Solution Manual + Answer Key
Solution Manual For Horngrens Financial Accounting 8th Edition
By Tracie Nobles
Book Title: Horngrens Financial Accounting
Edition: 8th Edition
Author: Tracie Nobles
,Chapter 2
Recording Business Transactions
Quick Check
1. A
2. D 3. B 4. B 5. B
6. D
7. A
8. B
9. A
10. D
Starters (10 Min.) S2-1
Req. 1
1. G
2. A
3. E
4. D
5. C
6. I
7. F
8. B
9. J
10. H
(5 Min.) S2-2
Req. 1
Debits Are Increases For The Following Types Of
Account:
• Assets
• Owners’ Drawings Expenses
Debits Are Decreases For These Types Of Account:
• Liabilities
• Owners’ Capital
• Revenues
Req. 2
Credits Are Increases For These Types Of Account:
• Liabilities
Copyright © 2016 Pearson Australia (A Division Of Pearson Australia Group Pty Ltd)
9781486018000 Horngren’s Accounting 8th Edition
,Horngren's Accounting 8e Solutions Manual 2
• Owners’ Capital
• Revenues
Credits Are Decreases For These Types Of Account:
• Assets
• Owners’ Drawings
• Expenses
(5 Min.) S2-3
Req. 1
Normal Balance
Debit Or
Credit
Assets Debit
Liabilities Credit
Owners’ equity overall Credit
Capital Credit
Drawings Debit
Revenues Credit
Expenses Debit
(5 Min.) S2-4
Req. 1
Step 1: Identify Each Account Affected And Its Type.
Step 2: Determine Whether Each Account Is Increased Or
Decreased. Step 3: Record The Transaction In The Journal.
Account Type Increase/
Decrease
5 Accounts receivable Asset Increase
Service revenue Owners’ equity Increase
28 Cash Asset Increase
Accounts receivable Asset Decrease
(10 Min.) S2-5
Req. 1
Journal
, Horngren's Accounting 8e Solutions Manual 3
Date Accounts And Explanations Post. Debit Credit
Ref.
Jan 1 Cash 29 000
Brown, Capital 29 000
Owner Investment
2 Medical Supplies 14 000
Accounts Payable 14 000
Purchased Supplies On Account.
2 Rent Expense 2 600
Cash 2 600
Paid Office Rent.
3 Accounts Receivable 8 000
Service Revenue 8 000
Performed Service On Account.
(10 Min.) S2-6
Req. 1
Journal
Date Accounts And Explanations Post. Debit Credit
Ref.
Jan 22 Accounts Receivable 10 000
Service Revenue 10
000
Performed Service On Account.
30 Cash7 000
Accounts Receivable 7 000
Received Cash On Account.
31 Electricity And Gas Expense 180
Accounts payable 180
Received Electricity And Gas Bill.
31 Salary Expense 1 000
Solution Manual For Horngrens Financial Accounting 8th Edition
By Tracie Nobles
Book Title: Horngrens Financial Accounting
Edition: 8th Edition
Author: Tracie Nobles
,Chapter 2
Recording Business Transactions
Quick Check
1. A
2. D 3. B 4. B 5. B
6. D
7. A
8. B
9. A
10. D
Starters (10 Min.) S2-1
Req. 1
1. G
2. A
3. E
4. D
5. C
6. I
7. F
8. B
9. J
10. H
(5 Min.) S2-2
Req. 1
Debits Are Increases For The Following Types Of
Account:
• Assets
• Owners’ Drawings Expenses
Debits Are Decreases For These Types Of Account:
• Liabilities
• Owners’ Capital
• Revenues
Req. 2
Credits Are Increases For These Types Of Account:
• Liabilities
Copyright © 2016 Pearson Australia (A Division Of Pearson Australia Group Pty Ltd)
9781486018000 Horngren’s Accounting 8th Edition
,Horngren's Accounting 8e Solutions Manual 2
• Owners’ Capital
• Revenues
Credits Are Decreases For These Types Of Account:
• Assets
• Owners’ Drawings
• Expenses
(5 Min.) S2-3
Req. 1
Normal Balance
Debit Or
Credit
Assets Debit
Liabilities Credit
Owners’ equity overall Credit
Capital Credit
Drawings Debit
Revenues Credit
Expenses Debit
(5 Min.) S2-4
Req. 1
Step 1: Identify Each Account Affected And Its Type.
Step 2: Determine Whether Each Account Is Increased Or
Decreased. Step 3: Record The Transaction In The Journal.
Account Type Increase/
Decrease
5 Accounts receivable Asset Increase
Service revenue Owners’ equity Increase
28 Cash Asset Increase
Accounts receivable Asset Decrease
(10 Min.) S2-5
Req. 1
Journal
, Horngren's Accounting 8e Solutions Manual 3
Date Accounts And Explanations Post. Debit Credit
Ref.
Jan 1 Cash 29 000
Brown, Capital 29 000
Owner Investment
2 Medical Supplies 14 000
Accounts Payable 14 000
Purchased Supplies On Account.
2 Rent Expense 2 600
Cash 2 600
Paid Office Rent.
3 Accounts Receivable 8 000
Service Revenue 8 000
Performed Service On Account.
(10 Min.) S2-6
Req. 1
Journal
Date Accounts And Explanations Post. Debit Credit
Ref.
Jan 22 Accounts Receivable 10 000
Service Revenue 10
000
Performed Service On Account.
30 Cash7 000
Accounts Receivable 7 000
Received Cash On Account.
31 Electricity And Gas Expense 180
Accounts payable 180
Received Electricity And Gas Bill.
31 Salary Expense 1 000
