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
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
