Question 1

On January 7, stockholders invest $45,000 in JumpStart in exchange for common stock. Provide the journal entry for this transaction.

Accepted Answer

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

Question 2

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)Stockholders 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 3

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Debit posted as credit, or vice versa.
A)Trial balance preparation errors
B)Account balance errors
C)Posting errors

Accepted Answer

Debit posted as credit, or vice versa is a common type of posting error.

Question 4

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 number(s) in the appropriate box.
1.Cash
2.Accounts Receivable
3.Office Supplies
4.Land
5.Interest Receivable
6.Building
7.Truck
8.Equipment
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

Accepted Answer

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

Question 5

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 number(s) 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...

Question 6

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 7

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 8

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 9

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 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

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Amount incorrectly entered on trial balance.
A)Trial balance preparation errors
B)Account balance errors
C)Posting errors

Accepted Answer

Trial balance preparation errors occur when amounts are incorrectly entered on the trial balance, which is the process of compiling the balances of all ledger accounts to ensure that debits equal credits. This type of error specifically relates to the preparation phase of the trial balance, not the initial journalizing or posting of transactions to ledger accounts.

Question 12

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 13

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 14

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 number(s) 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 15

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 16

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

Accepted Answer

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

Question 17

Calculate the following:

Accepted Answer

The answer of Calculate the following: ...

Question 18

On December 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 December 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 number(s) 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...

Question 20

Several types of errors can be made during the journalizing and posting process. Match the following with their best description.
-Balance entered in wrong trial balance column or omitted.
A)Trial balance preparation errors
B)Account balance errors
C)Posting errors

Accepted Answer

The answer of Several types of errors can be made...

Quiz 2: Analyzing Transactions

On January 7, stockholders invest $45,000 in JumpStart in exchange for common stock. Provide the journal entry for this transaction.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Debit posted as credit, or vice versa. A)Trial balance preparation errors B)Account balance errors C)Posting errors

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 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.

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.

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.

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Amount incorrectly entered on trial balance. A)Trial balance preparation errors B)Account balance errors C)Posting errors

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 September 1, Erika Company purchased land for $47,500 cash. 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.

Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:

Calculate the following:

On December 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.​

Several types of errors can be made during the journalizing and posting process. Match the following with their best description. -Balance entered in wrong trial balance column or omitted. A)Trial balance preparation errors B)Account balance errors C)Posting errors

On December 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.