Yönetim Temelleri Journalizing Transactions Alternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e 3- 1 © The McGraw-Hill Companies, 2003 CHAPTER 3 ALTERNATE PROBLEMS Problem 3.1A Journalizing Transactions Chevy Follow is the founder and president of Heart Construction, a real estate development venture. The business transactions during February while the company was being organized are l isted below. Apr. 1 Follow and several others invested $650,000 cash in the business in exchange for 10,000 shares of capital stock. Apr. 6 The company purchased office facilities for $300,000, of which $60,000 was applicable to the land, and $240,000 to the building. A cash payment of $100,000 was made and a note payable was issued for the balance of the purchase price. Apr. 10 Computer equipment was purchased from Doit for $6,000 cash. Apr. 12 Office furnishings were purchased from Sam ’ s Furniture at a cost of $12,000. A $1,000 cash payment was made at the time of purchase, and an agreement was made to pay the remaining balance in two equal installments due May 1 and June 1. Sam ’ s Furniture did not require that Heart sign a promissory note. Apr. 20 Off ice supplies were purchased from Office Space for $750 cash. Apr. 25 Heart discovered that it paid too much for a computer printer purchased on April 10. The unit should have cost only $600, but Heart was charged $800. Doit promised to refund the difference within seven days. Apr. 28 Mailed Sam ’ s Furniture the first installment due on the account payable for office furnishings purchased on April 12. Apr. 29 Received $200 from Doit in settlement of the account receivable created on April 25. Instructions Prepare journal entries to record the above transactions. Select the appropriate account a. titles from the following chart of accounts: Cash Land Accounts Receivable Office Building Office Supplies Note s Payable Office Furnishings Accounts Payable Computer Systems Capital Stock Indicate the effects of each transaction on the company ’ s assets, liabilities, and owners ’ b. equity for the month of April. Organize your analysis in tabular form as shown below fo r the April 1 transaction: Transaction + Assets = Liabilities + Owners ’ Equity Apr. 1 $650,000 (Cash) = $0 + $650,000 (Capital Stock)3- 2 Alternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e © The McGraw-Hill Companies, 2003 Problem 3.2A Analyzing and Journalizing Transactions Watermaster, Inc., performs various plumbing services. A few o f the company ’ s business transactions occurring during June are described below: On June 1, the company billed customers $5,000 on account for services rendered. 1. Customers are required to make full payment within 30 days. On June 3, purchased supplies cos ting $3,200, paying $800 cash and charging the remainder 2. on the company ’ s 30-day account at Wet Co. The supplies are expected to last several months. On June 5, returned to Wet Co. $100 of supplies that were not needed. The return of these 3. supplies reduced by $100 the amount owed to Wet Co. On June 17, the company issued an additional 1,000 shares of capital stock at $5 per share. 4. The cash raised will be used to purchase new equipment in September. On June 22, the company received $1,200 cash from customers it had billed on June 1. 5. O n June 29, the company paid its outstanding account payable to Wet Co. 6. On June 30, a cash dividend totaling $1,800 was declared and paid to the company ’ s 7. stockholders. Instructions Prepare an analysis of each of the above transactions. Transaction 1 serv es as an example a. of the form of analysis to be used. 1. (a) The asset Accounts Receivable was increased. Increases in assets are recorded by debits. Debit Accounts Receivable, $5,000. (b) Revenue has been earned. Revenue increases owners ’ equity. Incre ases in owners ’ equity are recorded by credits. Credit Service Revenue, $5,000. Prepare journal entries, including explanations, for the above transactions. b. How does the realization principle influence the manner in which the June 1 billings to c. customer s is recorded in the accounting records? How does the matching principle influence the manner in which the June 3 purchase of d. supplies is recorded in the accounting records?Alternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e 3- 3 © The McGraw-Hill Companies, 2003 Problem 3.3A Analyzing and Journalizing Transactions Thunder, Inc., provides la nd electrical services. During October, its transaction included the following: Oct. 1 Paid rent for the month of October, $4,000. Oct. 4 Billed Milton Hotels $8,500 for services. The entire amount is due on or before October 28. (Thunder uses an accou nt entitled Service Revenue when billing clients.) Oct. 8 Provided services to Dirt Valley Developments for $4,700. The entire amount was collected on this date. Oct. 12 Placed a newspaper advertisement in the Daily Moon to be published in the October 25 issue. The cost of the advertisement was $320. Payment is due in 30 days. Oct. 20 Received a check for $8,500 from Milton Hotels for the amount billed on October 4. Oct. 24 Provided services to Dudley Company for $3,600. Thunder collected $300 cash, wit h the balance due in 30 days. Oct. 25 Sent a check to the Daily Moon in full payment of the liability incurred on October 12. Oct. 29 Declared and paid $2,600 cash dividend to the company ’ s stockholders. Instructions Analyze the effects that each of these transactions will have on the following six a. components of the company ’ s financial statements for the month of October. Organize your answer in tabular form, using the column headings shown below. Use I for increase, D for decrease, and NE for no effect. The October 1 transaction is provided for you: Income Statement Balance Sheet Transaction Revenue - Expenses = Net Income Assets = Liabilities + Owners ’ Equity Oct. 1 NE I D D NE D Prepare a journal entry (including explanation) for each of the above transactions. b. Three of October ’ s transactions involve cash payments, yet only one of these transactions c. is recorded as an expense. Describe three situations in which a cash payment would not involve recognition of an expense.3- 4 Alternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e © The McGraw-Hill Companies, 2003 Problem 3.4A The A ccounting Cycle: Journalizing, Posting, and Preparing a Trial Balance In March 2002, Mary Ton e organized a corporation to provide septic cleaning services. The company, called Tone Septics, Inc., began operations began operations immediately. Transactions during the month of March were as follows: Mar. 2 The corporation issued 30,000 shares of c apital stock to Joan Plush in exchange for $30,000 cash. Mar. 4 Purchased a truck for $45,000. Made a $15,000 cash down payment and issued a note payable for the remaining balance. Mar. 5 Paid Slum Properties $2,500 to rent office space for the month. Mar . 9 Billed customers $11,300 for services for the first half of March. Mar. 10 Paid $7,100 in salaries earned by employees during the first half of March. Mar. 19 Paid Bill ’ s Auto $900 for maintenance and repair services on the company truck. Mar. 20 Colle cted $3,800 of the amounts billed to customers on March 9. Mar. 28 Billed customers $14,400 for services performed during the second half of the month. Mar. 30 Paid $7,500 in salaries earned by employees during the second half of the month. Mar. 30 Receive d a $830 bill from SY Petroleum for fuel purchased in March. The entire amount is due by April 15. Mar. 30 Declared a $1,200 dividend payable on April 15. The account titles used by Tone Septics are: Cash Retained Earnings Accounts Receivable Dividends Truck Service Revenue Notes Payable Maintenance Expense Accounts Payable Fuel Expense Dividends Payable Salaries Expense Capital Stock Rent Expense Instructions Analyze the effects that each of these transactions will have on the following six a. components of the company ’ s financial statements for the month of March. Organize your answer in tabular form, using the column headings shown below. Use I for increase, D for decrease, and N E for no effect. The March 1 transaction is provided for you: Income Statement Balance Sheet Transaction Revenue - Expenses = Net Income Assets = Liabilities + Owners ’ Equity Mar. 1 NE NE NE I NE IAlternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e 3- 5 © The McGraw-Hill Companies, 2003 Prepare journal entries (included explanat ions) for each transaction. b. Post each transaction to the appropriate ledger accounts (use a running balance format as c. shown in Chapter 3 of the text). Prepared a trial balance dated March 31, 2002. d. Using figures from the trial balance prepared in part d , c ompute total assets, total e. liabilities and owners ’ equity. Are these the figures that the company will report in its March 31 balance sheet? Explain your answer briefly.3- 6 Alternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e © The McGraw-Hill Companies, 2003 Problem 3.5A The Accounting Cycle: Journalizing, Posting and Preparing and Prepari ng a Trial Balance Dr. Cravati, DMD, opened a dental clinic on August 1. The business transactions for August are shown below: Aug. 1 Dr. Cravati invested $280,000 cash in the business in exchange for 1,000 shares of capital stock. Aug. 4 Land and a bui lding were purchased for $400,000. Of this amount, $60,000 applied to the land, and $340,000 to the building. A cash payment of $80,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. Aug. 9 Medical instrume nts were purchased for $75,000 cash. Aug. 16 Office fixtures and equipment were purchased for $25,000. Dr. Cravati paid $10,000 at the time of purchase and agreed to pay the entire remaining balance in 15 days. Aug. 21 Office supplies expected to last sev eral months were purchased $4,200 cash. Aug. 24 Dr. Cravati billed patients $13,000 for services rendered. Of this amount, $1,000 was received in cash, and $12,000 was billed on account (due in 30 days). Aug. 27 A $450 invoice was received for several new spaper advertisements placed in August. The entire amount is due on September 8. Aug. 28 Received a $500 payment on the $12,000 account receivable recorded August 24. Aug. 31 Paid employees $2,200 for salaries earned in August. A partial list of account titles used by Dr. Cravati includes: Cash Notes Payable Accounts Receivable Account Payable Office Supplies Capital Stock Medical Instruments Service Revenue Office Fixtures and Equipment Advertising Expense Land Salary Expense Building Instruction s Analyze the effects that each of these transactions will have on the following six a. components of the company ’ s financial statements for the month of August. Organize your answer in tabular form, using the column headings shown below. Use I for increase , D for decrease, and NE for no effect. The August 1 transaction is provided for you: Income Statement Balance Sheet Transaction Revenue - Expenses = Net Income Assets = Liabilities + Owners ’ Equity Aug. 1 NE NE NE I NE IAlternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e 3- 7 © The McGraw-Hill Companies, 2003 Prepare journal ent ries (included explanations) for each transaction. b. Post each transaction to the appropriate ledger accounts (use a T account format as shown c. in Chapter 3 of the text). Prepared a trial balance dated August 31, 2002. d. Using figures from the trial balance pre pared in part d , compute total assets, total e. liabilities, and owners ’ equity. Did August appear to be a profitable month?3- 8 Alternate Problems to accompany Williams/Haka/Bettner/Meigs, Financial Accounting , 11e © The McGraw-Hill Companies, 2003