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ANSWERSTO QUESTIONS

6.

(a)
(b)
(c)
(d)
(e)
(f)
(g)

7.

(a)
(b)
(c)
(d)
(e)

Accounts Receivableassetdebit balance.


Accounts Payableliabilitycredit balance
Equipmentassetdebit balance.
Owners Drawingsowners equitydebit balance.
Suppliesassetdebit balance.

8.

(a)
(b)
(c)

Debit Supplies and credit Accounts Payable.


Debit Cash and credit Notes Payable.
Debit Salaries and Wages Expense and credit Cash.

9.

(1)
(2)
(3)
(4)
(5)
(6)

Cashboth debit and credit entries.


Accounts Receivableboth debit and credit entries.
Owners Drawingsdebit entries only.
Accounts Payableboth debit and credit entries.
Salaries and Wages Expensedebit entries only.
Service Revenuecredit entries only.

19.

No, Jim is not correct. The proper sequence is as follows:


(b)
Business transaction occurs.
(c)
Information entered in the journal.
(a)
Debits and credits posted to the ledger.
(e)
Trial balance is prepared.
(d)
Financial statements are prepared.

Accounts Receivabledebit balance.


Cashdebit balance.
Owners Drawingsdebit balance.
Accounts Payablecredit balance.
Service Revenuecredit balance.
Salaries and Wages Expensedebit balance.
Owners Capitalcredit balance.

SOLUTIONSTO BRIEFEXERCISES
BRIEFEXERCISE2-2

June 1
2
3
12

AccountDebited
Cash
Equipment
RentExpense
AccountsReceivable

AccountCredited
OwnersCapital
AccountsPayable
Cash
ServiceRevenue

BRIEFEXERCISE2-3

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-1

June

Cash................................................................. 5,000
OwnersCapital..................................................

12

5,000

Equipment.................................................................
AccountsPayable...............................................

2,100

RentExpense.............................................................
Cash.................................................................

800

AccountsReceivable...................................................
ServiceRevenue.................................................

300

2,100

800

300

BRIEFEXERCISE2-7

5/12
5/15
EndingBal.

5/5

Cash
2,400
3,000
5,400

AccountsReceivable
4,100 5/12

EndingBal.

ServiceRevenue
5/5
5/15
EndingBal.

4,100
3,000
7,100

2,400

1,700

BRIEFEXERCISE2-8
Cash
Date
May 12
15

Explanation

Ref.
J1
J1

Debit
2,400
3,000

Credit

Balance
2,400
5,400

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-2

BRIEFEXERCISE2-8 (Continued)
AccountsReceivable
Date
Explanation
May 5
12

Ref.
J1
J1

Debit
4,100

ServiceRevenue
Date
Explanation
May 5
15

Ref.
J1
J1

Debit

Credit
2,400

Balance
4,100
1,700

Credit
4,100
3,000

Balance
4,100
7,100

BRIEFEXERCISE2-9
AFALAVACOMPANY
Trial Balance
June30, 2012

Cash................................................................................
AccountsReceivable.........................................................
Equipment........................................................................
AccountsPayable..............................................................
OwnersCapital.................................................................
OwnersDrawings.............................................................
ServiceRevenue...............................................................
Salariesand WagesExpense..............................................
RentExpense....................................................................

Debit
$ 5,800
3,000
17,000

Credit

$ 9,000
15,000
1,200
10,000
6,000
1,000
$34,000

$34,000

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-3

BRIEFEXERCISE2-10
WALTERCOMPANY
Trial Balance
December31, 2012

Cash................................................................................
PrepaidInsurance.............................................................
AccountsPayable..............................................................
UnearnedServiceRevenue.................................................
OwnersCapital.................................................................
OwnersDrawings.............................................................
ServiceRevenue...............................................................
Salariesand WagesExpense..............................................
RentExpense....................................................................

Debit
$10,800
3,500

Credit

$ 3,000
2,200
9,000
4,500
25,600
18,600
2,400
$39,800

$39,800

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-4

SOLUTIONSTO EXERCISES
EXERCISE2-1
1.

False.An account is an accounting record of a specific asset, liability, or owners


equity item.

2.

False.Anaccountshowsincreases and decreases in theitemit relatesto.

3.

False.Eachasset, liability, and owners equity item has a separate account.

4.

