Chapter 02 Exercises

Start Date:     7 Aug 2008 at 01:00 AM
Due Date:     7 Aug 2008 at 03:00 AM
Student Access after Due Date:    Yes. Mark Late
Graded:    Yes

Exercise BE2-1

For each of the following accounts indicate the effects of (a) a debit and (b) a credit on the accounts and (c) the normal balance of the account.

    (a) (b) (c)
    Debit Effect Credit Effect Normal Balance
  
1. Accounts Payable.
  
2. Advertising Expense.
  
3. Service Revenue.
  
4. Accounts Receivable.
  
5. B. C. King, Capital.
  
6. B.C. King, Drawing.

Exercise BE2-2

Transactions for the Kevin Quach Company for the month of June are presented below. Identify the accounts to be debited and credited for each transaction.

June 1   Kevin Quach invests $4 000 cash in a small welding business of which he is the sole proprietor.
  2   Purchases equipment on account for $900.
  3   $800 cash is paid to landlord for June rent.
  12   Bills J. Leung $300 for welding work done on account.

      Account Debited Account Credited
         
June 1  
  2  
  3  
  12  

Exercise BE2-3

Transactions for the Kevin Quach Company for the month of June are presented below. Journalise the transactions.

June 1   Kevin Quach invests $4 000 cash in a small welding business of which he is the sole proprietor.
  2   Purchases equipment on account for $900.
  3   $800 cash is paid to landlord for June rent.
  12   Bills J. Leung $300 for welding work done on account.

        DR CR
June    
     
 
     
       
 
     
       
 
  12     
       
 

Exercise BE2-4

Indicate the order of the basic steps in the recording process by entering either Step 1, Step 2, Step 3:

Enter each transaction in a journal. This step is called journalised and it results in making a chronological record of the transactions.

Transfer journal information to ledger accounts. This step is called posting. Posting makes it possible to accumulate the effects of journalized transactions on individual accounts.

Analyse each transaction. In this step, business documents are examined to determine the effects of the transaction on the accounts.

Exercise BE2-5

J.A Tan has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis.

Aug. 1

 Opens an office as a financial advisor, investing $5 000 in cash.
4  Pays insurance in advance for 6 months, $1 800 cash.
16  Receives $800 from clients for service provided.
27  Pays secretary $1 000 salary.

    (a) Effect on Accounting Equation   (b) Debit-Credit Account Analysis
Aug. 1   The asset Cash is   assets:
        Cash
         
    The owner's equity account J.A.Tan, Capital is   owner's equity;
      J.A.Tan, Capital
         
4   The asset Prepaid Insurance is   assets:
        Prepaid Insurance
         
    The asset Cash is   assets:
        Cash
         
16   The asset Cash is   assets:
        Cash
         
    The revenue Service Revenue is   revenues:
      Service Revenue
         
27   The expense Salaries Expense is   expenses:
        Salaries Expense
         
    The asset Cash is   assets:
        Cash

Exercise BE2-6

J.A Tan has the following transactions during August of the current year.
Journalise the transactions based on the data below. (Omit the explanations.)

Aug. 1   Opens an office as a financial advisor, investing $5 000 in cash.
  4   Pays insurance in advance for 6 months, $1 800 cash.
  16   Receives $800 from clients for services provided.
  17   Pays secretary $1 000 salary.

 

        DR CR
Aug    
       
     
       
  16     
       
  27     
       

Exercise BE2-7

Selected transactions for the Gilles Company are presented in journal from below. Post the transactions to T accounts. Make one T account for each item and determine each account's ending balance.
(Enter date using the following format: For example, May 17 would be 5/17; May 8 would be 5/8)

Date  

Account Titles and Explanation

Ref. Debit Credit
May 5   Accounts Receivable   6,000  
       Service Revenue     6,000
         (Billed for services provided)      
12   Cash   2,400  
       Accounts Receivable     2,400
          (Received cash in payment of account)      
15   Cash   3,000  
       Service Revenue     3,000
         (Received cash for service provided)      

 

Cash

Date

Amount Debited

Date

Amount Credited
   
   
Ending bal.    
       
