1) Complete Exercise 1 from Chapter 2 Exercises and Problems.

Complete this problem in Excel.

Attached you will find Exercise 1 on page 2 of the document. Thanks!!!

Exercise 1. Recording Business Transactions in the General Journal

SHORT ANSWER QUESTIONS, EXERCISES, AND PROBLEMS DEBIT AND CREDIT REVIEW Four Steps How To Determine What To Debit Or Credit Here is a handy list of questions to help guide students through the thought process involved with determining what to debit or credit in a given transaction. Step 1: Pick ONE account that is affected by this transaction Step 2: Is this account you picked in Step 1 INCREASING or DECREASING? Step 3: What type of account is this? Here are your choices. Assets - something that has future economic benefit - Cash, Accounts Receivable, Inventory, Prepaid Insurance, Equipment, etc. Liabilities - a debt owed to others - Accounts Payable, Unearned Revenue, Notes Payable, Bonds Payable, Long-term Mortgage Payable Equity - Common Stock, Retained Earnings Revenues - Sales Revenue, Service Revenue, Sales Expenses - Cost of Goods Sold, Salaries Expense, Insurance Expense Dividends - these are dividends that the company has declared and has, or will, pay to its stockholders Step 4: Combine your answer from Step 2 and Step 3 to find whether you DEBIT or CREDIT the account you identified in Step 1. Type of account How to INCREASE How to DECREASE Assets Debit Credit Liabilities Credit Debit Equity Credit Debit Revenues Credit Debit Expenses Debit Credit Dividends Debit Credit Repeat Steps 1 through 4 for the OTHER account in this transaction. Remember: Total debits in a journal entry (transaction) must equal the total credits in that transaction You need at least one debit and one credit for every journal entry Debits are on the left, credits are on the right Exercise 1. Recording Business Transactions in the General Journal. Record entries for Bryniuk Polo Inc. in the general journal. Enter, the date, choose the account, record debit first, and write a description. Please, number the journal page 3. Accounts: 101 Cash, 111 Accounts Receivable, 121 Supplies, 141 Equipment, 145 Prepaid Rent, 147, Trucks, 201 Account Payable, 300 Common Stock, 301 Retaining Earnings, 205 Dividends Payable, 400 Fees Earned, 500 Wages Expense, 511 Utilities Expense, 515 Phone Expense Data Transaction May 1 Marco Polo, Inc., was organized as a corporation on 2015 May 1, the company issued shares (10,000 shares X $5 each) of capital stock for USD 50,000 cash to Ron Cast, his wife, and their son. The investors invested $50,000 cash and deposited it on the new business account 2 Company paid $ 5,500 cash for equipment (two computers) 5 Company paid $ 8,500 cash for a truck. 7 Company purchased supplies on account from Office XL for $1,500 11 Issued a check to Office XL for $500 (previously purchased on account); Check# 122 14 Marco Polo Inc. earned $17,000 in revenue from the customer who paid cash. 15 Marco Polo Inc. earned $15,000 in revenue from the customer who purchased services on credit. 16 Marco Polo Inc. collected $4,000 from the customer (services sold on account) 18 Company paid the secretary and two employees $7,000 for two weeks' wages 19 Issued the check # 123 for $1,350 to paid electric bill 20 Issued a check to Lucky Rent, Inc. for $1,900 to pay for office rent the months of June and July. 21 Marco Polo's board of directors approves a motion directing the corporation to pay its regular quarterly dividend of $1 per share. The following entry is made on the declaration date of May 21 assuming that 2,000 shares of common stock are outstanding. 22 Company paid dividends (2,000 X $1= $2,000). 25 Issued the check # 124 for $1,200 to paid telephone bill GENERAL JOURNAL Page 1 DATA 1 2015 2 May POST REF. DEBIT CREDIT 1 3 4 Exercise 2. Recording Business Transactions in the General Journal Record entries for Legacy Shoes Inc. in the general journal. Enter, the date, choose the account, record debit first, and write a description. Please, the number the journal page 5. Accounts: 101 Cash, 111 Accounts Receivable, 121 Supplies, 123 Inventory, 141 Equipment, 145 Prepaid rent, 147 Trucks, 201 Account Payable, 300 Common Stock, 301 Retaining Earnings, 400 Fees Earned, 500 Wages Expense, 501 Rent Expense, 511 Utilities Expense, 515 Phone Expense Data Transaction Sept. 1 Legacy Shoes, Inc., was organized as a corporation on 2015 December 1, the company issued shares (20,000 shares X $4 each) of capital stock for USD 80,000 cash to Adele Johnson, his wife, and their son. The investors invested $80,000 cash and deposited it on the new business account 2 Issued a check to Rent Commerce, Inc. for $2,700 to pay for office rent the months of September, October and November 4 Paid rent for month of September - $900 7 Company paid $ 12,500 cash for a truck. 9 Company purchased a new inventory of shoes for $9,700 (Check# 100) 11 Company purchased supplies on account from Office Perfect for $700 12 Issued a check to Office Perfect for $300 (previously purchased on account); Check# 101 15 Legacy Shoes earned $19,000 in revenue from the customer who paid cash 16 Legacy Shoes Inc. earned $25,000 in revenue from the customer who purchased services on credit. 17 Legacy Shoes Inc. collected $15,000 from the customer (services sold on account) 18 Company paid the secretary and two employees $8,000 for two weeks' wages 19 Issued the check # 102 for $1,350 to paid electric bill 27 Issued the check # 103 for $850 to paid telephone bill Exercise 3. Posting Business Transactions in the General Ledger Please, post all entries from Exercise 1 into the General Ledger accounts. Use the charts of accounts shown in Exercise 1. Exercise 4. Posting Business Transactions in the General Ledger Please, post all entries from Exercise 2 into the General Ledger accounts. Use the charts of accounts shown in Exercise 2. Exercise 5. Business Transactions in \"T\" Accounts Please, post all entries from Exercise 1 using \"T\" accounts. Use the charts of accounts shown in Exercise 1. Exercise 6. Business Transactions in \"T\" Accounts Please, post all entries from Exercise 2 using \"T\" accounts. Use the charts of accounts shown in Exercise 2