Solution Manual for Financial Accounting 9th Edition Harrison, Horngren, Thomas

Short Exercises (5 min.) S 2­1 Hooper’s payment was not an expense. Hooper acquired an asset, Equipment, because the computer is an economic resource of the business. (5 min.) S 2­2 a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500) b. $ 2,400 (5­10 min.) S 2­3 Cash (5 min.) S 2­4 Increased total assets: April 1 (Cash) April 1 (Medical supplies) April 3 (Cash, Accounts Receivable) (5­10 min.) S 2­5 a. Purchase of asset for cash Sale of asset for cash Collection of an account receivable b. Payment of dividends to owners Expense transaction c. Pay a liability Return an asset purchased on account d. Issuance of stock Revenue transaction e. Purchase of asset on account Borrow money (Answers may vary.) (10 min.) S 2­6 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Mar. 15 Cash…………………………………… 31,000 Note Payable……………………… 31,000 Borrowed money from the bank. 22 Accounts Receivable………………. 8,900 Service Revenue…………………. 8,900 Performed service on account. 28 Cash…………………………………… 5,600 Accounts Receivable……………. 5,600 Received cash on account. 29 Utilities Expense……………………. 900 Accounts Payable……………….. 900 Received utility bill. 31 Salary Expense……………………… 2,600 Cash………………………………… 2,600 Paid salary expense. (10­15 min.) S 2­7 Req. 1