Chapter 02 - Analyzing and Recording Transactions

Chapter 2
Analyzing and Recording Transactions
EXERCISES
Exercise 2-4 (15 minutes)

Type of Normal Increase

Account Account Balance (Dr. or Cr.)
a. Land asset debit debit
b. Cash asset debit debit
c. Legal Expense expense debit debit
d. Prepaid Insurance asset debit debit
e. Accounts Receivable asset debit debit
f. Owner Withdrawals equity debit debit
g. License Fee Revenue revenue credit credit
h. Unearned Revenue liability credit credit
i. Fees Earned revenue credit credit
j. Equipment asset debit debit
k. Notes Payable liability credit credit
l. Owner, Capital equity credit credit

Exercise 2-5 (15 minutes)

Of the items listed, the following effects should be included:

a. $28,000 increase in a liability account.
b. $10,000 increase in the Cash account.
e. $62,000 increase in a revenue account.

Explanation: This transaction created $62,000 in revenue, which is the value of

the service provided. Payment is received in the form of a $10,000 increase in
cash, an $80,000 increase in computer equipment, and a $28,000 increase in its
liabilities. The net value received by the company is $62,000.

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-6 (15 minutes)

a. Beginning accounts payable (credit) $152,000

Purchases on account in October (credits) 281,000
Payments on accounts in October (debits) ( ?)
Ending accounts payable (credit) $132,500

Payments on accounts in October (debits) $300,500

b. Beginning accounts receivable (debit) $102,500

Sales on account in October (debits) ?
Collections on account in October (credits) (102,890)
Ending accounts receivable (debit) $ 89,000

Sales on account in October (debits) $ 89,390

c. Beginning cash balance (debit) $ ?

Cash received in October (debits) 102,500
Cash disbursed in October (credits) (103,150)
Ending cash balance (debit) $ 18,600

Beginning cash balance (debit) $ 19,250

Exercise 2-7 (25 minutes)

Aug. 1 Cash................................................................... 6,500

Photography Equipment.................................. 33,500
M. Harris, Capital........................................ 40,000
Owner investment in business.
2 Prepaid Insurance............................................ 2,100
Cash............................................................. 2,100
Acquired 2 years of insurance coverage.
5 Office Supplies................................................. 880
Cash............................................................. 880
Purchased office supplies.
20 Cash................................................................... 3,331
Photography Fees Earned......................... 3,331
Collected photography fees.
31 Utilities Expense............................................... 675
Cash............................................................. 675
Paid for August utilities.

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-8 (30 minutes)

Cash Photography Equipment

Aug. 1 6,500 Aug. 2 2,100 Aug. 1 33,500
20 3,331 5 880
31 675 M. Harris, Capital
Balance 6,176 Aug. 1 40,000

Office Supplies Photography Fees Earned

Aug. 5 880 Aug. 20 3,331

Prepaid Insurance Utilities Expense

Aug. 2 2,100 Aug. 31 675

POSE-FOR-PICS
Trial Balance
August 31
Debit Credit
Cash $ 6,176
Office supplies 880
Prepaid insurance 2,100
Photography equipment 33,500
M. Harris, Capital $40,000
Photography fees earned 3,331
Utilities expense 675 ______
Totals $43,331 $43,331

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-9 (30 minutes)

a. Cash............................................................................ 100,750
K. Spade, Capital................................................ 100,750
Owner invested in the business.

b. Office Supplies.......................................................... 1,250

Cash.................................................................... 1,250
Purchased supplies with cash.

c. Office Equipment....................................................... 10,050

Accounts Payable.............................................. 10,050
Purchased office equipment on credit.

d. Cash............................................................................ 15,500
Fees Earned........................................................ 15,500
Received cash from customer for services.

e. Accounts Payable..................................................... 10,050

Cash.................................................................... 10,050
Made payment toward account payable.

f. Accounts Receivable................................................ 2,700

Fees Earned........................................................ 2,700
Billed customer for services provided.

g. Rent Expense............................................................. 1,225

Cash.................................................................... 1,225
Paid for this period’s rental charge.

h. Cash............................................................................ 1,125
Accounts Receivable......................................... 1,125
Received cash toward an account receivable.

i. K. Spade, Withdrawals.............................................. 10,000

Cash.................................................................... 10,000
Owner withdrew cash for personal use.

