Learning Materials
Features
Discover
Chapter 2: 3RQ (page 90)
What does a ledger show? What鈥檚 the difference between a ledger and a chart of accounts?
The ledger shows the change and balance of various accounts and a chart of accounts shows only account name and account number.
Over 30 million students worldwide already upgrade their learning with 91影视!
All the tools & learning materials you need for study success - in one app.
Get started for free
Identify which types of accounts have a normal debit balance and which types of accounts have a normal credit balance.
Question: The following transactions occurred for Wilke Technology Solutions:
May 1 The business received cash of \(105,000 and issued common stock to Zoe Wilke.
2 Purchased office supplies on account, \)550.
4 Paid \(57,000 cash for building and land. The building had a fair market value of \)45,000.
6 Performed services for customers and received cash, \(3,600.
9 Paid \)350 on accounts payable.
17 Performed services for customers on account, \(3,500.
19 Paid rent expense for the month, \)1,200.
20 Received \(1,500 from customers for services to be performed next month.
21 Paid \)900 for advertising in next month鈥檚 IT Technology magazine.
23 Received \(3,100 cash on account from a customer.
31 Incurred and paid salaries, \)1,700
Posting journal entries to four-column accounts
Requirements 1. Open four-column accounts using the following account numbers: Cash, 110; Accounts Receivable, 120; Office Supplies, 130; Prepaid Advertising, 140; Land, 150; Building, 160; Accounts Payable, 210; Unearned Revenue, 220; Common Stock, 310; Service Revenue, 410; Rent Expense, 510; and Salaries Expense, 520.
For each account, identify if the change would be recorded as a debit (DR) or credit (CR).
11. Increase to Cash 16. Increase to Interest Revenue
12. Decrease to Accounts Payable 17. Increase to Rent Expense
13. Increase to Common Stock 18. Decrease to Office Supplies
14. Increase to Unearned Revenue 19. Increase to Prepaid Rent
15. Decrease to Accounts Receivable 20. Increase to Notes Payable
Journalizing transactions, posting to T-accounts, and preparing a trial balance
Consider the following transactional data for the first month of operations for Crystal Clear Cleaning.
Nov. 1 Stockholders contributed \(15,000 and a truck, with a market value of \)3,000, to the business in exchange for common stock.
2 The business paid \(4,000 to Pleasant Properties for November through February rent. (Debit Prepaid Rent)
3 Paid \)4,800 for a business insurance policy for the term November 1, 2018 through October 31, 2019. (Debit Prepaid Insurance)
4 Purchased cleaning supplies on account, \(320.
5 Purchased on account an industrial vacuum cleaner costing \)1,500. The invoice is payable November 25.
7 Paid \(3,900 for a computer and printer.
9 Performed cleaning services on account in the amount of \)4,700.
10 Received \(200 for services rendered on November 9. 15 Paid employees, \)400.
16 Received \(15,000 for a 1-year contract beginning November
16 for cleaning services to be provided. Contract begins November 16, 2018, and ends November 15, 2019. (Credit Unearned Revenue)
17 Provided cleaning services and received \)400 cash.
18 Received a utility bill for \(175 with a due date of December 4, 2018. (Use Accounts Payable)
20 Borrowed \)36,000 from bank with interest rate of 6% per year.
21 Received \(500 on account for services performed on November 9.
25 Paid \)750 on account for vacuum cleaner purchased on November 5.
29 Paid \(200 for advertising.
30 Cash dividends of \)1,400 were paid to stockholders
Requirements 1. Journalize the transactions, using the following accounts: Cash; Accounts Receivable; Cleaning Supplies; Prepaid Rent; Prepaid Insurance; Equipment; Truck; Accounts Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Advertising Expense; and Utilities Expense. Explanations are not required.
Question: The following transactions occurred for Wilke Technology Solutions:
May 1 The business received cash of \(105,000 and issued common stock to Zoe Wilke.
2 Purchased office supplies on account, \)550.
4 Paid \(57,000 cash for building and land. The building had a fair market value of \)45,000.
6 Performed services for customers and received cash, \(3,600.
9 Paid \)350 on accounts payable.
17 Performed services for customers on account, \(3,500.
19 Paid rent expense for the month, \)1,200.
20 Received \(1,500 from customers for services to be performed next month.
21 Paid \)900 for advertising in next month鈥檚 IT Technology magazine.
23 Received \(3,100 cash on account from a customer.
31 Incurred and paid salaries, \)1,700.
Analyzing and journalizing transactions
Journalize the transactions of Wilke Technology Solutions. Include an explanation with each journal entry. Use the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Advertising; Land; Building; Accounts Payable; Unearned Revenue; Common Stock; Service Revenue; Rent Expense; and Salaries Expense
What do you think about this solution?
We value your feedback to improve our textbook solutions.
Explanations 
Textbooks 
Flashcards 
91影视 AI 
Notes 
Study Plans 
Study Sets 
Find a degree 
Magazine