference
119 of 124 9/18/2019, 6:36 PM

Assets = Liabilities + Equity

Cash + A/R + Off. + Canoes = A/P + Util. + Tele. + CS - Div + Rent - Rent - Util. - Wage - Tele.
Sup. Pay. Pay. Rev. Exp. Exp. Exp. Exp.
1 16,000 + + + = + + + 16,000 - + - - - -
2 (1,200) + + + = + + + - + - 1,200 - - -
Bal. 14,800 + 0+ 0+ 0= 0+ 0+ 0 + 16,000 - 0+ 0 - 1,200 - 0- 0- 0
3 + + + 4,800 = 4,800 + + + - + - - - -
Bal. 14,800 + 0+ 0+ 4,800 = 4,800 + 0+ 0 + 16,000 - 0+ 0 - 1,200 - 0- 0- 0
4 + + 750 + = 750 + + + - + - - - -
Bal. 14,800 + 0+ 750 + 4,800 = 5,550 + 0+ 0 + 16,000 - 0+ 0 - 1,200 - 0- 0- 0
7 1,400 + + + = + + + - + 1,400 - - - -
Bal. 16,200 + 0+ 750 + 4,800 = 5,550 + 0+ 0 + 16,000 - 0 + 1,400 - 1,200 - 0- 0- 0
13 (1,500) + + + = + + + - + - - - 1,500 -
Bal. 14,700 + 0+ 750 + 4,800 = 5,550 + 0+ 0 + 16,000 - 0 + 1,400 - 1,200 - 0 - 1,500 - 0
15 (50) + + + = + + + - 50 + - - - -
Bal. 14,650 + 0+ 750 + 4,800 = 5,550 + 0+ 0 + 16,000 - 50 + 1,400 - 1,200 - 0 - 1,500 - 0
16 + + + = + 150 + + - + - - 150 - -
Bal. 14,650 + 0+ 750 + 4,800 = 5,550 + 150 + 0 + 16,000 - 50 + 1,400 - 1,200 - 150 - 1,500 - 0
20 + + + = + + 175 + - + - - - - 175
Bal. 14,650 + 0+ 750 + 4,800 = 5,550 + 150 + 175 + 16,000 - 50 + 1,400 - 1,200 - 150 - 1,500 - 175
22 + 3,000 + + = + + + - + 3,000 - - - -
Bal. 14,650 + 3,000 + 750 + 4,800 = 5,550 + 150 + 175 + 16,000 - 50 + 4,400 - 1,200 - 150 - 1,500 - 175
26 (1,000) + + + = (1,000) + + + - + - - - -
Bal. 13,650 + 3,000 + 750 + 4,800 = 4,550 + 150 + 175 + 16,000 - 50 + 4,400 - 1,200 - 150 - 1,500 - 175
28 750 + (750) + + = + + + - + - - - -
Bal. 14,400 + 2,250 + 750 + 4,800 = 4,550 + 150 + 175 + 16,000 - 50 + 4,400 - 1,200 - 150 - 1,500 - 175
30 (100) + + + = + + + - 100 + - - - -
14,300 2,250 750 4,800 4,550 150 175 16,000 150 4,400 1,200 150 1,500 175
Bal. + + + = + + + - + - - - -
$ 22,100 = $ 22,100
46: More Info
120 of 124 9/18/2019, 6:36 PM

Dec. 1 Amber and Zack contributed land on the river (worth $85,000) and a small building to use as a rental office
(worth $35,000) in exchange for common stock.
1 Prepaid $3,000 for three months' rent on the warehouse where the company stores the canoes.
2 Purchased canoes signing a notes payable for $7,200.
4 Purchased office supplies on account for $500.
9 Received $4,500 cash for canoe rentals to customers.
15 Rented canoes to customers for $3,500, but will be paid next month.
16 Received a $750 deposit from a canoe rental group that will use the canoes next month.
18 Paid the utilities and telephone bills from last month.
19 Paid various accounts payable, $2,000.
20 Received bills for the telephone ($325) and utilities ($295) which will be paid later.
31 Paid wages of $1,800.
31 Paid cash dividend to stockholders, $300.
47: Requirements
1. Journalize the transactions for both November and December, using the following accounts: Cash; Accounts Receivable;
Office Supplies; Prepaid Rent; Land; Building; Canoes; Accounts Payable; Utilities Payable; Telephone Payable;
Unearned Revenue; Notes Payable; Common Stock; Dividends; Canoe Rental Revenue; Rent Expense; Utilities
Expense; Wages Expense; and Telephone Expense. Explanations are not required. (Hint: For November transactions
refer to the transaction analysis chart for November.)
2. T-accounts have been opened for you. Post the journal entries to the T-accounts, and calculate account balances. Use
the transaction dates as posting references.
3. Prepare a trial balance as of December 31, 2018.
4. Prepare the income statement of Canyon Canoe Company for the two months ended December 31, 2018.
5. Prepare the statement of retained earnings for the two months ended December 31, 2018.
6. Prepare the balance sheet as of December 31, 2018.
7. Calculate the debt ratio for Canyon Canoe Company at December 31, 2018.
121 of 124 9/18/2019, 6:36 PM

Nov. 16 Utilities Payable 150 nothing

Dec. 4 Accounts Payable 500 nothing

Office Supplies nothing 500
Dec. 18 Utilities Payable 150 nothing

Telephone Payable 175 nothing
Telephone Expense nothing 175

Nov. 1 16000 1200 Nov. 2 nothing nothing 4800 Nov. 3 Nov. 3 4800 nothing nothing

nothing nothing nothing nothing nothing nothing nothing nothing Nov. 2 1200 nothing nothing



