Solution Manual for FinancialA n n n n
ccounting 9th Edition Harrison n n n
, Horngren, Thomas
n n
Short Exercises
n
(5 min.) S 2-1
n n n
Hooper’s payment was not an expense.
n n n n n
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe
n n n n n n n n n n n n n
business.
n
(5 min.) S 2-2
n n n
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
n n n n n n n
b. $ 2,400
n
(5-10 min.) S 2-3
n n n
Cash
, (5 min.) S 2-4
n n n
Increased total assets:
n n April 1 n (Cash)
April 1 n (Medical supplies) n
April 3 n (Cash, Accounts Receivable)
n n
(5-10 min.) S 2-5
n n n
a. Purchase of asset for cash n n n n n
Sale of asset for cash
n n n n
Collection of an account receivable n n n n
b. Payment of dividends to owners n n n n n
Expense transaction n
c. Pay a liability
n n
Return an asset purchased on account
n n n n n
d. Issuance of stock Re n n n
venue transaction n
e. Purchase of asset on account Borrow money
n n n n n n n
(Answers may vary.) n n
(10 min.) S 2-6
n n n
Journal DATE ACCOUNT TITLES AND
n n n n
EXPLANATION DEBIT CREDIT n
Mar. 15 Cash……………………………………
n 31,000
Note Payable……………………… 31,000 Borrowed money from the
n n n n n n
bank.
22 Accounts Receivable……………….
n n 8,900
Service Revenue…………………. n
8,900 n
Performed service on account. n n n
,2-2 FinancialnAccountingn8/en SolutionsnManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................ 5,600 Received cash on account.
n n n n n
29 Utilities Expense…………………….
n 900
Accounts Payable…................... 900 Received utility bill.
n n n n
31 Salary Expense………………………
n n 2,600
Cash………………………………… 2,600 Paid salary expense.
n n n
(10-15 min.) S 2-7
n n n
Req. 1 n
Journal DATE ACCOUNT TITLES AND
n n n n
EXPLANATION DEBIT CREDIT n
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
n supplies
onaccount. n
Accounts Payable…………………… n 425
Cash………………………………… 425
Paid cash on account.
n n n
Req. 2 n
Accounts Payable
n
Req. 3 n
The business owes $1,275, as shown in the Accounts Payable account.
n n n n n n n n n n
ccounting 9th Edition Harrison n n n
, Horngren, Thomas
n n
Short Exercises
n
(5 min.) S 2-1
n n n
Hooper’s payment was not an expense.
n n n n n
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe
n n n n n n n n n n n n n
business.
n
(5 min.) S 2-2
n n n
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
n n n n n n n
b. $ 2,400
n
(5-10 min.) S 2-3
n n n
Cash
, (5 min.) S 2-4
n n n
Increased total assets:
n n April 1 n (Cash)
April 1 n (Medical supplies) n
April 3 n (Cash, Accounts Receivable)
n n
(5-10 min.) S 2-5
n n n
a. Purchase of asset for cash n n n n n
Sale of asset for cash
n n n n
Collection of an account receivable n n n n
b. Payment of dividends to owners n n n n n
Expense transaction n
c. Pay a liability
n n
Return an asset purchased on account
n n n n n
d. Issuance of stock Re n n n
venue transaction n
e. Purchase of asset on account Borrow money
n n n n n n n
(Answers may vary.) n n
(10 min.) S 2-6
n n n
Journal DATE ACCOUNT TITLES AND
n n n n
EXPLANATION DEBIT CREDIT n
Mar. 15 Cash……………………………………
n 31,000
Note Payable……………………… 31,000 Borrowed money from the
n n n n n n
bank.
22 Accounts Receivable……………….
n n 8,900
Service Revenue…………………. n
8,900 n
Performed service on account. n n n
,2-2 FinancialnAccountingn8/en SolutionsnManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................ 5,600 Received cash on account.
n n n n n
29 Utilities Expense…………………….
n 900
Accounts Payable…................... 900 Received utility bill.
n n n n
31 Salary Expense………………………
n n 2,600
Cash………………………………… 2,600 Paid salary expense.
n n n
(10-15 min.) S 2-7
n n n
Req. 1 n
Journal DATE ACCOUNT TITLES AND
n n n n
EXPLANATION DEBIT CREDIT n
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
n supplies
onaccount. n
Accounts Payable…………………… n 425
Cash………………………………… 425
Paid cash on account.
n n n
Req. 2 n
Accounts Payable
n
Req. 3 n
The business owes $1,275, as shown in the Accounts Payable account.
n n n n n n n n n n