 
 

Accounts Receivable

 

Date

Amount Debited

Date

Amount Credited

       
Ending bal.    
       
 
  Service Revenue  

Date

Amount Debited

Date

Amount Credited
   
   
Ending bal.    

Exercise BE2-9

From the ledger balances given below, prepare a trial balance for P.J. Farve Ltd at 30 June, 2008. All account balances are normal.

Accounts Payable $9,000, Cash $6,800, P.J. Farve, Capital $20,200, P.J. Farve, Drawing $1,200, Equipment $17,200, Service Revenue $6,000, Accounts Receivable $3,000, Salaries Expenses $6,000, and Rent Expense $1,000. (If answer is zero please enter 0, do not leave any answer blank.)

P.J. FARVE Ltd
Trial Balance
as at 30 June, 2008

  Debit Credit
Cash
Accounts Receivable
Equipment
Accounts Payable
P.J. Farve, Capital
P.J. Farve, Drawing
Service Revenue
Salaries Expense
Rent Expense

 

Exercise E2-1

Selected transactions for H. Burns, an interior decorator, in her first month of business, are as follows.

Jan.

2

Invested $15 000 cash in business.

3

Purchased used car for $4 000 cash for use in business.

9

Purchased supplies on account for $500.

11

Billed customers $1 800 for services performed.

16

Paid $200 cash for advertising.

20

Received $700 cash from customers billed on January 11.

23

Paid creditor $300 cash on balance owed.

28

Withdrew $2 000 cash for personal use of owner.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, liability, owner's equity).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased or decreased.
(d) The normal balance of the specific account.

 

Account Debited

Account Credited

 

 (a)

(b)

(c)

(d)

(a)

(b)

(c)

(d)

  Transaction Basic Type Specific Account Effect Normal Balance Basic Type Specific Account Effect Normal Balance
Jan. 2 Asset Cash Increase Debit Owner's Equity H.Burns, Capital Increase Credit
 
  Jan. 3
 
  9
 
  11
 
  16
 
  20
 
  23
 
  28

Exercise E2-2

Selected transactions for H. Burns, an interior decorator, in here first month of business, are as follows.

Jan. 2 Invested $15 000 cash in business.
3 Purchased used car for $4 000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1 800 for services performed.
16 Paid $200 cash for advertising.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Withdrew $2 000 cash for personal use of owner.
Instructions
Journalise the transactions:

    General Journal
Date Account Titles   Debit Credit
Jan. 2

15 000
      15 000
3 4 000
   4 000
9 500
   500
11 1 800
   1 800
16 200
   200
20 700
   700
23 300
   300
28 2 000
  

2 000

Exercise E2-3

Presented below is information related to Sinclair Real Estate Agency.

Oct. 1   Lynn Sinclair begins business as a real estate agent with a cash investment of $20 000.
2   Hires an administrative assistant.
3   Purchases office furniture for $1 900, on account.
6   Sells a house and lot for B. Kidman; bills B. Kidman $3 200 for realty services provided.
27   Pays $700 on the balance related to the transaction of 3 October.
30   Pays the administrative assistant $2 000 in salary for October.


Instructions
Prepare the debit-credit analysis for each transaction as illustrated on pages 58-62.

  Oct. 1   assets: Cash.
       
    owner's equity: Lynn Sinclair, Capital.
       
2   No transaction.  
       
3   assets: Office Furniture.
       
    liabilities: Accounts Payable.
       
6   assets: Accounts Receivable.
       
    revenues: Service Revenue.
       
27   liabilities: Accounts Payable.
       
    assets: Cash.
       
30   expenses: Salaries Expense.
       
    assets: Cash.

Exercise E2-4

Presented below is information related to Sinclair Real Estate Agency.

