Chapter 2 Homework
Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $12,500. March 5 Obtain $7,300 loan from the bank by signing a note. March 10 Purchase construction equipment for $16,500 cash. March 15 Purchase advertising for the current month for $1,200 cash. March 22 Provide construction services for $16,300 on account. March 27 Receive $11,300 cash on account from March 22 services. March 28 Pay salaries for the current month of $4,300. 5. Provide construction services for $16,300 on account. (March 22nd)
(First line) Accounts Receivable - 16,300, debit (left column) (Second line) Service Revenue- 16,300, credit (right column)
Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $12,500. March 5 Obtain $7,300 loan from the bank by signing a note. March 10 Purchase construction equipment for $16,500 cash. March 15 Purchase advertising for the current month for $1,200 cash. March 22 Provide construction services for $16,300 on account. March 27 Receive $11,300 cash on account from March 22 services. March 28 Pay salaries for the current month of $4,300. 4. Purchase advertising for the current month for $1,200 cash. (March 15th)
(First line) Advertising Expense- 1,200, debit (left column) (Second line) Cash- 1,200, credit (right column)
Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $12,500. March 5 Obtain $7,300 loan from the bank by signing a note. March 10 Purchase construction equipment for $16,500 cash. March 15 Purchase advertising for the current month for $1,200 cash. March 22 Provide construction services for $16,300 on account. March 27 Receive $11,300 cash on account from March 22 services. March 28 Pay salaries for the current month of $4,300. 6. Receive $11,300 cash on account from March 22 services. (March 27th)
(First line) Cash - 11,300, debit (left column) (Second line) Accounts Receivable- 11,300, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 1. Issue common stock in exchange for cash of $2,900. (March 1st)
(First line) Cash - 2,900, debit (left column) (Second line) Common Stock - 2,900, credit (right column)
Benson Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $22,800. 2. Provide services to customers and receive cash of $4,600. 3. Pay the current month's rent of $1,800. 4. Purchase office supplies on account for $2,000. 5. Pay employee salaries of $1,800 for the current month. Required: Record the transactions. Benson uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. 2. Provide services to customers and receive cash of $4,600. (Transaction 2)
(First line) Cash - 4,600, debit (left column) (Second line) Service Revenue - 4,600, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 7. Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. (March 19th)
(First line) Cash - 690, debit (left column) (Second line) Deferred Revenue - 690, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 6. Button delivers altered dresses to Martha and receives $790. (March 15th)
(First line) Cash - 790, debit (left column) (Second line) Service Revenue - 790, credit (right column)
Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $12,500. March 5 Obtain $7,300 loan from the bank by signing a note. March 10 Purchase construction equipment for $16,500 cash. March 15 Purchase advertising for the current month for $1,200 cash. March 22 Provide construction services for $16,300 on account. March 27 Receive $11,300 cash on account from March 22 services. March 28 Pay salaries for the current month of $4,300. 1. Issue common stock for $12,500. (March 1st)
(First line) Cash- 12,500, debit (left column) (Second line) Common Stock - 12,500, credit (right column)
Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $12,500. March 5 Obtain $7,300 loan from the bank by signing a note. March 10 Purchase construction equipment for $16,500 cash. March 15 Purchase advertising for the current month for $1,200 cash. March 22 Provide construction services for $16,300 on account. March 27 Receive $11,300 cash on account from March 22 services. March 28 Pay salaries for the current month of $4,300. 2. Obtain $7,300 loan from the bank by signing a note. (March 5th)
(First line) Cash- 7,300, debit (left column) (Second line) Notes Payable - 7,300, credit (right column)
Benson Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $22,800. 2. Provide services to customers and receive cash of $4,600. 3. Pay the current month's rent of $1,800. 4. Purchase office supplies on account for $2,000. 5. Pay employee salaries of $1,800 for the current month. Required: Record the transactions. Benson uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. 5. Pay employee salaries of $1,800 for the current month. (Transaction 5)
