ACC 111.02 PRINCIPLES OF ACCOUNTING 1: CHAPTE
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Groro Co. bills a client $62,000 for services provided and agrees to accept the following
three items in full payment: (1) $10,000 cash, (2) computer equipment worth $80,000, and
(3) to assume responsibility for a
$28,000 note payable related to the computer equipment. The entry Groro makes to record
this transaction includes which one or more of the following? (Select all that apply.)
2.
Exercise 2-7 Preparing general journal entries
Following are transactions of a new company called Pose-for-Pics.
Aug. 1 Madison Harris, the owner, invested $6,500 cash and $33,500 of
photography equipment in the company in exchange for common
stock.
2 The company paid $2,100 cash for an insurance policy covering the next 24
months.
5 The company purchased office supplies for $880 cash.
20 The company received $3,331 cash in photography fees earned.
31 The company paid $675 cash for August utilities.
Prepare general journal entries for the above transactions.
Date General Debit Credi
Journal t
Aug. Cash 6,50
,ACC 111.02 PRINCIPLES OF ACCOUNTING 1: CHAPTE
2 Q WITH ANSWERS 100% CORRECT STUDY GUIDE,
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1 0
Photography equipment 33,5
00
Common stock 40,0
0
0
Aug. Prepaid insurance 2,10
2 0
Cash 2,10
0
Aug. Office supplies 880
5
Cash 880
Aug. Cash 3,33
20 1
Photography fees earned 3,33
1
Aug. Utilities expense 675
31
, ACC 111.02 PRINCIPLES OF ACCOUNTING 1: CHAPTE
2 Q WITH ANSWERS 100% CORRECT STUDY GUIDE,
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Cash 675
3.
Exercise 2-9 Recording effects of transactions in T-accounts
The transactions of Spade Company:
a. Kacy Spade, owner, invested $100,750 cash in the company in exchange for commo
stock.
b. The company purchased office supplies for $1,250 cash.
c. The company purchased $10,050 of office equipment on credit.
d. The company received $15,500 cash as fees for services provided to a customer.
e. The company paid $10,050 cash to settle the payable for the office
equipment purchased in transaction c.
f. The company billed a customer $2,700 as fees for services provided.
g. The company paid $1,225 cash for the monthly rent.
h. The company collected $1,125 cash as partial payment for the account
receivable created in transaction f.
i. The company paid $10,000 cash in dividends to Spade (sole shareholder).
Prepare general journal entries to record the transactions below for Spade
Company by using the following accounts: Cash; Accounts Receivable; Office
Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends;
Fees Earned; and Rent Expense.
Transacti General Journal Debit Credit
on
a. Cash 100,7
2 Q WITH ANSWERS 100% CORRECT STUDY GUIDE,
DOWNLOAD TO SCORE A
Groro Co. bills a client $62,000 for services provided and agrees to accept the following
three items in full payment: (1) $10,000 cash, (2) computer equipment worth $80,000, and
(3) to assume responsibility for a
$28,000 note payable related to the computer equipment. The entry Groro makes to record
this transaction includes which one or more of the following? (Select all that apply.)
2.
Exercise 2-7 Preparing general journal entries
Following are transactions of a new company called Pose-for-Pics.
Aug. 1 Madison Harris, the owner, invested $6,500 cash and $33,500 of
photography equipment in the company in exchange for common
stock.
2 The company paid $2,100 cash for an insurance policy covering the next 24
months.
5 The company purchased office supplies for $880 cash.
20 The company received $3,331 cash in photography fees earned.
31 The company paid $675 cash for August utilities.
Prepare general journal entries for the above transactions.
Date General Debit Credi
Journal t
Aug. Cash 6,50
,ACC 111.02 PRINCIPLES OF ACCOUNTING 1: CHAPTE
2 Q WITH ANSWERS 100% CORRECT STUDY GUIDE,
DOWNLOAD TO SCORE A
1 0
Photography equipment 33,5
00
Common stock 40,0
0
0
Aug. Prepaid insurance 2,10
2 0
Cash 2,10
0
Aug. Office supplies 880
5
Cash 880
Aug. Cash 3,33
20 1
Photography fees earned 3,33
1
Aug. Utilities expense 675
31
, ACC 111.02 PRINCIPLES OF ACCOUNTING 1: CHAPTE
2 Q WITH ANSWERS 100% CORRECT STUDY GUIDE,
DOWNLOAD TO SCORE A
Cash 675
3.
Exercise 2-9 Recording effects of transactions in T-accounts
The transactions of Spade Company:
a. Kacy Spade, owner, invested $100,750 cash in the company in exchange for commo
stock.
b. The company purchased office supplies for $1,250 cash.
c. The company purchased $10,050 of office equipment on credit.
d. The company received $15,500 cash as fees for services provided to a customer.
e. The company paid $10,050 cash to settle the payable for the office
equipment purchased in transaction c.
f. The company billed a customer $2,700 as fees for services provided.
g. The company paid $1,225 cash for the monthly rent.
h. The company collected $1,125 cash as partial payment for the account
receivable created in transaction f.
i. The company paid $10,000 cash in dividends to Spade (sole shareholder).
Prepare general journal entries to record the transactions below for Spade
Company by using the following accounts: Cash; Accounts Receivable; Office
Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends;
Fees Earned; and Rent Expense.
Transacti General Journal Debit Credit
on
a. Cash 100,7
