2024 – Complete the attached Problem 2 3A Template Please refer to Ch 2 in your

Problem 2-3A – due in 6 hours – 2024

2024 – Complete the attached Problem 2 3A Template Please refer to Ch 2 in your.

 Complete the attached, Problem 2-3A Template.  Please refer to Ch. 2,  in your textbook for detailed instructions.  Save your completed work and submit 

Accept

Please only accept if you can complete in 6 hours. The chapter is below:

 

2-3Journalizing and Posting to Accounts

>obj

Obj. 3

As illustrated, a transaction is first recorded in a journal. Periodically, the journal entries are transferred to the accounts in the ledger. The process of transferring the debits and credits from the journal entries to the accounts is called posting.

The December transactions of NetSolutions are used to illustrate posting from the journal to the ledger. By using the December transactions, an additional review of analyzing and journalizing transactions is provided.

A journal entry is shown. December 1 is the date indicated. Prepaid Insurance is debited with 2,400 shown in the Debit column. Cash is credited with 2,400 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid premium on one-year policy. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity. Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 1 entry of 2,400 is shown. The Debit column of the Cash T account is blank. Under the Cash T account, a T account for Prepaid Insurance is shown. The account number, 15, is shown in the top-right corner of the T account. On the left, in the Debit column of the Prepaid Insurance T account, a December 1 entry of 2,400 is shown. The Credit column of the Prepaid Insurance T account is blank.Enlarge ImageDynamic Exhibit 2-1Copyright © Cengage Learning. All Rights Reserved

The posting of the preceding December 1 transaction is shown in Exhibit 5. Notice that the T account form is not used in Exhibit 5. In practice, the T account is usually replaced with a standard four-column account as shown in Exhibit 5.

Exhibit 5Diagram of the Recording and Posting of a Debit and a Credit Ledger, NetSolutionsA journal entry is shown on Page 2 of a journal form. The journal is broken in two to indicate that there are transactions not listed here that occurred before the entry shown. December 1 is the date indicated. Prepaid Insurance is debited with 15 shown in the Post. Ref. column and 2,400 shown in the Debit column. Cash is credited with 11 shown in the Post Ref. column and 2,400 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid premium on one-year policy. The amounts in the Debit and Credit columns are highlighted in blue color font. Below the journal entry are two ledger accounts. The first ledger account shown is Prepaid Insurance. The account number, 15, is shown in the top-right corner. One transaction is listed. December 1, 2018 is the date indicated in the Date column. The year 2018 appears in small type above the word Dec. The Item column is blank, 2 is shown in the Post. Ref. column, and 2,400 is shown in the Debit column and the Debit Balance column. In the Debit column, 2,400 is highlighted in blue color font. The second ledger account shown is Cash. The account number, 11, is shown in the top-right corner. Three transactions are listed. In the first transaction, November 1, 2018 is the date indicated in the Date column; the Item column is blank; 1 is shown in the Post. Ref. column; and 25,000 is shown in the Debit column and the Debit Balance column. In the second transaction, November 30 is the date indicated in the Date column; the Item column is blank; 2 is shown in the Post. Ref. column; 2,000 is shown in the Credit column; and 5,900 is shown in the Debit Balance column. In the third transaction, December 1 is the date indicated in the Date column; the Item column is blank; 2 is shown in the Post. Ref. column; 2,400 is shown in the Credit column and is highlighted in blue color font; and 3,500 is shown in the Debit Balance column. Before the listings of the second and third transactions, the account is broken in two to indicate that there are transactions not listed here that occurred after the first transaction listed and before the second transaction listed here. In both ledger accounts, there is a small arrow pointing to Dec. 1 in the Date column with the words Step 1 written in bold type to the left of the arrow. In the journal entry, there is a small arrow going from the 2,400 in the Debit column to the 2,400 in the Debit column of the Prepaid Insurance ledger account with the words Step 2 written in bold type. In the journal entry, there is a small arrow going from the 2,400 in the Credit column to the 2,400 in the Credit column of the Cash ledger account with the words Step 2 written in bold type by the arrow. In both ledger accounts, a small arrow with the words Step 3 in bold type underneath the arrow points to the 2 in the Post. Ref. column. In the journal entry, there are two small arrows pointing to the 15 and 11 in the Post. Ref. column, with the words Step 4 in bold type to the left of each arrow.Enlarge Image

