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Brief Exercise 2-1 For each of the following accounts, indicate the effects of a debit and a credit on the accounts and the normal balance of the account. Debit Effect Credit Effect Normal Balance 1. Accounts Payable 2. Advertising Expense 3. Service Revenue 4. Accounts Receivable 5. Owner's Capital 6. Owner's Drawings Brief Exercise 2-3 Transactions for the George Lynch Company for the month of June are presented below. George Lynch invests $4,010 cash in a small welding business of which he is the sole proprietor. 2 Purchases equipment on account for $2,382. 3 $788 cash is paid to landlord for June rent. 12 Sends a bill to M. Rodero for $396 for welding work performed on account. June 1 Date Account Titles and Explanation Debit Credit Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Brief Exercise 2-7 Selected transactions for the Joel Berges Company are presented in journal form below. Date May 5 12 15 Account Titles and Explanation Accounts Receivable Service Revenue (Billed for services performed) Cash Accounts Receivable (Received cash in payment of account) Cash Service Revenue (Received cash for services performed) Ref. Debit Credit 4,893 4,893 1,537 1,537 3,807 3,807 Post the transactions to T-accounts and determine each account's ending balance. (Post entries in the order presented in the problem statement.) Cash Accounts Receivable Service Revenue Brief Exercise 2-10 An inexperienced bookkeeper prepared the following trial balance. HUEWITT COMPANY Trial Balance December 31, 2014 Debit $12,844 Cash Prepaid Insurance Accounts Payable Unearned Service Revenue Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Rent Expense Credit $3,709 5,253 4,453 11,044 6,753 27,644 20,644 4,444 $37,941 $58,847 Prepare a correct trial balance, assuming all account balances are normal. HUEWITT COMPANY Trial Balance December 31, 2014 Debit Credit $ $ $ Total $ Exercise 2-7 (Part Level Submission) Kahl Enterprises had the following selected transactions. 1 . 2 . 3 . 4 . Jo Kahl invested $4,358 cash in the business. Paid office rent of $1,035. Performed consulting services and billed a client $5,666. Jo Kahl withdrew $817 cash for personal use. (a) Indicate the effect each transaction has on the accounting equation, using plus and minus signs. Assets = 1. = 2. = 3. = 4. = Exercise 2-8 Liabilities + Owner's Equity Janet Miyoshi has prepared the following list of statements about the general ledger. Identify each statement as true or false. 1 The general ledger contains all the asset and liability accounts but no owner's equity . accounts. 2 . The general ledger is sometimes referred to as simply the ledger. 3 . The accounts in the general ledger are arranged in alphabetical order. 4 . Each account in the general ledger is numbered for easier identification. 5 . The general ledger is a book of original entry. Exercise 2-10 (Part Level Submission) The T-accounts below summarize the ledger of Zimmer Landscaping Company at the end of the first month of operations. Cash No. 101 4/1 11,820 4/15 2,133 4/12 737 4/25 1,337 4/29 591 4/30 2,465 Accounts Receivable No. 112 4/7 3,583 4/29 591 Supplies No. 126 4/4 2,504 Accounts Payable No. 201 4/25 1,337 4/4 Unearned Service Revenue 2,504 No. 209 4/30 2,465 Owner's Capital No. 301 4/1 11,820 Service Revenue No. 400 4/7 4/12 3,583 737 Salaries and Wages Expense No. 726 4/15 2,133 (a) Account Titles and Prepare the complete general journal from which the postings to Cash were made. (Record Date Debit Credit entries in the Explanation order presented in the T-Accounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)