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This is about the assignment key chapter 2
Typology: Assignments
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b. From the viewpoint of Livingston Sav- ings Bank, the balance of the checking account represents a liability.
Apr. 2 Cash ..................................................................... 3, Fees Earned ................................................... 3,
Nov. 29 Accounts Receivable .......................................... 11, Fees Earned ................................................... 11,
Jan. 19 Carla Hammond, Drawing .................................. 8, Cash................................................................ 8,
Dec. 23 Matt Nehls, Drawing ........................................... 6, Cash................................................................ 6,
Using the following T account, solve for the amount of supplies expense (indi- cated by? below).
Supplies July 1 Bal. 1,950 (^)? Supplies expense Cash receipts 6,750 _____ July 31 Bal. 1,
$1,851 = $1,950 + $6,750 – Supplies expense
Supplies expense = $1,950 + $6,750 – $1,851 = $6,
Using the following T account, solve for the amount of cash receipts (indicated by ? below).
Cash Oct. 1 Bal. 23,600 (^) 315,700 Cash payments Cash receipts? _______ Oct. 31 Bal. 36,
$36,900 = $23,600 + Cash receipts – $315,
Cash receipts = $36,900 + $315,700 – $23,600 = $329,
a. The totals are equal since both the debit and credit entries were journalized and posted for $8,000.
b. The totals are unequal. The credit total is higher by $6,075 ($6,750 – $675).
c. The totals are unequal. The debit total is higher by $360 ($4,510 – $4,150).
a. The totals are unequal. The debit total is higher by $2,700 ($6,300 – $3,600).
b. The totals are equal since both the debit and credit entries were journalized and posted for $752.
c. The totals are unequal. The debit total is higher by $1,800 ($900 + $900).
Balance Sheet Accounts Income Statement Accounts
Assets Flight Equipment Purchase Deposits for Flight Equipmenta Spare Parts and Supplies Liabilities Accounts Payable Air Traffic Liabilityb Owner ’ s Equity None
Revenue Cargo and Mail Revenue Passenger Revenue Expenses Aircraft Fuel Expense Commissionsc Landing Feesd
aAdvance payments on aircraft purchases bPassenger ticket sales not yet recognized as revenue cCommissions paid to travel agents dFees paid to airports for landing rights
Account Account Number Accounts Payable 21 Accounts Receivable 12 Cash 11 Fees Earned 41 Land 13 Miscellaneous Expense 53 Supplies Expense 52 Tony Newbaurer, Capital 31 Tony Newbaurer, Drawing 32 Wages Expense 51
Ex. 2 – 3 Balance Sheet Accounts Income Statement Accounts
Note: The order of some of the accounts within the major classifications is somewhat arbitrary, as in accounts 13 – 14 and accounts 51 – 53. In a new busi- ness, the order of magnitude of balances in such accounts is not determinable in advance. The magnitude may also vary from period to period.
a. and b.
Account Debited Account Credited Transaction Type Effect Type Effect
(1) asset + owner ’ s equity + (2) asset + asset – (3) asset + asset – liability + (4) expense + asset – (5) asset + revenue + (6) liability – asset – (7) asset + asset – (8) expense + asset – (9) drawing + asset –
a. Liability — credit e. Asset — debit b. Asset — debit f. Revenue — credit c. Owner ’ s equity g. Asset — debit (Billy Eldrod, Capital) — credit h. Expense — debit d. Owner ’ s equity i. Asset — debit (Billy Eldrod, Drawing) — debit j. Expense — debit
a. credit g. debit b. debit h. credit c. debit i. credit d. credit j. debit e. credit k. credit f. credit l. debit
a. Debit (negative) balance of $16,200 ($37,100 – $1,000 – $52,300). Such a neg- ative balance means that the liabilities of Oh ’ s business exceed the assets. b. Yes. The balance sheet prepared at December 31 will balance, with Oh Kwon, Capital, being reported in the owner ’ s equity section as a negative $16,200.
a. The increase of $49,850 ($319,750 – $269,900) in the cash account does not indicate earnings of that amount. Earnings will represent the net change in all assets and liabilities from operating transactions. b. $22,500 ($72,350 – $49,850)
a. Accounts Payable July 1 X 90,300 115, July 31 39,
b. Accounts Receivable May 1 36,200 (^) 315, X May 31 41,
c. Cash Apr. 1 18,275 (^) X 279, Apr. 30 13,
a.