(First line) Salaries Expense - 1,800, debit (left column) (Second line) Cash - 1,800, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 8. Button delivers 10 altered business suits to Bob. (March 25th)
(First line) Deferred Revenue - 690, debit (left column) (Second line) Service Revenue - 690, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 10. Pay dividends of $145 to stockholders. (March 31st)
(First line) Dividends - 145, debit (left column) (Second line) Cash - 145, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 2. Purchase sewing equipment by signing a note with the local bank, $2,600. (March 3rd)
(First line) Equipment - 2,600, debit (left column) (Second line) Notes Payable - 2,600, credit (right column)
Benson Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $22,800. 2. Provide services to customers and receive cash of $4,600. 3. Pay the current month's rent of $1,800. 4. Purchase office supplies on account for $2,000. 5. Pay employee salaries of $1,800 for the current month. Required: Record the transactions. Benson uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. 1. Purchase equipment in exchange for cash of $22,800. (Transaction 1)
(First line) Equipment - 22,800, debit (left column) (Second line) Cash - 22,800, credit (right column)
Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $12,500. March 5 Obtain $7,300 loan from the bank by signing a note. March 10 Purchase construction equipment for $16,500 cash. March 15 Purchase advertising for the current month for $1,200 cash. March 22 Provide construction services for $16,300 on account. March 27 Receive $11,300 cash on account from March 22 services. March 28 Pay salaries for the current month of $4,300. 3. Purchase construction equipment for $16,500 cash. (March 10th)
(First line) Equipment- 16,500, debit (left column) (Second line) Cash- 16,500, credit (right column)
Benson Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $22,800. 2. Provide services to customers and receive cash of $4,600. 3. Pay the current month's rent of $1,800. 4. Purchase office supplies on account for $2,000. 5. Pay employee salaries of $1,800 for the current month. Required: Record the transactions. Benson uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. 3. Pay the current month's rent of $1,800. (Transaction 3)
(First line) Rent Expense - 1,800, debit (left column) (Second line) Cash - 1,800, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 3. Pay rent of $590 for March. (March 5th)
(First line) Rent Expense - 590, debit (left column) (Second line) Cash - 590, credit (right column)
Rochester Construction begins operations in March and has the following transactions. March 1 Issue common stock for $12,500. March 5 Obtain $7,300 loan from the bank by signing a note. March 10 Purchase construction equipment for $16,500 cash. March 15 Purchase advertising for the current month for $1,200 cash. March 22 Provide construction services for $16,300 on account. March 27 Receive $11,300 cash on account from March 22 services. March 28 Pay salaries for the current month of $4,300. 7. Pay salaries for the current month of $4,300. (March 28th)
(First line) Salaries Expense - 4,300, debit (left column) (Second line) Cash- 4,300, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 5. Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. (March 12th)
(First line) Supplies - 129, debit (left column) (Second line) Accounts Payable - 129, credit (right column)
Benson Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $22,800. 2. Provide services to customers and receive cash of $4,600. 3. Pay the current month's rent of $1,800. 4. Purchase office supplies on account for $2,000. 5. Pay employee salaries of $1,800 for the current month. Required: Record the transactions. Benson uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. 4. Purchase office supplies on account for $2,000. (Transaction 4)
(First line) Supplies - 2,000, debit (left column) (Second line) Accounts Payable - 2,000, credit (right column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 9. Pay utilities of $94 for the current period. (March 30th)
(First line) Utilities Expense- 94, debit (left column) (Second line) Cash - 94, credit (right column)
Consider the following transactions. Receive cash from customers, $16,000. Pay cash for employee salaries, $10,000. Pay cash for rent, $4,000. Receive cash from sale of equipment, $9,000. Pay cash for utilities, $2,000. Receive cash from a bank loan, $5,000. Pay cash for advertising, $8,000. Purchase supplies on account, $4,000. Post transactions to the Cash T-account and calculate the ending balance.