False.Anaccounthas a left, or debit side, anda right, or credit side.

5.

True.

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-5

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

(a)
Basic
Type

(b)
Specific
Account

Jan. 2

Asset

AccountCredited

Effect

(d)
Normal
Balance

(a)
Basic
Type

(b)
Specific
Account

Effect

(d)
Normal
Balance

Cash

Increase

Debit

Owners
Equity

Owners
Capital

Increase

Credit

Asset

Equipment

Increase

Debit

Asset

Cash

Decrease

Debit

Asset

Supplies

Increase

Debit

Liability

Accounts
Payable

Increase

Credit

11

Asset

Accounts
Receivable

Increase

Debit

Owners
Equity

Service
Revenue

Increase

Credit

16

Owners
Equity

Advertising
Expense

Increase

Debit

Asset

Cash

Decrease

Debit

20

Asset

Cash

Increase

Debit

Asset

Accounts
Receivable

Decrease

Debit

23

Liability

Accounts
Payable

Decrease

Credit

Asset

Cash

Decrease

Debit

28

Owners
Equity

Owners
Drawings

Increase

Debit

Asset

Cash

Decrease

Debit

Transaction

(c)

EXERCISE 2-2

2-16

AccountDebited

(c)

EXERCISE2-5

Date
Oct. 1

GeneralJournal
AccountTitlesand Explanation
Cash.....................................................
............................................................
OwnersCapital............................

Ref.

Debits
15,000

15,000

No entry.

Equipment............................................
AccountsPayable.........................

1,900

AccountsReceivable..............................
ServiceRevenue...........................

3,600

AccountsPayable..................................
Cash...........................................

1,100

Salariesand WagesExpense...................
Cash...........................................

2,500

27

30

Credit

1,900

3,600

1,100

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2,500

2-7

EXERCISE2-6
(a)

1.
2.
3.

Increasethe assetCash,increasethe liability NotesPayable.


Increasethe assetEquipment,decreasethe assetCash.
IncreasetheassetSupplies,increasetheliabilityAccountsPayable.

(b)

1.

Cash.....................................................................
NotesPayable.................................................
Equipment.............................................................
Cash..............................................................
Supplies................................................................
AccountsPayable............................................

2.
3.

5,000
5,000
3,100
3,100
850
850

EXERCISE2-9
(a)
Cash
Aug. 15,000
Aug.12
10
2,400
31
900
Bal.
5,300

AccountsReceivable
Aug.25
1,700 Aug.31
Bal.
800

Aug.12

25
3,000

Bal.

1,700
4,100

900

Equipment
5,000
NotesPayable
Aug.12

2,000

OwnersCapital
Aug. 1

5,000

ServiceRevenue
Aug. 10

2,400

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-8

(b)

CONSUELABROWN,INVESTMENTBROKER
Trial Balance
August31, 2012

Cash............................................................................
AccountsReceivable......................................................
Equipment....................................................................
NotesPayable...............................................................
OwnersCapital.............................................................
ServiceRevenue............................................................

Debit
$ 5,300
800
5,000

$11,100

Credit

$ 2,000
5,000
4,100
$11,100

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-9

EXERCISE2-10
(a)
Date
Apr. 1

GeneralJournal
AccountTitlesand Explanation
Cash......................................................

Ref.

Debit
12,000

Credit
12,000

OwnersCapital..................................
(Ownersinvestmentof
cashin business)
12

Cash......................................................

900
900

ServiceRevenue.................................
(Receivedcashfor
servicesprovided)
15

25

29

SalariesandWagesExpense....................
Cash.................................................
(Paidsalariesto date)

1,300

AccountsPayable...................................
Cash.................................................
(Paidcreditorson account)

1,500

Cash......................................................

400

1,300

1,500

400
AccountsReceivable...........................
(Receivedcashin payment
of account)
30

Cash......................................................

1,000
1,000

UnearnedServiceRevenue..................
(Receivedcashfor future
services)

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-10

EXERCISE2-10 (Continued)
(b)

BENNETLANDSCAPINGCOMPANY
Trial Balance
April 30, 2012

Cash..............................................................................
AccountsReceivable.......................................................
Supplies.........................................................................
AccountsPayable............................................................
UnearnedServiceRevenue...............................................
OwnersCapital...............................................................
ServiceRevenue.............................................................
Salariesand WagesExpense............................................