JOURNAL Page 19 Post. Date Description Ref. Debit Credit
2010 Aug. 7 Supplies .................................................. 15 2, Accounts Payable .............................. 21 2, Purchased supplies on account.
b., c., d.
Supplies 15
Post. Balance Date Item Ref. Dr. Cr. Dr. Cr.
2010 Aug. 1 Balance ................................ ............ ........... 1, ........... 7 .............................................. 19 2,190 ........... 3, ...........
Accounts Payable 21
2010 Aug. 1 Balance ................................ ............ ........... ........... 15, 7 .............................................. 19 ............ 2,190 ........... 17,
a.
(1) Accounts Receivable .......................................... 41, Fees Earned ................................................... 41, (2) Supplies ............................................................... 1, Accounts Payable .......................................... 1, (3) Cash ..................................................................... 39, Accounts Receivable .................................... 39, (4) Accounts Payable ............................................... 1, Cash................................................................ 1,
b.
Cash Accounts Payable (3) 39 ,150 (^) (4) 1,1 00 (4) 1,1 (^00) (2) 1,
Supplies Fees Earned (2) 1,800 (^) (1) 41,
Accounts Receivable (1) 41,730 (3) 39,
Unadjusted Trial Balance December 31, 2010
Debit Credit Balances Balances
Cash .................................................................................... 13, Accounts Receivable ......................................................... 24, Prepaid Insurance .............................................................. 8, Equipment........................................................................... 75, Accounts Payable .............................................................. 11, Unearned Rent .................................................................... 4, Tammy Gazboda, Capital ................................................... 82, Tammy Gazboda, Drawing ................................................ 10, Service Revenue................................................................. 83, Wages Expense .................................................................. 42, Advertising Expense .......................................................... 7, Miscellaneous Expense ..................................................... 1, 181,600 181,
(a) (b) (c) Error Out of Balance Difference Larger Total
A corrected trial balance would be as follows:
Unadjusted Trial Balance March 31, 2010
Debit Credit Balances Balances
Cash .................................................................................... 90, Accounts Receivable ......................................................... 196, Prepaid Insurance .............................................................. 43, Equipment........................................................................... 600, Accounts Payable .............................................................. 22, Salaries Payable ................................................................. 15, Estelle Chatman, Capital ................................................... 518, Estelle Chatman, Drawing ................................................. 72, Service Revenue................................................................. 944, Salary Expense ................................................................... 393, Advertising Expense .......................................................... 86, Miscellaneous Expense ..................................................... 17, 1,500,000 1,500,
a. Prepaid Rent........................................................ 6, Cash................................................................ 6,
b. Juanita Jacobsen, Drawing ............................... 18, Wages Expense ............................................. 18,
a.
KMART CORPORATION Income Statement For the Years Ended January 31, 2000 and 1999 (in millions)
Increase (Decrease) 2000 1999 Amount Percent
b. The horizontal analysis of Kmart Corporation reveals deteriorating operating results from 1999 to 2000. While sales increased by $1,103 million, a 3.1% in- crease, cost of sales increased by $1,547 million, a 5.5% increase. Selling, general, and administrative expenses also increased by $901 million, a 13.8% increase. The end result was that operating income decreased by $1,345 mil- lion, over a 100% decrease, and created a $45 million loss in 2000. Little over a year later, Kmart filed for bankruptcy protection. It has now emerged from bankruptcy and was merged into Sears to form the company Sears Holding Corporation.
Cash Accounts Payable (a) 30,0 00 (b) 4,5 00 (h) 1,75 0 (e) 6,0 00 (g) 7 ,5 (^00) (c) 3,0 00 (j) 1,0 00 (d) 1, 450 Bal. 5 , 250 (f) 2, (h) 1,750 Travis Fortney, Capital (i) 500 (a) 30, (l) 1,6 00 (m) 325 Professional Fees (n) 250 (g) 7, (o) 400 (k) 5, Bal. 21,725 Bal.^1 2,
Accounts Receivable Rent Expense (k) 5,200 (c) 3,
Supplies Salary Expense (d) 1,450 (l) 1,
Prepaid Insurance Blueprint Expense (f) 2,000 (j) 1,
Automobiles Automobile Expense (b) 19,500 (o) 400
Equipment Miscellaneous Expense (e) 6,000 (i) 500 (m) 325 Bal. 825
Notes Payable (n) 250 (b) 15, Bal. 14,