Solutions Manual For Fundamental Accounting Principles (Volume 1) Canadian 15th Edition By Larson | Newest Version | All Chapters Complete 2024

Solutions Manual For Fundamental Accounting Principles (Volume 1) Canadian 15th Edition By Larson | Newest Version | All Chapters Complete 2024. Date Account Titles and Explanation Debit Credit a. Aug. 1 Furniture ............................................................... 400 Cash ............................................................. 400 Purchase of furniture for cash. ........................ b. Aug. 7 No transaction required. c. Aug. 13 Accounts Receivable ........................................... 600 Revenue ....................................................... 600 Provided services on credit. ........................... d. Aug. 14 Cleaning Expense ................................................ 300 Accounts Payable ........................................ 300 Purchased cleaning services on credit. ......... e. Aug. 31 Cash ...................................................................... 25,000 Douglas Malone, Capital ............................. 25,000 Investment by owner ........................................ 2-10 Quick Study 2-8 1 & 2. Cash Accounts Receivable Furniture Accounts Payable Jul 31 25,000 400 Aug 1 Jul 31 1,500 Jul 31 5,000 500 Jul 31 Aug 31 25,000 Aug 13 600 Aug 1 400 300 Aug 14 Bal. 2,100 Bal. 5,400 800 Bal. Bal. 49,600 Douglas Malone, Capital Revenue Cleaning Expense 28,000 Jul 3` 4,500 Jul 31 Jul 31 1,500 25,000 Aug 31 600 Aug 13 Aug 14 300 53,000 Bal. 5,100 Bal. Bal. 1,800 3. The account balance for each T-account is shown above. The accounting equation (Assets = Liabilities + Equity) is proved as follows: $57,100 = $800 + $56,300 Last revised: October 26, 2012 Quick Study 2-9 May 2 Analysis Assets increase. Equity increases. Journal entry analysis Debit the Car account for $8,000. Credit the Dee Bell, Capital account for $8,000. Journal Entry Date Account Titles and Explanation Debit Credit May 2 Car 8,000 Dee Bell, Capital 8,000 Investment by owner. May 10 Analysis Assets increase. Equity increases. Journal entry analysis Debit the Accounts receivable account for $4,000. Credit the Revenue account for $4,000. Journal Entry Date Account Titles and Explanation Debit Credit May 10 Accounts receivable 4,000 Revenue 4,000 Billed customer for work performed. May 12 Analysis Assets increase. Liabilities increase. Journal entry analysis Debit the Cash account by $10,000. Credit the Unearned Revenue account by $10,000. Journal Entry Date Account Titles and Explanation Debit Credit May 12 Cash 10,000 Unearned Revenue 10,000 Collected cash for future services. EMAIL ME: For help with report, Assignment, Essay and thesis writing. Last revised: October 26, 2012 Quick Study 2-9 (Continued) May 15 Analysis Assets decrease. Equity decreases. Journal entry analysis Debit the Wages Expense account for $6,000. Credit the Cash account for $6,000. Journal Entry Date Account Titles and Explanation Debit Credit May 15 Wages Expense 6,000 Cash 6,000 Paid for wages. May 16 Analysis Assets increase. Assets decrease. Journal entry analysis Debit the Cash account for $4,000. Credit the Accounts Receivable account for $4,000. Journal Entry Date Account Titles and Explanation Debit Credit May 16 Cash 4,000 Accounts Receivable 4,000 Collection of cash from customer. May 22 Analysis Assets decrease. Liabilities decrease. Journal entry analysis Debit the Accounts Payable account by $3,000. Credit the Cash account by $5,400. Journal Entry Date Account Titles and Explanation Debit Credit May 22 Accounts Payable 3,000 Cash 3,000 Paid for outstanding accounts payable. Last revised: October 26, 2012 2-13 Quick Study 2-10 1 & 2. Cash 101 Accounts Receivable 106 Car 150 Accounts Payable 202 Apr 30 15,000 6,000 May 15 Apr 30 3,200 4,000 May 16 May 2 8,000 May 22 3,000 6,000 Apr 30 May 12 10,000 3,000 May 22 May 10 4,000 Bal. 8,000 3,000 Bal. May 16 4,000 Bal. 3,200 Bal. 20,000 Unearned Revenue 205 Dee Bell, Capital 301 Revenue 410 Wages Expense 650 1,800 Apr 30 8,900 Apr 30 3,000 Apr 30 Apr 30 1,500 10,000 May 12 8,000 May 2 4,000 May 10 May 15 6,000 11,800 Bal. 16,900 Bal. 7,000 Bal. Bal. 7,500 3. The account balance for each T-account is shown above. The accounting equation (Assets = Liabilities + Equity) is proved as follows: $31,200 = $14,800 + $16,400 Last revised: October 26, 2012 Quick Study 2-11 Accounts Receivable Accounts Payable Service Revenue 1,,000 ,800 2,500 920 1,500 650 1,400 810 3,000 650 3,500 Bal. 2,250 2,300 Bal. 19,810 Bal. Utilities Expense Cash Notes Payable 610 3,900 2,400 4,000 50,000 520 17,800 3,900 8,000 390 14,500 21,800 38,000 Bal. 275 340 Bal. 1,795 Bal. 8,440 Quick Study 2-12 General Journal Page 1 Date Account Titles and Explanation Debit Credit 2017 May 1 Equipment .............................................................. 