84

Chapter 2

Analyzing Transactions

a. Journalize the above transactions in a two-column journal, using the appropriate

number to identify the transactions. Journal entry explanations may be omitted.
b. Post the entries prepared in (a) to the following T accounts: Cash, Supplies, Accounts
Receivable, Accounts Payable, Fees Earned. To the left of each amount posted in the
accounts, place the appropriate number to identify the transactions.
EX 2-16
Trial balance

obj. 4

Total of Credit
column: $696,350

The accounts in the ledger of Aznar Co. as of October 31, 2010, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted.
Accounts Payable
Accounts Receivable
Cash
Ellen Kubota, Capital
Ellen Kubota, Drawing
Fees Earned
Insurance Expense
Land
Miscellaneous Expense

$ 28,000
56,250
?
129,850
30,000
465,000
9,000
127,500
13,350

Notes Payable
Prepaid Insurance
Rent Expense
Supplies
Supplies Expense
Unearned Rent
Utilities Expense
Wages Expense

$ 60,000
4,500
90,000
3,150
11,850
13,500
62,250
262,500

Prepare an unadjusted trial balance, listing the accounts in their proper order and inserting the missing figure for cash.
EX 2-17
Effect of errors
on trial balance

Indicate which of the following errors, each considered individually, would cause the
trial balance totals to be unequal:

obj. 4

a. A payment of $2,150 to a creditor was posted as a debit of $2,150 to Accounts Payable

and a debit of $2,150 to Cash.
b. A fee of $4,600 earned and due from a client was not debited to Accounts Receivable
or credited to a revenue account, because the cash had not been received.
c. A receipt of $3,100 from an account receivable was journalized and posted as a debit
of $3,100 to Cash and a credit of $3,100 to Fees Earned.
d. A payment of $10,000 for equipment purchased was posted as a debit of $1,000 to
Equipment and a credit of $1,000 to Cash.
e. Payment of a cash withdrawal of $15,000 was journalized and posted as a debit of
$5,000 to Salary Expense and a credit of $15,000 to Cash.

EX 2-18

The following preliminary unadjusted trial balance of Nevada-For-You Co., a sports

ticket agency, does not balance:

Errors in trial balance

obj. 4

Nevada-For-You Co.
Unadjusted Trial Balance
December 31, 2010

Total of Credit
column: $181,600

Debit
Balances
Cash . . . . . . . . . . . . . . .
Accounts Receivable . . . .
Prepaid Insurance . . . . . .
Equipment . . . . . . . . . . .
Accounts Payable . . . . . .
Unearned Rent . . . . . . . .
Tammy Gazboda, Capital .
Tammy Gazboda, Drawing
Service Revenue . . . . . .
Wages Expense . . . . . . .
Advertising Expense . . . .
Miscellaneous Expense .

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Credit
Balances

47,350
22,100
8,000
7,500
12,980
2,900
82,420
10,000
83,750
42,000
7,200
________
176,570
________

1,425
________
151,055
________

When the ledger and other records are reviewed, you discover the following: (1) the
debits and credits in the cash account total $47,350 and $33,975, respectively; (2) a billing
of $2,500 to a customer on account was not posted to the accounts receivable account;