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-9 (concluded)

Cash Accounts Payable

(a) 100,750 (b) 1,250 (e) 10,050 (c) 10,050
(d) 15,500 (e) 10,050 Balance 0
(h) 1,125 (g) 1,225
(i) 10,000
Balance 94,850 K. Spade, Capital
(a) 100,750
Balance 100,750

Accounts Receivable K. Spade, Withdrawals

(f) 2,700 (h) 1,125 (i) 10,000
Balance 1,575 Balance 10,000

Office Supplies Fees Earned

(b) 1,250 (d) 15,500
Balance 1,250 (f) 2,700
Balance 18,200

Office Equipment Rent Expense

(c) 10,050 (g) 1,225
Balance 10,050 Balance 1,225

Exercise 2-10 (15 minutes)

SPADE COMPANY
Trial Balance
May 31, 2015
Debit Credit
Cash $ 94,850
Accounts receivable 1,575
Office supplies 1,250
Office equipment 10,050
Accounts payable $ 0
K. Spade, Capital 100,750
K. Spade, Withdrawals 10,000
Fees earned 18,200
Rent expense 1,225 _______
Totals $118,950 $118,950

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-13 (25 minutes)

a. Belle created a new business and invested $6,000 cash, $7,600 of

equipment, and $12,000 in automobiles.

b. Paid $4,800 cash in advance for insurance coverage.

c. Paid $900 cash for office supplies.

d. Purchased $300 of office supplies and $9,700 of equipment on credit.

e. Received $4,500 cash for delivery services provided.

f. Paid $1,600 cash towards accounts payable.

g. Paid $820 cash for gas and oil expenses.

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-14 (30 minutes)

a. Cash............................................................................ 6,000
Equipment.................................................................. 7,600
Automobiles............................................................... 12,000
D. Belle, Capital.................................................. 25,600
Owner investment in company.

b. Prepaid Insurance..................................................... 4,800

Cash.................................................................... 4,800
Purchased insurance coverage.

c. Office Supplies.......................................................... 900

Cash.................................................................... 900
Purchased supplies with cash.

d. Office Supplies.......................................................... 300

Equipment.................................................................. 9,700
Accounts Payable.............................................. 10,000
Purchased supplies and equipment on credit.

e. Cash............................................................................ 4,500
Delivery Services Revenue............................... 4,500
Received cash from customer for services
provided.

f. Accounts Payable..................................................... 1,600

Cash.................................................................... 1,600
Made payment on payables.

g. Gas and Oil Expense................................................. 820

Cash.................................................................... 820
Paid for gas and oil.

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-16 (15 minutes)

HELP TODAY
Income Statement
For Month Ended August 31
Revenues
Consulting fees earned......................... $ 27,000
Expenses
Rent expense......................................... $ 9,550
Salaries expense................................... 5,600
Telephone expense............................... 860
Miscellaneous expenses...................... 520
Total expenses...................................... 16,530
Net income.................................................. $ 10,470

Exercise 2-17 (15 minutes)

HELP TODAY
Statement of Owner’s Equity
For Month Ended August 31
C. Camry, Capital, July 31......................... $ 0
Add: Investment by owner...................... 102,000
Net income (from Exercise 2-16)...... 10,470
112,470
Less: Withdrawals by owner.................... 6,000
C. Camry, Capital, August 31.................... $106,470

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Chapter 02 - Analyzing and Recording Transactions

Exercise 2-18 (15 minutes)

HELP TODAY
Balance Sheet
August 31

Assets Liabilities
Cash............................... $ 25,360 Accounts payable................ $ 10,500
Accounts receivable.... 22,360
Office supplies.............. 5,250 Equity
Office equipment.......... 20,000 C. Camry, Capital*................ 106,470
Land............................... 44,000 ________
Total assets................... $116,970 Total liabilities & equity....... $116,970

*
Amount from Exercise 2-17.

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Chapter 02 - Analyzing and Recording Transactions

PROBLEM SET A
Problem 2-1A (90 minutes)
Part 1
April 1 Cash............................................................101 80,000
Office Equipment.......................................163 26,000
K. Tanner, Capital...............................301 106,000
Owner invested cash and equipment.

2 Prepaid Rent...............................................131 9,000

Cash....................................................101 9,000
Prepaid twelve months’ rent.

