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Answer for Lesson2

By Warren Cox,2014-06-16 15:56
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Answer for Lesson2

Exercise 2-1:

    Kind of Account Increase Decrease Normal balance Asset Debit Credit Debit Liability Credit Debit Credit Owners capital Credit Debit Credit Owners Withdrawals Debit Credit Debit Revenue Credit Debit Credit Expense Debit Credit Debit

Exercise 2-2:

    a.

    Cash J. J. Wright, Capital

     (a) 3,500 (a) 3,500 b.

    Office Supplies Cash

     (a) 3,500 (b) 90 (b) 90 c.

    Office Equipment Accounts Payable

     (c) 2,800 (c) 2,800 d.

    Cash Service revenue (a) 3,500 (b) 90 (d) 500 (d) 500

    e.

    Accounts Payable Cash

    (c) 2,800 (a) 3,500 (b) 90 (e) 2,800

    (d) 500 (e) 2,800 f.

    Accounts Receivable Service revenue

     (d) 500 (f) 400

    (f) 400 g.

    Utility Expense Cash

     (a) 3,500 (b) 90 (g) 60

    (d) 500 (e) 2,800

    (g) 60 h.

    Cash Accounts Receivable

    (a) 3,500 (b) 90 (f) 400 (h) 200 (d) 500 (e) 2,800

    (g) 60 (h) 200

Exercise 2-3:

    N.E. Time

    Trial Balance

    December 31, 20xx

    Acct. No. Account Title Debit Credit 101 Cash $ 1,250 106 Accounts receivable 200 124 Supplies 90 163 Equipment 2,800 301 J. J. Wright, Capital $3,500 401 Service revenue 900 620 Utilities expense 60

     Totals $4,400 $4,400

Problem 2-1:

    a.

    Cash April Stewart, Capital

     (a) 50,000 (a) 70,000

    Office Equipment

     (a) 20,000

    b.

    Land Cash

     (a) 50,000 (b) 60,000 (b) 43,500

    Building Long-Term Notes Payable

     (b)230,000 (b)246,500 c.

    Office Supplies Accounts Payable

     (c) 480 (c) 480 d.

    Automobiles April Stewart, Capital

     (d) 17,200 (d) 17,200 e.