Accounting HW Chapter 2

advertisement

Chapter 2

Day 1:

Page 83 – E2-3

The information below is for Gardiner Real Estate Agency:

Oct. 1 Lynn Gardiner begins business as a real estate agent with a cash investment of $15,000.

2 Hires an administrative assistant at a salary of $960 per month.

3 Buys office furniture for $1,900, on account.

6 Sells a house and lot to B. Rollins. Fees due from Rollins, $3,200 (not piad by Rollins at this time).

10 Receives cash of $140 as fee for renting an apartment.

27 Pays $700 on the balance indicated in the transaction of October 3.

30 Pays the administrative assistant $960 in salary for October.

Instructions

Prepare the debit/credit analysis for each transaction, as illustrated in the chapter.

Page 85 – P2-1A

Yee Company has the following accounts:

Account

(1)

Type of account

(2)

Financial

Statement

(3)

Normal

Balance

(4)

Increase

(5)

Decrease

1. Cash

2. Accounts

Receivables

3. Drawings

4. Interest

Expense

5. Land

6. Office

Supplies

7. Salary

Expense

8. Service

Revenue

Instructions

Complete the table by identifying the (1) type of account (e.g., asset liability, owner’s equity, revenue, expense), (2) what financial statement it is presented on, (3) the normal balance of the account, (4) whether the account is increased by a debit or credit, and (5) whether the account is decreased by a debit or credit, The first one is done for you as an example.

Day 2:

Page 83 – E2-6

Selected transactions for the Basler Company during its first month in business are presented below:

Sept 1 Invested $12,000 cash in the business.

5 Purchased equipment for $10,000, paying $4,000 in cash and the balance on account

25 Paid $3,000 cash on the balance owed for equipment

30 Withdrew $500 cash for personal use.

Basler’s chart of accounts show the following: Cash No. 101, Equipment No. 157, Accounts

Payable No. 201, Shirley Basler, Capital, No. 301, an Shirley Basler, Drawings, No. 306.

Instructions a) b)

Journalize the transactions

Post the transactions to the accounts in the ledger

Page 84 – E2-8

Selected transactions from the journal of L. Meche, investment broker, are presented below:

Date Account Titles and Explanation Ref. Debit Credit

2003

Aug. 1 Cash

10 Cash

L. Meche, Capital

Service Revenue

12 Office Equipment

Cash

Notes Payable

25 Accounts Receivable

Service Revenue

31 Cash

Accounts Receivable

1,400

900

2,600

2,400

4,000

2,600

2,400

1,000

3,000

1,400

900

Instructions

a) Post the transactions to T accounts b) Prepare a trial balance at August 31, 2003.

Page 86 – P2-3A

Maria Rojas is a licensed architect. During the first month of operation of her business, the following events and transactions occurred:

Apr. 1 Invested $15,000 cash.

1Hired a secretary-receptionist at a salary of #1,200 monthly

2 Paid office rent for the month, $800.

3 Purchased architectural supplies on account from Halo Company, $1,500.

10 Completed blueprints on a carport and billed client $900 for services.

11 Received $500 cash advanced rom R. Welk for the design of a new home.

20 Received $1,500 cash for services completed and delivered to P. Donahue.

30 Paid Secretary-receptionist for the month, $1,200

30 Paid $600to Halo Company on account

Maria uses the following chart of accounts:

Cash, No 101

Accounts Receivable, No. 112

Supplies No 126

Accounts Payable No. 201

Unearned Revenue No 209

Maria Rojas, Capital, No. 301

Service Revenue No. 400

Salaries Expense 726

Rent Expense 72

Instructions a) b) c)

Journalize the transactions

Post to the ledger accounts

Prepare a trial balance as of April 30, 2003.

Download