ACCOUNTS AND EXPLANATIONS Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Sept. 1 Cash 30,000 Liana Garcia, Capital Received investment from owner. 2 Medical Supplies 10,000 Accounts Payable Purchased supplies on account. Rent Expense 4,000 Paid office rent. 3 2,000 Accounts Receivable 3,000 Service Revenue 5,000 Performed service for patients.

ACCOUNTS AND EXPLANATIONS Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Oct. 15 Cash 50,000 Note Payable Borrowed money from the bank. 22 Accounts Receivable 3,600 Service Revenue Performed service on account. 30 2,000 Received cash on account. 31 Utilities Expense 200 Accounts Payable Received utility bill. Salary Expense 3,000 Paid salary expense. Interest Expense

ACCOUNTS AND EXPLANATIONS Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT Dec. 5 Office Furniture (↑ asset; debit) 800   Accounts Payable (↑ liability; credit) 10 Accounts Receivable (↑ asset; debit) 1,600 Service Revenue (↑ revenue; credit) 12 Cash (↑ asset; debit) 7,000 Note Payable (↑ liability; credit) 19 29,000 Land (↓ asset; credit) 21 Building (↑ asset; debit) 140,000 27 Accounts Payable (↓ liability; debit) Cash (↓ asset; credit)

Interfax Corporation Millions Trial Balance December 31, 20X3   Millions ACCOUNT DEBIT CREDIT Cash $12 Other assets 40 Accounts payable $ 1 Other liabilities 19 Capital 25 Revenues 29 Expenses 22        Total $74

Investment of cash by the owner E2-7 Req. 1 May 2 Investment of cash by the owner   5 Borrow cash by signing a note payable   9 Purchase of supplies on account (on credit)   11 Performing service on account   14 Payment of rent expense   22 Payment on account   25 Payment of advertising expense   27 Collection on account   31 Receipt of a utility bill and recording the expense on account

The Mane Event Cash Supplies Equipment Building Accounts payable Trial Balance October 31, 20X4 DEBIT CREDIT ACCOUNT Cash $13,000   Supplies 400       Equipment 6,000   Building 40,000   Accounts payable   $ 400 Note payable   37,000 Liz Adeva, capital               22,000 Total $59,400 $59,400

E2-10 S.W. Bell Advertising Trial Balance December 31, 20X4 Cash $ 5,000 DEBIT   CREDIT ACCOUNT Accounts receivable 9,500   Supplies 200   Building 125,000   Land 29,000   Accounts payable   $ 4,300 Note payable   45,000 S.W. Bell, capital   48,800 S.W. Bell, withdrawals 6,000   Service revenue   86,000 Salary expense 6,000   Rent expense 2,000   Insurance expense 700   Utilities expense 400   Supplies expense 300                 Total $184,100 $184,100

E2-11 Harvey Spark, M.D. Trial Balance March 31, 20X9 Cash CREDIT ACCOUNT DEBIT Cash CREDIT $ 3,400*   Accounts receivable 1,600*   Supplies 600   Land 66,000   Accounts payable   $22,600* Harvey Spark, capital   42,300* Service revenue   9,700 Salary expense 1,700   Rent expense 800   Utilities expense 500*               Total $74,600 $74,600

Mike Reitmeier, capital 20,400 Mike Reitmeier, withdrawals 7,000 Mike Reitmeier, CPA E2-13 Trial Balance May 31, 20X7 ACCOUNT DEBIT CREDIT Cash $ 4,300   Accounts receivable 1,600   Office supplies 700   Office furniture 5,400   Accounts payable   $ 300 Mike Reitmeier, capital   20,400 Mike Reitmeier, withdrawals 7,000   Service revenue   1,600 Salary expense 1,500 1,800   Rent expense               Total $22,300 $22,300

Total debits=$53,000=Total credits Supplies 8,000   Bal. 8,000 Cash 50,000 12,000   5,000 Bal. 33,000 Equipment 12,000   Bal. 12,000 Accounts Payable 5,000 8,000   Bal. 3,000 Total debits=$53,000=Total credits

$75,000 E2-16 b. Cash Feb. 28 Bal. 7,000 March receipts 70,000   March receipts 70,000 March payments X Mar. 31 Bal. 2,000 $75,000

Analyze Note Payable, answer: $ 6500 E2-16 c Accounts Receivable     Feb. 28 Bal. 24,000     March revenues 90,000 on account X March collections Mar. 31 Bal. 26,000 $88,000   E2-16 d Analyze Note Payable, answer: $ 6500

