College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 1, Problem 5PB
In October, A. Nguyen established an apartment rental service. The account headings are presented below. Transactions completed during the month of October follow.
- a. Nguyen deposited $25,000 in a bank account in the name of the business.
- b. Paid the rent for the month, $1,200, Ck. No. 2015.
- c. Bought supplies on account, $225.
- d. Bought a truck for $ 18,000, paying $1,000 in cash and placing the remainder on account
- e. Bought Insurance for the truck for the yean $1,400, Ck. No. 2016.
- f. Sold services on account $5,000.
- g. Bought office equipment on account from Henry Office Supply, $2,300.
- h. Sold services for cash for the first half of the month, $6,050.
- i. Received and paid the bill for utilities, $ 150, Ck. No. 2017.
- j. Received a bill for gas and oil for the truck. $80.
- k. Paid wages to the employees, $1,400, Ck Nos. 2018–2020.
- l. Sold services for cash for the remainder of the month, $4,200.
- m. Nguyen withdrew cash for personal use, $2,000, Ck. No. 2021.
Required
- 1. Record the transactions and the balance after each transaction.
- 2. Total the left side of the
accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, reanalyze each transaction.
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S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:-
2020
July 3 He purchases shop fittings for sh. 2,500 and pays by cheque.
July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000.
July 6 He buys stock for Sh. 1,500 and pays through bank.
July 8 He sells goods for cash Sh.1,000.
July 10 Buys goods on credit from XY & Co. for Sh. 1,200
July 12 Sells goods to A. Smith for Sh. 900 on credit
July 13 Pays wages Sh. 120 by cash
July 14 A. Smith returns goods worth Sh. 200
July 15 Pays to AB & Co. Sh. 3,000 by cheque
July 17 Goods returned to XY & Co. amounting to Sh. 350
July 21 Receives from A. Smith a cheque for Sh. 700
July 25 Sells goods for cash Sh. 300.
July 30…
S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:-
2020
July 3 He purchases shop fittings for sh. 2,500 and pays by cheque.
July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000.
July 6 He buys stock for Sh. 1,500 and pays through bank.
July 8 He sells goods for cash Sh.1,000.
July 10 Buys goods on credit from XY & Co. for Sh. 1,200
July 12 Sells goods to A. Smith for Sh. 900 on credit
July 13 Pays wages Sh. 120 by cash
July 14 A. Smith returns goods worth Sh. 200
July 15 Pays to AB & Co. Sh. 3,000 by cheque
July 17 Goods returned to XY & Co. amounting to Sh. 350
July 21 Receives from A. Smith a cheque for Sh. 700
July 25 Sells goods for cash Sh. 300.
July 30…
WABWIRE starts business on 1* July 2021, when he pays Shs. 180,000 into business
account. During the month of July, he undertakes the following transactions
2021
July.3
He purchases shop fittings for sh. 25,000 and pays cash.
July.4
He buys a motor vehicle from AB & Co. on credit Sh. 30,000.
Julv.6
He buys stock for Sh. 15,000 and pays cash.
July 8
He sells goods for cash Sh.10,000.
July 10
Buys goods on credit from XY & Co. for Sh. 12,000
July 12
Sells goods to A. Smith for Sh. 9,000 on credit
July 13
Pays wages Sh. 1,200
July 15
Pays to AB & Co. Sh. 30,000
July 21
Receives from A. Smith a cheque for Sh. 9,000
July 25
Sells goods for cash Sh. 3,000.
July 30
Pays general expenses Sh. 800
July 31
Draws Sh. 500 out of business for his personal use
(a) Journalize the above transactions
(b) Use T accounts to enter the above transactions into the ledger
(c) Close the accounts and determine the respective balances
(d) Extract a trial balance at 31* July, 2021|
Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
Ch. 1 - Prob. 1QYCh. 1 - Prob. 2QYCh. 1 - Which of the following accounts would increase...Ch. 1 - Which of the following statements is true? a....Ch. 1 - M. Parish purchased supplies on credit. What is...Ch. 1 - Define assets, liabilities, owners equity,...Ch. 1 - Prob. 2DQCh. 1 - How do Accounts Payable and Accounts Receivable...Ch. 1 - Describe two ways to increase owners equity and...Ch. 1 - What is the effect on the fundamental accounting...
Ch. 1 - When an owner withdraws cash or goods from the...Ch. 1 - Define chart of accounts and identify the...Ch. 1 - What account titles would you suggest for the...Ch. 1 - Prob. 1ECh. 1 - Determine the following amounts: a. The amount of...Ch. 1 - Dr. L. M. Patton is an ophthalmologist. As of...Ch. 1 - Describe a business transaction that will do the...Ch. 1 - Describe a transaction that resulted in each of...Ch. 1 - Label each of the following accounts as asset (A),...Ch. 1 - Describe a transaction that resulted in the...Ch. 1 - Describe the transactions that are recorded in the...Ch. 1 - On June 1 of this year, J. Larkin, Optometrist,...Ch. 1 - On July 1 of this year, R. Green established the...Ch. 1 - S. Davis, a graphic artist, opened a studio for...Ch. 1 - On March 1 of this year, B. Gervais established...Ch. 1 - In April, J. Rodriguez established an apartment...Ch. 1 - In July of this year, M. Wallace established a...Ch. 1 - In March, K. Haas, M.D., established the Haas...Ch. 1 - P. Schwartz, Attorney at Law, opened his office on...Ch. 1 - In March, T. Carter established Carter Delivery...Ch. 1 - In October, A. Nguyen established an apartment...Ch. 1 - Why Does It Matter? MACS CUSTOM CATERING, Eugene,...Ch. 1 - What Would You Say? A friend of yours wants to...Ch. 1 - Prob. 3A
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