CHAPTER 2
The Recording Process
ASSIGNMENT CLASSIFICATION TABLE
Do It!
A
Exercises Problems
2
1
1, 2, 5
4
2, 4, 6,
7, 14
10, 19
4
6
6, 7
Explain what a journal is
and how it helps in the
recording process.
11, 12, 13,
14, 16
3, 6
7
3, 5, 6, 7
10, 11, 12
5.
Explain what a ledger is
and how it helps in the
recording process.
17
6.
Explain what posting is
and how it helps in the
recording process.
15, 17
7, 8
7.
Prepare a trial balance
and explain its purposes.
18, 20
9, 10
Study Objectives
Questions
1.
Explain what an account
is and how it helps in the
recording process.
1
2.
Define debits and credits
and explain their use in
recording business
transactions.
2, 3, 4, 5,
6, 7, 8, 9,
14, 21
3.
Identify the basic steps in
the recording process.
4.
Copyright © 2009 John Wiley & Sons, Inc.
Brief
Exercises
B
Problems
1A, 2A,
3A, 5A
1B, 2B,
3B, 5B
1A, 2A,
3A, 5A
1B, 2B,
3B, 5B
9, 12
2A, 3A, 5A
2B, 3B, 5B
9, 10, 11,
13, 14
2A, 3A,
4A, 5A
2B, 3B,
4B, 5B
8
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-1
ASSIGNMENT CHARACTERISTICS TABLE
Problem
Number
2-2
Description
Difficulty
Level
Time Allotted
(min.)
1A
Journalize a series of transactions.
Simple
20–30
2A
Journalize transactions, post, and prepare a trial balance.
Simple
30–40
3A
Journalize and post transactions, and prepare a trial balance.
Moderate
40–50
4A
Prepare a correct trial balance.
Moderate
30–40
5A
Journalize transactions, post, and prepare a trial balance.
Moderate
40–50
1B
Journalize a series of transactions.
Simple
20–30
2B
Journalize transactions, post, and prepare a trial balance.
Simple
30–40
3B
Journalize transactions, post, and prepare a trial balance.
Moderate
40–50
4B
Prepare a correct trial balance.
Moderate
30–40
5B
Journalize transactions, post, and prepare a trial balance.
Moderate
40–50
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
WEYGANDT ACCOUNTING PRINCIPLES 9E
CHAPTER 2
THE RECORDING PROCESS
Number
SO
BT
Difficulty
Time (min.)
BE1
2
C
Simple
6–8
BE2
2
C
Simple
4–6
BE3
4
AP
Simple
4–6
BE4
3
C
Moderate
4–6
BE5
2
C
Simple
6–8
BE6
4
AP
Simple
4–6
BE7
6
AP
Simple
4–6
BE8
6
AP
Simple
4–6
BE9
7
AP
Simple
4–6
BE10
7
AN
Moderate
6–8
DI1
2
C
Simple
3–5
DI2
4
AP
Simple
3–5
DI3
6
AP
Simple
2–4
DI4
7
AP
Simple
6–8
EX1
1
K
Simple
2–4
EX2
2
C
Simple
10–15
EX3
4
AP
Simple
8–10
EX4
2
C
Simple
6–8
EX5
4
AP
Simple
6–8
EX6
2–4
AP
Simple
6–8
EX7
2–4
AP
Simple
8–10
EX8
5
K
Simple
2–4
EX9
6, 7
AP
Simple
10–12
EX10
4, 7
AP
Moderate
10–12
EX11
4, 7
AP
Moderate
12–15
EX12
4, 6
AP
Moderate
12–15
EX13
7
AN
Moderate
6–8
EX14
2, 7
AP
Simple
8–10
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Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-3
THE RECORDING PROCESS (Continued)
Number
SO
BT
Difficulty
Time (min.)
P1A
2, 4
AP
Simple
20–30
P2A
2, 4, 6, 7
AP
Simple
30–40
P3A
2, 4, 6, 7
AP
Moderate
40–50
P4A
7
AN
Moderate
30–40
P5A
2, 4, 6, 7
AP
Moderate
40–50
P1B
2, 4
AP
Simple
20–30
P2B
2, 4, 6, 7
AP
Simple
30–40
P3B
2, 4, 6, 7
AP
Moderate
40–50
P4B
7
AN
Moderate
30–40
P5B
2, 4, 6, 7
AP
Moderate
40–50
BYP1
2
C
Simple
8–10
BYP2
2, 6
AN
Simple
8–10
BYP3
—
AP
Simple
15–20
BYP4
6, 7
AP, S
Moderate
20–30
BYP5
3, 6
S
Simple
10–15
BYP6
7
AN, E
Moderate
10–15
BYP7
—
E
Moderate
15–20
2-4
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Explain what a ledger is and
how it helps in the recording
process.
Explain what posting is and
how it helps in the recording
process.
5.
6.
Broadening Your Perspective
Prepare a trial balance and
explain its purposes.
Explain what a journal is and
how it helps in the recording
process.
4.
7.
Identify the basic steps in
the recording process.
Q2-11
Q2-13
Q2-14
Q2-17
Q2-12
E2-8
Q2-7
Q2-8
Q2-9
Q2-14
BE2-1
BE2-9
DI2-4
E2-9
E2-10
BE2-7
BE2-8
DI2-3
E2-9
Q2-16
BE2-3
BE2-6
DI2-2
E2-3
E2-5
E2-6
E2-6
E2-7
BE2-2 E2-6
BE2-5 E2-7
DI2-1 E2-14
E2-2 P2-1A
E2-4 P2-2A
P2-5A
P2-1B
P2-2B
P2-3B
P2-5B
E2-11
E2-14
P2-2A
P2-3A
P2-5A
P2-2B
P2-3B
P2-5B
E2-12 P2-2B
P2-2A P2-3B
P2-3A P2-5B
P2-5A
E2-7
E2-10
E2-11
E2-12
P2-1A
P2-2A
P2-3A
P2-3A P2-5B
P2-5A
P2-1B
P2-2B
P2-3B
Application
Financial Reporting Decision Making
Across the
Organization
Exploring the Web
Q2-18
Q2-15
Q2-17
Q2-19
BE2-4
Q2-2
Q2-3
Q2-4
Q2-5
Q2-6
Comprehension
Q2-10
Define debits and credits and Q2–21
explain their use in recording
business transactions.
2.
3.
Explain what an account
is and how it helps in the
recording process.
Q2-1
E2-1
Knowledge
1.
Study Objective
P2-4B
Synthesis
Evaluation
Comparative Analysis Communication All About You
Decision Making Ethics Case
Across the
Organization
Q2-20
BE2-10
E2-13
P2-4A
Analysis
Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems
BLOOM’S TAXONOMY TABLE
(For Instructor Use Only)
2-5
ANSWERS TO QUESTIONS
1.
A T account has the following parts: (a) the title, (b) the left or debit side, and (c) the right or credit side.
2.
Disagree. The terms debit and credit mean left and right respectively.
3.
Jeff is incorrect. The double-entry system merely records the dual effect of a transaction on the
accounting equation. A transaction is not recorded twice; it is recorded once, with a dual effect.
4.
Maria is incorrect. A debit balance only means that debit amounts exceed credit amounts in an
account. Conversely, a credit balance only means that credit amounts are greater than debit
amounts in an account. Thus, a debit or credit balance is neither favorable nor unfavorable.
5.
(a)
(b)
(c)
Asset accounts are increased by debits and decreased by credits.
Liability accounts are decreased by debits and increased by credits.
Revenues and owner’s capital are increased by credits and decreased by debits. Expenses
and owner’s drawing are increased by debits and decreased by credits.
6.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Accounts Receivable—debit balance.
Cash—debit balance.
Owner’s Drawing—debit balance.
Accounts Payable—credit balance.
Service Revenue—credit balance.
Salaries Expense—debit balance.
Owner’s Capital—credit balance.
7.
(a)
(b)
(c)
(d)
(e)
Accounts Receivable—asset—debit balance.
