Solution Manual for FinancialA B B B B
ccounting 9th Edition Harrison B B B
, Horngren, Thomas
B B
Short Exercises
B
(5 min.) S 2-1
B B B
Hooper’s payment was not an expense.
B B B B B
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe
B B B B B B B B B B B B B
business.
B
(5 min.) S 2-2
B B B
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
B B B B B B B
b. $ 2,400
B
(5-10 min.) S 2-3
B B B
Cash
, (5 min.) S 2-4
B B B
Increased total assets:
B B April 1 B (Cash)
April 1 B (Medical supplies) B
April 3 B (Cash, Accounts Receivable)
B B
(5-10 min.) S 2-5
B B B
a. Purchase of asset for cash B B B B B
Sale of asset for cash
B B B B
Collection of an account receivable B B B B
b. Payment of dividends to owners B B B B B
Expense transaction B
c. Pay a liability
B B
Return an asset purchased on account
B B B B B
d. Issuance of stock Re B B B
venue transaction B
e. Purchase of asset on account Borrow money
B B B B B B B
(Answers may vary.) B B
(10 min.) S 2-6
B B B
Journal DATE ACCOUNT TITLES AND
B B B B
EXPLANATION DEBIT CREDIT B
Mar. 15 Cash……………………………………
B 31,000
Note Payable……………………… 31,000 Borrowed money from the
B B B B B B
bank.
22 Accounts Receivable……………….
B B 8,900
Service Revenue…………………. B
8,900
B
Performed service on account. B B B
,2-2 FinancialBAccountingB8/eB SolutionsBManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................ 5,600 Received cash on account.
B B B B B
29 Utilities Expense…………………….
B 900
Accounts Payable… .................. 900 Received utility bill.
B B B B
31 Salary Expense………………………
B B 2,600
Cash………………………………… 2,600 Paid salary expense.
B B B
(10-15 min.) S 2-7
B B B
Req. 1 B
Journal DATE ACCOUNT TITLES AND
B B B B
EXPLANATION DEBIT CREDIT B
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
B supplies
onaccount. B
Accounts Payable…………………… B 425
Cash………………………………… 425
Paid cash on account.
B B B
Req. 2 B
Accounts Payable
B
Req. 3 B
The business owes $1,275, as shown in the Accounts Payable account.
B B B B B B B B B B
ccounting 9th Edition Harrison B B B
, Horngren, Thomas
B B
Short Exercises
B
(5 min.) S 2-1
B B B
Hooper’s payment was not an expense.
B B B B B
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe
B B B B B B B B B B B B B
business.
B
(5 min.) S 2-2
B B B
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
B B B B B B B
b. $ 2,400
B
(5-10 min.) S 2-3
B B B
Cash
, (5 min.) S 2-4
B B B
Increased total assets:
B B April 1 B (Cash)
April 1 B (Medical supplies) B
April 3 B (Cash, Accounts Receivable)
B B
(5-10 min.) S 2-5
B B B
a. Purchase of asset for cash B B B B B
Sale of asset for cash
B B B B
Collection of an account receivable B B B B
b. Payment of dividends to owners B B B B B
Expense transaction B
c. Pay a liability
B B
Return an asset purchased on account
B B B B B
d. Issuance of stock Re B B B
venue transaction B
e. Purchase of asset on account Borrow money
B B B B B B B
(Answers may vary.) B B
(10 min.) S 2-6
B B B
Journal DATE ACCOUNT TITLES AND
B B B B
EXPLANATION DEBIT CREDIT B
Mar. 15 Cash……………………………………
B 31,000
Note Payable……………………… 31,000 Borrowed money from the
B B B B B B
bank.
22 Accounts Receivable……………….
B B 8,900
Service Revenue…………………. B
8,900
B
Performed service on account. B B B
,2-2 FinancialBAccountingB8/eB SolutionsBManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................ 5,600 Received cash on account.
B B B B B
29 Utilities Expense…………………….
B 900
Accounts Payable… .................. 900 Received utility bill.
B B B B
31 Salary Expense………………………
B B 2,600
Cash………………………………… 2,600 Paid salary expense.
B B B
(10-15 min.) S 2-7
B B B
Req. 1 B
Journal DATE ACCOUNT TITLES AND
B B B B
EXPLANATION DEBIT CREDIT B
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
B supplies
onaccount. B
Accounts Payable…………………… B 425
Cash………………………………… 425
Paid cash on account.
B B B
Req. 2 B
Accounts Payable
B
Req. 3 B
The business owes $1,275, as shown in the Accounts Payable account.
B B B B B B B B B B
