COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Chapter 2, Problem 1PB
To determine
Show the effect of the given transactions on the
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the Journal entries for the November transactions. Use the following accounts : cash , account receivable, prepaid insurance,equipment,account payable,Alfonso capital,Alfonso withdrawal,landscaping revenue,salaries expense,rent expense,gas and oil expense, supplies expense,utilities expense,miscellaneous expense
Juanito Alfonso landscaping service has the following transactions:
Nov.3- Alfonso deposited 250 000 in a bank in the nme of entity.N
Nov.5-alfonso used trailer from Cruz sales 15 000 with down payment 6 500 and the remaining on account.
Nov.6- invested personal gardening tools, with a fair market value of 8 000 in the business
Nov.7- paid rent for the month 7 000
Nov.10 -acquired a used backhoe from mobile equipment 62 000 paying 34 000 in cash and the balance on account
Nov.10- bought liability insurance for one year 18 000
Nov.13- performed landscaping services for flores hospital 28 000
Nov.14 - bought supplies on account from office decor 3 000
Nov.15- performed…
Prepare journal entries for the following transactions. Make sure to observe the proper format of journal entries. Use EXCEL in presenting your answers.
Mr. Panatag opened the Panatag Security Services. The following financial transactions and other arrangements took place from July 01 to August, 2019:
July 01 Mr. Panatag invested his savings in the business amounting to P895,000, and his old car with market value of P545,000.
July 02 Mr. Panatag signed a lease contract to be used as the office of his business. In accordance with the lease contract, Mr. Panatag paid the advance rental for three months amounting to P60,000.
July 03 The owner purchased furniture amounting to P50,00. Paid 70% cash and the balance will be paid after 30 days.
July 04 Mr. Panatag conducted interviews of security guards, and hired 10 security guards with a monthly salary of P13,000 per month.
July 05 The owner secured a loan from the bank amounting to P250,000 payable over the…
Suppose you started your own landscaping business. A customer paid you $120 in advance to mow his lawn while he was on vacation. You also performed
landscaping services for a local business, but the business hasn't paid you the $390 fee yet. In addition, a customer paid you $130 cash for landscaping services.
Answer the following questions about the correct way to account for your revenue under accrual accounting:
1. Name the accounts used to record these events.
2. Prepare the journal entries to record the three transactions.
1. Name the accounts used to record these events. (Leave unused cells blank.)
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Chapter 2 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 2 - What is a business transaction?Ch. 2 - Prob. 1.2SRQCh. 2 - Prob. 1.3SRQCh. 2 - Prob. 1.4SRECh. 2 - Prob. 1.5SRECh. 2 - Prob. 1.6SRACh. 2 - Prob. 2.1SRQCh. 2 - Prob. 2.2SRQCh. 2 - What information is included in the financial...Ch. 2 - Prob. 2.4SRE
Ch. 2 - Prob. 2.5SRECh. 2 - Prob. 2.6SRACh. 2 - Prob. 1CSRCh. 2 - Prob. 2CSRCh. 2 - Prob. 3CSRCh. 2 - Prob. 4CSRCh. 2 - Prob. 5CSRCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the effects of each of the following...Ch. 2 - What is the fundamental accounting equation?Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Computing net income or net loss. The Computer...Ch. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Preparing a statement of owners equity and a...Ch. 2 - Analyzing the effects of transactions on the...Ch. 2 - Prob. 2PACh. 2 - Prob. 3PACh. 2 - The following equation shows the transactions of...Ch. 2 - Prob. 1PBCh. 2 - Prob. 2PBCh. 2 - Prob. 3PBCh. 2 - Prob. 4PBCh. 2 - The following account balances are for William...Ch. 2 - Richard Harris opened a gym and fitness studio...Ch. 2 - Prob. 1MFCh. 2 - Prob. 2MFCh. 2 - Prob. 3MFCh. 2 - How does an accounting system help managers...Ch. 2 - Prob. 1ED
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- Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.arrow_forwardDomingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.arrow_forwardOn October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?arrow_forward
- Prepare journal entries to record the following transactions. a. Purchased $380 of supplies on credit. b. Completed $580 of work for a client on credit. c. Paid $380 cash towards the amount owed from transaction a. d. Completed work for a client and immediately received $880 cash. e. Collected $580 cash for the work previously performed in transaction b. f. Received $1,080 cash in advance from a client for services to be performed next period View transaction list Journal entry worksheet < 1 2 3 4 5 6 Purchased $380 of supplies on credit. Note: Enter debits before credits. Date a. General Journal Debit Creditarrow_forwardRequirement: Journalize the transactions using the ff: account: Cash: Accounts Receivable; Equipment; Furniture; Accounts Payable; Loans Payable; Maharlika, Capital; Maharlika, Withdrawal; Service Revenue; and Utilities Expense. Record the journal entries in a journal sheet in proper format. Maharlika decided to invest in a travel agency. Below are the transaction for the month of July 2021. July 1: Maharlika invested a car worth P750,000, cash of P1,400,000 and furniture worth P350,000 July 4: Borrowed P350,000 from Shey Bank July 5: Bought furniture from Fim’s P30,000 on account. July 6: Withdrew cash P100,000 for personal use July 15: Rendered services to Joyous Tours P500,000 on account