Marsha Walker, Consultant Req. 4 Trial Balance December 18, 20XX Cash ACCOUNT DEBIT $12,100 CREDIT   Accounts receivable 1,700   Supplies 300   Equipment 2,000   Furniture 3,600   Accounts payable   $ 3,900 Marsha Walker, capital   14,000 Marsha Walker, withdrawals —   Service revenue   2,500 Rent expense 500   Utilities expense 200   Salary expense     —               Total $20,400 $20,400

ACCOUNTS AND EXPLANATIONS P2-1A 1. Total assets $268,000 ($7,000 + $6,000 + $4,000 + $251,000) Total liabilities $211,000 ($31,000 + $180,000) Net income $ 45,000 ($112,000 – $38,000 – $14,000 – $8,000 – $7,000) Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT   Accounts Receivable 112,000 Service Revenue The trial balance amount for Service Revenue comes directly from the Service Revenue account above.

The new business would be a partnership. Req. 3   Hillsboro records transactions in the journal, posts to the accounts in the ledger, computes each account balance, and lists all the accounts along with their balances, on the trial balance. Cash has an ending balance of $7,000. Req. 4   The new business would be a partnership.

ACCOUNTS AND EXPLANATIONS P2-2A Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT June 1 Cash (↑ asset; debit)   55,000 Art Levitt, Capital (↑ equity; credit) 5 Rent Expense (↑ expense; debit) 700 Cash (↓ asset; credit) 9 Land (↑ asset; debit) 22,000

Continued P2-2A 10 Supplies (↑ asset; debit) 1,200   10 Supplies (↑ asset; debit) 1,200 Accounts Payable (↑ liability; credit) 19 Cash (↑ asset; debit) 20,000 Notes Payable (↑ liability; credit) 22 Accounts Payable (↓ liability; debit) 1,000 Cash (↓ asset; credit) Continued P2-2A

Continued P2-2A 30 Cash (↑ asset; debit) 6,000   30 Cash (↑ asset; debit) 6,000 Accounts Receivable (↑ asset; debit) 5,000 Service Revenue (↑ revenue; credit) 11,000 Salary Expense (↑ expense; debit) 2,400 Rent Expense (↑ expense; debit) 1,500 Utilities Expense (↑ expense; debit) 400 Cash (↓ asset; credit) 4,300 Art Levitt, Withdrawals (↓ equity; debit) 10,000

ACCOUNTS AND EXPLANATIONS P 2-3A Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Dec. 2 Cash   30,000 Monica Kaska, Capital 3 Supplies 500 Furniture 2,600 Accounts Payable 3,100 4 1,500 Service Revenue

7 Land 22,000 Cash Accounts Receivable 900 Service Revenue Continued P 2-3A Req. 1  Dec 7 Land   22,000 Cash 11 Accounts Receivable 900 Service Revenue 15 Salary Expense 570

Dec Accounts Payable 2,600 Cash 1,800 Service Revenue Continued P 2-3A Req. 1  Dec 16 Accounts Payable   2,600 Cash 18 1,800 Service Revenue 19 Accounts Receivable 800

Monica Kaska, Withdrawals 2,200 Continued P 2-3A Req. 1 Dec. 29 Cash   400 Accounts Receivable 31 Salary Expense 570 Rent Expense 700 Monica Kaska, Withdrawals 2,200

Monica Kaska, withdrawals 2,200 Service revenue 5,000 Salary expense Monica Kaska, Attorney Trial Balance December 31, 20XX ACCOUNT DEBIT CREDIT Cash $ 5,060   Accounts receivable 1,300 Supplies 500 Furniture 2,600 Land 22,000 Accounts payable $ 500 Monica Kaska, capital 30,000 Monica Kaska, withdrawals 2,200 Service revenue 5,000 Salary expense 1,140 Rent expense 700               Total $35,500 P 2-3A Req. 3

ACCOUNT CASH ACCOUNT NO. 11   JRNL. BALANCE DATE ITEM REF. DEBIT CREDT CREDIT Nov. 15 Bal.  3,000 16 J.6 6,000 9,000 23 2,100 6,900 2,600 4,300 24 1,900 6,200 30 700 5,500 3,400 P2-4A Req.2

ACCOUNT ACCOUNTS RECEIVABLE ACCOUNT NO. 12   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  8,000 16 J.6 6,000 2,000 17 1,700 3,700

