Solution Manual for FinancialA p p p p
ccounting 9th Edition Harrison p p p
, Horngren, Thomas
p p
Short Exercises
p
(5 min.) S 2-1
p p p
Hooper’s payment was not an expense.
p p p p p
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe
p p p p p p p p p p p p p
business.
p
(5 min.) S 2-2
p p p
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
p p p p p p p
b. $ 2,400
p
(5-10 min.) S 2-3
p p p
Cash
, (5 min.) S 2-4
p p p
Increased total assets:
p p April 1 p (Cash)
April 1 p (Medical supplies) p
April 3 p (Cash, Accounts Receivable)
p p
(5-10 min.) S 2-5
p p p
a. Purchase of asset for cash p p p p p
Sale of asset for cash
p p p p
Collection of an account receivable p p p p
b. Payment of dividends to owners p p p p p
Expense transaction p
c. Pay a liability
p p
Return an asset purchased on account
p p p p p
d. Issuance of stock Re p p p
venue transaction p
e. Purchase of asset on account Borrow money
p p p p p p p
(Answers may vary.) p p
(10 min.) S 2-6
p p p
Journal DATE ACCOUNT TITLES AND
p p p p
EXPLANATION DEBIT CREDIT p
Mar. 15 Cash……………………………………
p 31,000
Note Payable……………………… 31,000 Borrowed money from the
p p p p p p
bank.
22 Accounts Receivable……………….
p p 8,900
Service Revenue…………………. p
8,900 p
Performed service on account. p p p
,2-2 FinancialpAccountingp8/ep SolutionspManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................ 5,600 Received cash on account.
p p p p p
29 Utilities Expense…………………….
p 900
Accounts Payable…................... 900 Received utility bill.
p p p p
31 Salary Expense………………………
p p 2,600
Cash………………………………… 2,600 Paid salary expense.
p p p
(10-15 min.) S 2-7
p p p
Req. 1 p
Journal DATE ACCOUNT TITLES AND
p p p p
EXPLANATION DEBIT CREDIT p
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
p supplies
onaccount. p
Accounts Payable…………………… p 425
Cash………………………………… 425
Paid cash on account.
p p p
Req. 2 p
Accounts Payable
p
Req. 3 p
The business owes $1,275, as shown in the Accounts Payable account.
p p p p p p p p p p
ccounting 9th Edition Harrison p p p
, Horngren, Thomas
p p
Short Exercises
p
(5 min.) S 2-1
p p p
Hooper’s payment was not an expense.
p p p p p
Hooper acquired an asset, Equipment, because the computer is an economic resource ofthe
p p p p p p p p p p p p p
business.
p
(5 min.) S 2-2
p p p
a. $13,400 ($11,000 + $2,400 + $5,500 − $5,500)
p p p p p p p
b. $ 2,400
p
(5-10 min.) S 2-3
p p p
Cash
, (5 min.) S 2-4
p p p
Increased total assets:
p p April 1 p (Cash)
April 1 p (Medical supplies) p
April 3 p (Cash, Accounts Receivable)
p p
(5-10 min.) S 2-5
p p p
a. Purchase of asset for cash p p p p p
Sale of asset for cash
p p p p
Collection of an account receivable p p p p
b. Payment of dividends to owners p p p p p
Expense transaction p
c. Pay a liability
p p
Return an asset purchased on account
p p p p p
d. Issuance of stock Re p p p
venue transaction p
e. Purchase of asset on account Borrow money
p p p p p p p
(Answers may vary.) p p
(10 min.) S 2-6
p p p
Journal DATE ACCOUNT TITLES AND
p p p p
EXPLANATION DEBIT CREDIT p
Mar. 15 Cash……………………………………
p 31,000
Note Payable……………………… 31,000 Borrowed money from the
p p p p p p
bank.
22 Accounts Receivable……………….
p p 8,900
Service Revenue…………………. p
8,900 p
Performed service on account. p p p
,2-2 FinancialpAccountingp8/ep SolutionspManual
, 28 Cash… ........................................ 5,600
Accounts Receivable ................ 5,600 Received cash on account.
p p p p p
29 Utilities Expense…………………….
p 900
Accounts Payable…................... 900 Received utility bill.
p p p p
31 Salary Expense………………………
p p 2,600
Cash………………………………… 2,600 Paid salary expense.
p p p
(10-15 min.) S 2-7
p p p
Req. 1 p
Journal DATE ACCOUNT TITLES AND
p p p p
EXPLANATION DEBIT CREDIT p
Supplies……………………………….. 1,700
Accounts Payable………………… 1,700 Purchased
p supplies
onaccount. p
Accounts Payable…………………… p 425
Cash………………………………… 425
Paid cash on account.
p p p
Req. 2 p
Accounts Payable
p
Req. 3 p
The business owes $1,275, as shown in the Accounts Payable account.
p p p p p p p p p p