3 Office Equipment.......................................163 8,000

Office Supplies...........................................124 3,600
Accounts Payable..............................201 11,600
Purchased equip. & supplies on credit.

6 Cash............................................................101 4,000
Services Revenue...............................403 4,000
Received cash for services.

9 Accounts Receivable.................................106 6,000

Services Revenue...............................403 6,000
Billed client for completed work.

13 Accounts Payable......................................201 11,600

Cash....................................................101 11,600
Paid balance due on account.

19 Prepaid Insurance......................................128 2,400

Cash....................................................101 2,400
Paid premium for insurance.

22 Cash............................................................101 4,400
Accounts Receivable.........................106 4,400
Collected part of amount owed by client.

25 Accounts Receivable.................................106 2,890

Services Revenue...............................403 2,890
Billed client for completed work.

28 K. Tanner, Withdrawals.............................302 5,500

Cash....................................................101 5,500
Owner withdrew cash for personal use.

29 Office Supplies...........................................124 600

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Chapter 02 - Analyzing and Recording Transactions

Accounts Payable..............................201 600

Purchased supplies on account.

30 Utilities Expense........................................690 435

Cash....................................................101 435
Paid monthly utility bill.

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-1A (Continued)

Part 2
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
April 1 G1 80,000 80,000
2 G1 9,000 71,000
6 G1 4,000 75,000
13 G1 11,600 63,400
19 G1 2,400 61,000
22 G1 4,400 65,400
28 G1 5,500 59,900
30 G1 435 59,465

Accounts Receivable Acct. No. 106

Date Explanation PR Debit Credit Balance
April 9 G1 6,000 6,000
22 G1 4,400 1,600
25 G1 2,890 4,490

Office Supplies Acct. No. 124

Date Explanation PR Debit Credit Balance
April 3 G1 3,600 3,600
29 G1 600 4,200

Prepaid Insurance Acct. No. 128

Date Explanation PR Debit Credit Balance
April 19 G1 2,400 2,400

Prepaid Rent Acct. No. 131

Date Explanation PR Debit Credit Balance
April 2 G1 9,000 9,000

Office Equipment Acct. No. 163

Date Explanation PR Debit Credit Balance
April 1 G1 26,000 26,000
3 G1 8,000 34,000

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-1A (Continued)

Accounts Payable Acct. No. 201

Date Explanation PR Debit Credit Balance
April 3 G1 11,600 11,600
13 G1 11,600 0
29 G1 600 600

K. Tanner, Capital Acct. No. 301

Date Explanation PR Debit Credit Balance
April 1 G1 106,000 106,000

K. Tanner, Withdrawals Acct. No. 302

Date Explanation PR Debit Credit Balance
April 28 G1 5,500 5,500

Services Revenue Acct. No. 403

Date Explanation PR Debit Credit Balance
April 6 G1 4,000 4,000
9 G1 6,000 10,000
25 G1 2,890 12,890

Utilities Expense Acct. No. 690

Date Explanation PR Debit Credit Balance
April 30 G1 435 435

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-1A (Continued)

Part 3

LINKWORKS
Trial Balance
April 30
Debit Credit

Cash....................................................................... $ 59,465
Accounts receivable............................................ 4,490
Office supplies...................................................... 4,200
Prepaid insurance................................................ 2,400
Prepaid rent.......................................................... 9,000
Office equipment.................................................. 34,000
Accounts payable................................................. $ 600
K. Tanner, Capital................................................. 106,000
K. Tanner, Withdrawals........................................ 5,500
Services revenue.................................................. 12,890
Utilities expense................................................... 435
Total....................................................................... $119,490 $119,490

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-2A (90 minutes)

Part 1
a. Cash............................................................101 100,000
Office Equipment.......................................163 5,000
Drafting Equipment....................................164 60,000
J. Aracel, Capital................................301 165,000
Owner invested cash and equipment.

b. Land............................................................172 49,000
Cash....................................................101 6,300
Notes Payable.....................................250 42,700
Purchased land with cash and note payable.

c. Building.......................................................170 55,000
Cash....................................................101 55,000
Purchased building.

d. Prepaid Insurance......................................108 3,000

Cash....................................................101 3,000
Purchased 18-month insurance policy.

e. Cash............................................................101 6,200
Engineering Fees Earned..................402 6,200
Collected cash for completed work.

f. Drafting Equipment....................................164 20,000

Cash....................................................101 9,500
Notes Payable.....................................250 10,500
Purchased equipment with cash and note
payable.

g. Accounts Receivable.................................106 14,000

Engineering Fees Earned..................402 14,000
Completed services for client.

h. Office Equipment.......................................163 1,150

Accounts Payable..............................201 1,150
Purchased equipment on credit.