July 21: Paid utilities for P10,000 July 24: Performed services, P25,000 July 27 Paid furniture previously acquired July 30: Collected account from Joyous Toursarrow_forwardYou work as an accounting professional and have been contracted by the auditors of Jane Company for a job. In examining the company’s records, you have extracted the following information: Jane Account Balances 2018 2019 Accounts Payable $ 24,600.00 $ 21,250.00 Accounts receivable $ 15,700.00 $ 12,340.00 Cash $ 23,450.00 $ 28,600.00 Cost of goods sold $ 19,700.00 $ 23,000.00 Depreciation $ 3,090.00 $ 4,590.00 Dividends $ 5,800.00 $ 10,800.00 Interest $ 2,340.00 $ 2,890.00 Inventory $ 7,050.00 $ 8,640.00 Long-term debt $ 28,000.00 $ 30,000.00 Net fixed Assets $ 41,500.00 $ 48,000.00 Other expenses $ 2,400.00 $ 2,800.00 Sales $ 58,000.00 $ 62,500.00 Short-term notes payable $ 2,890.00 $ 2,340.00 Shares outstanding $ 85,000.00 $ 90,000.00 The tax rate is 32% You are required to:…arrow_forward
- You work as an accounting professional and have been contracted by the auditors of Jane Company for a job. In examining the company’s records, you have extracted the following information: Jane Account Balances 2018 2019 Accounts Payable $ 24,600.00 $ 21,250.00 Accounts receivable $ 15,700.00 $ 12,340.00 Cash $ 23,450.00 $ 28,600.00 Cost of goods sold $ 19,700.00 $ 23,000.00 Depreciation $ 3,090.00 $ 4,590.00 Dividends $ 5,800.00 $ 10,800.00 Interest $ 2,340.00 $ 2,890.00 Inventory $ 7,050.00 $ 8,640.00 Long-term debt $ 28,000.00 $ 30,000.00 Net fixed Assets $ 41,500.00 $ 48,000.00 Other expenses $ 2,400.00 $ 2,800.00 Sales $ 58,000.00 $ 62,500.00 Short-term notes payable $ 2,890.00 $ 2,340.00 Shares outstanding $ 85,000.00 $ 90,000.00 The tax rate is 32% You are required to:…arrow_forwardQuestion 1. Enter the following transactions in T accounts. Label each debit and credit with the letter identifying the transaction. Prepare a trial balance at June 30.On June 8, Lynne Jones opened a bank account in the name of her new business, Bluegrass company, by making a bank deposit of $82,000 cash.On June 12, Purchase a small office building located on a large lot for a total price of $91,200, of which $48,000 was applicable to the land and $43,200 to the building. A cash payment of $18,240 was made and a note payable was issued for the balance of the purchase price.On June 14, office equipment was purchased at a cost of $7,100. A cash down payment of $1,100 was made, and it was agreed that the balance should be paid within 30 days.On June 20, withdrew $1,100 cash from the business for personal use.On June 25, paid $450 for publication of newspaper advertising.On June 26, paid salaries $6,500 to employees for services rendered.arrow_forwardAssuming the entity bought 300,000 worth of supplies on account. The proper journal entry to this transaction is by debiting the Supplies account and crediting what account? a.) Accounts Receivable b.) Supplies Expense c.) Cash d.) Accounts Payablearrow_forward
- Directions: Record the transactions directly into the T-accounts. The transactions are independent of one another. Use the following account titles: CashOwner’s WithdrawalsAccounts ReceivableProfessional FeesOffice EquipmentSalaries ExpenseOffice FurnitureRent ExpenseAccounts PayableUtility ExpenseOwner’s CapitalMiscellaneous Expense a. The owner deposited P280,000 in the name of his business.b. He purchased 4-in-1 equipment from Limay Equipment for P4,950, paying P1,000 in cash and the balance on the account.c. He bought chairs and tables for the office for P12,300 cash.d. He purchased furniture from Orion Company for P2,750 in cash.e. He received and paid the telephone bill from Ph Telecom amounting to P1,080.f. He billed his customers P12,940 for services on account.g. He paid P1,850 for the electric bill from BEBECO.h. He paid P3,500 for the membership fee.i. He received P17,650 in cash for services rendered.j. He paid P1,000 to partially settle accounts with Orion Company.k. He…arrow_forwardTo practice how the use of debits, credits, and double entry accounting affect individual T accounts and thus The Accounting Formula, consider the following situations. Prepare T accounts as required and write the corresponding accounting formula. Kimchi purchased a small cafe' in a town with P600,000 of her own money. Help her prepare her T accounts for her first month of operations using the following 1. information. a. Kimchi invested P600,000 cash in the cafe'. Cash Owners' Equity b. Kimchi purchased P3,500 in food, all of which is to be paid next month (accounts payable). Food Inventory Accounts Payable С. Kimchi generated P10,000 in revenue, all received in cash. Cash Revenue d. Kimchi paid her employees P3,600 this month with payroll checks (cash account).arrow_forwardTo practice how the use of debits, credits, and double entry accounting affect individual T accounts and thus The Accounting Formula, consider the following situations. Prepare T accounts as required and write the corresponding accounting formula. Kimchi purchased a small cafe' in a town with P600,000 of her own money. Help her prepare her T accounts for her first month of operations using the following 1. information. a. Kimchi invested P600,000 cash in the cafe'. Cash Owners' Equity b. Kimchi purchased P3,500 in food, all of which is to be paid next month (accounts payable). Food Inventory Accounts Payable C. Kimchi generated P10,000 in revenue, all received in cash. Cash Revenue d. Kimchi paid her employees P3,600 this month with payroll checks (cash account). Cash Salaries and Wagesarrow_forward
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