500 Accounts Payable .......................................... 500 Purchased equipment on account. 2 Accounts Payable .................................................. 500 Cash ................................................................ 500 Paid for the equipment purchased May 1. 3 Supplies .................................................................. 100 Cash ................................................................ 100 Purchased supplies for cash. 4 Wages Expense...................................................... 2,000 Cash ................................................................ 2,000 Paid wages to employees. 5 Cash ........................................................................ 750 Service Revenue ............................................ 750 Performed services for a client for cash. Last revised: October 26, 2012 Quick Study 2-13 General Journal Page 1 Date Account Titles and Explanation Debit Credit 2017 Jan. 3 Cash ........................................................................ 60,000 Equipment .............................................................. 40,000 Stan Adams, Capital .......................................... 100,000 Investment by owner. 4 Office Supplies....................................................... 340 Accounts Payable.............................................. 340 Purchased office supplies on credit. 6 Cash ........................................................................ 5,200 Landscaping Services Revenue ....................... 5,200 Received cash for landscaping services. 15 Accounts Payable .................................................. 200 Cash ................................................................ 200 Paid part of the January 4 credit purchase. 16 Office Supplies....................................................... 700 Accounts Payable .......................................... 700 Purchased supplies on account. 30 Accounts Payable .................................................. 140 Cash ................................................................ 140 Paid the balance owing re January 4 credit purchase; 340 – 200 paid on Jan. 15 = 140. Last revised: October 26, 2012 Quick Study 2-14 Cash Account No. 101 Date Explanation PR Debit Credit Balance 2017 Jan. 3 60,000 60,000 6 5,200 65,200 15 200 65,000 30 140 64,860 Office Supplies Account No. 124 Date Explanation PR Debit Credit Balance 2017 Jan. 4 340 340 16 700 1,040 Equipment Account No. 163 Date Explanation PR Debit Credit Balance 2017 Jan. 3 40,000 40,000 Accounts Payable Account No. 201 Date Explanation PR Debit Credit Balance 2017 Jan. 4 340 340 Stan Adams, Capital Account No. 301 Date Explanation PR Debit Credit Balance 2017 Jan. 3 100,000 100,000 Landscaping Services Revenue Account No. 403 Last revised: October 26, 2012 Quick Study 2-15 Vahn Landscaping Trial Balance January 31, 2017 Acct. No. Account Debit Credit 101 Cash.................................................................... $ 7,000 163 Equipment .......................................................... 9,000 233 Unearned revenue.............................................. $ 2,000 301 Brea Vahn, capital .............................................. 14,000 302 Brea Vahn, withdrawals ..................................... 1,000 401 Revenue .............................................................. 11,000 640 Rent expense ..................................................... 6,000 690 Utilities expense ................................................ 