(On the left side of the column) (debit) (1) 16,000 (4) 9,000 (6) 5,000 Ending Balance: 22,000 (On the right side of the column) (credit) (2) 10,000 (3) 4,000 (5) 2,000 (7) 8,000
Consider the recorded transactions below. Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,200; Accounts Receivable, $3,000; Supplies, $280; Accounts Payable, $2,300; Deferred Revenue, $180. Service Revenue and Advertising Expense each have a beginning balance of zero. 4. Table 4 (Accounts Payable)
(On the left side of the column) (debit) (5) 2,500 (On the right side of the column) (credit) Beginning balance: 2,300 (2) 1,700 Ending balance: 1,500
Consider the recorded transactions below. Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,200; Accounts Receivable, $3,000; Supplies, $280; Accounts Payable, $2,300; Deferred Revenue, $180. Service Revenue and Advertising Expense each have a beginning balance of zero. 6. Table 6 (Service Revenue)
(On the left side of the column) (debit) Beginning balance: 0 (On the right side of the column) (credit) (1) 8,600 Ending balance: 8,600
Consider the recorded transactions below. Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,200; Accounts Receivable, $3,000; Supplies, $280; Accounts Payable, $2,300; Deferred Revenue, $180. Service Revenue and Advertising Expense each have a beginning balance of zero. 7. Table 7 (Advertising Expense)
(On the left side of the column) (debit) Beginning balance: 0 (4) 1,200 Ending balance: 1,200 (On the right side of the column) (credit) Leave it blank
Consider the recorded transactions below. Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,200; Accounts Receivable, $3,000; Supplies, $280; Accounts Payable, $2,300; Deferred Revenue, $180. Service Revenue and Advertising Expense each have a beginning balance of zero. 1. Table 1 (Cash)
(On the left side of the column) (debit) Beginning balance: 2,200 (3) 9,000 (6) 1,000 Ending balance: 8,500 (On the right side of the column) (credit) (4) 1,200 (5) 2,500
Consider the recorded transactions below. Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,200; Accounts Receivable, $3,000; Supplies, $280; Accounts Payable, $2,300; Deferred Revenue, $180. Service Revenue and Advertising Expense each have a beginning balance of zero. 3. Table 3 (Supplies)
(On the left side of the column) (debit) Beginning balance: 280 (2) 1,700 Ending balance: 1,980 (On the right side of the column) (credit) Leave it blank
Consider the recorded transactions below. Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,200; Accounts Receivable, $3,000; Supplies, $280; Accounts Payable, $2,300; Deferred Revenue, $180. Service Revenue and Advertising Expense each have a beginning balance of zero. 2. Table 2 (Accounts receivable)
(On the left side of the column) (debit) Beginning balance: 3,000 (1) 8,600 Ending balance: 2,600 (On the right side of the column) (credit) (3) 9,000
Consider the recorded transactions below. Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,200; Accounts Receivable, $3,000; Supplies, $280; Accounts Payable, $2,300; Deferred Revenue, $180. Service Revenue and Advertising Expense each have a beginning balance of zero. 5. Table 5 (Deferred Revenue)
(On the left side of the column) (debit) Leave it blank (On the right side of the column) (credit) Beginning balance: 180 (6) 1,000 Ending balance: 1,180
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 7. Table 7 (Common Stock)
(On the left side of the column) (debit) Leave it blank (On the right side of the column) (credit) March 1 - 2,900 Ending balance - 2,900
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Table 4 (Accounts Payable)
(On the left side of the column) (debit) Leave it blank (On the right side of the column) (credit) March 12 - 129 Ending balance - 129
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 9. Table 9 (Service Revenue)
(On the left side of the column) (debit) Leave it blank (On the right side of the column) (credit) March 15 - 790 March 25 - 690 Ending balance - 1,480
For each of the following accounts, indicate whether a debit or credit is used to increase (+) or decrease (−) the balance of the account. The solution for the first one is provided as an example. 1. Asset 2. Liability 3. Common Stock 4. Retained earnings 5. Dividends 6. Revenue 7. Expense
1. Debit (+), Credit (-) 2. Debit (-), Credit (+) 3. Debit (-), Credit (+) 4. Debit (-), Credit (+) 5. Debit (+), Credit (-) 6. Debit (-), Credit (+) 7. Debit (+), Credit (-)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 6. Table 6 (Notes Payable)
(On the left side of the column) (debit) Leave it blank (On the right side of the column) (credit) March 3 - 2,600 Ending balance - 2,600
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 1. Table 1 (Cash)
(On the left side of the column) (debit) March 1 - 2,900 March 15- 790 March 19 - 690 Ending balance- 3,551 (On the right side of the column) (credit) March 5 - 590 March 30 - 94 March 31 - 145
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 2. Table 2 (Supplies)
(On the left side of the column) (debit) March 12 - 129 Ending balance- 129 (On the right side of the column) (credit) Leave it blank
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 5. Table 5 (Deferred Revenue)
(On the left side of the column) (debit) March 25th - 690 (On the right side of the column) (credit) March 19 - 690 Ending balance - 0
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 3. Table 3 (Equipment)
(On the left side of the column) (debit) March 3 - 2,600 Ending balance- 2,600 (On the right side of the column) (credit) Leave it blank
Listed below are several terms and phrases associated with the measurement process for external transactions. Required: Select the term which is most appropriately associated with the description listed. 1. Record of all transactions affecting a company. 2. Determine the dual effect of business events on the accounting equation. 3. List of accounts and their balances. 4. Summary of the effects of all transactions related to a particular item over a period of time. 5. Transfer balances from the journal to the general ledger.
