P2-13A The ledger of Super Delivery Service has the following account balances at the company's year end, August 31, 2017: $ 3,250 4,226 $ 1,549 5,698 883 Accounts Payable Accounts Receivable Cash Equipment Gas Expense Insurance Expense Interest Expense Notes Payable Prepaid Insurance 49,660 12,177 2,016 1,006 19,480 358 Repairs Expense Salaries Expense Salaries Payable Service Revenue Supplies Supplies Expense T. Rowe, Capital T. Rowe, Drawings Unearned Revenue 37,800 299 2,606 48,840 25,000 643 Instructions (a) Prepare a trial balance, with the accounts arranged in ledger (financial statement) order, as illustrated in the chapter, and determine the missing amount for Cash. (b) Prepare an income statement, statement of owner's equity, and balance sheet. TAKING IT FURTHER The owner, Tom Rowe, is not sure how much cash he can withdraw from the company each year. After reviewing the financial statements, comment on the amount he withdrew this year. P2-14A A co-op student, working for Insidz Co., recorded the company's transactions for the month. At the end A of the month, the owner of Insidz Co. reviewed the student's work and had some questions about the following tr transactions: 1. Insidz Co. received $425 cash from a customer on account, which was recorded as a debit to Cash of $425 and a credit to Accounts Receivable of $425. 2. A service provided for cash was posted as a debit to Cash of $2,000 and a credit to Service Revenue of $2,000. 3. A credit of $750 for interest earned was neither recorded nor posted. The debit was recorded and posted correctly. 4. The debit to record $1,000 of drawings was posted to the Salary Expense account. The credit was posted correctly. 5. Services of $325 were provided to a customer on account. The co-op student debited Accounts Receivable $325 and credited Unearned Revenue $325. 6. A purchase of supplies for $770 on account was recorded as a credit to Supplies and a credit to Accounts Payable. ingructions (a) Complete the table. Identify (1) the type of account as asset, liability, or owner's equity (for owner's equity accounts, also identify if it is a capital, drawings, revenue, or expense account); (2) what financial statement it is presented on; and (3) the normal balance of the account. The first one has been done for you as an example, (b) Explain why the normal balance for each of the different types of accounts is either a debitor credit. Refer to the accounting equation in your explanation 2- In the first month of business, Jakmak Interior Design Company had the following transactions: Mar. 5 The owner, Jackie Mackenzie, invested $10,220 cash in the business. 7 Paid $350 cash for advertising the launch of the business. 9 Purchased supplies on account for $1,050. 11 Purchased a used car for $8,770 cash, for use in the business 13 Billed customers $1.520 for services performed. 25 Borrowed $10,880 from the bank and signed a note payable. 26 Received $1,140 cash from customers billed on March 13. 29 Paid for the supplies purchased on March 9. 30 Received $800 cash from a customer for services to be performed in April. 31 Paid Jackie MacKenzie $1,720 cash for her personal use. Instructions For each transaction indicate: (a) the basic type of account debited and credited (asset, liability, or owner's equity): (b) the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); and (c) whether cach account is increased (+) or decreased ( - ), and by what amount Use the following format to complete the exercise; the first one has been done for you as an example: Account Debited Account Credited (b) Basic Specific Basic Specific Date Type Account Effect Type Account Effect Mar. 5 Asset Cash +10,220 Owner's J. Mackenzie, +10,220 Equity Capital E2-5 Using the data in E2-4 for Jakmak Interior Design Company, journalize the transactions. (b) P2-13A The ledger of Super Delivery Service has the following account balances at the company's year end, August 31, 2017: $ 3,250 4,226 $ 1,549 5,698 883 Accounts Payable Accounts Receivable Cash Equipment Gas Expense Insurance Expense Interest Expense Notes Payable Prepaid Insurance 49,660 12,177 2,016 1,006 19,480 358 Repairs Expense Salaries Expense Salaries Payable Service Revenue Supplies Supplies Expense T. Rowe, Capital T. Rowe, Drawings Unearned Revenue 37,800 299 2,606 48,840 25,000 643 Instructions (a) Prepare a trial balance, with the accounts arranged in ledger (financial statement) order, as illustrated in the chapter, and determine the missing amount for Cash. (b) Prepare an income statement, statement of owner's equity, and balance sheet. TAKING IT FURTHER The owner, Tom Rowe, is not sure how much cash he can withdraw from the company each year. After reviewing the financial statements, comment on the amount he withdrew this year. P2-14A A co-op student, working for Insidz Co., recorded the company's transactions for the month. At the end A of the month, the owner of Insidz Co. reviewed the student's work and had some questions about the following tr transactions: 1. Insidz Co. received $425 cash from a customer on account, which was recorded as a debit to Cash of $425 and a credit to Accounts Receivable of $425. 2. A service provided for cash was posted as a debit to Cash of $2,000 and a credit to Service Revenue of $2,000. 3. A credit of $750 for interest earned was neither recorded nor posted. The debit was recorded and posted correctly. 4. The debit to record $1,000 of drawings was posted to the Salary Expense account. The credit was posted correctly. 5. Services of $325 were provided to a customer on account. The co-op student debited Accounts Receivable $325 and credited Unearned Revenue $325. 6. A purchase of supplies for $770 on account was recorded as a credit to Supplies and a credit to Accounts Payable. ingructions (a) Complete the table. Identify (1) the type of account as asset, liability, or owner's equity (for owner's equity accounts, also identify if it is a capital, drawings, revenue, or expense account); (2) what financial statement it is presented on; and (3) the normal balance of the account. The first one has been done for you as an example, (b) Explain why the normal balance for each of the different types of accounts is either a debitor credit. Refer to the accounting equation in your explanation 2- In the first month of business, Jakmak Interior Design Company had the following transactions: Mar. 5 The owner, Jackie Mackenzie, invested $10,220 cash in the business. 7 Paid $350 cash for advertising the launch of the business. 9 Purchased supplies on account for $1,050. 11 Purchased a used car for $8,770 cash, for use in the business 13 Billed customers $1.520 for services performed. 25 Borrowed $10,880 from the bank and signed a note payable. 26 Received $1,140 cash from customers billed on March 13. 29 Paid for the supplies purchased on March 9. 30 Received $800 cash from a customer for services to be performed in April. 31 Paid Jackie MacKenzie $1,720 cash for her personal use. Instructions For each transaction indicate: (a) the basic type of account debited and credited (asset, liability, or owner's equity): (b) the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); and (c) whether cach account is increased (+) or decreased ( - ), and by what amount Use the following format to complete the exercise; the first one has been done for you as an example: Account Debited Account Credited (b) Basic Specific Basic Specific Date Type Account Effect Type Account Effect Mar. 5 Asset Cash +10,220 Owner's J. Mackenzie, +10,220 Equity Capital E2-5 Using the data in E2-4 for Jakmak Interior Design Company, journalize the transactions. (b)