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-2A (Part 1 Continued)

i. Accounts Receivable.................................106 22,000

Engineering Fees Earned..................402 22,000
Billed client for completed work.

j. Equipment Rental Expense.......................602 1,333

Accounts Payable..............................201 1,333
Incurred equipment rental expense.

k. Cash............................................................101 7,000
Accounts Receivable.........................106 7,000
Collected cash on account.

l. Wages Expense..........................................601 1,200

Cash....................................................101 1,200
Paid assistant’s wages.

m. Accounts Payable......................................201 1,150

Cash...................................................101 1,150
Paid amount due on account.

n. Repairs Expense........................................604 925

Cash...................................................101 925
Paid for repair of equipment.

o. J. Aracel, Withdrawals...............................302 9,480

Cash....................................................101 9,480
Owner withdrew cash for personal use.

p. Wages Expense..........................................601 1,200

Cash....................................................101 1,200
Paid assistant’s wages.

q. Advertising Expense..................................603 2,500

Cash....................................................101 2,500
Paid for advertising expense.

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 Chapter 02 - Analyzing and Recording Transactions

Problem 2-2A (Continued)

Part 2
Cash No. 101 Accounts Payable No. 201
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 100,000 100,000 (h) 1,150 1,150
(b) 6,300 93,700 (j) 1,333 2,483
(c) 55,000 38,700 (m) 1,150 1,333
(d) 3,000 35,700
(e) 6,200 41,900 Notes Payable No. 250
(f) 9,500 32,400 Date PR Debit Credit Balance
(k) 7,000 39,400 (b) 42,700 42,700
(l) 1,200 38,200 (f) 10,500 53,200
(m) 1,150 37,050
(n) 925 36,125
(o) 9,480 26,645 J. Aracel, Capital No. 301
(p) 1,200 25,445 Date PR Debit Credit Balance
(q) 2,500 22,945 (a) 165,000 165,000

Accounts Receivable No. 106 J. Aracel, Withdrawals No. 302

Date PR Debit Credit Balance Date PR Debit Credit Balance
(g) 14,000 14,000 (o) 9,480 9,480
(i) 22,000 36,000
(k) 7,000 29,000 Engineering Fees Earned No. 402
Date PR Debit Credit Balance
Prepaid Insurance No. 108 (e) 6,200 6,200
Date PR Debit Credit Balance (g) 14,000 20,200
(d) 3,000 3,000 (i) 22,000 42,200

Office Equipment No. 163 Wages Expense No. 601

Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 5,000 5,000 (l) 1,200 1,200
(h) 1,150 6,150 (p) 1,200 2,400

Drafting Equipment No. 164 Equipment Rental Expense No. 602

Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 60,000 60,000 (j) 1,333 1,333
(f) 20,000 80,000

Building No. 170 Advertising Expense No. 603

Date PR Debit Credit Balance Date PR Debit Credit Balance
(c) 55,000 55,000 (q) 2,500 2,500

Land No. 172 Repairs Expense No. 604

Date PR Debit Credit Balance Date PR Debit Credit Balance
(b) 49,000 49,000 (n) 925 925

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-2A (Concluded)

Part 3

ARACEL ENGINEERING
Trial Balance
June 30
Debit Credit

Cash............................................................. $ 22,945
Accounts receivable.................................. 29,000
Prepaid insurance...................................... 3,000
Office equipment........................................ 6,150
Drafting equipment.................................... 80,000
Building....................................................... 55,000
Land............................................................. 49,000
Accounts payable....................................... $ 1,333
Notes payable............................................. 53,200
J. Aracel, Capital........................................ 165,000
J. Aracel, Withdrawals............................... 9,480
Engineering fees earned............................ 42,200
Wages expense.......................................... 2,400
Equipment rental expense......................... 1,333
Advertising expense.................................. 2,500
Repairs expense......................................... 925
Totals........................................................... $261,733 $261,733

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-3A (90 minutes)

Part 1
Mar. 1 Cash............................................................101 150,000
Office Equipment.......................................163 22,000
D. Brooks, Capital..............................301 172,000
Owner invested cash and equipment.