Oct. 1   Lynn Sinclair begins business as a real estate agent with a cash investment of $20 000.
2   Hires an administrative assistant.
3   Purchases office furniture for $1 900, on account.
6   Sells a house and lot for B. Kidman; bills B. Kidman $3 200 for realty services provided.
27   Pays $700 on the balance related to the transaction of 3 October.
30   Pays the administrative assistant $2 000 in salary for October.


Instructions
Journalise the transactions. (You may omit explanations.)

Date

  Account Titles and Explanation Ref. Debit Credit
Oct. 1        
         
           
2   No entry.      
           
3      
         
             
6      
         
             
27      
         
             
30      
         

Exercise E2-5

Selected transactions from the journal of Roberta Black, investment broker, are presented below.

Date

  Account Titles and Explanation

Ref.

Debit Credit
Aug. 1   Cash     3,010  
      Roberta Black, Capital     3,010
           
10   Cash     2,400  
      Service Revenue     2,400
           
12   Office Equipment     5,000  
      Cash     1,000
      Notes Payable     4,000
             
25   Accounts Receivable     1,600  
      Service Revenue     1,600
             
31   Cash     900  
      Accounts Receivable     900


Instructions
(a) Post the transactions to T accounts.
(b) Prepare a trial balance at 31 August, 2008.

Cash

Aug.    1

  Aug. 12
10      
31      
Bal.      

Accounts Receivable

Aug. 25   Aug. 31
Bal.      

Office Equipment
Aug. 12      

Notes Payable

      Aug. 12

Roberta Black, Capital
      Aug. 1


Service Revenue

      Aug. 10
      25
     

Bal.






ROBERTA BLACK,INVESTMENT BROKER
Trial Balance
31 August, 2008

  Debit Credit
Cash  
Accounts Receivable  
Office Equipment  
Notes Payable  
Roberta Black, Capital  
Service Revenue          
 

Exercise E2-8

Selected transactions for Ian Campbell Designs during its first month in business are presented below.

Sep. 1   Invested $10000 cash in business.
5   Purchased equipment for $12 000 paying $6 000 in cash and the balance on account.
25   Paid $3 000 cash on balance owed for equipment.
30   Withdraw $500 cash for personal use.

Campbell's chart of accounts show: No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 301 Ian Campbell, Capital, No. 306 Ian Campbell, Drawing.

Instructions
(a) Journalise the transactions.
(b) Post the transactions using the standard account form.


(a)

Date

  Account Titles and Explanation   Debit Credit
Sep. 1      
         
           
5      
      Cash    
         
             
25      
         
             
30      
         

 

Cash

        No. 101

Date

Explanation  

Ref. Debit Credit Balance
Sept. 1   J1  
Sept. 5 J1  
Sept. 25 J1  
Sept. 30   J1  
             

Equipment

          No. 157

Date

Explanation  

Ref. Debit Credit Balance

Sept. 5

  J1  
  J1      
Accounts Payable           No. 201

Date

Explanation  

Ref. Debit Credit Balance
Sept. 5   J1  
Sept. 25 J1  
           

Ian Campbell, Capital

        No. 301

Date

Explanation  

Ref. Debit Credit Balance
Sept. 1   J1  
             

Ian Campbell, Drawing

          No. 306

Date

Explanation  

Ref. Debit Credit Balance
Sept. 30   J1  

Exercise P2-1A

Surepar Miniature Golf and Driving Range was opened on 1 March by Bill Tran. The following selected events and transactions occurred during March:

Mar. 1   Invested $60 000 cash in the business.
3   Purchased Lee's Golf Land for $38 000 cash. The price consists of land $23 000, building $9 000 and equipment $6 000. (Make one compound entry.)
5   Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1 600.
6   Paid cash $1 480 for a one-year insurance policy.
10   Purchased golf clubs and other equipment for $2 600 from Parry Company payable in 30 days.
18   Received $800 in cash for golf fees earned.
19   Sold 100 coupons books for $15 each. Each book contains 10 coupons that enable the holder to one round of miniature golf or to hit one bucket of golf balls.
25   Withdraw $1 000 cash for personal use.
30   Paid salaries of $600.
30   Paid Parry Company in full.
31   Received $500 cash for fees earned.

