Concept explainers
1.
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.
Explanation of Solution
- Journal entries to record the transactions in the month of September
S.no | Account title and Explanation | PR | Debit | Credit |
Oct, 1 | Cash | 101 | $45,000 | |
Computer equipment | 167 | $20,000 | ||
Office equipment | 163 | $8,000 | ||
Common stock | 307 | $73,000 | ||
Record investments for common stock | ||||
2 | Prepaid rent | 131 | $3,300 | |
Cash | 101 | $3,300 | ||
Record payment of cash for prepaid rent | ||||
3 | Computer supplies | 126 | $1,420 | |
Accounts payable | 201 | $1,420 | ||
Record purchase of computer supplies on credit | ||||
5 | Prepaid insurance | 128 | $2,220 | |
Cash | 101 | $2,220 | ||
Record payment of cash for insurance | ||||
6 | Accounts receivable | 106 | $4,800 | |
Computer service revenue | 403 | $4,800 | ||
Record earnings of revenue for service provided | ||||
8 | Accounts payable | 201 | $1,420 | |
Cash | 101 | $1,800 | ||
Record payment of cash for accounts payable | ||||
10 | No entry required | |||
12 | Accounts receivable | 106 | $1,400 | |
Computer service revenue | 403 | $1,400 | ||
Record revenue on service performed | ||||
15 | Cash | 101 | $4,800 | |
Accounts receivable | 106 | $4,800 | ||
Record receipt of cash on receivable | ||||
17 | Repair expense- computer | 684 | $805 | |
Cash | 101 | $805 | ||
Record payment of cash for repairs | ||||
20 | Advertising expense | 655 | $1,728 | |
Cash | 101 | $1,728 | ||
Record payment of cash for advertisement expense | ||||
22 | Cash | 101 | $1,400 | |
Accounts receivable | 106 | $1,400 | ||
Record receipt of cash on receivable | ||||
28 | Accounts receivable | 106 | $5,208 | |
Computer service revenue | 403 | $5,208 | ||
Record revenue on service performed | ||||
31 | Wages expense | 623 | $875 | |
Cash | 101 | $875 | ||
31 | Dividends | 319 | $3,600 | |
Cash | 101 | $3,600 | ||
Record payment of cash dividends | ||||
Nov, 1 | Mileage expense | 676 | $320 | |
Cash | 101 | $320 | ||
Record reimbursement of mileage expense | ||||
2 | Cash | 101 | $4,633 | |
Computer service revenue | 403 | $4,633 | ||
Record receipt of cash on account of service performed | ||||
5 | Computer supplies | 126 | $1,125 | |
Cash | 101 | $1,125 | ||
Record payment of cash on purchase of computer supplies | ||||
8 | Accounts receivable | 106 | $5,668 | |
Computers service revenue | 403 | $5,668 | ||
Record revenue earned | ||||
13 | No entry required | |||
18 | Cash | 101 | $2,208 | |
Accounts receivable | 106 | $2,208 | ||
Record receipt of cash on accounts receivable | ||||
22 | Miscellaneous expenses | 677 | $250 | |
Cash | 101 | $250 | ||
Record payment of cash for miscellaneous expenses | ||||
24 | Accounts receivable | 106 | 3,950 | |
Computer service revenue | 403 | $3,950 | ||
Record revenue earned | ||||
25 | No entry required | |||
28 | Mileage expense | 676 | $384 | |
Cash | 101 | $384 | ||
Record payment of cash for mileage expense | ||||
30 | Wages expense | 623 | $1,750 | |
Cash | 101 | $1,750 | ||
Record payment of cash for wages | ||||
30 | Dividends | 319 | $2,000 | |
Cash | 101 | $2,000 | ||
Record payment of cash dividends |
2.
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.