Prepaid insurance account

The debits and credits for each journal entry are posted to the accounts in the order in which they occur in the journal. To illustrate, the debit portion of the December 1 journal entry is posted to the prepaid insurance account in Exhibit 5 using the following four steps:

  1. Step 1.The date (Dec. 1) of the journal entry is entered in the Date column of Prepaid Insurance.
  2. Step 2.The amount (2,400) is entered into the Debit column of Prepaid Insurance.
  3. Step 3.The journal page number (2) is entered in the Posting Reference (Post. Ref.) column of Prepaid Insurance.
  4. Step 4.The account number (15) is entered in the Posting Reference (Post. Ref.) column in the journal.

As shown in Exhibit 5, the credit portion of the December 1 journal entry is posted to the cash account in a similar manner.

The remaining December transactions for NetSolutions are analyzed and journalized in the following paragraphs. These transactions are posted to the ledger later in this chapter (see Exhibit 6). To simplify, some of the December transactions are stated in summary form. For example, cash received for services is normally recorded on a daily basis. However, only summary totals are recorded at the middle and end of the month for NetSolutions.

A journal entry is shown. December 1 is the date indicated. Rent Expense is debited with 53 shown in the Post. Ref. column and 800 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 800 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid rent for December. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (the word Expense is set in parentheses). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 1 entry of 800 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (the word Expense is set in parentheses) in the accounting equation, a T account for Rent Expense is shown. The account number, 53, is shown in the top-right corner of the T account. On the left, in the Debit column of the Rent Expense T account, a December 1 entry of 800 is shown. The Credit column of the Rent Expense T account is blank.Enlarge ImageA journal entry is shown. December 1 is the date indicated. Rent Expense is debited with 53 shown in the Post. Ref. column and 800 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 800 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid rent for December. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (the word Expense is set in parentheses). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 1 entry of 800 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (the word Expense is set in parentheses) in the accounting equation, a T account for Rent Expense is shown. The account number, 53, is shown in the top-right corner of the T account. On the left, in the Debit column of the Rent Expense T account, a December 1 entry of 800 is shown. The Credit column of the Rent Expense T account is blank.Enlarge ImageA journal entry is shown. December 1 is the date indicated. Cash is debited with 11 shown in the Post. Ref. column and 360 shown in the Debit column. Unearned Rent is credited with 23 shown in the Post. Ref. column and 360 shown in the Credit column. A journal entry explanation is given below the journal entry: Received advance payment for three months' rent on land. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity. Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the left, in the Debit column of the Cash T account, a December 1 entry of 360 is shown. The Credit column of the Cash T account is blank. Under Liabilities in the accounting equation, a T account for Unearned Rent is shown. The account number, 23, is shown in the top-right corner of the T account. On the right, in the Credit column of the Unearned Rent T account, a December 1 entry of 360 is shown. The Debit column of the Unearned Rent T account is blank.Enlarge ImageDynamic Exhibit 2-1Copyright © Cengage Learning. All Rights ReservedBusiness Connection

Microsoft’s Unearned Revenue

Microsoft Corporation develops, manufactures, licenses, and supports a wide range of computer software products, including, Word®, Excel®, and the Xbox® gaming system. When Microsoft sells its products, it also provides technical support and periodic updates on those products for a period of time. Thus, at the time of sale, a portion of the proceeds is unearned (deferred) for these services. As time passes and services are provided to customers, Microsoft records a portion of its unearned (deferred) revenue as revenue.

To illustrate, the following excerpt was taken from a recent financial statement of Microsoft:

Unearned revenue … include(s) payments for: post-delivery support and consulting services to be performed in the future; Xbox Live subscriptions and prepaid points; Microsoft Dynamics business solutions products; Office 365 subscriptions; Skype prepaid credits and subscriptions; Bundled Offerings; and other offerings for which we have been paid in advance….