Accounts Payable—liability—credit balance
Equipment—asset—debit balance.
Owner’s Drawing—owner’s equity—debit balance.
Supplies—asset—debit balance.
8.
(a)
(b)
(c)
Debit Supplies and credit Accounts Payable.
Debit Cash and credit Notes Payable.
Debit Salaries Expense and credit Cash.
9.
(1)
(2)
(3)
(4)
(5)
(6)
Cash—both debit and credit entries.
Accounts Receivable—both debit and credit entries.
Owner’s Drawing—debit entries only.
Accounts Payable—both debit and credit entries.
Salaries Expense—debit entries only.
Service Revenue—credit entries only.
10.
2-6
The basic steps in the recording process are:
(1) Analyze each transaction for its effect on the accounts.
(2) Enter the transaction information in a journal.
(3) Transfer the journal information to the appropriate accounts in the ledger.
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
Questions Chapter 2 (Continued)
11.
The advantages of using the journal in the recording process are:
(1) It discloses in one place the complete effects of a transaction.
(2) It provides a chronological record of all transactions.
(3) It helps to prevent or locate errors because the debit and credit amounts for each entry can
be easily compared.
12.
(a)
(b)
13.
When three or more accounts are required in one journal entry, the entry is referred to as a
compound entry. An example of a compound entry is the purchase of equipment, part of which is
paid for with cash and the remainder is on account.
14.
(a)
(b)
15.
The advantage of the last step in the posting process is to indicate that the item has been posted.
16.
(a)
(b)
(c)
(d)
17.
The debit should be entered first.
The credit should be indented.
No, debits and credits should not be recorded directly in the ledger.
The advantages of using the journal are:
1. It discloses in one place the complete effects of a transaction.
2. It provides a chronological record of all transactions.
3. It helps to prevent or locate errors because the debit and credit amounts for each entry
can be easily compared.
Cash .............................................................................................................
Hector Molina, Capital ....................................................................
(Invested cash in the business)
9,000
Prepaid Insurance .....................................................................................
Cash...................................................................................................
(Paid one-year insurance policy)
800
Supplies.......................................................................................................
Accounts Payable............................................................................
(Purchased supplies on account)
2,000
Cash .............................................................................................................
Service Revenue .............................................................................
(Received cash for services rendered)
7,500
9,000
800
2,000
7,500
(a) The entire group of accounts maintained by a company, including all the asset, liability, and
owner’s equity accounts, is referred to collectively as the ledger.
(b) A chart of accounts is a list of accounts and the account numbers that identify their location in
the ledger. The chart of accounts is important, particularly for a company that has a large number
of accounts, because it helps organize the accounts and define the level of detail that a
company desires in its accounting system.
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-7
Questions Chapter 2 (Continued)
18.
A trial balance is a list of accounts and their balances at a given time. The primary purpose of a
trial balance is to prove (check) that the debits equal the credits after posting. A trial balance also
facilitates the discovery of errors in journalizing and posting. In addition, it is useful in preparing
financial statements.
19.
No, Jim is not correct. The proper sequence is as follows:
(b) Business transaction occurs.
(c) Information entered in the journal.
(a) Debits and credits posted to the ledger.
(e) Trial balance is prepared.
(d) Financial statements are prepared.
20.
(a)
(b)
21.
The normal balances are Cash debit, Accounts Payable credit, and Interest Expense debit.
2-8
The trial balance would balance.
The trial balance would not balance.
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 2-1
1.
2.
3.
4.
5.
6.
Accounts Payable
Advertising Expense
Service Revenue
Accounts Receivable
A. J. Ritter, Capital
A. J. Ritter, Drawing
(a)
Debit
Effect
Decrease
Increase
Decrease
Increase
Decrease
Increase
(b)
Credit
Effect
Increase
Decrease
Increase
Decrease
Increase
Decrease
(c)
Normal
Balance
Credit
Debit
Credit
Debit
Credit
Debit
BRIEF EXERCISE 2-2
June 1
2
3
12
Account Debited
Cash
Equipment
Rent Expense
Accounts Receivable
Account Credited
Hank Norris, Capital
Accounts Payable
Cash
Service Revenue
BRIEF EXERCISE 2-3
June 1
2
3
12
Cash..................................................................................
Hank Norris, Capital ...........................................
5,000
Equipment ......................................................................
Accounts Payable ...............................................
900
Rent Expense.................................................................
Cash.........................................................................
800
Accounts Receivable ..................................................
Service Revenue..................................................
300
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Weygandt, Accounting Principles, 9/e, Solutions Manual
5,000
900
800
(For Instructor Use Only)
300
2-9
BRIEF EXERCISE 2-4
The basic steps in the recording process are:
1.
Analyze each transaction. In this step, business documents are examined
to determine the effects of the transaction on the accounts.
2.
Enter each transaction in a journal. This step is called journalizing and
it results in making a chronological record of the transactions.
3.
Transfer journal information to ledger accounts. This step is called
posting. Posting makes it possible to accumulate the effects of
journalized transactions on individual accounts.
BRIEF EXERCISE 2-5
(a)
Aug.
2-10
Effect on Accounting Equation
(b)
Debit-Credit Analysis
1
The asset Cash is increased; the
owner’s equity account
T. J. Carlin, Capital is increased.
Debits increase assets:
debit Cash $8,000.
Credits increase owner’s equity:
credit T. J. Carlin, Capital $8,000.
4
The asset Prepaid Insurance is
increased; the asset Cash is
decreased.
Debits increase assets:
debit Prepaid Insurance $1,800.
Credits decrease assets:
credit Cash $1,800.
16
The asset Cash is increased; the
revenue Service Revenue is
increased.
Debits increase assets:
debit Cash $800.
Credits increase revenues:
credit Service Revenue $800.
27
The expense Salaries Expense is
increased; the asset Cash is
decreased.
Debits increase expenses:
debit Salaries Expense $1,000.
Credits decrease assets:
credit Cash $1,000.
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
BRIEF EXERCISE 2-6
Aug. 1
4
16
27
Cash ..................................................................................
T. J. Carlin, Capital ..............................................
8,000
Prepaid Insurance.........................................................
Cash..........................................................................
1,800
Cash ..................................................................................
Service Revenue...................................................
800
Salaries Expense...........................................................
Cash..........................................................................
1,000
8,000
1,800
800
1,000
BRIEF EXERCISE 2-7
Cash
5/12
2,400
5/15
3,000
Ending Bal. 5,400
5/5
Service Revenue
5/5
5,000
5/15
3,000
Ending Bal. 8,000
Accounts Receivable
5,000 5/12
2,400
Ending Bal. 2,600
BRIEF EXERCISE 2-8
Cash
Date
May 12
15
Explanation
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
J1
J1
Debit
2,400
3,000
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
Balance
2,400
5,400
(For Instructor Use Only)
2-11
BRIEF EXERCISE 2-8 (Continued)
Accounts Receivable
Date
Explanation
May 5
12
Ref.
J1
J1
Debit
5,000
Service Revenue
Date
Explanation
May 5
15
Ref.
J1
J1
Debit
Credit
2,400
Balance
5,000
2,600
Credit
5,000
3,000
Balance
5,000
8,000
Debit
$ 8,800
3,000
17,000
Credit
BRIEF EXERCISE 2-9
CLELAND COMPANY
Trial Balance
June 30, 2010
Cash..........................................................................................
Accounts Receivable ..........................................................
Equipment ..............................................................................
Accounts Payable ................................................................
Cleland, Capital.....................................................................
Cleland, Drawing ..................................................................
Service Revenue...................................................................
Salaries Expense..................................................................
Rent Expense ........................................................................
2-12
Copyright © 2009 John Wiley & Sons, Inc.
$ 9,000
20,000
1,200
8,000
6,000
1,000
$37,000
Weygandt, Accounting Principles, 9/e, Solutions Manual
$37,000
(For Instructor Use Only)
BRIEF EXERCISE 2-10
KWUN COMPANY
Trial Balance
December 31, 2010
Cash .........................................................................................
Prepaid Insurance ...............................................................
