Question 1

Listed below are accounts to use for transactions a) through d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers) in the appropriate box.
1. Cash
2. Accounts Receivable
3. Office Supplies
4. Land
5. Interest Receivable
6. Building
7. Accumulated Depreciation-Building
8. Depreciation Expense-Building
9. Accounts Payable
10. Interest Payable
11. Insurance Payable
12. Utilities Expense
13. Notes Payable
14. Prepaid Insurance
15. Service Revenue
16. Common Stock
17. Insurance Expense
18. Interest Expense
19. Office Supplies Expense
20. Unearned Service Revenue
21. Dividends $$\begin{array} { | l | l | l | } 
\hline \text { Transactions } & \text { Accounts) Debited } & \text { Accounts) Credited } \
\hline \begin{array} { l } 
\text { a. Utility bill is received; payment } \
\text { will be made in } 10 \text { days. }
\end{array} & & \
\hline \begin{array} { l } 
\text { o. Paid the utility bill previously } \
\text { recorded in transaction a). }
\end{array} & & \
\hline \begin{array} { l } 
\text { c. Bought a three-year insurance } \
\text { policy and paid in full. }
\end{array} & & \
\hline \begin{array} { l } 
\text { d. Received } \$ 7,000 \text { from a contract } \
\text { to perform accounting services } \
\text { over the next two years. }
\end{array} & & \
\hline
\end{array}$$

Accepted Answer

The answer of Listed below are accounts to use for...

Question 2

The chart of accounts classifies the accounts to make identification of the accounts easier. Describe the numbering system businesses use in setting up the chart of accounts.

Accepted Answer

The answer of The chart of accounts classifies the accounts...

Question 3

Organize the following accounts into the usual sequence of a chart of accounts.
Miscellaneous Expense Accounts Payable Accounts Receivable Cash
Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

Accepted Answer

The answer of Organize the following accounts into the usual...

Question 4

On October 17, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Provide the journal entry for this transaction.

Accepted Answer

The answer of On October 17, Nikle Company purchased a...

Question 5

Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Common Stock; Dividends; Professional Fees; and Operating Expenses.
a) In the T accounts, record the following transactions of Potter Pool Services for June, identifying each entry by number:
1) Shareholders invested $12,500 cash in the business by purchasing common stock.
2) Purchased supplies on account, $6,250.
3) Paid operating expenses, $5,500.
4) Billed clients for fees, $7,440.
5) Received cash from cash clients, $4,700.
6) Paid creditors on account, $1,400.
7) Received $3,100 from clients on account.
8) Paid $1,500 cash dividends.
b) Prepare a trial balance as of June 30 for Potter Pool Services.
c) Assuming that supplies expense which has not been recorded) amounts to $1,500 for June, determine the following:
1) Net income for the month.
2) Stockholders' equity as of June 30.

Accepted Answer

The answer of Set up T accounts for Cash; Accounts...

Question 6

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice.
a) Provide the journal entry for the purchase on account.
b) Provide the journal entry for the payment of the invoice.

Accepted Answer

The answer of On October 10, Nikle Company purchased supplies...

Question 7

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:
a) In the first column at the right, indicate the nature of each account, using the following abbreviations:
Asset - A Revenue - R
Liability - L Expense - E
None of the above - N
b) In the second column, indicate the increase side of each account by inserting Dr. or Cr.

Accepted Answer

The answer of Selected accounts from the ledger of Garrison...

Question 8

On August 30, JumpStart incurred the following expenses:
Payment to the landlord for August rent, $2,300
Payment to the Gas & Electric Company for August's bill, $525 Payment of employee wages for the last half of August, $1,750 Payment of shopping center's parking lot cleaning fee, $275
Journalize these payments as one compound journal entry.

Accepted Answer

The answer of On August 30, JumpStart incurred the following...

Question 9

On January 7, stockholders invest $45,000 to initiate the operation of a business, JumpStart. Provide the journal entry for this transaction.

Accepted Answer

The answer of On January 7, stockholders invest $45,000 to...

Question 10

All nine transactions for Dalton Survey Company for September, the first month of operations, are recorded in the following T accounts:  ​  ​  ​  ​  ​
Indicate the following for each debit and each credit:
a)The type of account affected asset, liability, equity, dividends, revenue, or expense).
b)The effect on the account, using "+" for increase and "−" for decrease.
​
Present your answers in the following form:

Accepted Answer

The answer of All nine transactions for Dalton Survey Company...

Question 11

On September 1, Erika Company purchased land for $47,500 cash. Provide the journal entry for this transaction.

Accepted Answer

The answer of On September 1, Erika Company purchased land...

