1. Chapter 2 The Recording Process TA : Lamis Jameel Banasser

2. BE 2-2 Account CreditedAccount Debited Owner’s capital CashJune 1 Accounts payableEquipment 2 CashRent Expense 3 Service RevenueAccounts receivable 12

3. BE 2-3 Date Account Title Debit Credit June 1 Cash 5,000 Owner’s Capital 5,000 (Owner’s investment of cash in business ) 2 Equipment 2,100 Accounts Payable 2,100 (Purchased equipment on account) 3 Rent Expense 800 Cash 800 (Paid for Rent ) 12 Accounts Receivable 300 Service Revenue 300 (Billed for services performed)

4. BE 2-7 Cash 12/5 2,400 15/5 3,000 Ending Bal. 5,400 5/5 4,100 Ending Bal. 1,700 Accounts Receivable 12/5 2,400 Service Revenue 5/5 4,100 15/5 3,000 Ending Bal. 7,100

5. BE 2-8 ( Standard Form of Account ) Cash No. 101 Date Explanation Ref. Debit Credit Balance May. 12 J 1 2400 2400 15 J 1 3000 5400 Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance May. 5 J 1 4100 4100 12 J 1 2400 1700 Service Revenue No. 400 Date Explanation Ref. Debit Credit Balance May. 5 J 1 4100 4100 15 J 1 3000 7100

6. BE 2-9 DEROCHE COMPANY Trial Balance June 30, 2014 _________________________________________________________ Credit Debit Cash 5,800 Accounts Receivable 3,000 Equipment 17,000 Accounts Payable 9,000 Owner’s Capital 15,000 Owner’s Drawings 1,200 Service Revenue 10,000 Salaries and Wages Expense 6,000 Rent Expense 1,000 $34,000 $34,000

7. E 2-3 Date Account Titles and Explanation Ref. Debit Credit General Journal J1 Jan. 2 Cash 10,000 Owner’s Capital 10,000 ( Owner’s investment of cash in business ) 3 Equipment 4,000 Cash 4,000 ( Purchased Equipment for Cash ) 9 Supplies 500 Accounts payable 500 ( Purchased Supplies on account ) 11 Accounts Receivable 2100 Service Revenue 2100 ( Billed for Services Performed ) 16 Advertising Expense 350 Cash 350 ( Paid for Advertising )

8. E 2-3 (Continued) Date Account Titles and Explanation Ref. Debit Credit Jan. 20 Cash 700 Accounts Receivable 700 ( Received Cash in payment of account ) 23 Accounts Payable 300 Cash 300 ( Paid Creditor on Account ) 28 Owner’s Drawings 1000 Cash 1000 ( Withdrew Cash for Personal use)

9. E 2-9 (a) Cash 1/8 5000 10/8 2400 31/8 900 Bal. 5300 12/8 3000 Accounts Receivable 25/8 1700 Bal. 800 31/8 900 Equipment 12/8 5000 Bal. 5000 Notes Payable 12/8 2000 Bal. 2000 Owner’s Capital 1/8 5000 Bal. 5000 Service Revenue 10/8 2700 25/8 1700 Bal. 4100

10. E 2-9 (continued) (B) TRISHA SPOOR, INVESTMENT BROKER Trial Balance August 31, 2014 _______________________________________________________________ Debit Credit Cash 5,300 Accounts Receivable 800 Equipment 5,000 Notes Payable 2,000 Owner’s Capital 5,000 Service Revenue 4,100 $11,100 $11,100

11. E 2-14 LONGORIA DELIVERY SERVICE Trial Balance July 31, 2014 _______________________________________________________________________________ Debit Credit Cash ( 78,821 – Debit total without Cash 66,340) 12,481 Accounts Receivable 7,642 Prepaid Insurance 1,968 Equipment 49,360 Notes Payable 17,000 Accounts Payable 8,396 Salaries and Wages Payable 815 Owner’s Capital 42,000 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 $78,821 $78,821

12. Apr. 1 Cash 101 20,000 Owner’s Capital 301 20,000 ( Owner’s investment of cash in business ) 1 No entry – not a transaction 2 Rent Expense 729 1,100 Cash 110 1,100 ( Paid monthly office rent ) 3 Supplies 126 4,000 Accounts payable 201 4,000 ( Purchased Supplies on account ) 10 Accounts Receivable 112 5,100 Service Revenue 400 5,100 ( Billed clients for Services Performed ) 11 Cash 101 1,000 Unearned Service Revenue 209 1,000 ( Received cash for future services) P 2-2A (a) Date Account Titles and Explanation Ref. Debit Credit General Journal J1

13. Apr. 20 Cash 101 2,100 Service Revenue 400 2,100 ( Received cash for services performed ) 30 Salaries and wages Expense 726 2,800 Cash 101 2,800 ( Paid monthly salary ) 30 Accounts Payable 201 2,400 Cash 101 2,400 ( Paid Smile Company on account ) P 2-2A (continued) Date Account Titles and Explanation Ref. Debit Credit