Debit
$11,500
2,800
1,800

Credit

300
1,000
12,000
4,100

1,300
$17,400

$17,400

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

2-11

SOLUTIONSTO PROBLEMS
PROBLEM2-1A

Date

AccountTitlesand Explanation

Apr. 1

Cash

Ref.

Debit
35,000

OwnersCapital..................................
(Ownersinvestmentof cash
in business)
4

Land

35,000

27,000
Cash.................................................
(Purchasedlandfor cash)

11

27,000

AdvertisingExpense...................................
AccountsPayable...............................
(Incurredadvertising
expenseon account)

1,800

SalariesandWagesExpense........................
Cash.................................................
(Paidsalaries)

1,500

1,800

1,500

12

No entryNota transaction.

13

PrepaidInsurance.......................................
Cash.................................................
(Paidfor one-year
insurancepolicy)

1,650

OwnersDrawings.......................................
Cash.................................................
(Withdrewcashfor personal
use)

1,000

17

J1
Credit

1,650

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1,000

2-12

20

Cash

6,800
ServiceRevenue.................................
(Receivedcashfor services
provided)

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

6,800

2-13

PROBLEM2-1A (Continued)
Date

AccountTitlesand Explanation

Apr. 25

Cash.........................................................
................................................................
UnearnedServiceRevenue....................
(Receivedcashfor future
services)

2,500

Cash.........................................................
................................................................
ServiceRevenue.................................
(Receivedcashfor services
provided)

8,900

AccountsPayable......................................
Cash..................................................
(Paidcreditoron account)

900

30

30

Ref.

Debit

Credit
2,500

8,900

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Solutions Manual(For Instructor Use Only)

900

2-14

PROBLEM2-3A

(a) & (c)


Balance

(4)
(7)

Balance
(7)

Balance
(2)

Balance

Balance

(5)

Cash
8,000
(1)
(3)
14,000
(5)
6,000
(8)
(9)
3,500
AccountsReceivable
15,000
(4)
9,000
10,000
Supplies
13,000
4,200
(6)
13,200

OwnersCapital
Balance
1,000
2,000
15,000
(9)
3,500
3,000

OwnersDrawings
3,000
3,000

ServiceRevenue
(7)

15,000
15,000

14,000

(1)

AdvertisingExpense
1,000
1,000

(3)

MiscellaneousExpense
2,000
2,000

(6)

SuppliesExpense
4,000
4,000

(8)

SalariesandWagesExpense
3,500
3,500

4,000

PrepaidRent
3,000
3,000
Equipment
20,000
20,000
AccountsPayable
Balance
(2)
15,000

40,000
40,000

19,000
4,200
8,200

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2-15

PROBLEM2-3A (Continued)
(b)
Trans.
1.

2.

3.

4.

5.

6.

7.

8.

9.

AccountTitlesand Explanation

Debit

AdvertisingExpense......................................
Cash...................................................

1,000

Supplies.......................................................
AccountsPayable................................

4,200

MiscellaneousExpense..................................
Cash...................................................

2,000

Cash............................................................
AccountsReceivable............................

14,000

AccountsPayable..........................................
Cash...................................................

15,000

SuppliesExpense..........................................
Supplies..............................................

4,000

Cash............................................................
AccountsReceivable.....................................
ServiceRevenue..................................

6,000
9,000

Salariesand WagesExpense..........................
Cash...................................................

3,500

OwnersDrawings.........................................
Cash...................................................

3,000

Credit
1,000

4,200

2,000

14,000

15,000

4,000

15,000

3,500

3,000

PROBLEM2-3A (Continued)
(d)

MEGAREPAIRSERVICE
Trial Balance
January31, 2012
Debit

Cre

dit
Cash........................................................................
AccountsReceivable..................................................
Supplies...................................................................
PrepaidRent.............................................................
Equipment................................................................
AccountsPayable......................................................
OwnersCapital.........................................................
OwnersDrawings.....................................................
ServiceRevenue........................................................
AdvertisingExpense..................................................
MiscellaneousExpense..............................................
SuppliesExpense......................................................
Salariesand WagesExpense......................................

$ 3,500
10,000
13,200
3,000
20,000
$ 8,200
40,000
3,000
15,000
1,000
2,000
4,000
3,500
$63,200

$63,200