Question 12

On January 8, stockholders transfer ownership of several pieces of office equipment to the new business, JumpStart, for common stock. When new, these items were worth $72,500. The fair market value of the equipment is $60,000. Journalize this transfer.

Accepted Answer

The answer of On January 8, stockholders transfer ownership of...

Question 13

Calculate the following:
a) Determine the cash receipts for April based on the following data: Cash payments during April $\quad \$ 63,000$
Cash account balance, April $1 \quad 25,500$
Cash account balance, April $30 \quad 31,750$ b) Determine the cash received from customers on account during April based on the following data:
Accounts receivable account balance, April 1 $22,500
Accounts receivable account balance, April 30 15,250
Fees billed to customers during April 45,000

Accepted Answer

The answer of Calculate the following:
a) Determine the cash receipts...

Question 14

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

Accepted Answer

The answer of On June 1, the cash account balance...

Question 15

The following two situations are independent of each other.
1. On June 1, the cash account balance was $45,750. During June, cash payments totaled $243,910, and the June 30 balance was $53,200. Determine the cash receipts during June and show your calculation.
2. On March 1, the supplies account balance was $1,800. During March, supplies of $2,450 were purchased, and $630 of supplies were on hand as of March 31. Determine the supplies expense for March and show your calculation.

Accepted Answer

The answer of The following two situations are independent of...

Question 16

On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cash payments totaled $375,880. Determine the cash balance on January 1.

Accepted Answer

The answer of On January 31, the cash account balance...

Question 17

On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use for transactions a) through d), each identified by a number. Following this list are the transactions that occurred during the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers) in the appropriate box.
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Common Stock
10. Dividends
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense

Accepted Answer

The answer of On January 1, Merry Walker and other...

Question 18

On November 1, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.

Accepted Answer

The answer of On November 1, Nikle Company made a...

Question 19

On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use for transactions a) through f), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers) in the appropriate box.
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Common Stock
10. Dividends
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense $$\begin{array} { | l | l | l | } 
\hline \text { Transactions } & \text { Accounts) Debited } & \text { Accounts) Credited } \
\hline \begin{array} { l } 
\text { a. Recorded jobs completed on } \
\text { account and sent invoices to } \
\text { customers. }
\end{array} & & \
\hline \text { b. Received an invoice for truck } & & \
\text { expenses to be paid in February. } & & \
\hline \text { c. Paid utilities expense } & & \
\hline \begin{array} { l } 
\text { d. Received cash from customers on } \
\text { account. }
\end{array} & & \
\hline \text { e. Paid employee wages. } & & \
\hline \text { f. Paid dividends to stockholders. } & & \
\hline
\end{array}$$

Accepted Answer

The answer of On January 1, Merry Walker and other...

Question 20

On January 1, Merry Walker and other stockholders established a catering service. Listed below are accounts to use for transactions a) through e), each identified by a number. Following this list are the transactions that occurred in Walker's first month of operation. You are to indicate for each transaction the accounts that should be debited and credited by placing the account numbers) in the appropriate box.
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Common Stock
10. Dividends
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense

Accepted Answer

The answer of On January 1, Merry Walker and other...

Quiz 2: Analyzing Transactions

The chart of accounts classifies the accounts to make identification of the accounts easier. Describe the numbering system businesses use in setting up the chart of accounts.

Organize the following accounts into the usual sequence of a chart of accounts. Miscellaneous Expense Accounts Payable Accounts Receivable Cash Common Stock Fees Earned Prepaid Rent Salaries Expense Unearned Revenue Dividends

On October 17, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Provide the journal entry for this transaction.

On October 10, Nikle Company purchased supplies for $1,800 on account. On October 25, Nikle Company paid the invoice. a) Provide the journal entry for the purchase on account. b) Provide the journal entry for the payment of the invoice.

On January 7, stockholders invest $45,000 to initiate the operation of a business, JumpStart. Provide the journal entry for this transaction.

On September 1, Erika Company purchased land for $47,500 cash. Provide the journal entry for this transaction.

On January 8, stockholders transfer ownership of several pieces of office equipment to the new business, JumpStart, for common stock. When new, these items were worth $72,500. The fair market value of the equipment is $60,000. Journalize this transfer.

On June 1, the cash account balance was $96,750. During June, cash receipts totaled $305,000 and the June 30 balance was $75,880. Determine the cash payments made during June.

On January 31, the cash account balance was $96,750. During January, cash receipts totaled $305,000 and cash payments totaled $375,880. Determine the cash balance on January 1.

On November 1, Nikle Company made a cash payment of $200,000 on a note payable that was generated in the purchase of a building and land. Provide the journal entry for this transaction.