Accounts Payable................................................................
Unearned Revenue..............................................................
P. Kwun, Capital...................................................................
P. Kwun, Drawing ................................................................
Service Revenue ..................................................................
Salaries Expense .................................................................
Rent Expense........................................................................
Debit
$14,800
3,500
Credit
$ 3,000
2,200
13,000
4,500
25,600
18,600
2,400
$43,800
$43,800
SOLUTIONS FOR DO IT! REVIEW EXERCISES
DO IT! 2-1
Josh would likely need the following accounts in which to record the
transactions necessary to ready his photography studio for opening day:
Cash (debit balance)
Photography Supplies
(debit balance)
Notes Payable (credit balance)
Photography Equipment
(debit balance)
Accounts Payable (credit balance)
J. Borke, Capital (credit balance)
DO IT! 2-2
Each transaction that is recorded is entered in the general journal. The
three activities would be recorded as follows:
1.
2.
3.
Cash..........................................................................
J. Borke, Capital.........................................
8,000
Photography Supplies........................................
Cash ...............................................................
Accounts Payable......................................
1,100
8,000
400
700
No entry because no transaction has occurred.
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(For Instructor Use Only)
2-13
DO IT! 2-3
Cash
4/1 1,600 4/16 600
4/3 3,400 4/20 300
4/30 4,100
DO IT! 2-4
BOARDIN’ COMPANY
Trial Balance
December 31, 2010
Debit
Cash.......................................................................................... $ 6,000
Accounts Receivable ..........................................................
8,000
Supplies ..................................................................................
5,000
Equipment ..............................................................................
80,000
Notes Payable .......................................................................
Accounts Payable ................................................................
Salaries Payable ...................................................................
Hawk, Capital.........................................................................
Hawk, Drawing ......................................................................
8,000
Service Revenue...................................................................
Supplies Expense ................................................................
2,000
Salaries Expense..................................................................
38,000
$147,000
2-14
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
$ 20,000
11,000
3,000
25,000
88,000
$147,000
(For Instructor Use Only)
SOLUTIONS TO EXERCISES
EXERCISE 2-1
1.
False. An account is an accounting record of a specific asset, liability,
or owner’s equity item.
2.
False. An account shows increases and decreases in the item it relates to.
3.
False. Each asset, liability, and owner’s equity item has a separate
account.
4.
False. An account has a left, or debit side, and a right, or credit side.
5.
True.
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-15
2-16
(a)
Basic
Type
Asset
Asset
Asset
Asset
Owner’s
Equity
Asset
Liability
Owner’s
Equity
Transaction
Jan. 2
3
9
Copyright © 2009 John Wiley & Sons, Inc.
11
16
20
23
28
D. Reyes,
Drawing
Accounts
Payable
Cash
Advertising
Expense
Accounts
Receivable
Supplies
Equipment
Cash
(b)
Specific
Account
Increase
Decrease
Increase
Increase
Increase
Increase
Increase
Increase
Effect
(c)
Account Debited
Debit
Credit
Debit
Debit
Debit
Debit
Debit
Debit
(d)
Normal
Balance
Asset
Asset
Asset
Asset
Owner’s
Equity
Liability
Asset
Owner’s
Equity
(a)
Basic
Type
Cash
Cash
Accounts
Receivable
Cash
Service
Revenue
Accounts
Payable
Cash
D. Reyes,
Capital
(b)
Specific
Account
Decrease
Decrease
Decrease
Decrease
Increase
Increase
Decrease
Increase
Effect
(c)
Account Credited
Debit
Debit
Debit
Debit
Credit
Credit
Debit
Credit
(d)
Normal
Balance
EXERCISE 2-2
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
EXERCISE 2-3
General Journal
Account Titles and Explanation
Date
Jan. 2
3
9
11
16
20
23
28
Ref.
Debit
Cash.............................................................
D. Reyes, Capital ............................
10,000
Equipment .................................................
Cash....................................................
4,000
Supplies .....................................................
Accounts Payable ..........................
500
Accounts Receivable .............................
Service Revenue.............................
1,800
Advertising Expense..............................
Cash....................................................
200
Cash.............................................................
Accounts Receivable ....................
700
Accounts Payable ...................................
Cash....................................................
300
D. Reyes, Drawing...................................
Cash....................................................
1,000
J1
Credit
10,000
4,000
500
1,800
200
700
300
1,000
EXERCISE 2-4
Oct. 1
Debits increase assets: debit Cash $15,000.
Credits increase owner’s equity: credit Pete Hanshew, Capital
$15,000.
2
No transaction.
3
Debits increase assets: debit Office Furniture $1,900.
Credits increase liabilities: credit Accounts Payable $1,900.
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Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-17
EXERCISE 2-4 (Continued)
Oct. 6
Debits increase assets: debit Accounts Receivable $3,200.
Credits increase revenues: credit Service Revenue $3,200.
27
Debits decrease liabilities: debit Accounts Payable $700.
Credits decrease assets: credit Cash $700.
30
Debits increase expenses: debit Salaries Expense $2,500.
Credits decrease assets: credit Cash $2,500.
EXERCISE 2-5
Date
Oct. 1
Ref.
Debits
15,000
No entry.
3
Office Furniture .......................................
Accounts Payable ........................
1,900
Accounts Receivable.............................
Service Revenue...........................
3,200
Accounts Payable...................................
Cash..................................................
700
Salaries Expense ....................................
Cash..................................................
2,500
27
30
Copyright © 2009 John Wiley & Sons, Inc.
Credit
15,000
2
6
2-18
General Journal
Account Titles and Explanation
Cash ............................................................
Pete Hanshew, Capital................
1,900
3,200
700
Weygandt, Accounting Principles, 9/e, Solutions Manual
2,500
(For Instructor Use Only)
EXERCISE 2-6
(a)
1.
2.
3.
Increase the asset Cash, increase the liability Notes Payable.
Increase the asset Computer, decrease the asset Cash.
Increase the asset Supplies, increase the liability Accounts Payable.
(b)
1.
Cash .............................................................................
Notes Payable ...................................................
Computer....................................................................
Cash .....................................................................
Supplies ......................................................................
Accounts Payable............................................
2.
3.
5,000
5,000
2,500
2,500
700
700
EXERCISE 2-7
(a)
Assets = Liabilities + Owners’ Equity
1. +
+
(Investment)
2. –
–
(Expense)
3. +
+
(Revenue)
4. –
–
(Drawings)
(b)
1.
2.
3.
4.
Cash .............................................................................
A. Rowand, Capital..........................................
Rent Expense............................................................
Cash .....................................................................
Accounts Receivable..............................................
Consulting Revenue .......................................
A. Rowand, Drawing ...............................................
Cash .....................................................................
4,000
4,000
1,100
1,100
5,200
5,200
700
700
EXERCISE 2-8
1.
2.
3.
4.
5.
False. The general ledger contains all the asset, liability, and owner’s
equity accounts.
True.
False. The accounts in the general ledger are arranged in financial
statement order: first the assets, then the liabilities, owner’s capital,
owner’s drawing, revenues, and expenses.
True.
False. The general ledger is not a book of original entry; transactions
are first recorded in the general journal, then in the general ledger.
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-19
EXERCISE 2-9
(a)
Aug. 1
10
31
Bal.
Cash
5,000 Aug. 12
2,400
900
7,300
1,000
Accounts Receivable
Aug. 25
1,600 Aug. 31
Bal.
700
Office Equipment
Aug. 12
5,000
(b)
Notes Payable
Aug. 12
Teresa Gonzalez, Capital
Aug. 1
5,000
900
Service Revenue
Aug. 10
25
Bal.
2,400
1,600
4,000
TERESA GONZALEZ, INVESTMENT BROKER
Trial Balance
August 31, 2010
Cash .....................................................................................
Accounts Receivable......................................................
Office Equipment .............................................................
Notes Payable ...................................................................
Teresa Gonzalez, Capital...............................................
Service Revenue ..............................................................