During a recent year, Microsoft recognized as revenue $48,498 million of unearned revenue, which is 57% of its total revenues. For a recent year ending June 30, Microsoft also reported on its balance sheet a liability for unearned revenue of $33,909 million. Thus, the recording of unearned revenue is a significant item for Microsoft.

Source: Microsoft Corporation, Form 10-K, For the Year Ended June 30, 2016.A journal entry is shown. December 4 is the date indicated. Office Equipment is debited with 18 shown in the Post. Ref. column and 1,800 shown in the Debit column. Accounts Payable is credited with 21 shown in the Post. Ref. column and 1,800 shown in the Credit column. A journal entry explanation is given below the journal entry: Purchased office equipment on account. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity. Under Assets in the accounting equation, a T account for Office Equipment is shown. The account number, 18, is shown in the top-right corner of the T account. On the left, in the Debit column of the Office Equipment T account, a December 4 entry of 1,800 is shown. The Credit column of the Office Equipment T account is blank. Under Liabilities in the accounting equation, a T account for Accounts Payable is shown. The account number, 21, is shown in the top-right corner of the T account. On the right, in the Credit column of the Accounts Payable T account, a December 4 entry of 1,800 is shown. The Debit column of the Accounts Payable T account is blank.Enlarge ImageA journal entry is shown. December 6 is the date indicated. Miscellaneous Expense is debited with 59 shown in the Post. Ref. column and 180 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 180 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid for newspaper advertisement. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Expense). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 6 entry of 180 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (Expense) in the accounting equation, a T account for Miscellaneous Exp. is shown. The account number, 59, is shown in the top-right corner of the T account. On the left, in the Debit column of the Miscellaneous Exp. T account, a December 6 entry of 180 is shown. The Credit column of the Miscellaneous Exp. T account is blank.Enlarge ImageA journal entry is shown. December 11 is the date indicated. Accounts Payable is debited with 21 shown in the Post. Ref. column and 400 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 400 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid creditors on account. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity. Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 11 entry of 400 is shown. The Debit column of the Cash T account is blank. Under Liabilities in the accounting equation, a T account for Accounts Payable is shown. The account number, 21, is shown in the top-right corner of the T account. On the left, in the Debit column of the Accounts Payable T account, a December 11 entry of 400 is shown. The Credit column of the Accounts Payable T account is blank.Enlarge ImageJournalizing and Posting to AccountsEnlarge ImageA journal entry is shown on Page 3 of a journal form. December 13 is the date indicated in the Date column. The year 2018 appears in small type above the word Dec. Wages Expense is debited with 51 shown in the Post. Ref. column and 950 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 950 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid two weeks' wages. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Expense). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 13 entry of 950 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (Expense) in the accounting equation, a T account for Wages Expense is shown. The account number, 51, is shown in the top-right corner of the T account. On the left, in the Debit column of the Wages Expense T account, a December 13 entry of 950 is shown. The Credit column of the Wages Expense T account is blank.Enlarge ImageLink to Apple

In a recent year, Apple incurred advertising expense of $1.2 billion. Apple reports advertising expense as part of Selling, General, and Administrative Expenses.

Business Connection

Computerized Accounting Systems

Computerized accounting systems are widely used by even the smallest companies. These systems simplify the record-keeping process in that transactions are recorded in electronic forms. Forms used to bill customers for services provided are often completed using drop-down menus that list services that are normally provided to customers.

An auto-complete entry feature may also be used to fill in customer names. For example, type “ca” to display customers with names beginning with “Ca” (Caban, Cahill, Carey, and Caswell). And to simplify data entry, entries are automatically posted to the ledger accounts when the electronic form is completed.

Popular accounting software package

One popular accounting software package used by small- to medium-sized businesses is QuickBooks®. Some examples of using QuickBooks to record accounting transactions are illustrated and discussed in Chapter 5.