2 Prepaid Rent...............................................131 6,000

Cash....................................................101 6,000
Prepaid six months’ rent.

3 Office Equipment.......................................163 3,000

Office Supplies...........................................124 1,200
Accounts Payable..............................201 4,200
Purchased equipment and supplies on credit.

6 Cash............................................................101 4,000
Services Revenue...............................403 4,000
Received cash for services.

9 Accounts Receivable.................................106 7,500

Services Revenue...............................403 7,500
Billed client for completed work.

12 Accounts Payable......................................201 4,200

Cash....................................................101 4,200
Paid balance due on account.

19 Prepaid Insurance......................................128 5,000

Cash....................................................101 5,000
Paid premium for insurance.

22 Cash............................................................101 3,500
Accounts Receivable.........................106 3,500
Collected part of amount owed by client.

25 Accounts Receivable.................................106 3,820

Services Revenue...............................403 3,820
Billed client for completed work.

29 D. Brooks, Withdrawals.............................302 5,100

Cash....................................................101 5,100
Owner withdrew cash for personal use.

30 Office Supplies...........................................124 600

Accounts Payable..............................201 600
Purchased supplies on account.

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Chapter 02 - Analyzing and Recording Transactions

31 Utilities Expense........................................690 500

Cash....................................................101 500
Paid monthly utility bill.

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-3A (Continued)

Part 2

Cash Acct. No. 101

Date Explanation PR Debit Credit Balance
Mar. 1 G1 150,000 150,000
2 G1 6,000 144,000
6 G1 4,000 148,000
12 G1 4,200 143,800
19 G1 5,000 138,800
22 G1 3,500 142,300
29 G1 5,100 137,200
31 G1 500 136,700

Accounts Receivable Acct. No. 106

Date Explanation PR Debit Credit Balance
Mar. 9 G1 7,500 7,500
22 G1 3,500 4,000
25 G1 3,820 7,820

Office Supplies Acct. No. 124

Date Explanation PR Debit Credit Balance
Mar. 3 G1 1,200 1,200
30 G1 600 1,800

Prepaid Insurance Acct. No. 128

Date Explanation PR Debit Credit Balance
Mar. 19 G1 5,000 5,000

Prepaid Rent Acct. No. 131

Date Explanation PR Debit Credit Balance
Mar. 2 G1 6,000 6,000

Office Equipment Acct. No. 163

Date Explanation PR Debit Credit Balance
Mar. 1 G1 22,000 22,000
3 G1 3,000 25,000

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-3A (Continued)

Part 2 (Continued)

Accounts Payable Acct. No. 201

Date Explanation PR Debit Credit Balance
Mar. 3 G1 4,200 4,200
12 G1 4,200 0
30 G1 600 600

D. Brooks, Capital Acct. No. 301

Date Explanation PR Debit Credit Balance
Mar. 1 G1 172,000 172,000

D. Brooks, Withdrawals Acct. No. 302

Date Explanation PR Debit Credit Balance
Mar. 29 G1 5,100 5,100

Services Revenue Acct. No. 403

Date Explanation PR Debit Credit Balance
Mar. 6 G1 4,000 4,000
9 G1 7,500 11,500
25 G1 3,820 15,320

Utilities Expense Acct. No. 690

Date Explanation PR Debit Credit Balance
Mar. 31 G1 500 500

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-3A (Concluded)

Part 3

VENTURE CONSULTANTS
Trial Balance
March 31
Debit Credit

Cash ...................................................................... $136,700

Accounts receivable............................................ 7,820
Office supplies...................................................... 1,800
Prepaid insurance................................................ 5,000
Prepaid rent.......................................................... 6,000
Office equipment.................................................. 25,000
Accounts payable................................................. $ 600
D. Brooks, Capital................................................ 172,000
D. Brooks, Withdrawals....................................... 5,100
Services revenue.................................................. 15,320
Utilities expense................................................... 500
Totals..................................................................... $187,920 $187,920

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-4A (90 minutes)

Part 1
a. Cash..........................................................101 60,000
Office Equipment.....................................163 25,000
H. Venedict, Capital..........................301 85,000
Owner invested cash and equipment.

