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ACCT105 ACCT/105 ACCT 105 CHAPTER 2 THE RECORDING PROCESS 181-200 PART 11

ACCT 105 CHAPTER 2 THE RECORDING PROCESS 181-200 PART 11

Ex. 181

Sigur Ros Company is a newly organized business. The list of accounts to be opened in the general ledger is as follows:
	Accounts Payable	Prepaid Insurance
	Accounts Receivable	Prepaid Rent
	Accumulated Depreciation	Rent Expense
	Cash	Salaries and Wages Expense
	Common Stock	Salaries and Wages Payable
	Depreciation Expense	Service Revenue
	Dividends	Supplies
	Equipment 	Utilities Expense
	Insurance Expense
Instructions
Organize the accounts into the order in which they should appear in the ledger of Sigur Ros Company and assign account numbers. Use the following system to assign account numbers.
	1—199	Assets
	200—299	Liabilities
	300—399	Stockholders’ Equity
	400—499	Revenues
	500—599	Expenses


Ex. 182
The transactions of Medina Information Service are recorded in the general journal below. You are to post the journal entries to the accounts in the general ledger. After all entries have been posted, you are to prepare a trial balance on the form provided.

	General Journal	J1
———————————————————————————————————————————
	Date	Account Titles and Explanation	Ref.	Debit	Credit
———————————————————————————————————————————
      2015 
Sept.	1	Cash		25,000
			Common Stock		25,000
				(Issued stock for cash)

	4	Equipment	30,000
			Cash		10,000
			Notes Payable		20,000
				(Paid cash and issued 2-year, 9%, note for 
				equipment)

	8	Rent Expense	1,000
			Cash		1,000
				(Paid September rent)

	15	Prepaid Insurance	400
			Cash		400
				(Paid one-year liability insurance)

	18	Cash		2,500
			Service Revenue		2,500
				(Received cash for delivery services)

	20	Salaries and Wages Expense	500
			Cash		500
				(Paid salaries for current period)

	25	Utilities Expense	100
			Accounts Payable		100
				(Received a bill for September utilities)

	30	Dividends	1,500
			Cash		1,500
				(Paid dividends)

	30	Accounts Receivable	4,000
			Service Revenue		4,000
				(Billed customer for delivery service)


Ex. 182	(cont.)
					General Ledger

	Cash	Account No. 101
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Accounts Receivable	Account No. 112
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Prepaid Insurance	Account No. 130
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Equipment	Account No. 155
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Accounts Payable	Account No. 201
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————






 
Ex. 182	(cont.)
	Notes Payable	Account No. 205
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Common Stock	Account No. 311
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Dividends	Account No. 332
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Service Revenue	Account No. 400
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Rent Expense	Account No. 719
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





 
Ex. 182	(cont.)
	Salaries and Wages Expense	Account No. 726
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





	Utilities Expense	Account No. 735
———————————————————————————————————————————
	Date	Explanation	Ref.	Debit	Credit	Balance
———————————————————————————————————————————





MEDINA INFORMATION SERVICE
Trial Balance
September 30, 2015
———————————————————————————————————————————
		Accounts			Debit	Credit
———————————————————————————————————————————














				




Ex. 183
The bookkeeper for Panda Bear Yard Service made a number of errors in journalizing and posting as described below:
1.	A debit posting to accounts receivable for $500 was omitted.
2.	A payment of accounts payable for $600 was credited to cash and debited to accounts receivable.
3.	A credit to accounts receivable for $950 was posted as $95.
4.	A cash purchase of equipment for $893 was journalized as a debit to equipment and a credit to notes payable. The credit posting was made for $839 while the debit posting was made for $893.
5.	A debit posting of $400 for purchase of supplies was credited to supplies.
6.	A debit to maintenance and repairs expense for $451 was posted as $415.
7.	A debit posting for salaries and wages expense for $900 was made twice.
8.	A cash purchase of supplies for $700 was journalized and posted as a debit to supplies for $70 and a credit to cash for $70.

Ex. 183	(cont.)
Instructions
For each error, indicate (a) whether the trial balance will balance; if the trial balance will not balance, indicate (b) the amount of the difference, and (c) the trial balance column that will have the larger total. Consider each error separately. Use the following form, in which error (1) is given as an example.
	(A)	(B)	(C)
	Error	In Balance	Difference	Larger Column
	1	No	$500	Credit




Ex. 184
Post the following transactions to T-accounts and determine each account's ending balance.  1.	Supplies		2,800 		Accounts Payable			2,800  2.	Accounts Receivable		4,000 		Service Revenue			4,000 
3.	Cash			3,000 		Accounts Receivable			3,000  4.	Accounts Payable		1,000 		Cash			1,000 
Ex. 185
The trial balance of Red House Painters shown below does not balance.
RED HOUSE PAINTERS
Trial Balance
June 30, 2015
———————————————————————————————————————————
	   Debit		  Credit	
Cash		$  2,780
Accounts Receivable		7,420
Supplies		600
Equipment		8,300
Accounts Payable			$  9,777
Common Stock			1,952
Dividends		1,300
Service Revenue			15,200
Salaries and Wages Expense		3,800
Maintenance and Repairs Expense		    1,600		
	Totals		$25,800	$26,929

An examination of the ledger and journal reveals the following errors:
1.	Each of the above listed accounts has a normal balance per the general ledger.
2.	Cash of $270 received from a customer on account was debited to Cash $720 and credited to Accounts Receivable $720.
3.	A dividend of $400 was posted as a credit to Dividends $400 and credit to Cash $400.
4.	A debit of $300 was not posted to Salaries and Wages Expense.
5.	The purchase of equipment on account for $700 was recorded as a debit to Maintenance and Repairs Expense and a credit to Accounts Payable for $700.
6.	Services were performed on account for a customer, $510, for which Accounts Receivable was debited $510 and Service Revenue was credited $51.
7.	A payment on account for $235 was credited to Cash for $235 and credited to Accounts Payable for $253.

