FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 2, Problem 7GLP
1.
To determine
Introduction: A journal is used to record financial transactions. It shows the debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are posted into ledgers.
The
1.
Expert Solution
Explanation of Solution
- Journal entries to record the transactions in the month of September
| S.no | Account title and Explanation | PR | Debit | Credit |
| a. | Cash | 101 | $60,000 | |
| Office equipment | 163 | $25,000 | ||
| HV Capital | 301 | $85,000 | ||
| Owners investment in business | ||||
| b. | Land | 172 | $40,000 | |
| Building | 170 | $160,000 | ||
| Cash | 101 | $30,000 | ||
| Notes payable | 250 | $170,000 | ||
| Record purchase of land and for cash and note payable | ||||
| c. | Office supplies | 108 | $2,000 | |
| Accounts payable | 250 | $2,000 | ||
| Record purchase of office supplies on credit | ||||
| d. | Automobile | 164 | $16,500 | |
| HV Capital | 301 | $16,500 | ||
| Record transferring of automobile to the business | ||||
| e. | Office equipment | 163 | $5,600 | |
| Accounts payable | 250 | $5,600 | ||
| Record purchase of office equipment on credit | ||||
| f. | Salary expense | 601 | $1,800 | |
| Cash | 101 | $1,800 | ||
| Record payment of salaries | ||||
| g. | Cash | 101 | $8,000 | |
| Fees earned | 402 | $6,000 | ||
| Record earnings of fees | ||||
| h. | Utility expense | 602 | $635 | |
| Cash | 101 | $635 | ||
| Record payment of utility expenses | ||||
| i. | Accounts payable | 201 | $2,000 | |
| Cash | 101 | $2,000 | ||
| Record payment of cash to settle accounts payable | ||||
| j. | Office equipment | 163 | $20,300 | |
| Cash | 101 | $20,300 | ||
| Record purchase of office equipment on cash | ||||
| k. | Accounts receivable | 106 | $6,250 | |
| Fees earned | 402 | $6,250 | ||
| Record earning of revenue | ||||
| l. | Salariesexpense | 601 | $1,800 | |
| Cash | 101 | $1,800 | ||
| Record payment of wages to assistant | ||||
| m. | Cash | 101 | $4,000 | |
| Accounts receivable | 106 | $4,000 | ||
| Record receipt of payment | ||||
| n. | HV Withdrawals | 302 | $2,800 | |
| Cash | 101 | $2,800 | ||
| Record withdrawals by owner for personal use |
2.
To determine
Introduction: A journal is used to record financial transactions. It shows the debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are posted into ledgers.
The given ledger accounts
2.
Expert Solution
Answer to Problem 7GLP
Cash $22,945
Accounts receivable $29,000
Accounts payable $1,333
Explanation of Solution
Cash Account no 101
| Date | PR | Account title | Debit | Credit | Balance |
| a. | HV Capital | $60,000 | $60,000 | ||
| b. | $30,000 | $30,000 | |||
| f. | Salary expense | $1,800 | $28,200 | ||
| g. | Fees earned | $8,000 | $36,200 | ||
| h. | Utility expenses | $635 | $35,565 | ||
| i. | Accounts payable | $2,000 | $33,565 | ||
| j. | Office equipment | $20,300 | $13,265 | ||
| l. | Salary expense | $1,800 | $11,465 | ||
| m. | Accounts receivable | $4,000 | $15,465 | ||
| n. | HV Capital | $2,800 | $12,665 |
Accounts receivable Account no 106
| Date | PR | Account title | Debit | Credit | Balance |
| k. | Fees earned | $6,250 | $6,250 | ||
| m. | Cash | $4,000 | $2,250 |
Office supplies Account no 108
| Date | PR | Account title | Debit | Credit | Balance |
| c. | Accounts payable | $2,000 | $2,000 |
Automobiles Account no 164
| Date | PR | Account title | Debit | Credit | Balance |
| d. | HV Capital | $16,500 | $16,500 |
Building Account no 170
| Date | PR | Account title | Debit | Credit | Balance |
| b. | $160,000 | $160,000 |
Land Account no 172
| Date | PR | Account title | Debit | Credit | Balance |
| b. | $40,000 | $40,000 |
Office equipment Account no 163
| Date | PR | Account title | Debit | Credit | Balance |
| a. | HV Capital | $25,000 | $25,000 | ||
| e. | Accounts payable | $5,600 | $30,600 | ||
| j. | Cash | $20,300 | $50,900 |
Accounts Payable Account no 201
| Date | PR | Account title | Debit | Credit | Balance |
| c. | Office supplies | $2,000 | $2,000 | ||
| ``e. | Office equipment | $5,600 | $7,600 | ||
| i. | Cash | $2,000 | $5,600 |
Notes payable Account no 250
| Date | PR | Account title | Debit | Credit | Balance |
| b. | $170,000 | $170,000 |
HV Capital Account no 301
| Date | PR | Account title | Debit | Credit | Balance |
| a. | Cash | $60,000 | $60,000 | ||
| Office equipment | $25,000 | $85,000 | |||
| d. | Automobiles | $16,500 | $101,500 |
HV Withdrawals Account no 302
| Date | PR | Account title | Debit | Credit | Balance |
| n. | Cash | $2,800 | $2,800 |
Fees earned Account no 402
| Date | PR | Account title | Debit | Credit | Balance |
| g. | Cash | $8,000 | $8,000 | ||
| k. | Accounts receivable | $6,250 | $14,250 |
Salaries expense Account no 601
| Date | PR | Account title | Debit | Credit | Balance |
| f. | Cash | $1,800 | $1,800 | ||
| l. | Cash | $1,800 | $3,600 |
Utility expenses Account no 602
| Date | PR | Account title | Debit | Credit | Balance |
| h. | Cash | $635 | $635 |
3.
To determine
Introduction: A journal is used to record financial transactions. It shows the debits and credits of each transaction. The process of recording transactions is called journalizing. After journalizing, the transactions are posted into ledgers.
The
3.
Expert Solution
Answer to Problem 7GLP
Trial balance total $291,350.
Explanation of Solution
Trial balance
| Account title | Debit | Credit |
| Cash | $12,665 | |
| Accounts receivable | $2,250 | |
| Office supplies | $2,000 | |
| Automobiles | $16,500 | |
| Office equipment | $50,900 | |
| Land | $40,000 | |
| Building | $160,000 | |
| Accounts payable | $5,600 | |
| Note payable | $170,000 | |
| HV Capital | $101,500 | |
| HV Withdrawals | $2,800 | |
| Fees earned | $14,250 | |
| Salaries expense | $3,600 | |
| Utilities expense | $635 | |
| Total | $291,350 | $291,350 |
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Chapter 2 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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