DEBIT Nov. Bal.  600 J.6 800 1,400 Nov. Bal.  15,000 ACCOUNT SUPPLIES ACCOUNT NO. 13   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  600 22 J.6 800 1,400 ACCOUNT EQUIPMENT ACCOUNT NO. 14   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  15,000

ACCOUNT ACCOUNTS PAYABLE ACCOUNT NO. 21     JRNL.     BALANCE DATE ITEM REF. DEBIT CREDIT DEBIT CREDIT Nov. 15 Bal.        4,600   22   J.6   800   5,400   23   J.6 2,600     2,800

Nov. Bal.  20,000 Nov. Bal.  2,300 J.6 2,100 4,400 ACCOUNT NO. 31 ACCOUNT ROBERT QUIROGA, CAPITAL ACCOUNT NO. 31   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  20,000 ACCOUNT ROBERT QUIROGA, WITHDRAWALS ACCOUNT NO. 32   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  2,300 23 J.6 2,100 4,400

Nov. Bal.  7,100 J.6 1,700 8,800 1,900 10,700 ACCOUNT SERVICE REVENUE ACCOUNT NO. 41   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  7,100 17 J.6 1,700 8,800 24 1,900 10,700

REF. DEBIT Nov. Bal.  1,800 J.6 2,100 3,900 DATE ITEM REF. DEBIT Nov. ACCOUNT SALARY EXPENSE ACCOUNT NO. 51   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  1,800 30 J.6 2,100 3,900 ACCOUNT RENT EXPENSE ACCOUNT NO. 52   JRNL. BALANCE DATE ITEM REF. DEBIT CREDIT Nov. 15 Bal.  1,000 30 J.6 700 1,700

Robert Quiroga, Registered Dietician Trial Balance November 30, 20X3 ACCT. NO. ACCOUNT DEBIT CREDIT 11 Cash $ 3,400   12 Accounts receivable 3,700 13 Supplies 1,400 14 Equipment 15,000 21 Accounts payable $ 2,800 31 Robert Quiroga, capital 20,000 32 Robert Quiroga, withdrawals 4,400 41 Service revenue 10,700 51 Salary expense 3,900 52 Rent expense 1,700               Total $33,500 P2-4A Req.3

Online Cable Services Trial Balance March 31, 20X1 ACCOUNT DEBIT CREDIT Cash $ 6,600   Accounts receivable 2,540 Supplies 600 Office furniture 21,300 Computers 46,000 Accounts payable $ 2,800 Note payable 18,300 Meredith Ballard, capital 50,800 Meredith Ballard, withdrawals 5,000 Service revenue 13,200 Salary expense 1,300 Rent expense 1,200 Advertising expense 300 Utilities expense 260               Total $85,100 P2-5a Req.1

Online Cable Services Income Statement Month Ended March 31, 20X1 Revenues:   Service revenue $13,200 Expenses: Salary expense $1,300 Rent expense 1,200 Advertising expense 300 Utilities expense 260 Total expenses 3,060 Net income $10,140

Serrano Carpet Installers Trial Balance January 31, 20X7 ACCOUNT DEBIT CREDIT Cash $ 7,300   Accounts receivable 2,200 Supplies 400 Equipment 32,000 Automobile 13,000 Accounts payable $ 1,100 Note payable 25,000 Vince Serrano, capital 31,000 Vince Serrano, withdrawals 2,600 Service revenue 4,100 Salary expense 1,300 Rent expense 1,000 Advertising expense 800 Insurance expense 600               Total $61,200 P2-6A

Serrano Carpet Installers P2-7A Serrano Carpet Installers Income Statement Month Ended January 31, 20X7 Revenues:   Service revenue $4,100 Expenses: Salary expense $1,300 Rent expense 1,000 Advertising expense 800 Insurance expense 600 Total expenses 3,700 Net income $ 400

Serrano Carpet Installers Statement of Owner’s Equity Month Ended January 31, 20X7 Vince Serrano, capital, January 1, 20X7 $ -0- Add: Investment by owner 31,000 Net income for the month   31,400 Less: Withdrawals by owner (2,600) Vince Serrano, capital, January 31, 20X7 400 $28,800

Serrano Carpet Installers Balance Sheet January 31, 20X7 ASSETS LIABILITIES Cash $ 7,300 Accounts payable $ 1,100 Accounts receivable 2,200 Note payable 25,000 Supplies 400 Total liabilities 26,100 Equipment 32,000 OWNER’S EQUITY Automobile 13,000 Vince Serrano, capital                 Total liabilities and Total assets $54,900 owner’s equity 28,800