Journalizing and Posting to AccountsEnlarge ImageA journal entry is shown. December 16 is the date indicated. Accounts Receivable is debited with 12 shown in the Post. Ref. column and 1,750 shown in the Debit column. Fees Earned is credited with 41 shown in the Post. Ref. column and 1,750 shown in the Credit column. A journal entry explanation is given below the journal entry: Fees earned on account. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Revenue). Under Assets in the accounting equation, a T account for Accounts Receivable is shown. The account number, 12, is shown in the top-right corner of the T account. On the left, in the Debit column of the Accounts Receivable T account, a December 16 entry of 1,750 is shown. The Credit column of the Accounts Receivable T account is blank. Under Owner's Equity (Revenue) in the accounting equation, a T account for Fees Earned is shown. The account number, 41, is shown in the top-right corner of the T account. On the right, in the Credit column of the Fees Earned T account, a December 16 entry of 1,750 is shown. The Debit column of the Fees Earned T account is blank.Enlarge ImageJournalizing and Posting to AccountsEnlarge ImageDynamic Exhibit 2-1Copyright © Cengage Learning. All Rights ReservedExample Exercise 2-3

Journal Entry for Fees Earned

>obj

Obj. 3

  1. Prepare a journal entry on August 7 for the fees earned on account, $115,000.
    Follow My Example 2-3
    Answer

Practice Exercises: PE 2-3A, PE 2-3B

A journal entry is shown. December 20 is the date indicated. Accounts Payable is debited with 21 shown in the Post. Ref. column and 900 shown in the Debit column. Cash is credited—with 11 shown in the Post. Ref. column and 900 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid creditors on account. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity. Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 20 entry of 900 is shown. The Debit column of the Cash T account is blank. Under Liabilities in the accounting equation, a T account for Accounts Payable is shown. The account number, 21, is shown in the top-right corner of the T account. On the left, in the Debit column of the Accounts Payable T account, a December 20 entry of 900 is shown. The Credit column of the Accounts Payable T account is blank.Enlarge ImageA journal entry is shown. December 21 is the date indicated. Cash is debited with 11 shown in the Post. Ref. column and 650 shown in the Debit column. Accounts Receivable is credited with 12 shown in the Post. Ref. column and 650 shown in the Credit column. A journal entry explanation is given below the journal entry: Received cash from customers on account. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity. Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the left, in the Debit column of the Cash T account, a December 21 entry of 650 is shown. The Credit column of the Cash T account is blank. Under the Cash T account, a T account for Accounts Receivable is shown. The account number, 12, is shown in the top-right corner of the T account. On the right, in the Credit column of the Accounts Receivable T account, a December 21 entry of 650 is shown. The Debit column of the Accounts Receivable T account is blank.Enlarge ImageJournalizing and Posting to AccountsEnlarge ImageA journal entry is shown. December 23 is the date indicated. Supplies is debited with 14 shown in the Post. Ref. column and 1,450 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 1,450 shown in the Credit column. A journal entry explanation is given below the journal entry: Purchased supplies. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity. Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 23 entry of 1,450 is shown. The Debit column of the Cash T account is blank. Under the Cash T account, a T account for Supplies is shown. The account number, 14, is shown in the top-right corner of the T account. On the left, in the Debit column of the Supplies T account, a December 23 entry of 1,450 is shown. The Credit column of the Supplies T account is blank.Enlarge ImageA journal entry is shown. December 27 is the date indicated. Wages Expense is debited with 51 shown in the Post. Ref. column and 1,200 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 1,200 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid two weeks' wages. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Expense). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 27 entry of 1,200 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (Expense) in the accounting equation, a T account for Wages Expense is shown. The account number, 51, is shown in the top-right corner of the T account. On the left, in the Debit column of the Wages Expense T account, a December 27 entry of 1,200 is shown. The Credit column of the Wages Expense T account is blank.Enlarge ImageA journal entry is shown. December 31 is the date indicated. Utilities Expense is debited with 54 shown in the Post. Ref. column and 310 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 310 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid telephone bill. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Expense). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 31 entry of 310 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (Expense) in the accounting equation, a T account for Utilities Expense is shown. The account number, 54, is shown in the top-right corner of the T account. On the left, in the Debit column of the Utilities Expense T account, a December 31 entry of 310 is shown. The Credit column of the Utilities Expense T account is blank.Enlarge ImageA journal entry is shown on Page 4 of a journal form. December 3 is the date indicated in the Date column. The year 2018 appears in small type above the word Dec. Utilities Expense is debited with 54 shown in the Post. Ref. column and 225 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 225 shown in the Credit column. A journal entry explanation is given below the journal entry: Paid electric bill.Enlarge ImageBelow the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Expense). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 31 entry of 225 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (Expense) in the accounting equation, a T account for Utilities Expense is shown. The account number, 54, is shown in the top-right corner of the T account. On the left, in the Debit column of the Utilities Expense T account, a December 31 entry of 225 is shown. The Credit column of the Utilities Expense T account is blank.Enlarge ImageA journal entry is shown. December 31 is the date indicated. Cash is debited with 11 shown in the Post. Ref. column and 2,870 shown in the Debit column. Fees Earned is credited with 41 shown in the Post. Ref. column and 2,870 shown in the Credit column. A journal entry explanation is given below the journal entry: Received fees from customers. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Revenue). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the left, in the Debit column of the Cash T account, a December 31 entry of 2,870 is shown. The Credit column of the Cash T account is blank. Under Owner's Equity (Revenue) in the accounting equation, a T account for Fees Earned is shown. The account number, 41, is shown in the top-right corner of the T account. On the right, in the Credit column of the Fees Earned T account, a December 31 entry of 2,870 is shown. The Debit column of the Fees Earned T account is blank.Enlarge ImageA journal entry is shown. December 31 is the date indicated. Accounts Receivable is debited with 12 shown in the Post. Ref. column and 1,120 shown in the Debit column. Fees Earned is credited with 41 shown in the Post. Ref. column and 1,120 shown in the Credit column. A journal entry explanation is given below the journal entry: Fees earned on account. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Revenue). Under Assets in the accounting equation, a T account for Accounts Receivable is shown. The account number, 12, is shown in the top-right corner of the T account. On the left, in the Debit column of the Accounts Receivable T account, a December 31 entry of 1,120 is shown. The Credit column of the Accounts Receivable T account is blank. Under Owner's Equity (Revenue) in the accounting equation, a T account for Fees Earned is shown. The account number, 41, is shown in the top-right corner of the T account. On the right, in the Credit column of the Fees Earned T account, a December 31 entry of 1,120 is shown. The Debit column of the Fees Earned T account is blank.Enlarge ImageA journal entry is shown. December 31 is the date indicated. Chris Clark, Drawing is debited with 32 shown in the Post. Ref. column and 2,000 shown in the Debit column. Cash is credited with 11 shown in the Post. Ref. column and 2,000 shown in the Credit column. A journal entry explanation is given below the journal entry: Chris Clark withdrew cash for personal use. Below the journal form, the accounting equation impact is illustrated. The accounting equation is shown: Assets equals Liabilities plus Owner's Equity (Drawing). Under Assets in the accounting equation, a T account for Cash is shown. The account number, 11, is shown in the top-right corner of the T account. On the right, in the Credit column of the Cash T account, a December 31 entry of 2,000 is shown. The Debit column of the Cash T account is blank. Under Owner's Equity (Drawing) in the accounting equation, a T account for Chris Clark, Drawing is shown. The account number, 32, is shown in the top-right corner of the T account. On the left, in the Debit column of the Chris Clark, Drawing T account, a December 31 entry of 2,000 is shown. The Credit column of the Chris Clark, Drawing T account is blank.Enlarge ImageExample Exercise 2-4

Journal Entry for Owner’s Withdrawal

>obj

Obj. 3

  1. Prepare a journal entry on December 29 for the payment of $12,000 to the owner of Smartstaff Consulting Services, Dominique Walsh, for personal use.
    Follow My Example 2-4
    Answer

Practice Exercises: PE 2-4A, PE 2-4B

Exhibit 6 shows the December 31, 2018 ledger for NetSolutions after the transactions for both November and December have been posted.