Land Common Stock

nothing nothing nothing nothing nothing nothing 16000 Nov. 1
Building Dividends
nothing nothing nothing nothing nothing nothing nothing nothing
122 of 124 9/18/2019, 6:36 PM


Nov. 1 16,000 1,200 Nov. 2 Nov. 26 1,000 4,800 Nov. 3 nothing nothing 1,400 Nov. 7
Nov. 7 1,400 1,500 Nov. 13 Dec. 15 3500 750 Nov. 4 nothing nothing 3,000 Nov. 22
Nov. 28 750 50 Nov. 15 nothing nothing 500 Dec. 4 nothing nothing 4,500 Dec. 9
Dec. 9 4,500 1,000 Nov. 26 nothing nothing 3500 Dec. 15
Dec. 16 750 100 Nov. 30
nothing nothing 3,000 Dec. 1
nothing nothing 325 Dec. 18

Nov. 22 3,000 750 Nov. 28 Dec. 18 150 150 Nov. 16 Nov. 2 1,200 nothing nothing
Dec. 15 3500 nothing nothing nothing nothing nothing nothing

Nov. 4 750 nothing nothing Dec. 18 175 175 Nov. 20 Nov. 13 1,500 nothing nothing
Dec. 4 500 nothing nothing nothing nothing nothing nothing nothing nothing nothing nothing

Dec. 1 3,000 nothing nothing nothing nothing 750 Dec. 16 Nov. 16 150 nothing nothing

Nov. 3 4,800 nothing nothing nothing nothing 7,200 Dec. 2 Nov. 20 175 nothing nothing
Dec. 2 7,200 nothing nothing nothing nothing nothing nothing
Land Common Stock

Dec. 1 85,000 nothing nothing nothing nothing 16,000 Nov. 1
nothing nothing 120,000 Dec. 1
Building Dividends
Dec. 1 35,000 nothing nothing Nov. 15 50 nothing nothing
Nov. 30 100 nothing nothing
123 of 124 9/18/2019, 6:36 PM


Balance Sheet
December 31, 2018
Assets Liabilities
Cash 12125 Accounts Payable 3050
Accounts Receivable 5750 Utilities Payable 295
Office Supplies 1250 Telephone Payable 325
Prepaid Rent 3000 Unearned Revenue 750
Land 85000 Notes Payable 7200
Building 35000 Total Liabilities 8275

Canoes 12000 Stockholders' Equity
nothing nothing Common Stock 136000
nothing nothing Retained Earnings 6505
nothing nothing Total Stockholders' Equity 142505
136250 150780
Total Assets Total Liabilities and Stockholders' Equity
124 of 124 9/18/2019, 6:36 PM

ch.2 HW PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ch.2 HW PDF

Uploaded by

Copyright:

Available Formats

Chapter 2 Homework Problems-Kevin Robert https://xlitemprod.pearsoncmg.

Instructor: Stacey Vera

Read the requirements3.

Date Accounts Debit Credit

Jul. 1 Cash 63,000

July 5: Paid monthly rent on medical equipment, $510.

Date Accounts Debit Credit

Jul. 5 Rent Expense 510

July 9: Paid $23,000 cash to purchase land to be used in operations.

Date Accounts Debit Credit

Jul. 9 Land 23,000

July 10: Purchased office supplies on account, $1,600.

Date Accounts Debit Credit

Jul. 10 Office Supplies 1,600

1 of 124 9/18/2019, 6:36 PM

Date Accounts Debit Credit

Jul. 19 Cash 22,000

July 22: Paid $1,100 on account.

Date Accounts Debit Credit

Jul. 22 Accounts Payable 1,100

Date Accounts Debit Credit

Jul. 28 Advertising Expense 240

Date Accounts Debit Credit

Jul. 31 Accounts Receivable 6,000

Date Accounts Debit Credit

Jul. 31 Salaries Expense 2,200

Date Accounts Debit Credit

Jul. 31 Cash 1,120

2 of 124 9/18/2019, 6:36 PM

July 31: Paid cash dividends of $7,200.

Date Accounts Debit Credit

Jul. 31 Dividends 7,200

Cash Accounts Payable Service Revenue

Advertising Payable Salaries Expense

Accounts Receivable Unearned Revenue Rent Expense

Office Supplies Notes Payable Utilities Expense

Land Common Stock Advertising Expense

3 of 124 9/18/2019, 6:36 PM

Cash Accounts Payable Service Revenue

Advertising Payable Salaries Expense

Accounts Receivable Unearned Revenue Rent Expense

Office Supplies Notes Payable Utilities Expense

Land Common Stock Advertising Expense

4 of 124 9/18/2019, 6:36 PM

Cash Accounts Payable Service Revenue

Advertising Payable Salaries Expense

Accounts Receivable Unearned Revenue Rent Expense

Office Supplies Notes Payable Utilities Expense

Land Common Stock Advertising Expense

5 of 124 9/18/2019, 6:36 PM

Cash Accounts Payable Service Revenue

Advertising Payable Salaries Expense

Accounts Receivable Unearned Revenue Rent Expense

Office Supplies Notes Payable Utilities Expense

Land Common Stock Advertising Expense

6 of 124 9/18/2019, 6:36 PM

Cash Accounts Payable Service Revenue

Advertising Payable Salaries Expense

Accounts Receivable Unearned Revenue Rent Expense

Office Supplies Notes Payable Utilities Expense

Land Common Stock Advertising Expense

7 of 124 9/18/2019, 6:36 PM