Bill Tran uses the following accounts: Cash; Prepaid Insurance; Land; Buildings, Equipment; Account Payable; Unearned Revenue; Bill Tran Capital; Bill Tran Drawing; Golf Revenue; Advertising Expenses; and Salaries Expense.

Instructions
Journalise the March transactions. (For multiple debit/credit entries, list in order of magnitude.)

Date

  Account Titles and Explanation Ref. Debit Credit
Mar. 1      
         
    (Owner's investment of cash in business)      
           
3      
       
    Equipment    
         
    (Purchased Lee's Golf Land)      
             
5      
         
    (Paid for advertising)      
             
6      
         
    (Paid for one-year insurance policy)      
             
10      
         
    (Purchased equipment on account)      
             
18      
         
    (Received cash for services provided)      
             
19      
         
    (Received cash for future services)      
             
25      
         
    (Withdrew cash for personal use)      
             
30      
         
    (Paid salaries)      
             
30      
         
    (Paid creditor on account)      
             
31      
         
    (Received cash for services provided)      

Exercise P2-2A

Judy Dench is a licensed architect. During the first month of the operation of her business, the following events and transactions occurred.

Apr. 1   Invested $25 000 cash.
1   Hired a secretary-receptionist at a salary of $300 per week payable monthly.
2   Paid office rent for the month $800.
3   Purchased architectural supplies on account from Halo Company $1500.
10   Completed blueprints on a carport and billed client $900 for services.
11   Received $500 cash advance from R. Welk for the design of a new home.
20   Received $1 500 cash for services completed and delivered to P. Donahue.
30   Paid secretary-receptionist for the month $1 500.
30   Paid $600 to Halo Company for accounts payable due.


Judy uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 301 Judy Dench, Capital, No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.
Instructions
(a) Journalise the transactions.
(b) Post to the ledger accounts.
(c) Prepare a trial balance on 30 April 2007.

(a)

Date

  Account Titles and Explanation   Debit Credit
Apr. 1      
         
    (Owner's investment of cash in business)      
           
1   No entry-not a transaction.      
           
2      
         
    (Paid monthly office rent)      
             
3      
         
    (Purchased supplies on account from Halo Company)      
             
10      
         
    (Billed clients for services provided)      
             
11    
         
    (Received cash for future service)      
             
20        
         
    (Received cash for services provided)      
             
30      
         
    (Paid Monthly salary)      
             
30      
         
    (Paid Halo Company on account)      

(b)
Cash         No. 101
Date    Explanation   

Ref.

Debit Credit Balance
Apr. 1   J1 25000   25000
2   J1  
11   J1  
20   J1  
30   J1  
30   J1  
           

Accounts Receivable

     

No. 112

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 10   J1  
           
Supplies      

No. 126

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 3   J1  
           
Accounts Payable      

No. 205

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 3   J1  
30   J1   900
           
Unearned Revenue      

No. 205

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 11   J1  
           
Judy Dench, Capital      

No. 301

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 1   J1  
           
Service Revenue      

No. 400

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 10   J1  
20   J1  
           
Salaries Expense      

No. 726

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 30   J1  
    J1      
Rent Expense      

No. 729

Date    Explanation   

Ref.

Debit Credit Balance
Apr. 2   J1  
           



(c)

JUDY DENCH, ARCHITECT
Trial Balance
April 30, 2005
     
  Debit Credit
Cash $  
Accounts Receivable  
Supplies  
Accounts Payable   $
Unearned Revenue  
Judy Dench, Capital  
Service Revenue  
Salaries Expense  
Rent Expense             
 

$

$

Exercise P2-3A

Tropp Transport Services was formed on 1 May 2007. The following transactions took place during the first month.
Transactions on May 1:
1.

Dennis Tropp invested $120 000 cash in the company, as its sole owner.

2.

