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PROBLEM 2-2B

(a) Date

Account Titles and Explanation

Ref.

Debit

May 1

Cash ....................................................... Owner’s Capital ............................. (Owner’s investment of cash in business)

101 301

20,000 20,000

2

No entry—not a transaction.

3

Supplies ................................................. Accounts Payable ......................... (Purchased supplies on account)

126 201

2,500

Rent Expense ........................................ Cash ............................................... (Paid office rent)

729 101

900

Accounts Receivable ............................ Service Revenue ............................ (Billed client for services performed)

112 400

3,200

Cash ....................................................... Unearned Service Revenue .......... (Received cash for future services)

101 209

3,500

Cash ....................................................... Service Revenue ............................ (Received cash for services performed)

101 400

1,200

Salaries and Wages Expense ............... Cash ............................................... (Paid salaries)

726 101

2,000

7

11

12

17

31

Copyright © 2013 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 11/e, Solutions Manual

J1 Credit

2,500

900

3,200

3,500

1,200

2,000

(For Instructor Use Only)

2-1

PROBLEM 2-2B (Continued) Date


Ref.

May 31

Accounts Payable ($2,500 X 60%)........... Cash .............................................. (Paid creditor on account)

201 101

Debit

Credit

1,500 1,500

(b) Cash Date May 1 7 12 17 31 31

Explanation

Ref. J1 J1 J1 J1 J1 J1

Accounts Receivable Date Explanation May 11

Ref. J1

Supplies Date Explanation May 3

Ref. J1

Accounts Payable Date Explanation May 3 31

Ref. J1 J1

Unearned Service Revenue Date Explanation May 12


Ref. J1

Debit 20,000

Credit 900

3,500 1,200 2,000 1,500

Debit 3,200

Debit 2,500

Debit

Credit

No. 112 Balance 3,200

Credit


Credit 2,500

No. 201 Balance 2,500 1,000

1,500

Debit


No. 101 Balance 20,000 19,100 22,600 23,800 21,800 20,300

Credit 3,500



2-2

PROBLEM 2-2B (Continued) Owner’s Capital Date Explanation May 1

Ref. J1

Service Revenue Date Explanation May 11 17

Ref. J1 J1

Salaries and Wages Expense Date Explanation May 31 Rent Expense Date Explanation May 7

(c)

Ref. J1

Ref. J1

Debit

Debit

Debit 2,000

Debit 900

Credit 20,000


Credit 3,200 1,200

No. 400 Balance 3,200 4,400

Credit


Credit

No. 729 Balance 900

IRIS BECK, CPA Trial Balance May 31, 2014 Debit Cash..................................................................... $20,300 Accounts Receivable .......................................... 3,200 Supplies .............................................................. 2,500 Accounts Payable ............................................... Unearned Service Revenue ................................ Owner’s Capital .................................................. Service Revenue ................................................. Salaries and Wages Expense ............................ 2,000 Rent Expense ...................................................... 900 $28,900



Credit

$ 1,000 3,500 20,000 4,400 $28,900


2-3

PROBLEM 2-3B

(a) & (c) Balance

(4) (7)

Cash 8,000 (1) (3) 14,000 (5) 6,000 (8) (9) 3,500

1,000 2,000 15,000 3,500 3,000

Accounts Receivable Balance 15,000 (4) 14,000 (7) 9,000 10,000

Balance (2)

Balance

Balance

(5)

(9)

Owner’s Drawings 3,000 3,000

Supplies 13,000 4,200 (6) 13,200

Service Revenue (7)

(1)

Advertising Expense 1,000 1,000

(3)

Miscellaneous Expense 2,000 2,000

(6)

Supplies Expense 4,000 4,000

15,000 15,000

4,000

Prepaid Rent 3,000 3,000 Equipment 20,000 20,000

Salaries and Wages Expense (8) 3,500 3,500

Accounts Payable Balance (2) 15,000

19,000 4,200 8,200

Owner’s Capital Balance


40,000 40,000



2-4




2-5

PROBLEM 2-3B (Continued) (b) Trans. 1. 2. 3. 4. 5. 6. 7.

8. 9.


Debit

Advertising Expense .............................. Cash ................................................

1,000

Supplies................................................... Accounts Payable ..........................

4,200

Miscellaneous Expense .......................... Cash ................................................

2,000

Cash ......................................................... Accounts Receivable .....................

14,000

Accounts Payable ................................... Cash ................................................

15,000

Supplies Expense ................................... Supplies..........................................

4,000

Cash ......................................................... Accounts Receivable .............................. Service Revenue ............................

6,000 9,000

Salaries and Wages Expense ................. Cash ................................................

3,500

Owner’s Drawings................................... Cash ................................................

3,000



Credit 1,000 4,200 2,000 14,000 15,000 4,000

15,000 3,500 3,000


2-6

PROBLEM 2-3B (Continued) (d)

VIAN REPAIR SERVICE Trial Balance January 31, 2014 Cash .................................................................... Accounts Receivable ......................................... Supplies .............................................................. Prepaid Rent ....................................................... Equipment........................................................... Accounts Payable .............................................. Owner’s Capital .................................................. Owner’s Drawings .............................................. Service Revenue................................................. Advertising Expense .......................................... Miscellaneous Expense ..................................... Salaries and Wages Expense ............................


Debit $ 3,500 10,000 17,200 3,000 20,000

Credit

$ 8,200 40,000 3,000 15,000 1,000 2,000 3,500 $63,200


$63,200


2-7