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Exercise 2-7 Preparing general journal entries LO P1
Following are the transactions of a new company called Pose-for-Pics.
 

Aug.		1		Madison Harris, the owner, invested $7,000 cash and $30,100 of photography equipment in the company in exchange for common stock.
		2		The company paid $3,500 cash for an insurance policy covering the next 24 months.
		5		The company purchased office supplies for $1,330 cash.
		20		The company received $2,950 cash in photography fees earned.
		31		The company paid $875 cash for August utilities.

 
Prepare general journal entries for the above transactions.
 

 
Exercise 2-10 Preparing a trial balance LO P2
 
The transactions of Spade Company appear below.
Kacy Spade, owner, invested $20,000 cash in the company in exchange for common stock.
The company purchased office supplies for $580 cash.
The company purchased $11,060 of office equipment on credit.
The company received $2,360 cash as fees for services provided to a customer.
The company paid $11,060 cash to settle the payable for the office equipment purchased in transaction c.
The company billed a customer $4,240 as fees for services provided.
The company paid $530 cash for the monthly rent.
The company collected $1,781 cash as partial payment for the account receivable created in transaction f.
The company paid $1,000 cash in dividends to the owner (sole shareholder).

Prepare the Trial Balance.


   
Exercise 2-19 Analyzing changes in a company's equity LO P3
Compute the missing amount for each of the following separate companies a through d.
(Losses and amounts to be deducted should be indicated with a minus sign.)
 
 
 
4. Problem 2-1A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2
Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.
  

April		1		Tanner invested $150,000 cash along with office equipment valued at $36,000 n the company in exchange for common stock.
		2		The company prepaid $7,200 cash for 12 months’ rent for office space. (Hint: Debit Prepaid Rent for $7,200.)
		3		The company made credit purchases for $18,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.
		6		The company completed services for a client and immediately received $2,000 cash.
		9		The company completed a $12,000 project for a client, who must pay within 30 days.
		13		The company paid $21,600 cash to settle the account payable created on April 3.
		19		The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint: Debit Prepaid Insurance for $6,000.)
		22		The company received $9,600 cash as partial payment for the work completed on April 9.
		25		The company completed work for another client for $2,640 on credit.
		28		The company paid $6,200 cash in dividends.
		29		The company purchased $1,200 of additional office supplies on credit.
		30		The company paid $700 cash for this month’s utility bill.

  
Required:

1. Prepare general journal entries to record these transactions using the following titles:
 
Cash (101)
Accounts Receivable (106)
Office Supplies (124)
Prepaid Insurance (128)
Prepaid Rent (131)
Office Equipment (163)
Accounts Payable (201)
Common Stock (307)
Dividends (319)
Services Revenue (403)
Utilities Expense (690). 

2. Post the journal entries from part 1 to the ledger accounts.

3. Prepare a trial balance as of April 30.
 

 
Post the journal entries from part 1 to the ledger accounts.
 

 
Prepare a trial balance as of April 30.
 
Compute the missing amount for each of the following separate companies a through d.
(Losses and amounts to be deducted should be indicated with a minus sign.)
 

 
{The following information applies to the questions displayed beJow_]
For each of the posting errors under parts (b) to (g), complete the following:
1. Enter the amount of the difference between trial balance columns (debit and credit) due to the  error.
2. Identify the trial balance column (debit or credit) with the larger amount if they are not equal.
3. Identify the account(s) affected by the error.
4. Indicate the amount by which the account(s) question (3) is under- or overstated.
Item (a) is completed as an example.
 

   
 
 
 

 
   


   


   


   


 
You are told the column totals in a trial balance are not equal. After careful analysis, you discover only one error.
Specifically, a correctly journalized credit purchase Of a computer for S8,500 is posted from the journal to the ledger with a $8,500
debit to Office Equipment and another S8.500 debit to
Accounts Payable. The Office Equipment account has a debit balance Of S20.145 on the trial balance.
Answer each of the following questions and compute the dollar amount of any misstatement.
   
1. Select the appropriate choice from the 'Account Status' column
2. In cases where the amount is understated or overstated. use the 'Amount' column to fill in the
amount by which the account or trial balance total is understated or overstated.
(Enter the amounts understated with a minus sign.)
 

   
e. If the debit column total of the trial balance is $178,500 before correcting the error,
what is the total of the credit column before correction?
 

 

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