2.5-5. Refer to the data in question 2.5-4.
A.
Set up T-accounts for Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, Service Revenue, Rent Expense, and Utilities Expense. Post the transactions to the T-accounts and compute ending account balances. B.
Prepare a trial balance at the end of the month.
Answer:
A.
Cash 10,000 2,000 1,000 3,000 500 300 6,200
A/R
1,500 500 1,000 Supplies
500 Equipment 3,000 A/P 500 Common stock 10,000 Service revenue 1,000 1,500 2,500
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Rent expense 2,000
Utilities expense 300
B. Consulting Inc. Trial Balance 1/31/2007
Cash $6,200 Accounts receivable 1,000 Supplies 500 Equipment 3,000 Accounts payable 500
Common stock 10,000 Service revenue 2,500 Rent expense 2,000 Utilities expense 300
$13,000
$13,000
LO: 2-5
Diff: 2
EOC: E2-25
2.1-43 Record the effects of the following transactions on the accounting equation. transactions, compute the ending balances of the equation to prove it balances. 1. A business received $10,000 and issued common stock. 2. Paid $2,000 monthly rent for office space. 3. Paid $3,000 of office equipment, paying cash. 4. Purchased $500 of office supplies on account. 5. Recorded $1,000 of revenue, receiving cash.
6. Recorded $1,500 of revenue on account and mailed invoices to the customers. 7. Paid utilities expense of $300.
8. Collected cash from a customer on account, $500.
9. Borrowed $10,000 from the bank and signed a note payable.
After recording the
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Answer: Assets = 1. 10,000 2. (2,000) 3. (3,000) 3,000 4. 500 5. 1,000 6. 1,500 7. (300) 8. 500 (500) 9. 10,000 20,700 = LO: 2-1
Liabilities
500
10,000 10,500 Diff: 2
+ Equity 10,000 (2,000) 1,000 1,500 (300) +
10,200 EOC: P2-50A
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