4,000 _ ____ Totals .................................................................. $27,000 $27,000 Quick Study 2-16 The correct answer is c. If a $2,250 debit to Rent Expense is incorrectly posted as a credit, the effect is to understate the Rent Expense debit balance by $4,500. This causes the Debit column total on the trial balance to be $4,500 less than the Credit column total. Quick Study 2-17 1. Subtract total debits in the trial balance from total credits 24,250 - 21,550 = 2,700 2. Divide the difference by 9 2,700 ÷ 9 = 300 3. The quotient equals the difference between the two transposed numbers. 300 is the difference between the two transposed numbers. 4. The number of digits in the quotient tells us the location of the transposition Look for a difference of 3 between the third number from the right and the fourth number from the right. Through a process of elimination, the incorrect value is Rent Expense for $4,100. The correct value must be $1,400. PfRlltthtilblli$1400fthit$4100dthtil Last revised: October 26, 2012 Quick Study 2-18 1. Subtract total debits in the trial balance from total credits 728 - 503 = 225 2. Divide the difference by 9 225 ÷ 9 = 25 The quotient equals the incorrect number. Through a review of the values in the trial balance, the incorrect value is Notes Payable for $25. The correct value must be $250. Proof: Recalculate the trial balance replacing $250 for the incorrect $25 and the trial balance now balances at $728. Last revised: October 26, 2012 EXERCISES Exercise 2-1 (30 minutes) (a) Basic Account (b) Financial Statement (c) Normal Balance (d) Effect of a Debit (e) Effect of a Credit a. Cash Asset Balance Sheet Debit Increase Decrease b. Supplies Asset Balance Sheet Debit Increase Decrease c. Accounts Payable Liability Balance Sheet Credit Decrease Increase d. Yoojin Chang, Capital Account Owner’s Capital Balance Sheet and The Statement of Changes in Equity Credit Decrease Increase e. Yoojin Chang, Withdrawals Withdrawals The Statement of Changes in Equity Debit Increase Decrease f. Design Revenue Revenue Income Statement Credit Decrease Increase g. Salaries Expense Expense Income Statement Debit Increase Decrease h. Accounts Receivable Asset Balance Sheet Debit Increase Decrease i. Notes Payable Liability Balance Sheet Credit Decrease Increase j. Prepaid insurance Asset Balance Sheet Debit Increase Decrease Last revised: October 26, 2012 Exercise 2-2 a. Analysis Assets increase. Equity increases. Journal entry analysis Debit the cash account for $15,000. Credit the Christina Reis, Capital account in equity for $15,000 b. Analysis Assets increase. Liabilities increase. Journal entry analysis Debit the Equipment account for $2,000. Credit the Accounts Payable account for $2,000. c. Analysis Assets increase. Assets decrease. Journal entry analysis Debit the Equipment account for $500. Credit the Cash account for $500. d. Analysis Assets increase. Equity increases from Revenue. Journal entry analysis Debit the Cash account for $1,000. Credit the Revenue account for $1,000. e. Analysis Assets increase. Equity increases from Revenue. Journal entry analysis Debit the Accounts Receivable account for $700. Credit the Revenue account for $700. f. Analysis Assets decrease. Liabilities decrease. Journal entry analysis Debit the Accounts Payable account for $1,000. Credit the Cash account for $1,000. g. Analysis Assets increase. Assets decrease. Journal entry analysis Debit the Cash account for $300. Credit the Accounts Receivable account for $300. Last revised: October 26, 2012 Exercise 2-3 Date Account Titles and Explanation Debit Credit a. Sept. 1 Cash ...................................................................... 15,000 Christina Reis, Capital ................................ 15,000 Investment by owner. ....................................... b. Sept. 12 Equipment ............................................................ 2,000 Accounts Payable ....................................... 2,000 Purchased equipment on credit. .................... c. Sept. 13 Equipment ............................................................ 500 Cash ............................................................. 500 Purchased equipment with cash. ................... d. Sept. 18 Cash ...................................................................... 