Exhibit 6

General Ledger for NetSolutions on December 31, 2018

Ten accounts from NetSolutions' ledger are shown. The first account shown is Cash. The account number, 11, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 1, Post. Ref. 1, Debit 25,000, Debit Balance 25,000. Nov. 5, Post. Ref. 1, Credit 20,000, Debit Balance 5,000. Nov. 18, Post. Ref. 1, Debit 7,500, Debit Balance 12,500. Nov. 30, Post. Ref. 1, Credit 3,650, Debit Balance 8,850. Nov. 30, Post Ref. 1, Credit 950, Debit Balance 7,900. Nov. 30, Post. Ref. 2, Credit 2,000, Debit Balance 5,900. Dec. 1, Post. Ref. 2, Credit 2,400, Debit Balance 3,500. Dec. 1, Post. Ref. 2, Credit 800, Debit Balance 2,700. Dec. 1, Post. Ref. 2, Debit 360, Debit Balance 3,060. Dec. 6, Post. Ref. 2, Credit 180, Debit Balance 2,880. Dec. 11, Post. Ref. 2, Credit 400, Debit Balance 2,480. Dec. 13, Post. Ref. 3, Credit 950, Debit Balance 1,530. Dec. 16, Post. Ref. 3, Debit 3,100, Debit Balance 4,630. Dec. 20, Post. Ref. 3, Credit 900, Debit Balance 3,730. Dec. 21, Post. Ref. 3, Debit 650, Debit Balance 4,380. Dec. 23, Post. Ref. 3, Credit 1,450, Debit Balance 2,930. Dec. 27, Post. Ref. 3, Credit 1,200, Debit Balance 1,730. Dec. 31, Post. Ref. 3, Credit 310, Debit Balance 1,420. Dec. 31, Post. Ref. 4, Credit 225, Debit Balance 1,195. Dec. 31, Post. Ref. 4, Debit 2,870, Debit Balance 4,065. Dec. 31, Post. Ref. 4, Credit 2,000, Debit 2,065. The second account shown is Accounts Receivable. The account number, 12, is in the top-right corner. The 2018 transactions listed are as follows: Dec. 16, Post. Ref. 3, Debit 1,750, Debit Balance 1,750. Dec. 21, Post. Ref. 3, Credit 650, Debit Balance 1,100. Dec. 31, Post. Ref. 4, Debit 1,120, Debit Balance 2,220. The third account shown is Supplies. The account number, 14, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 10, Post. Ref. 1, Debit 1,350, Debit Balance 1,350. Nov. 30, Post. Ref. 1, Credit 800, Debit Balance 550. Dec. 23, Post. Ref. 3, Debit 1,450, Debit Balance 2,000. The fourth account shown is Prepaid Insurance. The account number, 15, is in the top-right corner. The 2018 transaction listed is as follows: Dec. 1, Post. Ref. 2, Debit 2,400, Debit Balance 2,400. The fifth account shown is Land. The account number, 17, is in the top-right corner. The 2018 transaction listed is as follows: Nov. 5, Post. Ref. 1, Debit 20,000, Debit Balance 20,000. The sixth account shown is Office Equipment. The account number, 18, is in the top-right corner. The 2018 transaction listed is as follows: Dec. 4, Post. Ref. 2, Debit 1,800, Debit Balance 1,800. The seventh account shown is Accounts Payable. The account number, 21, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 10, Post. Ref. 1, Credit 1,350, Credit Balance 1,350. Nov. 30, Post. Ref. 1, Debit 950, Credit Balance 400. Dec. 4, Post. Ref. 2, Credit 1,800, Credit Balance 2,200. Dec. 11, Post. Ref. 2, Debit 400, Credit Balance 1,800. Dec. 20, Post. Ref. 3, Debit 900, Credit Balance 900. The eighth account shown is Unearned Rent. The account number, 23, is in the top-right corner. The 2018 transaction listed is as follows: Dec. 1, Post. Ref. 2, Credit 360, Credit Balance 360. The ninth account shown is Chris Clark, Capital. The account number, 31, is in the top-right corner. The 2018 transaction listed is as follows: Nov. 1, Post. Ref. 1, Credit 25,000, Credit Balance 25,000. The tenth account shown is Chris Clark, Drawing. The account number, 32, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 30, Post. Ref. 2, Debit 2,000, Debit Balance 2,000. Dec. 31, Post. Ref. 4, Debit 2,000, Debit Balance 4,000.Enlarge ImageSix accounts from NetSolutions' ledger are shown. The first account shown is Fees Earned. The account number, 41, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 18, Post. Ref. 1, Credit 7,500, Credit Balance 7,500. Dec. 16, Post. Ref. 3, Credit 3,100, Credit Balance 10,600. Dec. 16, Post. Ref. 3, Credit 1,750, Credit Balance 12,350. Dec. 31, Post. Ref. 4, Credit 2,870, Credit Balance, 15,220. Dec. 31, Post. Ref. 4, Credit 1,120, Credit Balance 16,340. The second account shown is Wages Expense. The account number, 51, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 30, Post. Ref. 1, Debit 2,125, Debit Balance 2,125. Dec. 13, Post. Ref. 3, Debit 950, Debit Balance 3,075. Dec. 27, Post. Ref 3, Debit 1,200, Debit Balance 4,275. The third account shown is Supplies Expense. The account number, 52, is in the top-right corner. The 2018 transaction listed is as follows: Nov. 30, Post. Ref. 1, Debit 800, Debit Balance 800. The fourth account shown is Rent Expense. The account number, 53, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 30, Post. Ref. 1, Debit 800, Debit Balance 800. Dec. 1, Post. Ref. 2, Debit 800, Debit Balance 1,600. The fifth account shown is Utilities Expense. The account number, 54, is in the top-right corner. The 2018 transactions are listed as follows: Nov. 30, Post. Ref. 1, Debit 450, Debit Balance 450. Dec. 31, Post. Ref. 3, Debit 310, Debit Balance 760. Dec. 31, Post. Ref. 4, Debit 225, Debit Balance 985. The sixth account shown is Miscellaneous Expense. The account, number, 59, is in the top-right corner. The 2018 transactions listed are as follows: Nov. 30, Post. Ref. 1, Debit 275, Debit Balance 275. Dec. 6, Post. Ref. 2, Debit 180, Debit Balance 455.Enlarge ImageExample Exercise 2-5

