P 2-3A Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2009 (the end of its fiscal year). Trial Balance of BYTE REPAIR SERVICE as at December 31, 2009 Cash S 8,000 Accounts Receivable 15.000 Parts Inventory 13,000 Prepaid Rent 3,000 Shop Equipment 21,000 Accounts Payable $19,000 Jack Shellenkamp, Capital 41,000 S60,000 $60,000 Summarized transactions for January 2010 were as follows: 1. Advertising costs, paid in cash, $1,000. 2. Additional repair parts inventory acquired on account $4,000. 3. Miscellaneous expenses, paid in cash, $2,000. 4. Cash collected from customers in payment of accounts receivable $14,000. 5. Cash paid to creditors for accounts payable due $15,000. 6. Repair parts used during January $4,000. (Hint: Debit this to Repair Parts Expense.) 7. Repair services performed during January: for cash $6,000; on account $9,000. 8. Wages for January, paid in cash, $3,000. 9. Jack's drawings during January were $3,000. Instructions (a) Open T accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2010. (b) Prepare journal entries to record each of the January transactions. (Omit explanations.) (c) Post the journal entries to the accounts in the ledger (Add accounts as needed.) (d) Prepare a trial balance as of January 31, 2010. P 2-2A Jane Kent is a licensed CPA. During the first month of operations of her business, the following events and transactions occurred. May 1 Kent invested $25,000 cash. 2 Hired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $2,500 of supplies on account from Read Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,100 for services provided. 12 Received $3,500 advance on a management consulting engagement. 17 Received cash of $1,200 for services completed for H. Arnold Co. 31 Paid secretary-receptionist $2,000 salary for the month. 31 Paid 40% of balance due Read Supply Company. Jane 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. 301 Jane Kent, Capital: 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, 2010. B 7 Quell Introdux BibMEX * Untitled X 5 s GyX conter X ZOFSh/WOXUE Achable7Ayla gF5BrBpbw XIXHo/edit Add-ons Help Last edit was 13 minutes ago Times New 13 12 + BIVA OD 71 10 11 12 14 15 17 101 E 9-1 Presented below are selected transactions of Pale Force Company. Pale Force sells in large quantities to other companies and also sells its product in a small retail outlet March 1 Sold merchandise on account to CC Company for $3,000, terms 2/10, 1/30. 3 CC Company returned merchandise worth $500 to Pale Force. 9 Pale Force collected the amount due from CC Company from the March 1 sale. 15 Pale Force sold merchandise for $400 in its retail outlet. The customer used his Pale Force credit card. 31 Pale Force added 1.5% monthly interest to the customer's credit card balance. Instructions Prepare journal entries for the transactions above. E 93 The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000 Instructions (a) If Hixson uses the direct write off method to account for uncollectible accounts. journalize the adjusting entry at December 31, assuming Hixson determines that Fell's $1,400 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, Journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable. (c) Ir Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance. Journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable. P 7-1A Grider Company's chart of accounts includes the following selected accounts. 101 Cash 401 Sales 112 Accounts Receivable 414 Sales Discounts 120 Merchandise Inventory 505 Cost of Goods Sold 301 O. Grider, Capital On April 1 the accounts receivable ledger of Grider Company showed the following balances: Ogden S1,550. Chelsea $1,200, Eggleston Co. $2,900, and Baez $1,800. The April transactions involving the receipt of cash were as follows. Apr. 1 The owner, O. Grider, invested additional cash in the business $7,200. 4 Received check for payment of account from Baez less 2% cash discount. 5 Received check for $920 in payment of invoice no. 307 from Eggleston Co. & Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was $4,347 10 Received check for $600 in payment of invoice no. 309 from Ogden. 11 Received cash refund from a supplier for damaged merchandise $740. 23 Received check for $1.500 in payment of invoice no. 310 from Eggleston Co. 29 Received check for payment of account from Chelsea. Instructions (a) Journalize the transactions above in a six column cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Merchandise Inventory Cr. Foot and cross foot the journal. (b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (c) Prove the agreement of the control account and subsidiary account balances. P 7-2A Ming Company's chart of accounts includes the following selected accounts. 101 Cash 201 Accounts Payable 120 Merchandise Inventory 306 T. Ming, Drawing 130 Prepaid Insurance 505 Cost of Goods Sold 157 Equipment On October I the accounts payable ledger of Ming Company showed the following balances: Bovary Company $2,700, Nyman Co. $2,500, Pyron Co. $1.800, and Sims Company $3,700. The October transactions involving the payment of cash were as follows. Oct. 1 Purchased merchandise, check no. 63, $300. 3 Purchased equipment, check no. 64, $800. 5 Paid Bovary Company balance due of $2,700, less 2% discount, check no. 65, $2,646. 10 Purchased merchandise, check no. 66, $2,250. 15 Paid Pyron Co. balance due of S1,800, check no. 67. 16 T. Ming, the owner, pays his personal insurance premium of $400, check no. 68. 19 Paid Nyman Co.in full for invoice no.610,91,600 less 2% cash discount, check no 69, $1,568 29 Paid Sims Company in full for invoice no. 264, $2,500, check no. 70. Instructions (a) Journalize the transactions above in a four column cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr., and Cash Cr. Foot and cross foot the journal. (b) Insert the beginning balances in the Accounts Payable control and subsidiary accounts, and post the October transactions to these accounts. (c) Prove the agreement of the control account and the subsidiary account balances