SolutionManualforFinancialA j j j j
ccounting9thEditionHarrison j j j
,Horngren,Thomas
j j
Short Exercises
j
(5 min.) S 2-1
j j j
Hooper’s payment was not an expense.
j j j j j
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe bu
j j j j j j j j j j j j j j
siness.
(5 min.) S 2-2
j j j
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
j j j j j j j
b. $ 2,400
j
(5-10 min.) S 2-3
j j j
Cash
, (5 min.) S 2-4
j j j
Increased total assets:
j j April 1 j (Cash)
April 1 j (Medical supplies) j
April 3 j (Cash, Accounts Receivable)
j j
(5-10 min.) S 2-5
j j j
a. Purchase of asset for cashS j j j j j
ale of asset for cash
j j j j
Collection of an account receivable j j j j
b. Payment of dividends to ownersE j j j j j
xpense transaction j
c. Pay a liability
j j
Return an asset purchased on account
j j j j j
d. Issuance of stock Rev j j j
enue transaction j
e. Purchase of asset on account Borrow money(
j j j j j j j
Answers may vary.) j j
(10 min.) S 2-6
j j j
Journal DATE ACCOUNT TITLES AND
j j j j
EXPLANATION DEBIT CREDIT j
Mar. 15 Cash……………………………………
j 31,000
Note Payable……………………… 31,000 Borrowed money from the j j j j j j
bank.
22 Accounts Receivable……………….
j j 8,900
Service Revenue…………………. j
8,900 j
Performed service on account. j j j
,2-2 FinancialjAccountingj8/ej SolutionsjManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................. 5,600 Received cash on account.
j j j j j
29 Utilities Expense…………………….
j 900
Accounts Payable… ................... 900 Received utility bill.
j j j j
31 Salary Expense………………………
j j 2,600
Cash………………………………… 2,600 Paid salary expense.
j j j
(10-15 min.) S 2-7
j j j
Req. 1 j
Journal DATE ACCOUNT TITLES AND
j j j j
EXPLANATION DEBIT CREDIT j
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
j supplies
onaccount. j
Accounts Payable…………………… j 425
Cash………………………………… 425
Paid cash on account.
j j j
Req. 2 j
Accounts Payable
j
Req. 3 j
The business owes $1,275, as shown in the Accounts Payable account.
j j j j j j j j j j
ccounting9thEditionHarrison j j j
,Horngren,Thomas
j j
Short Exercises
j
(5 min.) S 2-1
j j j
Hooper’s payment was not an expense.
j j j j j
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe bu
j j j j j j j j j j j j j j
siness.
(5 min.) S 2-2
j j j
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
j j j j j j j
b. $ 2,400
j
(5-10 min.) S 2-3
j j j
Cash
, (5 min.) S 2-4
j j j
Increased total assets:
j j April 1 j (Cash)
April 1 j (Medical supplies) j
April 3 j (Cash, Accounts Receivable)
j j
(5-10 min.) S 2-5
j j j
a. Purchase of asset for cashS j j j j j
ale of asset for cash
j j j j
Collection of an account receivable j j j j
b. Payment of dividends to ownersE j j j j j
xpense transaction j
c. Pay a liability
j j
Return an asset purchased on account
j j j j j
d. Issuance of stock Rev j j j
enue transaction j
e. Purchase of asset on account Borrow money(
j j j j j j j
Answers may vary.) j j
(10 min.) S 2-6
j j j
Journal DATE ACCOUNT TITLES AND
j j j j
EXPLANATION DEBIT CREDIT j
Mar. 15 Cash……………………………………
j 31,000
Note Payable……………………… 31,000 Borrowed money from the j j j j j j
bank.
22 Accounts Receivable……………….
j j 8,900
Service Revenue…………………. j
8,900 j
Performed service on account. j j j
,2-2 FinancialjAccountingj8/ej SolutionsjManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................. 5,600 Received cash on account.
j j j j j
29 Utilities Expense…………………….
j 900
Accounts Payable… ................... 900 Received utility bill.
j j j j
31 Salary Expense………………………
j j 2,600
Cash………………………………… 2,600 Paid salary expense.
j j j
(10-15 min.) S 2-7
j j j
Req. 1 j
Journal DATE ACCOUNT TITLES AND
j j j j
EXPLANATION DEBIT CREDIT j
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
j supplies
onaccount. j
Accounts Payable…………………… j 425
Cash………………………………… 425
Paid cash on account.
j j j
Req. 2 j
Accounts Payable
j
Req. 3 j
The business owes $1,275, as shown in the Accounts Payable account.
j j j j j j j j j j