Debit
$ 7,300
700
5,000
$13,000
2-20
4,000
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
$ 4,000
5,000
4,000
$13,000
(For Instructor Use Only)
EXERCISE 2-10
(a)
Date
Apr. 1
12
15
25
29
30
General Journal
Account Titles and Explanation
Ref.
Cash..............................................................
J. Simon, Capital .................................
(Owner’s investment of
cash in business)
Debit
15,000
15,000
Cash..............................................................
Service Revenue..................................
(Received cash for
services provided)
900
Salaries Expense......................................
Cash.........................................................
(Paid salaries to date)
600
Accounts Payable ....................................
Cash.........................................................
(Paid creditors on account)
1,500
Cash..............................................................
Accounts Receivable .........................
(Received cash in payment
of account)
400
Cash..............................................................
Unearned Revenue .............................
(Received cash for future
services)
1,000
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
900
600
1,500
400
1,000
(For Instructor Use Only)
2-21
EXERCISE 2-10 (Continued)
(b)
SIMON LANDSCAPING COMPANY
Trial Balance
April 30, 2010
Cash .......................................................................................
Accounts Receivable........................................................
Supplies ................................................................................
Accounts Payable..............................................................
Unearned Revenue............................................................
J. Simon, Capital................................................................
Service Revenue ................................................................
Salaries Expense ...............................................................
Debit
$15,200
2,800
1,800
Credit
$
300
1,000
15,000
4,100
600
$20,400
$20,400
EXERCISE 2-11
(a) Oct. 1 Cash........................................................................
Heerey, Capital ............................................
(Owner’s investment of cash in
business)
5,000
10 Cash........................................................................
Service Revenue.........................................
(Received cash for services
provided)
650
10 Cash........................................................................
Notes Payable..............................................
(Obtained loan from bank)
4,000
20 Cash........................................................................
Accounts Receivable ................................
(Received cash in payment of
account)
500
20 Accounts Receivable ........................................
Service Revenue.........................................
(Billed clients for services
provided)
940
2-22
Copyright © 2009 John Wiley & Sons, Inc.
5,000
650
Weygandt, Accounting Principles, 9/e, Solutions Manual
4,000
500
940
(For Instructor Use Only)
EXERCISE 2-11 (Continued)
(b)
HEEREY CO.
Trial Balance
October 31, 2010
Cash.................................................................................
Accounts Receivable .................................................
Supplies..........................................................................
Furniture.........................................................................
Notes Payable...............................................................
Accounts Payable .......................................................
Heerey, Capital.............................................................
Heerey, Drawing ..........................................................
Service Revenue..........................................................
Store Wages Expense................................................
Rent Expense ...............................................................
Debit
$ 9,200
1,240
400
2,000
Credit
$ 4,000
500
7,000
300
2,390
500
250
$13,890
$13,890
EXERCISE 2-12
(a)
Date
Sept. 1
5
25
30
General Journal
Account Titles and Explanation
Cash...........................................................
Tina Cordero, Capital ..................
Ref.
101
301
Debit
10,000
Equipment................................................
Cash..................................................
Accounts Payable ........................
157
101
201
12,000
Accounts Payable .................................
Cash..................................................
201
101
3,000
Tina Cordero, Drawing.........................
Cash..................................................
306
101
500
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
J1
Credit
10,000
5,000
7,000
3,000
500
(For Instructor Use Only)
2-23
EXERCISE 2-12 (Continued)
(b)
Cash
Date
Sept. 1
5
25
30
Explanation
Equipment
Date
Explanation
Sept. 5
Accounts Payable
Date
Explanation
Sept. 5
25
Tina Cordero, Capital
Date
Explanation
Sept. 1
Tina Cordero, Drawing
Date
Explanation
Sept. 30
2-24
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
J1
J1
J1
J1
Ref.
J1
Ref.
J1
J1
Ref.
J1
Ref.
J1
Debit
10,000
Credit
5,000
3,000
500
Debit
12,000
Debit
Credit
No. 157
Balance
12,000
Credit
7,000
No. 201
Balance
7,000
4,000
3,000
Debit
Debit
500
No. 101
Balance
10,000
5,000
2,000
1,500
Credit
10,000
Credit
Weygandt, Accounting Principles, 9/e, Solutions Manual
No. 301
Balance
10,000
No. 306
Balance
500
(For Instructor Use Only)
EXERCISE 2-13
Error
1.
2.
3.
4.
5.
6.
(a)
In Balance
No
Yes
Yes
No
Yes
No
(b)
Difference
$400
—
—
300
—
18
(c)
Larger Column
Debit
—
—
Credit
—
Credit
EXERCISE 2-14
SANFORD DELIVERY SERVICE
Trial Balance
July 31, 2010
Debit
Cash ($82,907 – Debit total without Cash
$66,340)...............................................................................
Accounts Receivable ..........................................................
Prepaid Insurance................................................................
Delivery Equipment .............................................................
Notes Payable .......................................................................
Accounts Payable ................................................................
Salaries Payable ...................................................................
Sanford, Capital ....................................................................
Sanford, Drawing .................................................................
Service Revenue...................................................................
Salaries Expense..................................................................
Repair Expense.....................................................................
Gas and Oil Expense...........................................................
Insurance Expense ..............................................................
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
$16,567
7,642
1,968
49,360
$18,450
8,396
815
44,636
700
10,610
4,428
961
758
523
$82,907
$82,907
(For Instructor Use Only)
2-25
SOLUTIONS TO PROBLEMS
PROBLEM 2-1A
Date
Account Titles and Explanation
Apr. 1
Cash ................................................................
C. J. Mendez, Capital........................
(Owner’s investment of cash
in business)
40,000
Land.................................................................
Cash.......................................................
(Purchased land for cash)
30,000
Advertising Expense..................................
Accounts Payable .............................
(Incurred advertising
expense on account)
1,800
Salaries Expense ........................................
Cash.......................................................
(Paid salaries)
1,500
4
8
11
Debit
40,000
30,000
1,800
1,500
12
No entry—Not a transaction.
13
Prepaid Insurance.......................................
Cash.......................................................
(Paid for one-year
insurance policy)
1,500
C. J. Mendez, Drawing...............................
Cash.......................................................
(Withdrew cash for personal
use)
1,000
Cash ................................................................
Admission Revenue .........................
(Received cash for services
provided)
5,700
17
20
2-26
Ref.
Copyright © 2009 John Wiley & Sons, Inc.
J1
Credit
1,500
1,000
Weygandt, Accounting Principles, 9/e, Solutions Manual
5,700
(For Instructor Use Only)
PROBLEM 2-1A (Continued)
Date
Account Titles and Explanation
Apr. 25
Cash................................................................
Unearned Admission Revenue.........
(Received cash for future
services)
2,500
Cash................................................................
Admission Revenue ..........................
(Received cash for services
provided)
8,900
Accounts Payable ......................................
Cash .......................................................
(Paid creditor on account)
900
30
30
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Debit
Credit
2,500
8,900
900
(For Instructor Use Only)
2-27
PROBLEM 2-2A
(a)
Date
Account Titles and Explanation
Ref.
Debit
May 1
Cash ................................................................
Jane Kent, Capital .............................
(Owner’s investment of cash
in business)
101
301
25,000
No entry—not a transaction.
3
Supplies .........................................................
Accounts Payable .............................
(Purchased supplies on
account)
126
201
2,500
Rent Expense ...............................................
Cash.......................................................
(Paid office rent)
729
101
900
Accounts Receivable.................................
Service Revenue................................
(Billed client for services
provided)
112
400
2,100
Cash ................................................................
Unearned Revenue............................
(Received cash for future
services)
101
205
3,500
Cash ................................................................
Service Revenue................................
(Received cash for services
provided)
101
400
1,200
Salaries Expense ........................................
Cash.......................................................
(Paid salaries)
726
101
2,000
11
12
17
31
2-28
25,000
2
7
Copyright © 2009 John Wiley & Sons, Inc.
J1
Credit
2,500
900
2,100
3,500
1,200
Weygandt, Accounting Principles, 9/e, Solutions Manual
2,000
(For Instructor Use Only)
PROBLEM 2-2A (Continued)
Date
Account Titles and Explanation
Ref.
