Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can I get an answer to the last question in this document I have to submit by 11;59 Chapter 3 Additional Exercises 3-1 (SO 2)

can I get an answer to the last question in this document I have to submit by 11;59

image text in transcribed Chapter 3 Additional Exercises 3-1 (SO 2) For each of the following accounts indicate (a) the effect of a debit or a credit on the account and (b) the normal balance. 1. Accounts Payable 2. Advertising Expense 3. Service Revenue 4. Accounts Receivable 5. Common Stock 6. Dividends 3-2 (SO 2) Transactions for Doris Wang Company for the month of June are presented below. Identify the accounts to be debited and credited for each transaction, and journalize the transactions. June 1 Doris Wang invests $12,000 cash in exchange for shares of common stock in a small printing corporation. 2 Buys equipment on account for $7,500. 3 Pays $800 to landlord for June rent. 12 Bills B. J. Chang $400 for printing work done. 3-3 (SO 4) Jim Carrey Corporation has the following transactions during August of the current year. Indicate (a) the basic analysis and (b) the debit-credit analysis illustrated on pages 90-93 of the text. Journalize the transactions. Aug. 1 Opens an office as a financial advisor, investing $15,000 in cash in exchange for common stock. 4 Pays insurance in advance for 6 months, $2,100. 16 Receives $1,000 from clients for services rendered. 27 Pays secretary $900 salary. 3-4 (SO 6) Selected transactions for Fernholz Company are presented in journal form below. Post the transactions to T accounts. J1 Date Account Titles and Explanation Ref. Debit Credit May 5 Accounts Receivable 6,800 Service Revenue 6,800 12 Cash 4,100 Accounts Receivable 4,100 15 Cash 3,000 Service Revenue 3,000 3-5 (SO 7) An inexperienced bookkeeper prepared the following trial balance that does not balance. Prepare a correct trial balance, assuming all account balances are normal. CHOCOLATE DREAMS Trial Balance December 31, 2008 Debit Cash $31,600 Prepaid Insurance Accounts Payable Unearned Fees 5,800 Common Stock Dividends Service Revenue Salaries Expense 19,000 Rent Expense $56,400 3-6 Credit $ 3,900 7,500 20,000 5,000 29,200 3,000 $68,600 (SO 6, 7) Selected transactions from the journal of Ness Events are presented below. Date Account Titles and Explanation Aug. 1 Cash Common Stock (Investment of cash for stock) 10 Cash Service Revenue (Received cash for services provided) 12 Office Equipment Cash Notes Payable (Purchased office equipment for cash and notes payable) 25 Accounts Receivable Service Revenue (Billed for services provided) 31 Cash Accounts Receivable (Receipt of cash on account) Instructions (a) Post the transactions to T accounts. (b) Prepare a trial balance at August 31, 2008. Ref. Debit 9,600 Credit 9,600 2,800 2,800 4,500 2,000 2,500 1,650 1,650 1,200 3-7 (SO 4, 7) The T accounts below summarize the ledger of Quick Response Catering Corporation at the end of the first month of operations: 4/1 4/12 4/29 4/30 Cash 10,000 4/15 600 4/25 900 600 No. 101 450 1,100 Unearned Revenue 4/30 No. 209 600 4/7 Accounts Receivable 3,200 4/29 No. 112 900 Common Stock 4/1 No. 311 10,000 No. 126 4/4 Supplies 1,800 Service Revenue 4/7 4/12 No. 400 3,200 600 4/25 Accounts Payable 1,100 4/4 No. 201 1,800 Salaries Expense 4/15 No. 726 450 Instructions (a) Prepare the complete general journal entries (including explanations) from which the postings to Cash were made. (b) Prepare a trial balance at April 30, 2008. 3-8 (SO 2, 4) Evergreen Park Corp. was started on April 1 by Susan and Bill Helms. The following selected events and transactions occurred during April. Apr. 1 Invested $100,000 cash in the business in exchange for common stock. 4 Purchased land costing $35,000 for cash. 8 Incurred advertising expense of $2,100 on account. 11 Paid salaries to employees $1,200. 12 Hired park manager at a salary of $4,500 per month, effective May 1. 13 Paid $1,800 for a one-year insurance policy. 17 Declared and paid a $900 cash dividend. 20 Received $7,200 in cash for admission fees. 25 Sold 100 coupon books for $30 each. Each book contains six coupons that entitle the holder to one admission to the park. 30 Received $6,200 in cash admission fees. 30 Paid $900 on account for advertising incurred on April 8. Evergreen uses the following accounts: Cash; Prepaid Insurance; Land; Accounts Payable; Unearned Admissions; Common Stock; Dividends; Admission Revenue; Advertising Expense; and Salaries Expense. Instructions Journalize the April transactions. 3-9 (SO 2, 4, 6, 7) Lauren Kim-Bae is a licensed incorporated CPA. During the first month of operations of the business, the following events and transactions occurred. May 1 Invested $39,000 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $1,800 per month. 3 Purchased $900 of supplies on account from Frost Supply Company. 7 Paid office rent of $1,200 for the month. 11 Completed a tax assignment and billed client $1,700 for services rendered. 12 Received $5,000 advance on a management consulting engagement. 17 Received cash of $1,500 for services completed for Mutter Company. 31 Paid secretary-receptionist $1,800 salary for the month. 31 Paid 40% of balance due Frost Supply Company. The company uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense. Instructions (a) Journalize the transactions. (b) Post to the ledger accounts. (c) Prepare a trial balance on May 31, 2008. 3-10 (SO 2, 4, 6, 7) JarJar Theater Inc. opened on April 1. All facilities were completed on March 31. At this time, the ledger showed: No. 101 Cash $10,000; No. 140 Land $10,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000; No. 157 Equipment $6,000; No. 201 Accounts Payable $2,000; No. 275 Mortgage Payable $9,000; and No. 311 Common Stock $23,000. During April, the following events and transactions occurred. Apr. 2 Paid film rental of $1,000 on first movie. 3 Ordered two additional films at $500 each. 9 Received $2,100 cash from admissions. 10 Made $3,000 payment on mortgage and $500 on accounts payable. 11 Hired Tim Rowe to operate concession stand. Tim Rowe to pay JarJar Theater 16 percent of gross receipts payable monthly. 12 Paid advertising expenses $600. 20 Received one of the films ordered on April 3 and was billed $500. The film will be shown in April. 25 Received $4,600 cash from admissions. 29 Paid salaries $1,900. 30 Received statement from Tim Rowe showing gross receipts of $1,500 and the balance due to JarJar Theater of $240 for April. Tim Rowe paid onehalf of the balance due and will remit the remainder on May 5. 30 Prepaid $800 rental on special film to be run in May. In addition to the accounts identified above, the chart of accounts shows: No. 112 Accounts Receivable, No. 136 Prepaid Rentals, No. 405 Admission Revenue, No. 406 Concession Revenue, No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense. Instructions (a) Enter the beginning balances in the ledger as of April 1. Insert a check mark () in the reference column of the ledger for the beginning balance. (b) Journalize the April transactions. (c) Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal. (d) Prepare a trial balance on April 30, 2008

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jamie Pratt, Michael F Peters

11th Edition

1119745322, 978-1119745327

More Books

Students also viewed these Accounting questions

Question

Write down the eutectoid reaction in the Fe-Fe 3 C system.

Answered: 1 week ago

Question

=+DJIA on different days of the week? Explain.

Answered: 1 week ago