Instructions
Prepare a correct trial balance.


Ex. 186
Some of the following errors would cause the debit and credit columns of the trial balance to have unequal totals. For each of the four cases, state whether the error would cause unequal totals in the trial balance. If the error causes unequal totals, indicate the amount of difference between the columns and state whether the debit or credit is larger. Each case is to be considered independently of the others.
1.	A payment of $500 to a creditor was recorded by a debit to Accounts Payable of $50 and a credit to Cash of $500.
2.	A $480 payment for a printer was recorded by a debit to Equipment of $48 and a credit to Cash for $48.
3.	An account receivable in the amount of $2,500 was collected in full. The collection was recorded by a debit to Cash for $2,500 and a debit to Accounts Payable for $2,500.
4.	An account payable was paid by issuing a check for $800. The payment was recorded by debiting Accounts Payable $800 and crediting Accounts Receivable $800.

Ex. 187
L. Phair and Associates is a financial planning service. The account balances at December 31, 2015 are shown by the following alphabetical list:
Accounts Payable	$    5,000
Accounts Receivable	19,000
Buildings	140,000
Cash	11,700
Common Stock	143,400
Equipment 	15,400
Land	42,000
Notes Payable 	95,000
Notes Receivable 	8,100
Prepaid Insurance	6,400
Supplies	800

Instructions 
Prepare a trial balance with the accounts arranged in financial statement order.


Ex. 188
The ledger accounts of the Fabulous Muscles Gym at June 30, 2015 are shown below:
	
	Accounts Payable	$   9,100
	Accounts Receivable	1,050
	Buildings	43,000
	Cash	14,100
	Common Stock	62,800
	Dividends	10,500
	Equipment 	42,900
	Notes Payable	40,000
	Supplies	350

Instructions
Prepare a trial balance with the ledger accounts arranged in the proper financial statement order. Include the appropriate heading.



Ex. 189
The ledger account balances for Galaxie 500 Company are listed below.  	Accounts Payable	$  6,000 	Accounts Receivable	7,000 	Cash	5,200 	Common Stock	11,000 	Dividends	4,000 	Salaries and Wages Expense	20,800  	Service Revenue	30,000 	Unearned Service Revenue	2,000 	Utilities Expense	12,000 
Instructions
Prepare a trial balance in proper form for Galaxie at December 31, 2015.



Ex 190

The bookkeeper for Antony Johnson Auto Repair made a number of errors in journalizing
and posting, as described below.

1. A credit posting of $500 to Accounts Receivable was omitted.
2. A debit posting of $750 for Prepaid Insurance was debited to Insurance Expense.
3. A collection from a customer of $100 in payment of its account owed was journalized and
	posted as a debit to Cash $100 and a credit to Service Revenue $100.
4. A credit posting of $350 to Interest Payable was made twice.
5. A cash purchase of supplies for $250 was journalized and posted as a debit to Supplies $25
	and a credit to Cash $25.
6. A debit of $685 to Advertising Expense was posted as $658.
 
Ex. 190	(cont.)
Instructions
For each error:
(a) Indicate whether the trial balance will balance.
(b) If the trial balance will not balance, indicate the amount of the difference.
(c) Indicate the trial balance column that will have the larger total.

Consider each error separately. Use the following form, in which error (1) is given as an example.

		(a) 	(b) 	(c)
	Error 	In Balance 	Difference 	Larger Column
		(1)	No 	$500 	debit



 
COMPLETION STATEMENTS
	191.	An _______________ is a record of increases and decreases in specific assets, liabilities, and stockholders’ items.
	192.	The process of entering an amount on the left side of an account is called ____________ the account, and making an entry on the right side is called _________________ the account.
	193.	______________, _______________, and _______________ have debit normal account balances whereas _______________, ________________, and ________________ have credit normal account balances.
194.	The four subdivisions of stockholders’ equity are: ________________, ________________, ________________, and ________________.
195.	The basic steps in the recording process are: _______________ each transaction, enter the transaction in a ________________, and transfer the _______________ information to appropriate accounts in the ________________.
	196.	A sales slip, a check, and a cash register tape are examples of ________________ used as evidence that a transaction has taken place.
	197.	An accounting record where transactions are initially recorded in chronological order is called a ________________.
	198.	When three or more accounts are required in one journal entry, the entry is referred to as a ________________ entry.
	199.	The entire group of accounts and their balances maintained by a company is called the ________________.
	200.	A two column list of all accounts and their balances at a given time is a ______________.





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24 Oct 2016

Answers (1)

  1. Genius

    ACCT105 ACCT/105 ACCT 105 CHAPTER 2 THE RECORDING PROCESS 181-200 PART 11

    Ex. 181 Sigur Ros Company is a newly organized business. The list of accounts to be opened in the g ****** ******
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