May 31
Accounts Payable ($2,500 X 40%).............
Cash ......................................................
(Paid creditor on account)
201
101
Debit
Credit
1,000
1,000
(b)
Cash
Date
May 1
7
12
17
31
31
Explanation
Accounts Receivable
Date
Explanation
May 11
Supplies
Date
Explanation
May 3
Accounts Payable
Date
Explanation
May 3
31
Unearned Revenue
Date
Explanation
May 12
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
J1
J1
J1
J1
J1
J1
Ref.
J1
Ref.
J1
Ref.
J1
J1
Ref.
J1
Debit
25,000
Credit
900
3,500
1,200
2,000
1,000
Debit
2,100
Debit
2,500
Debit
No. 101
Balance
25,000
24,100
27,600
28,800
26,800
25,800
Credit
No. 112
Balance
2,100
Credit
No. 126
Balance
2,500
Credit
2,500
No. 201
Balance
1,000
1,500
Debit
No. 205
Balance
3,500
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
3,500
(For Instructor Use Only)
2-29
PROBLEM 2-2A (Continued)
Jane Kent, Capital
Date
Explanation
May 1
Service Revenue
Date
Explanation
May 11
17
Salaries Expense
Date
Explanation
May 31
Rent Expense
Date
Explanation
May 7
(c)
Ref.
J1
Ref.
J1
J1
Ref.
J1
Ref.
J1
Debit
Debit
Debit
2,000
Debit
900
Credit
2,100
1,200
No. 400
Balance
2,100
3,300
Credit
No. 726
Balance
2,000
Credit
No. 729
Balance
900
JANE KENT, CPA
Trial Balance
May 31, 2010
Cash ................................................................................
Accounts Receivable.................................................
Supplies .........................................................................
Accounts Payable.......................................................
Unearned Revenue.....................................................
Jane Kent, Capital ......................................................
Service Revenue .........................................................
Salaries Expense ........................................................
Rent Expense...............................................................
2-30
Credit
25,000
No. 301
Balance
25,000
Copyright © 2009 John Wiley & Sons, Inc.
Debit
$25,800
2,100
2,500
Credit
$ 1,500
3,500
25,000
3,300
2,000
900
$33,300
Weygandt, Accounting Principles, 9/e, Solutions Manual
$33,300
(For Instructor Use Only)
PROBLEM 2-3A
(a) & (c)
Balance
(4)
(7)
Cash
8,000
(1)
(3)
14,000
(5)
6,000
(8)
(9)
4,000
Jack Shellenkamp, Capital
Balance
41,000
41,000
1,000
2,000
15,000
3,000
3,000
Jack Shellenkamp, Drawing
(9)
3,000
3,000
Repair Services Revenue
(7)
15,000
15,000
Accounts Receivable
Balance
15,000
(4)
14,000
(7)
9,000
10,000
Balance
(2)
Balance
Parts Inventory
13,000
4,000
(6)
13,000
(1)
Advertising Expense
1,000
1,000
(3)
Miscellaneous Expense
2,000
2,000
(6)
Repair Parts Expense
4,000
4,000
(8)
Wage Expense
3,000
3,000
4,000
Prepaid Rent
3,000
3,000
Shop Equipment
Balance
21,000
21,000
(5)
Accounts Payable
Balance
(2)
15,000
19,000
4,000
8,000
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-31
PROBLEM 2-3A (Continued)
(b)
Trans.
1.
2.
3.
4.
5.
6.
7.
8.
9.
2-32
Account Titles and Explanation
Debit
Advertising Expense.....................................
Cash.........................................................
1,000
Parts Inventory................................................
Accounts Payable ...............................
4,000
Miscellaneous Expense ...............................
Cash.........................................................
2,000
Cash....................................................................
Accounts Receivable .........................
14,000
Accounts Payable ..........................................
Cash.........................................................
15,000
Repair Parts Expense ...................................
Parts Inventory.....................................
4,000
Cash....................................................................
Accounts Receivable ....................................
Repair Services Revenue..................
6,000
9,000
Wage Expense ................................................
Cash.........................................................
3,000
Jack Shellenkamp, Drawing .......................
Cash.........................................................
3,000
Copyright © 2009 John Wiley & Sons, Inc.
Credit
1,000
4,000
2,000
14,000
15,000
4,000
15,000
3,000
Weygandt, Accounting Principles, 9/e, Solutions Manual
3,000
(For Instructor Use Only)
PROBLEM 2-3A (Continued)
(d)
BYTE REPAIR SERVICE
Trial Balance
January 31, 2010
Cash ................................................................................
Accounts Receivable.................................................
Parts Inventory ............................................................
Prepaid Rent.................................................................
Shop Equipment .........................................................
Accounts Payable.......................................................
Jack Shellenkamp, Capital ......................................
Jack Shellenkamp, Drawing....................................
Repair Services Revenue.........................................
Advertising Expense .................................................
Miscellaneous Expense............................................
Repair Parts Expense................................................
Wage Expense .............................................................
Copyright © 2009 John Wiley & Sons, Inc.
Debit
$ 4,000
10,000
13,000
3,000
21,000
Credit
$ 8,000
41,000
3,000
15,000
1,000
2,000
4,000
3,000
$64,000
Weygandt, Accounting Principles, 9/e, Solutions Manual
$64,000
(For Instructor Use Only)
2-33
PROBLEM 2-4A
STERLING COMPANY
Trial Balance
May 31, 2010
Cash ($5,850 + $520 – $405) ...............................................
Accounts Receivable ($2,570 – $210)..............................
Prepaid Insurance ($700 + $100).......................................
Supplies ($0 + $520) ..............................................................
Equipment ($8,000 – $520) ..................................................
Accounts Payable ($4,500 – $100 + $520 – $210)........
Property Taxes Payable .......................................................
M. Sterling, Capital ($11,700 + $1,000) ............................
M. Sterling, Drawing ($0 + $1,000) ....................................
Service Revenue.....................................................................
Salaries Expense ($4,200 + $200) .....................................
Advertising Expense ($1,100 + $405) ..............................
Property Tax Expense ($800 + $100) ...............................
2-34
Copyright © 2009 John Wiley & Sons, Inc.
Debit
$ 5,965
2,360
800
520
7,480
Credit
$ 4,710
560
12,700
1,000
6,960
4,400
1,505
900
$24,930
Weygandt, Accounting Principles, 9/e, Solutions Manual
$24,930
(For Instructor Use Only)
PROBLEM 2-5A
(a) & (c)
Cash
Date
Apr. 1
2
9
10
12
25
29
30
30
Explanation
Balance
Accounts Receivable
Date
Explanation
Apr. 30
Prepaid Rentals
Date
Explanation
Apr. 30
Land
Date
Apr. 1
Explanation
Balance
Buildings
Date
Explanation
Apr. 1
Balance
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
J1
J1
J1
J1
J1
J1
J1
J1
Ref.
J1
Ref.
J1
Ref.
Ref.
Debit
Credit
800
2,800
3,000
500
5,200
2,000
85
900
Debit
85
Debit
900
Debit
Debit
Weygandt, Accounting Principles, 9/e, Solutions Manual
No. 101
Balance
6,000
5,200
8,000
5,000
4,500
9,700
7,700
7,785
6,885
Credit
No. 112
Balance
85
Credit
No. 136
Balance
900
Credit
No. 140
Balance
10,000
Credit
No. 145
Balance
8,000
(For Instructor Use Only)
2-35
PROBLEM 2-5A (Continued)
Equipment
Date
Explanation
Apr. 1
Balance
Accounts Payable
Date
Explanation
Apr. 1
Balance
10
20
Mortgage Payable
Date
Explanation
Apr. 1
Balance
10
Tony Carpino, Capital
Date
Explanation
Apr. 1
Balance
Admission Revenue
Date
Explanation
Apr. 9
25
Concession Revenue
Date
Explanation
Apr. 30
2-36
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
Ref.