1. Journal 2. Analyze transactions 3. Trial balance 4. Account 5. Post
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 11. Table 11 (Utilities Expense)
(On the left side of the column) (debit) March 30 - 94 Ending balance - 94 (On the right side of the column) (credit) Leave it blank
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 8. Table 8 (Dividends)
(On the left side of the column) (debit) March 31 - 145 Ending balance - 145 (On the right side of the column) (credit) Leave it blank
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 10. Table 10 (Rent Expense)
(On the left side of the column) (debit) March 5 - 590 Ending balance - 590 (On the right side of the column) (credit) Leave it blank
Below is a list of common accounts. Indicate whether the normal balance of each account is a debit or a credit. 1. Cash 2. Service revenue 3. Salaries expense 4. Accounts payable 5. Equipment 6. Retained earnings 7. Utilities expense 8. Accounts receivable 9. Dividends 10. Common stock
1. Debit 2. Credit 3. Debit 4. Credit 5. Debit 6. Credit 7. Debit 8. Debit 9. Debit 10. Credit
Below are the steps in the measurement process of external transactions. Rank them from first (1) to last (6) by choosing the appropriate numbers in the drop-down list.
1. Use source documents to identify accounts affected by an external transaction. 2. Analyze the impact of the transaction on the accounting equation. 3. Assess whether the impact of the transaction results in a debit or credit to account balances. 4. Record the transaction using debits and credits. 5. Post the transaction to the T-accounts in the general ledger. 6. Prepare a trial balance.
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. Prepare a trial balance as of March 31.
Accounts: Cash - 3,551 (Debit) Supplies - 129 (Debit) Equipment - 2,600 (Debit) Accounts Payable - 129 (Credit) Deferred Revenue - 0 (Credit) Notes Payable - 2,600 (Credit) Common Stock - 2,900 (Credit) Dividends - 145 (Debit) Service Revenue -1,480 (Credit) Rent Expense - 590 (Debit) Utilities Expense - 94 (Debit) The totals for both sides should both equal 7,109.
Below is the complete list of accounts of Cobras Incorporated and the related balance at the end of March. All accounts have their normal debit or credit balance. Supplies, $1,100; Buildings, $53,000; Salaries Payable, $300; Common Stock, $33,000; Accounts Payable, $2,100; Utilities Expense, $3,500; Prepaid Insurance, $1,100; Service Revenue, $19,300; Accounts Receivable, $4,000; Cash, $3,300; Salaries Expense, $6,200; Retained Earnings, $17,500. Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.
Cash - 3,300 (debit) (on the left side of the column) Accounts Receivable - 4,000 (debit) (on the left side of the column) Supplies - 1,100 (debit) (on the left side of the column) Prepaid Insurance - 1,100 (debit) (on the left side of the column) Buildings - 53,000 (debit) (on the left side of the column) Accounts Payable - 2,100 (credit) (on the right side of the column) Salaries Payable - 300 (credit) (on the right side of the column) Common Stock - 33,000 (credit) (on the right side of the column) Retained Earnings - 17,500 (credit) (on the right side of the column) Service Revenue - 19,300 (credit) (on the right side of the column) Salaries Expense - 6,200 (debit) (on the left side of the column) Utilities Expense - 3,500 (debit) (on the left side of the column)
Below are the transactions for Button Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $2,900. March 3 Purchase sewing equipment by signing a note with the local bank, $2,600. March 5 Pay rent of $590 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $129 on account. This material will be used to provide services to customers. March 15 Button delivers altered dresses to Martha and receives $790. March 19 Button agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Button receives $690 from Bob and promises the suits to be completed by March 25. March 25 Button delivers 10 altered business suits to Bob. March 30 Pay utilities of $94 for the current period. March 31 Pay dividends of $145 to stockholders. 1. Record each transaction. 2. & 3. Post each transaction to the appropriate T-accounts and calculate the balance of each account at March 31. 4. Prepare a trial balance as of March 31. 4. Martha, a customer, places an order for alterations to several dresses. Button estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete. (March 7th)
No Journal Entry Required
