EXERCISE 2.

Trans. Account Titles Debit Credit

1. Cash..................................................................... 24,000
Owner’s Capital........................................... 24,000
2. Cash..................................................................... 7,000
Notes Payable............................................. 7,000
3. Equipment........................................................... 11,000
Cash............................................................. 11,000
4. Rent Expense...................................................... 1,200
Cash............................................................. 1,200
5. Supplies............................................................... 1,450
Cash............................................................. 1,450
6. Advertising Expense.......................................... 600
Accounts Payable....................................... 600
7. Cash..................................................................... 2,000
Accounts Receivable.......................................... 16,000
Service Revenue......................................... 18,000
8. Owner’s Drawings.............................................. 400
Cash............................................................. 400
9. Utilities Expense................................................. 2,000
Cash............................................................. 2,000
10. Accounts Payable............................................... 600
Cash............................................................. 600
11. Interest Expense................................................. 40
Cash............................................................. 40
12. Salaries and Wages Expense............................ 6,400
Cash............................................................. 6,400
13. Cash..................................................................... 12,000
Accounts Receivable.................................. 12,000

EXERCISE 2.12
 (a)
General Journal
Date Account Titles and Explanation Ref. Debit Credit
Apr. 1 Cash...................................................... 14,000
14,000
Owner’s Capital...............................
(Owner’s investment of
cash in business)

12 Cash...................................................... 900
900
Service Revenue..............................
(Received cash for
services performed)

15 Salaries and Wages Expense............. 1,300

Cash.................................................. 1,300
(Paid salaries to date)

25 Accounts Payable................................ 1,500

Cash.................................................. 1,500
(Paid creditors on account)

29 Cash...................................................... 400
400
Accounts Receivable......................
(Received cash in payment
of account)

30 Cash...................................................... 1,000
1,000
Unearned Service Revenue............
(Received cash for future
services)

(b) NEGRETE LANDSCAPING

Trial Balance
 April 30, 2020

Debit Credit
Cash........................................................................... €13,500
Accounts Receivable................................................ 2,600
Supplies..................................................................... 1,800
Accounts Payable..................................................... € 300
Unearned Service Revenue...................................... 1,000
Owner’s Capital......................................................... 14,000
Service Revenue....................................................... 3,900
Salaries and Wages Expense................................... 1,300
€19,200 €19,200
EXERCISE 2.16

OVERNITE DELIVERY SERVICE

Trial Balance
July 31, 2020

Debit Credit
Cash (¥74,819 – Debit total without Cash
¥62,338).................................................................... ¥12,481
Accounts Receivable.................................................. 7,640
Prepaid Insurance....................................................... 1,968
Equipment.................................................................... 45,360
Notes Payable.............................................................. ¥17,000
Accounts Payable....................................................... 8,394
Salaries and Wages Payable...................................... 815
Owner’s Capital........................................................... 38,000
Owner’s Drawings....................................................... 700
Service Revenue......................................................... 10,610
Salaries and Wages Expense..................................... 4,428
Maintenance and Repairs Expense........................... 961
Gasoline Expense....................................................... 758
Utilities Expense......................................................... 523
¥74,819 ¥74,819
 PROBLEM 2.3

(a)

Trans. Account Titles and Explanation Debit Credit

1. Cash..................................................... 40,000
Owner’s Capital.......................... 40,000

2. No entry—Not a transaction.

3. Prepaid Rent........................................ 24,000

Cash............................................ 24,000

4. Equipment........................................... 30,000
Cash............................................ 10,000
Accounts Payable...................... 20,000

5. Prepaid Insurance............................... 1,800

Cash............................................ 1,800

6. Supplies............................................... 420
Cash............................................ 420

7. Supplies............................................... 1,500
Accounts Payable...................... 1,500

8. Cash..................................................... 8,000
Accounts Receivable.......................... 12,000
Service Revenue........................ 20,000

9. Accounts Payable............................... 400

Cash............................................ 400

10. Cash..................................................... 3,000

Accounts Receivable................. 3,000

11. Utilities Expense................................. 380

Accounts Payable...................... 380
PROBLEM 2.3 (Continued)

Trans. Account Titles and Explanation Debit Credit

12. Salaries and Wages Expense........... 6,100
Cash............................................ 6,100

(b)
Cash 30,000
(1) 40,000
(3) 24,000
(4) 10,000 Accounts Payable
(5) 1,800 (4) 20,000
(6) 420 (7) 1,500
(8) 8,000 (9) 400
(9) 400 (11) 380
(10) 3,000 21,480
(12) 6,100
8,280
Owner’s Capital
(1) 40,000
Accounts Receivable 40,000
(8) 12,000
(10) 3,000
9,000 Service Revenue
(8) 20,000
20,000
Supplies
(6) 420
(7) 1,500 Salaries and Wages Expense
1,920 (12) 6,100
6,100
Prepaid Insurance
(5) 1,800
1,800