J1
J1
Ref.
J1
Ref.
Ref.
J1
J1
Ref.
J1
Debit
Debit
Credit
Credit
1,000
1,000
Debit
Debit
Debit
No. 201
Balance
2,000
1,000
2,000
Credit
No. 275
Balance
8,000
6,000
Credit
No. 301
Balance
20,000
2,000
Debit
No. 157
Balance
6,000
Credit
2,800
5,200
No. 405
Balance
2,800
8,000
Credit
170
No. 406
Balance
170
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
PROBLEM 2-5A (Continued)
Advertising Expense
Date
Explanation
Apr. 12
Film Rental Expense
Date
Explanation
Apr. 2
20
Salaries Expense
Date
Explanation
Apr. 29
Ref.
J1
Ref.
J1
J1
Ref.
J1
Debit
500
Debit
800
1,000
Debit
2,000
Credit
No. 610
Balance
500
Credit
No. 632
Balance
800
1,800
Credit
No. 726
Balance
2,000
(b)
Date
Apr. 2
Account Titles and Explanation
Film Rental Expense ...............................
Cash ...................................................
(Paid film rental)
Ref.
632
101
Debit
800
800
3
No entry—not a transaction.
9
Cash..............................................................
Admission Revenue......................
(Received cash for services
provided)
101
405
2,800
Mortgage Payable ....................................
Accounts Payable ....................................
Cash ...................................................
(Made payments on
mortgage and accounts
payable)
275
201
101
2,000
1,000
10
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
J1
Credit
2,800
3,000
(For Instructor Use Only)
2-37
PROBLEM 2-5A (Continued)
Date
Account Titles and Explanation
Apr. 11
No entry—not a transaction.
12
20
25
29
30
30
2-38
Ref.
Debit
Advertising Expense.................................
Cash .....................................................
(Paid advertising expenses)
610
101
500
Film Rental Expense .................................
Accounts Payable ...........................
(Rented film on account)
632
201
1,000
Cash................................................................
Admission Revenue........................
(Received cash for services
provided)
101
405
5,200
Salaries Expense........................................
Cash .....................................................
(Paid salaries expense)
726
101
2,000
Cash................................................................
Accounts Receivable ................................
Concession Revenue .....................
(17% X $1,000)
(Received cash and
balance on account for
concession revenue)
101
112
406
85
85
Prepaid Rentals ..........................................
Cash .....................................................
(Paid cash for future film
rentals)
136
101
900
Copyright © 2009 John Wiley & Sons, Inc.
Credit
500
1,000
5,200
Weygandt, Accounting Principles, 9/e, Solutions Manual
2,000
170
900
(For Instructor Use Only)
PROBLEM 2-5A (Continued)
(d)
LAKE THEATER
Trial Balance
April 30, 2010
Cash ................................................................................
Accounts Receivable.................................................
Prepaid Rentals ...........................................................
Land.................................................................................
Buildings........................................................................
Equipment .....................................................................
Accounts Payable.......................................................
Mortgage Payable .......................................................
Tony Carpino, Capital................................................
Admission Revenue...................................................
Concession Revenue.................................................
Advertising Expense .................................................
Film Rental Expense..................................................
Salaries Expense ........................................................
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Debit
$ 6,885
85
900
10,000
8,000
6,000
Credit
$ 2,000
6,000
20,000
8,000
170
500
1,800
2,000
$36,170
$36,170
(For Instructor Use Only)
2-39
PROBLEM 2-1B
Date
Mar. 1
3
5
6
10
18
19
2-40
Account Titles and Explanation
Cash ..................................................................
Barry Schultz, Capital........................
(Owner’s investment of cash
in business)
Ref.
Debit
20,000
20,000
Land ..................................................................
Buildings .........................................................
Equipment.......................................................
Cash ........................................................
(Purchased Heeren’s Golf Land)
12,000
2,000
1,000
Advertising Expense ...................................
Cash ........................................................
(Paid for advertising)
700
Prepaid Insurance ........................................
Cash ........................................................
(Paid for one-year insurance
policy)
600
Equipment.......................................................
Accounts Payable...............................
(Purchased equipment on
account)
1,050
Cash ..................................................................
Golf Revenue........................................
(Received cash for services
provided)
340
Cash ..................................................................
Unearned Revenue .............................
(Received cash for coupon
books sold)
1,000
Copyright © 2009 John Wiley & Sons, Inc.
J1
Credit
15,000
700
600
1,050
340
Weygandt, Accounting Principles, 9/e, Solutions Manual
1,000
(For Instructor Use Only)
PROBLEM 2-1B (Continued)
Date
Mar. 25
30
30
31
Account Titles and Explanation
Barry Schultz, Drawing ..........................
Cash ....................................................
(Withdrew cash for personal
use)
Ref.
Debit
800
800
Salaries Expense......................................
Cash ....................................................
(Paid salaries)
250
Accounts Payable....................................
Cash ....................................................
(Paid creditor on account)
1,050
Cash .............................................................
Golf Revenue....................................
(Received cash for services
provided)
200
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
250
1,050
200
(For Instructor Use Only)
2-41
PROBLEM 2-2B
(a)
Date
Account Titles and Explanation
Ref.
Debit
Apr. 1
Cash ..................................................................
Maria Juarez, Capital .........................
(Owner’s investment of cash
in business)
101
301
40,000
No entry—not a transaction.
2
Rent Expense.................................................
Cash ........................................................
(Paid monthly office rent)
729
101
1,000
Supplies ...........................................................
Accounts Payable...............................
(Purchased supplies on
account from Smile Company)
126
201
4,000
Accounts Receivable...................................
Service Revenue .................................
(Billed clients for services
provided)
112
400
5,100
Cash ..................................................................
Unearned Revenue .............................
(Received cash for future
service)
101
205
1,000
Cash ..................................................................
Service Revenue .................................
(Received cash for services
provided)
101
400
2,100
Salaries Expense ..........................................
Cash ........................................................
(Paid monthly salary)
726
101
2,400
10
11
20
30
2-42
40,000
1
3
Copyright © 2009 John Wiley & Sons, Inc.
J1
Credit
1,000
4,000
5,100
1,000
2,100
Weygandt, Accounting Principles, 9/e, Solutions Manual
2,400
(For Instructor Use Only)
PROBLEM 2-2B (Continued)
Date
Account Titles and Explanation
Ref.
Debits
Apr. 30
Accounts Payable ....................................
Cash ....................................................
(Paid Smile Company on
account)
201
101
1,600
Credit
1,600
(b)
Cash
Date
Apr.
Explanation
1
2
11
20
30
30
Accounts Receivable
Date
Explanation
Apr. 10
Supplies
Date
Apr. 3
Explanation
Accounts Payable
Date
Explanation
Apr. 3
30
Unearned Revenue
Date
Explanation
Apr. 11
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
Debit
J1
J1
J1
J1
J1
J1
40,000
Ref.
J1
Ref.
J1
Ref.
J1
J1
Ref.
J1
Credit
1,000
1,000
2,100
2,400
1,600
Debit
5,100
Debit
4,000
Debit
Weygandt, Accounting Principles, 9/e, Solutions Manual
40,000
39,000
40,000
42,100
39,700
38,100
Credit
No. 112
Balance
5,100
Credit
No. 126
Balance
4,000
Credit
4,000
No. 201
Balance
4,000
2,400
1,600
Debit
No. 101
Balance
Credit
1,000
No. 205
Balance
1,000
(For Instructor Use Only)
2-43
PROBLEM 2-2B (Continued)
Maria Juarez, Capital
Date
Explanation
Apr. 1
Ref.
J1
Service Revenue
Date
Explanation
Apr. 10
20
Ref.
J1
J1
Salaries Expense
Date
Explanation
Apr. 30
Ref.
J1
Rent Expense
Date
Explanation
Apr. 2
(c)
Ref.
J1
Debit
Debit
Debit
2,400
Debit
1,000
Credit
5,100
2,100
No. 400
Balance
5,100
7,200
Credit
No. 726
Balance
2,400
Credit
No. 729
Balance
1,000
MARIA JUAREZ, DENTIST
Trial Balance
April 30, 2010
Cash.................................................................................