Answer to Problem 8GLP
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 |
Oct, 1 | Common stock | $45,000 | $45,000 | ||
2 | Prepaid rent | $3,300 | $41,700 | ||
5 | Prepaid insurance | $2,220 | $39,480 | ||
8 | Computer supplies | $1,420 | $38,060 | ||
15 | Accounts receivable | $4,800 | $42,860 | ||
17 | Repair expense-computer | $805 | $42,55 | ||
20 | Advertisements expense | $1,728 | $40,327 | ||
22 | Accounts receivable | $1,400 | $41,727 | ||
31 | Wages expense | $875 | $40,852 | ||
Nov, 1 | Mileage expense | $320 | $36,932 | ||
2 | Computer service revenue | $4,633 | $41,565 | ||
5 | Office supplies | $1,125 | $40,440 | ||
18 | Accounts receivable | $2,208 | $42,648 | ||
22 | Miscellaneous expense | $250 | $42,398 | ||
28 | Mileage expense | $384 | $42,014 | ||
30 | Wages expense | $1,750 | $40,264 | ||
30 | Dividends | $2,000 | $38,264 |
Accounts receivable Account no 106
Date | PR | Account title | Debit | Credit | Balance |
Oct, 6 | Computer service revenue | $4,800 | $4,800 | ||
12 | Computer service revenue | $1,400 | $6,200 | ||
15 | Cash | $4,800 | $1,400 | ||
22 | Cash | $1,400 | 0 | ||
28 | Computer service revenue | $5,208 | $5,208 | ||
Nov 8 | Computer service revenue | $5,228 | $10,876 | ||
18 | Cash | $2,208 | $8,668 | ||
24 | Computer service revenue | $3,950 | $12,618 |
Office supplies Account no 126
Date | PR | Account title | Debit | Credit | Balance |
Oct 3 | Accounts payable | $1,420 | $1,420 | ||
Nov 5 | Cash | $1,125 | $2,545 |
Prepaid insurance Account no 128
Date | PR | Account title | Debit | Credit | Balance |
Oct 5 | Cash | $2,220 | $2,220 |
Prepaid rent Account no 131
Date | PR | Account title | Debit | Credit | Balance |
Oct 2 | Cash | $3,300 | $3,300 |
Office equipment Account no 163
Date | PR | Account title | Debit | Credit | Balance |
Oct 1 | Common stock | $8,000 | $8,000 |
Computer equipment Account no 167
Date | PR | Account title | Debit | Credit | Balance |
Oct 1 | Common stock | $20,000 | $20,000 |
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 |
Oct 3 | Computer supplies | $1,420 | $1,420 | ||
8 | Cash | $1,420 | 0 |
DividendsAccount no 319
Date | PR | Account title | Debit | Credit | Balance |
Oct 31 | Cash | $3,600 | $3,600 | ||
Nov 30 | Cash | $2,000 | $5,600 |
Common stock Account no 307
Date | PR | Account title | Debit | Credit | Balance |
Oct 1 | $73,000 | $73,000 |
Computer service revenue Account no 403
Date | PR | Account title | Debit | Credit | Balance |
Oct 6 | Accounts receivable | $4,800 | $4,800 | ||
12 | Accounts receivable | $1,400 | $6,200 | ||
28 | Accounts receivable | $5,208 | $11,408 | ||
Nov 2 | Cash | $4,633 | $16,041 | ||
8 | Accounts receivable | $5,668 | $21,709 | ||
24 | Accounts receivable | $3,950 | $25,659 |
Wages expense Account no 623
Date | PR | Account title | Debit | Credit | Balance |
Oct 31 | Cash | $875 | $875 | ||
Nov 30 | Cash | $1,750 | $2,625 |
Advertising expense Account no 655
Date | PR | Account title | Debit | Credit | Balance |
Oct 20 | Cash | $1,728 | $1,728 |
Mileage expenses Account no 676
Date | PR | Account title | Debit | Credit | Balance |
Nov 1 | Cash | $320 | $320 | ||
28 | Cash | $384 | $704 |
Miscellaneous expense Account no 677
Date | PR | Account title | Debit | Credit | Balance |
Nov 22 | Cash | $250 | $1,728 |
Repairs expense-computer Account no 684
Date | PR | Account title | Debit | Credit | Balance |
Oct 17 | Cash | $805 | $805 |
3.
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.
Answer to Problem 8GLP
Trial balance total $98,659.
Explanation of Solution
Trial balance
Account title | Debit | Credit |
Cash | $38,264 | |
Accounts receivable | $12,618 | |
Computer supplies | $2,545 | |
Prepaid insurance | $2,220 | |
Prepaid rent | $3,300 | |
Office equipment | $8,000 | |
Computer equipment | $20,000 | |
Accounts payable | 0 | |
Common stock | $73,000 | |
Dividends | $5,600 | |
Computer service revenue | $25,659 | |
Wages | $2,625 | |
Advertising expenses | $1,728 | |
Miscellaneous expense | $250 | |
Repairs expense- computer | $805 | |
Mileage expense | $704 | |
Total | $98,659 | $98,659 |
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Chapter 2 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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