EXERCISE E2-2 EXERCISE E2-1 pages 72-73

(b) Account A. Mane, Capital 3 Equipment Cash 9 Supplies Accounts Payable 11 Accounts Receivable Service Revenue 1,800 500 4,000 4,000 (a) Type Asset 10,000 Capital Asset Asset Asset 500 Liability Asset (c) Effect Increase Increase Increase Decrease Increase Increase Increase (d) Normal Debit Credit Debit Debit Debit Credit Debit Credit

# 1/2 Cash

Debit 10,000

Credit

1,800 Revenue Increase

Weygandt, Kieso, Kimmel 6 th Edition

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EXERCISE E2-2 EXERCISE E2-1 (continued)

(b) Account (a) Type Expense 200 700 700 300 300 1,000 1,000 Asset Asset Asset Liability Asset (Capital) Asset (c) Effect Increase Decrease Increase Decrease Decrease Decrease Increase Decrease (d) Normal Debit Debit Debit Debit Credit Debit Debit Debit

# Cash 20 Cash

Debit Credit 200

16 Advertising Expense

Accounts Receivable 23 Accounts Payable Cash 28 A. Mane, Drawing Cash

Weygandt, Kieso, Kimmel 6 th Edition

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EXERCISE E2-4 and EXERCISE E2-3 page 73

Date Oct 1 Cash L. Marx, Capital 2 No Entry 3 Office Equipment Accounts Payable 6 Accounts Receivable Service Revenue 27 Accounts Payable Cash 30 Salaries Expense Cash 1,500 1,500 700 700 3,200 1,900 Asset 1,900 Liability Asset 3,200 Revenue Liability Asset Expense Asset Increase Increase Increase Increase Decrease Decrease Increase Decrease Debit Credit Debit Credit Credit Debit Debit Debit (b) Account Debit 10,000 10,000 Credit (a) Type Asset Capital (c) Effect Increase Increase (d) Normal Debit Credit

Weygandt, Kieso, Kimmel 6 th Edition

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EXERCISE E2-4 page 73

Date Account Titles Ref. Debit Credit

Oct 1 Cash L. Marx, Capital

10,000 10,000

2 No Entry

3 Office Equipment Accounts Payable

1,900 1,900

6 Accounts Receivable Service Revenue

3,200 3,200

27 Accounts Payable Cash

700 700

30 Salaries Expense Cash

1,500 1,500

Weygandt, Kieso, Kimmel 6 th Edition

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EXERCISE E2-6 pages 73-74

Date Account Titles Ref. Debit Credit

Apr 1 Cash J. Kim, Capital

(invested in the business)

5,000 5,000

4 Supplies Accounts Payable

(purchased on account)

1,800 1,800

7 Accounts Receivable Service Revenue

(billed customers for work completed)

3,200 3,200

12 Cash Service Revenue

(completed work for cash customers)

900 900

Weygandt, Kieso, Kimmel 6 th Edition

page 5

EXERCISE E2-6 (continued)

Date Account Titles Ref. Debit Credit

15 Salaries Expense Cash

(paid employees)

600 600

25 Accounts Payable Cash

(paid creditor)

1,500 1,500

29 Cash Accounts Receivable

(received cash for work done earlier)

400 400

30 Cash Unearned Revenue

(received cash for work to be performed later)

800 800

Weygandt, Kieso, Kimmel 6 th Edition

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EXERCISE E2-6 (continued)

Kim Landscaping Company Trial Balance April 30, 2002 Cash Accounts Receivable Supplies Accounts Payable Unearned Revenue J. Kim, Capital Service Revenue Salaries Expense 600 10,200 10,200 5,000 2,800 1,800 300 800 5,000 4,100

Weygandt, Kieso, Kimmel 6 th Edition

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EXERCISE E2-8 page 75

Date 9/ 1 Cash C. Stevenson, Capital Account Titles Ref. Debit 10,000 10,000 Credit

5 Equipment Cash Accounts Payable

10,000 5,000 5,000

25 Accounts Payable Cash

3,000 3,000

30 C. Stevenson, Drawing Cash

500 500

Weygandt, Kieso, Kimmel 6 th Edition

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EXERCISE E2-9 page 75

Error In Balance Difference Larger Column

(3) (2) (1) (4)

Yes Yes No No

--$400 $300

--debit credit

A credit of $500 to Accounts Payable was posted as a debit.

Error In Balance Difference Larger Column

X (6) (5)

No No Yes

$1,000 $27 --

debit credit --

A cash purchase of supplies for $250 was journalized and posted as a $250 debit to Supplies and a credit of $25 to Cash.
Error In Balance Difference Larger Column

(5X)

No

$225

debit

Weygandt, Kieso, Kimmel 6 th Edition

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BRIEF EXERCISE BE2-1 page 71

Account Increase Decrease Normal

1. Accounts Payable 2. Advertising Expense 3. Service Revenue 4. Accounts Receivable 5. B. C. J., Capital 6. B. C. J., Drawing

credit debit credit debit credit debit

debit credit debit credit debit credit

credit debit credit debit credit debit

Weygandt, Kieso, Kimmel 6 th Edition

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BRIEF EXERCISE BE2-3 page 71

Date Account Titles Ref. Debit Credit

6/1 Cash H. J. Oslo, Capital 2 Equipment Accounts Payable 3 Rent Expense Cash 12 Accounts Receivable Service Revenue

3,000 3,000 900 900 500 500 300 300

Weygandt, Kieso, Kimmel 6 th Edition

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BRIEF EXERCISE BE2-6

page 71
Date Aug 1 Account Titles Ref. Debit Credit

Cash J. A. Norris, Capital

6,000 6,000 1,800 1,800 800 800 500 500

4 Prepaid Insurance Cash 16 Cash Service Revenue 27 Salaries Expense Cash

Weygandt, Kieso, Kimmel 6 th Edition

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BRIEF EXERCISE BE2-10 page 72 Gomez Company Trial Balance December 31, 2002 18,800 3,500 3,000 4,200 15,000 4,500 25,600 18,600 2,400 47,800 47,800

Cash

Prepaid Insurance Accounts Payable Unearned Revenue P. Gomez, Capital P. Gomez, Drawing Service Revenue Salaries Expense Rent Expense

Weygandt, Kieso, Kimmel 6 th Edition

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Chapter 2 Question 8 page 70

Date Account Titles Ref. Debit Credit

(a) (b) (c)

Supplies Accounts Payable Cash Notes Payable Salaries Expense Cash

cost cost recd recd paid paid

Chapter 2 Question 16 page 70

Date Account Titles Ref. Debit Credit

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

Cash D. Wang, Capital Prepaid Insurance Cash Supplies Accounts Payable Cash Service Revenue

9,000 9,000 800 800 1,500 1,500 7,500 7,500

Weygandt, Kieso, Kimmel 6 th Edition

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