Accounts Receivable .................................................
Supplies..........................................................................
Accounts Payable .......................................................
Unearned Revenue .....................................................
Maria Juarez, Capital..................................................
Service Revenue..........................................................
Salaries Expense.........................................................
Rent Expense ...............................................................
2-44
Credit
40,000
No. 301
Balance
40,000
Copyright © 2009 John Wiley & Sons, Inc.
Debit
$38,100
5,100
4,000
Credit
$ 2,400
1,000
40,000
7,200
2,400
1,000
$50,600
Weygandt, Accounting Principles, 9/e, Solutions Manual
$50,600
(For Instructor Use Only)
PROBLEM 2-3B
(a)
Trans.
1.
Account Titles and Explanation
Debit
Cash ...........................................................
Eric Clapton, Capital ..................
50,000
50,000
2.
No entry—Not a transaction.
3.
Prepaid Rent............................................
Cash.................................................
24,000
Furniture & Equipment ........................
Cash.................................................
Accounts Payable .......................
30,000
Prepaid Insurance .................................
Cash.................................................
1,800
Office Supplies .......................................
Cash.................................................
500
Office Supplies .......................................
Accounts Payable .......................
1,500
Cash ...........................................................
Accounts Receivable............................
Service Revenue..........................
8,000
12,000
Accounts Payable..................................
Cash.................................................
400
Cash ...........................................................
Accounts Receivable .................
3,000
Utility Expense........................................
Accounts Payable .......................
200
4.
5.
6.
7.
8.
9.
10.
11.
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
24,000
10,000
20,000
1,800
500
1,500
20,000
400
3,000
200
(For Instructor Use Only)
2-45
PROBLEM 2-3B (Continued)
Trans.
12.
Account Titles and Explanation
Salaries Expense ..................................
Cash .................................................
Debit
Credit
5,600
5,600
(b)
(1)
(8)
(10)
(8)
(6)
(7)
(5)
(3)
2-46
Cash
50,000
(3)
(4)
(5)
(6)
8,000
(9)
3,000
(12)
18,700
(4)
24,000
10,000
1,800
500
400
(9)
5,600
Accounts Receivable
12,000
(10)
3,000
9,000
Prepaid Rent
24,000
24,000
Copyright © 2009 John Wiley & Sons, Inc.
Accounts Payable
(4)
20,000
(7)
1,500
400
(11)
200
21,300
Eric Clapton, Capital
(1)
50,000
50,000
Service Revenue
(8)
Office Supplies
500
1,500
2,000
Prepaid Insurance
1,800
1,800
Furniture & Equipment
30,000
30,000
(12)
Salaries Expense
5,600
5,600
(11)
Utility Expense
200
200
Weygandt, Accounting Principles, 9/e, Solutions Manual
20,000
20,000
(For Instructor Use Only)
PROBLEM 2-3B (Continued)
(c)
SLOWHAND SERVICES
Trial Balance
May 31, 2010
Cash ............................................................................
Accounts Receivable.............................................
Office Supplies ........................................................
Prepaid Insurance ..................................................
Prepaid Rent.............................................................
Furniture & Equipment..........................................
Accounts Payable...................................................
Eric Clapton, Capital..............................................
Service Revenue .....................................................
Salaries Expense ....................................................
Utility Expense.........................................................
Copyright © 2009 John Wiley & Sons, Inc.
Debit
$18,700
9,000
2,000
1,800
24,000
30,000
Credit
$21,300
50,000
20,000
5,600
200
$91,300
Weygandt, Accounting Principles, 9/e, Solutions Manual
$91,300
(For Instructor Use Only)
2-47
PROBLEM 2-4B
SYED MOIZ CO.
Trial Balance
June 30, 2010
Cash ($3,340 + $360) ...........................................................
Accounts Receivable ($2,731 – $360)............................
Supplies ($1,200 – $620) ....................................................
Equipment ($2,600 + $620)................................................
Accounts Payable ($3,666 – $306 – $360)....................
Unearned Revenue ..............................................................
S. Moiz, Capital .....................................................................
S. Moiz, Drawing ($800 + $600)........................................
Service Revenue ($2,480 + $801) ....................................
Salaries Expense ($3,200 + $700 – $600) .....................
Office Expense......................................................................
2-48
Copyright © 2009 John Wiley & Sons, Inc.
Debit
$ 3,700
2,371
580
3,220
Credit
$ 3,000
1,100
8,000
1,400
3,281
3,300
810
$15,381
Weygandt, Accounting Principles, 9/e, Solutions Manual
$15,381
(For Instructor Use Only)
PROBLEM 2-5B
(a) & (c)
Cash
Date
Mar. 1
2
9
10
12
20
20
31
31
31
Explanation
Balance
Accounts Receivable
Date
Explanation
Mar. 31
Land
Date
Mar. 1
Explanation
Balance
Buildings
Date
Explanation
Mar. 1
Balance
Equipment
Date
Explanation
Mar. 1
Balance
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
J1
J1
J1
J1
J1
J1
J1
J1
J1
Ref.
J1
Ref.
Ref.
Ref.
450
9,000
No. 101
Balance
9,000
7,500
11,500
7,400
6,950
11,950
9,950
7,450
7,900
16,900
Debit
450
Credit
No. 112
Balance
450
Credit
No. 140
Balance
24,000
Credit
No. 145
Balance
10,000
Credit
No. 157
Balance
10,000
Debit
Credit
1,500
4,000
4,100
450
5,000
2,000
2,500
Debit
Debit
Debit
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
2-49
PROBLEM 2-5B (Continued)
Accounts Payable
Date
Explanation
Mar. 1
Balance
2
10
J. Micheals, Capital
Date
Explanation
Mar. 1
Balance
Admission Revenue
Date
Explanation
Mar. 9
20
31
Concession Revenue
Date
Explanation
Mar.31
Advertising Expense
Date
Explanation
Mar.12
Film Rental Expense
Date
Explanation
Mar. 2
20
2-50
Copyright © 2009 John Wiley & Sons, Inc.
Ref.
J1
J1
Ref.
Ref.
J1
J1
J1
Ref.
J1
Ref.
J1
Ref.
J1
J1
Debit
Credit
2,000
4,100
Debit
Debit
Debit
Debit
450
Debit
3,500
2,000
Credit
No. 201
Balance
7,000
9,000
4,900
No. 301
Balance
46,000
Credit
4,000
5,000
9,000
No. 405
Balance
4,000
9,000
18,000
Credit
900
No. 406
Balance
900
Credit
No. 610
Balance
450
Credit
No. 632
Balance
3,500
5,500
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
PROBLEM 2-5B (Continued)
Salaries Expense
Date
Explanation
Mar. 31
Ref.
J1
Debit
2,500
Credit
No. 726
Balance
2,500
(b)
J1
Date
Account Titles and Explanation
Ref.
Debit
Mar. 2
Film Rental Expense ..................................
Accounts Payable ............................
Cash......................................................
(Rented films for cash and
on account)
632
201
101
3,500
2,000
1,500
3
No entry.
9
Cash ................................................................
Admission Revenue ........................
(Received cash for services
provided)
101
405
4,000
Accounts Payable ($2,000 + $2,100).........
Cash......................................................
(Paid creditors on account)
201
101
4,100
10
4,000
4,100
11
No entry.
12
Advertising Expense..................................
Cash......................................................
(Paid advertising expense)
610
101
450
Cash ................................................................
Admission Revenue ........................
(Received cash for services
provided)
101
405
5,000
Film Rental Expense ..................................
Cash......................................................
(Paid film rental)
632
101
2,000
20
20
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Weygandt, Accounting Principles, 9/e, Solutions Manual
Credit
450
5,000
2,000
(For Instructor Use Only)
2-51
PROBLEM 2-5B (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Mar. 31
Salaries Expense .........................................
Cash ......................................................
(Paid salaries expense)
726
101
2,500
Cash .................................................................