b. Land..........................................................172 40,000
Building.....................................................170 160,000
Cash...................................................101 30,000
Notes Payable...................................250 170,000
Purchased land and building with cash and
note payable.

c. Office Supplies.........................................108 2,000

Accounts Payable............................201 2,000
Purchased office supplies on account.

d. Automobiles.............................................164 16,500
H. Venedict, Capital..........................301 16,500
Owner contributed automobile to business.

e. Office Equipment.....................................163 5,600

Accounts Payable............................201 5,600
Purchased office equipment on account.

f. Salaries Expense.....................................601 1,800

Cash...................................................101 1,800
Paid assistant’s salary.

g. Cash..........................................................101 8,000
Fees Earned......................................402 8,000
Provided services for cash.

h. Utilities Expense......................................602 635

Cash...................................................101 635
Paid cash for utilities.

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Chapter 02 - Analyzing and Recording Transactions

Problem 2-4A (Part 1 Continued)

i. Accounts Payable....................................201 2,000

Cash...................................................101 2,000
Paid cash on account.

j. Office Equipment.....................................163 20,300

Cash...................................................101 20,300
Purchased new equipment with cash.

k. Accounts Receivable...............................106 6,250

Fees Earned......................................402 6,250
Provided services on account.

l. Salaries Expense.....................................601 1,800

Cash...................................................101 1,800
Paid assistant’s salary.

m. Cash..........................................................101 4,000
Accounts Receivable.......................106 4,000
Received cash due on account.

n. H. Venedict, Withdrawals........................302 2,800

Cash...................................................101 2,800
Owner withdrew cash for personal use.

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 Chapter 02 - Analyzing and Recording Transactions

Problem 2-4A (Continued)

Part 2
Cash No. 101 Land No. 172
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 60,000 60,000 (b) 40,000 40,000
(b) 30,000 30,000
(f) 1,800 28,200 Accounts Payable No. 201
(g) 8,000 36,200 Date PR Debit Credit Balance
(h) 635 35,565 (c) 2,000 2,000
(i) 2,000 33,565 (e) 5,600 7,600
(j) 20,300 13,265 (i) 2,000 5,600
(l) 1,800 11,465
(m) 4,000 15,465 Notes Payable No. 250
(n) 2,800 12,665 Date PR Debit Credit Balance
(b) 170,000 170,000
Accounts Receivable No. 106
Date PR Debit Credit Balance
(k) 6,250 6,250 H. Venedict, Capital No. 301
(m) 4,000 2,250 Date PR Debit Credit Balance
(a) 85,000 85,000
Office Supplies No. 108 (d) 16,500 101,500
Date PR Debit Credit Balance
(c) 2,000 2,000
H. Venedict, Withdrawals No. 302
Office Equipment No. 163 Date PR Debit Credit Balance
Date PR Debit Credit Balance (n) 2,800 2,800
(a) 25,000 25,000
(e) 5,600 30,600 Fees Earned No. 402
(j) 20,300 50,900 Date PR Debit Credit Balance
(g) 8,000 8,000
(k) 6,250 14,250

Automobiles No. 164 Salaries Expense No. 601

Date PR Debit Credit Balance Date PR Debit Credit Balance
(d) 16,500 16,500 (f) 1,800 1,800
(l) 1,800 3,600
Building No. 170
Date PR Debit Credit Balance Utilities Expense No. 602
(b) 160,000 160,000 Date PR Debit Credit Balance
(h) 635 635

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Education.
Chapter 02 - Analyzing and Recording Transactions

Problem 2-4A (Concluded)

Part 3

HV CONSULTING
Trial Balance
September 30
Debit Credit

Cash ............................................................ $ 12,665

Accounts receivable.................................. 2,250
Office supplies............................................ 2,000
Office equipment........................................ 50,900
Automobiles................................................ 16,500
Building....................................................... 160,000
Land............................................................. 40,000
Accounts payable....................................... $ 5,600
Notes payable............................................. 170,000
H. Venedict, Capital ................................... 101,500
H. Venedict, Withdrawals........................... 2,800
Fees earned................................................ 14,250
Salaries expense........................................ 3,600
Utilities expense......................................... 635
................................................................................
Total............................................................. $291,350 $291,350

2-85
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.