Prepaid Rent
(3) 24,000
24,000
Equipment
(4) 30,000
 Utilities Expense
(11) 380
380
(c) KOCHI SERVICES
Trial Balance
May 31, 2020

Debit Credit
Cash.................................................................. INR 8,280
Accounts Receivable...................................... 9,000
Supplies........................................................... 1,920
Prepaid Insurance........................................... 1,800
Prepaid Rent.................................................... 24,000
Equipment........................................................ 30,000
Accounts Payable........................................... INR21,480
Owner’s Capital............................................... 40,000
Service Revenue.............................................. 20,000
Salaries and Wages Expense......................... 6,100
Utilities Expense.............................................. 380
INR81,480 INR81,480
 PROBLEM 2.5

(a) & (c)

Cash No. 101

Date Explanation Ref. Debit Credit Balance
Mar. 1 Balance  3,000
2 J1 1,500 1,500
9 J1 4,300 5,800
10 J1 4,100 1,700
12 J1 900 800
20 J1 5,000 5,800
20 J1 2,000 3,800
31 J1 3,100 700
31 J1 450 1,150
31 J1 9,000 10,150

Accounts Receivable No. 112

Date Explanation Ref. Debit Credit Balance
Mar. 31 J1 450 450

Land No. 140

Date Explanation Ref. Debit Credit Balance
Mar. 1 Balance  24,000

Buildings No. 145

Date Explanation Ref. Debit Credit Balance
Mar. 1 Balance  10,000

Equipment No. 157

Date Explanation Ref. Debit Credit Balance
Mar. 1 Balance  10,000
PROBLEM 2.5 (Continued)

Accounts Payable No. 201

Date Explanation Ref. Debit Credit Balance
Mar. 1 Balance  7,000
2 J1 2,000 9,000
10 J1 4,100 4,900

Owner’s Capital No. 301

Date Explanation Ref. Debit Credit Balance
Mar. 1 Balance  40,000

Service Revenue No. 400

Date Explanation Ref. Debit Credit Balance
Mar. 9 J1 4,300 4,300
20 J1 5,000 9,300
31 J1 9,000 18,300

Rent Revenue No. 429

Date Explanation Ref. Debit Credit Balance
Mar.31 J1 900 900

Advertising Expense No. 610

Date Explanation Ref. Debit Credit Balance
Mar.12 J1 900 900

Salaries and Wages Expense No. 726

Date Explanation Ref. Debit Credit Balance
Mar. 31 J1 3,100 3,100
PROBLEM 2.5 (Continued)

Rent Expense No. 729

Date Explanation Ref. Debit Credit Balance
Mar. 2 J1 3,500 3,500
20 J1 2,000 5,500

(b)
J1
Date Account Titles and Explanation Ref. Debit Credit
Mar. 2 Rent Expense........................................ 729 3,500
Accounts Payable........................ 201 2,000
Cash.............................................. 101 1,500
(Rented films for cash and
on account)
3 No entry.
9 Cash....................................................... 101 4,300
Service Revenue.......................... 400 4,300
(Received cash for services
performed)
10 Accounts Payable (₩2,000 + ₩2,100).... 201 4,100
Cash.............................................. 101 4,100
(Paid creditors on account)
11 No entry.
12 Advertising Expense............................. 610 900
Cash.............................................. 101 900
(Paid advertising expense)
20 Cash....................................................... 101 5,000
Service Revenue.......................... 400 5,000
(Received cash for services
performed)
20 Rent Expense........................................ 729 2,000
Cash.............................................. 101 2,000
(Paid film rental)
PROBLEM 2.5 (Continued)

Date Account Titles and Explanation Ref. Debit Credit

Mar. 31 Salaries and Wages Expense............... 726 3,100
Cash.............................................. 101 3,100
(Paid salaries expense)

31 Cash........................................................ 101 450

Accounts Receivable............................ 112 450
Rent Revenue............................... 429 900
(15% X ₩6,000)
(Received cash and balance
on account for rent
revenue)

31 Cash........................................................ 101 9,000

Service Revenue.......................... 400 9,000
(Received cash for services
performed)

(d) SUN THEATER

Trial Balance
March 31, 2020

Debit Credit
Cash.................................................................. ₩10,150
Accounts Receivable....................................... 450
Land................................................................... 24,000
Buildings........................................................... 10,000
Equipment......................................................... 10,000
Accounts Payable............................................ ₩ 4,900
Owner’s Capital................................................ 40,000
Service Revenue.............................................. 18,300
Rent Revenue................................................... 900
Advertising Expense........................................ 900
Salaries and Wages Expense.......................... 3,100
Rent Expense................................................... 5,500
₩64,100 ₩64,100