Accounts Receivable..................................
Concession Revenue.......................
(15% X $6,000)
(Received cash and balance
on account for concession
revenue)
101
112
406
450
450
Cash .................................................................
Admission Revenue.........................
(Received cash for services
provided)
101
405
9,000
31
31
(d)
2,500
900
9,000
JOSIE THEATER
Trial Balance
March 31, 2010
Cash .............................................................................
Accounts Receivable..............................................
Land..............................................................................
Buildings.....................................................................
Equipment ..................................................................
Accounts Payable....................................................
J. Michaels, Capital .................................................
Admission Revenue ................................................
Concession Revenue..............................................
Advertising Expense...............................................
Film Rental Expense ...............................................
Salaries Expense.....................................................
2-52
Credit
Copyright © 2009 John Wiley & Sons, Inc.
Debit
$16,900
450
24,000
10,000
10,000
Credit
$ 4,900
46,000
18,000
900
450
5,500
2,500
$69,800
Weygandt, Accounting Principles, 9/e, Solutions Manual
$69,800
(For Instructor Use Only)
BYP 2-1
FINANCIAL REPORTING PROBLEM
(a)
(1)
Increase
Side
Credit
(1)
Decrease
Side
Debit
Accounts Receivable
Debit
Credit
Debit
Property, Plant, and Equipment
Debit
Credit
Debit
Income Taxes Payable
Credit
Debit
Credit
Interest Expense
Debit
Credit
Debit
Inventory
Debit
Credit
Debit
Account
Accounts Payable
(2)
Normal
Balance
Credit
(b) 1.
2.
3.
Cash is increased.
Cash is decreased.
Cash is decreased or Accounts Payable is increased.
(c) 1.
2.
Cash is decreased.
Cash is decreased or Notes or Mortgage Payable is increased.
Copyright © 2009 John Wiley & Sons, Inc.
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(For Instructor Use Only)
2-53
BYP 2-2
(a)
1.
COMPARATIVE ANALYSIS PROBLEM
PepsiCo
Inventory:
debit
Coca-Cola
1. Accounts Receivable:
debit
2.
Property, Plant, and
Equipment:
debit
2. Cash and Cash Equivalents: debit
3.
Accounts Payable:
credit
3. Cost of Goods Sold:
debit
4.
Interest Expense:
debit
4. Sales (revenue):
credit
(b) The following other accounts are ordinarily involved:
2-54
1.
Increase in Accounts Receivable: Service Revenue or Sales is
increased (credited).
2.
Decrease in Wages Payable: Cash is decreased (credited).
3.
Increase in Property, Plant, and Equipment: Notes Payable is
increased (credited) or Cash is decreased (credited).
4.
Increase in Interest Expense: Cash is decreased (credited).
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
BYP 2-3
EXPLORING THE WEB
The answer is dependent upon the company selected by the student.
Copyright © 2009 John Wiley & Sons, Inc.
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(For Instructor Use Only)
2-55
BYP 2-4
DECISION MAKING ACROSS THE ORGANIZATION
(a) May 1
5
7
14
15
20
Correct.
Cash ..................................................................
Lesson Revenue ...................................
250
Cash ..................................................................
Unearned Boarding Revenue ...........
300
Office Equipment ..........................................
Cash ..........................................................
800
Lisa Ortega, Drawing...................................
Cash ..........................................................
400
Cash ..................................................................
Riding Revenue .....................................
184
30
Correct.
31
Hay and Feed Supplies...............................
Accounts Payable.................................
250
300
800
400
184
1,700
1,700
(b) The errors in the entries of May 14 and 20 would prevent the trial
balance from balancing.
(c) Net income as reported...................................................
Add: 5/15, Salaries expense (Lisa Ortega,
Drawing)..............................................................
5/31, Hay and feed expense (still on
hand) ....................................................................
$4,500
$ 400
1,700
Less: 5/7, Boarding revenue unearned.....................
Correct net income ...........................................................
(d) Cash as reported ...............................................................
Add: 5/20, Transposition error ...................................
5/31, Purchase on account................................
2-56
Copyright © 2009 John Wiley & Sons, Inc.
2,100
6,600
300
$6,300
$12,475
$ 36
1,700
Weygandt, Accounting Principles, 9/e, Solutions Manual
1,736
$14,211
(For Instructor Use Only)
BYP 2-5
COMMUNICATION ACTIVITY
Date:
May 25, 2010
To:
Accounting Instructor
From:
Student
In the first transaction, bills totaling $6,000 were sent to customers for
services rendered. Therefore, the asset Accounts Receivable is increased
$6,000 and the revenue Service Revenue is increased $6,000. Debits increase
assets and credits increase revenues, so the journal entry is:
Accounts Receivable........................................................................
Service Revenue .......................................................................
(Bill customers for services provided)
6,000
6,000
The $6,000 amount is then posted to the debit side of the general ledger
account Accounts Receivable and to the credit side of the general ledger
account Service Revenue.
In the second transaction, $2,000 was paid in salaries to employees. Therefore,
the expense Salaries Expense is increased $2,000 and the asset Cash is
decreased $2,000. Debits increase expenses and credits decrease assets,
so the journal entry is:
Salaries Expense ...............................................................................
Cash ..............................................................................................
(Salaries paid)
2,000
2,000
The $2,000 amount is then posted to the debit side of the general ledger
account Salaries Expense and to the credit side of the general ledger
account Cash.
Copyright © 2009 John Wiley & Sons, Inc.
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(For Instructor Use Only)
2-57
BYP 2-6
ETHICS CASE
(a) The stakeholders in this situation are:
Mary Jansen, assistant chief accountant.
Users of the company’s financial statements.
The Casey Company.
(b) By adding $1,000 to the Equipment account, that account total is intentionally misstated. By not locating the error causing the imbalance,
some other account may also be misstated by $1,000. If the amount of
$1,000 is determined to be immaterial, and the intent is not to commit
fraud (cover up an embezzlement or other misappropriation of assets),
Mary’s action might not be considered unethical in the preparation of
interim financial statements. However, if Mary is violating a company
accounting policy by her action, then she is acting unethically.
(c) Mary’s alternatives are:
1. Miss the deadline but find the error causing the imbalance.
2. Tell her supervisor of the imbalance and suffer the consequences.
3. Do as she did and locate the error later, making the adjustment in
the next quarter.
2-58
Copyright © 2009 John Wiley & Sons, Inc.
Weygandt, Accounting Principles, 9/e, Solutions Manual
(For Instructor Use Only)
BYP 2-7
ALL ABOUT YOU ACTIVITY
(a) Students’ responses to this question will vary. It is important that the
steps that they identify be as specific as possible, and clearly directed
toward achieving their goal. You may wish to ask a follow-up question
asking them to explain how each step will assist them in achieving
their goal.
(b) There are many sites on the Internet that provide information about
preparing a résumé. For example, you can find extensive resources at:
http://www.rileyguide.com/resprep.html. Many schools also have resources in their placement centers or writing labs. The Writing Center at
Rensselaer Polytechnic Institute provides useful, concise information on
its website at http://www.rpi.edu/web/writingcenter/resume.html. A wide
variety of sample résumés can be found. For example, Monster.com
provides samples for a wide variety of professions and situations at
http://content.monster.com/experts/resume/library/.
(c)
As noted in the All About You feature in chapter 2 of the text, overstating
accomplishments on a résumé can result in many problems. It is
important to provide accurate and complete documentation of all
relevant training, education, and employment experiences so as to
provide assurance to the potential employer, and also to enable that
employer to do follow-up work. If you say you have certain skills, such
as computer skills, try to substantiate the claim with recognized proof
of proficiency. Make sure that all addresses and phone numbers are
accurate and up-to-date. Also, ensure that the people you use as
references have a copy of your résumé and cover letter, and that they
are informed that you are interviewing so they know to expect a call.
(d) See the sample résumés provided in the websites above for various
format options. You might also mention to students that there are
electronic résumé templates available on the Internet.
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(For Instructor Use Only)
2-59