Missing Amount from an Account

>obj

Obj. 3

  1. On March 1, the cash account balance was $22,350. During March, cash receipts totaled $241,880, and the March 31 balance was $19,125. Determine the cash payments made during March.
    Follow My Example 2-5
    AnswerUsing the following T account, solve for the amount of cash payments (indicated by ? ):

Practice Exercises: PE 2-5A, PE 2-5B

 

Need assignment writing services that are 100% risk-free. Our writers are capable of providing the best assignment help to students in globally at best rates.

Assignment online is a team of top-class experts whose only goal is to give you the best assignment help service. Follow the link below to order now...

#write essay #research paper

/by
You might also like
2024 – Sam a jeweler offers to sell Mary a diamond watch for 1000 Mary
2024 – After reading chapter 11 from the attached textbook and after reading attached journal article
2024 – Deliverable Length 800 1 000 words The financial crisis of 2008 caused macroeconomists to rethink monetary and fiscal policies Economists financial experts
2024 – Primary Discussion Response is due by Friday 11 59 59pm Central Peer Responses are due by Tuesday 11 59 59pm Central Primary Task Response
2024 – 1 Present value Tommie Harris is considering an investment that pays 6 5 percent annually How much must he invest today
2024 – Ashford 7 Week 6 Final Paper Final Paper Focus of
2024 – You are employed as a supervisor at the local mail distribution centre The centre wishes to develop
2024 – 4 page document single spaced Palatino Linotype Font Font size 12 1 inch margins excluding appendices and bibliography Case