1,000 Revenue ....................................................... 1,000 Provided service for cash. .............................. e. Sept. 21 Accounts receivable ............................................ 700 Revenue ....................................................... 700 Provided service on account. .......................... f. Sept. 26 Accounts payable ................................................ 1,000 Cash ............................................................. 1,000 Payment for Equipment. ................................. Last revised: October 26, 2012 Exercise 2-4 1 and 2. Cash 101 Accounts Receivable 106 Equipment 161 (a) 15,000 (d) 1,000 (g) 300 500 (c) 1,000 (f) (e) 700 300 (g) (b) 2,000 (c) 500 Bal. 14,800 Bal. 400 Bal. 2,500 Accounts Payable 201 Christina Reis, Capital 301 Revenue 403 (f) 1,000 2,000 (b) 15,000 (a) 1,000 (d) 700 (e) 1,000 Bal. 15,000 Bal. 1,700 Bal. 3. The account balance for each T-account is shown above. The accounting equation (Assets = Liabilities + Equity) is proved as follows: $17,700 = $1,000 + $16,700 Exercise 2-5 (30 minutes) a. Analysis Assets increase. Equity increases. Journal entry analysis Debit the Cash account for $32,600. Credit the William Curtis, Capital account for $32,600. Journal Entry Date Account Description Debit Credit Oct. 2 Cash 32,600 William Curtis, Capital 32,600 Investment by owner. b. Analysis Assets increase. Assets decrease. Journal entry analysis Debit the Supplies account for $925. Credit the Cash account for $925. Last revised: October 26, 2012 Exercise 2-5 (Continued) c. Analysis Assets increase. Liabilities increase. Journal entry analysis Debit the Office Equipment account by $13,600. Credit the Accounts Payable account by $13,600. Journal Entry Date Account Titles and Explanation Debit Credit Oct. 6 Office Equipment 13,600 Accounts payable 13,600 Purchased office equipment on credit. d. Analysis Assets increase. Equity increases. Journal entry analysis Debit the Cash account for $3,000. Credit the Revenue account for $3,000. Journal Entry Date Account Titles and Explanation Debit Credit Oct. 10 Cash 3,000 Revenue 3,000 Cash collected for services provided. e. Analysis Assets decrease. Liabilities decrease. Journal entry analysis Debit the Accounts Payable account for $13,600. Credit the Cash account for $13,600. Journal Entry Date Account Titles and Explanation Debit Credit Oct. 12 Accounts Payable 13,600 Cash 13,600 Paid office equipment with cash. Last revised: October 26, 2012 Exercise 2-5 (Continued) f. Analysis Assets increase. Equity increases. Journal entry analysis Debit the Accounts Receivable account by $5,400. Credit the Revenue account by $5,400. Journal Entry Date Account Titles and Explanation Debit Credit Oct. 16 Accounts Receivable 5,400 Revenue 5,400 Customer billed for services provided. g. Analysis Assets decrease. Equity decreases. Journal entry analysis Debit the Rent Expense account for $3,500. Credit the Cash account for $3,500. Journal Entry Date Account Titles and Explanation Debit Credit Oct. 18 Rent Expense 3,500 Cash 3,500 Paid October rent with cash. h. Analysis Assets increase. Assets decrease. Journal entry analysis Debt the Cash account for $5,400. Credit the Accounts Receivable account for $5,400. Journal Entry Date Account Titles and Explanation Debit Credit Oct. 26 Cash 5,400 Accounts Receivable 5,400 Collected amounts owing on account. Last revised: October 26, 2012 Exercise 2-5 (Concluded) i. Analysis Assets decrease. Equity decreases. Journal entry analysis Debit the William Curtis, Withdrawal account for $5,000. Credit the Cash account for $5,000. Journal Entry Date Account Titles and Explanation Debit Credit Oct. 31 William Curtis, Withdrawals 5,000 Cash 5,000 Withdrawal of cash by owner. Exercise 2-6 (20 minutes) Cash Accounts Payable (a) 32,600 925 (b) (e) 13,600 13,600 (c) (d) 3,000 13,600 (e) 0 Balance (h) 5,400 3,500 (g) 5,000 (i) William Curtis, Capital Balance 17,975 32,600 (a) 32,600 Balance Accounts Receivable (f) 5,400 5,400 (h) William Curtis, Withdrawals Balance 0 (i) 5,000 Balance 5,000 Office Supplies (b) 925 Revenue Balance 925 3,000 (d) 5,400 (f) Office Equipment 8,400 Balance (c) 13,600 Balance 13,600 Rent Expense (g) 3,500 Balance 3,500