Hired two employees to work in the warehouse. They will each be paid a salary of $2 000 per month.

3.

Signed a 2-year rental agreement on a warehouse; paid $36 000 cash in advance for the first year. (Hint: The portion of the cost related to May 2007 is an expense for this month.)

4.

Purchased furniture and equipment costing $70 000. A cash payment of $20 000 was made immediately; the remainder will be paid in 6 months.

5.

Paid $3 000 cash for a one-year insurance policy on the furniture and equipment. (Hint:The portion of the cost related to May 2007 is an expense for this month.)


Transactions during the remainder of the month:
6.

Purchased basic office supplies for $1 000 cash.

7.

Purchased more office supplies for $3 000 on account.

8.

Total revenues earned were $30 000−$10 000 cash and $20 000 on account.

9.

Paid $800 to suppliers for accounts payable due.

10.

Received $5 000 from customers in payment of accounts receivable.

11.

Received utility bills in the amount of $400, to be paid next month.

12.

Paid the monthly salaries of the two employees, totalling $4 000.


Instructions
(a)Prepare journal entries to record each of the events listed.
(b)Post the journal entries to T accounts.
(c)Prepare a trial balance as of 31 May 31 2007.
(d)Prepare an income statement and a statement of owner's equity for Tropp Transport Services for the month ended 31 May 2007, and a balance sheet as of 31 May 2007.

(a)

Trans.

  Account Titles and Explanation Debit Credit
1.    
       
         
2.   No entry.    
         
3.    
    Rent Expense  
       
           
4.    
      Cash  
       
           
5.    
    Insurance Expense  
       
           
6.    
       
           
7.    
       
           
8.   Cash    
     
       
           
9.    
       
         
10.    
       
           
11.    
       
           
12.    
       

(b)

Cash

(1)      
      (3)
      (4)
      (5)
      (6)
(8)      
      (9)
(10)      
      (12) 4000
       

Accounts Receivable

(8)      
      (10)
       

Office Supplies
(6)      
(7)      
       

Prepaid Insurance

(5)      
       

Prepaid Rent
(3)      
       

Furniture & Equipment

(4)      
       

Accounts Payable
      (4)
      (7)
(9)      
      (11)
       

Dennis Tropp, Capital

      (1)
       

Transport Revenue
      (8)
       

Salaries Expense

(12)      
       

Rent Expense
(3)      
       

Utility Expense
(11)      
       

Insurance Expense
(5)      
       

(c)
TROPP TRANSPORT SERVICE
Trial Balance
as at 31 May 2007

  Debit   Credit
Cash $    
Accounts Receivable    
Office Supplies    
Prepaid Insurance    
Prepaid Rent    
Furniture & Equipment    
Accounts Payable     $
Dennis Tropp, Capital    
Transport Revenue    
Salaries Expense    
Rent Expense         
Utility Expense    
Insurance Expense    
 

$

 

$


(d)

TROPP TRANSPORT SERVICE
Income Statement
For the Month Ended 31 May 2007

Revenues      
    Transport Revenue     $
Expenses      
    Salaries Expense   $  
    Rent Expense    
    Utilities Expense    
    Insurance Expense    
        Total Expenses    

Net income    

$

 

TROPP TRANSPORT SERVICE
Owner's Equity Statement
For the Month Ended 31 May 2007
 
Capital, 1 May 2007  
Add: Net Income  

Capital, 31 May 2007  

 

TROPP TRANSPORT SERVICE
Balance Sheet
as at 31 May 2007
     
Assets
Cash  
Accounts receivable  
Office supplies  
Prepaid insurance  
Prepaid rent  
Furniture & Equipment  
     Total assets  

     
Liabilities and Owner's Equity
Liabilities    
    Accounts payable  
Owner's equity    
     Dennis Tropp, Capital  
       Total liabilities and owner's equity  


Exercise P2-4A

The trial balance of Ron Woolley Co, shown below does not balance.

RON WOOLLEY Co.
Trial Balance
as at 30 June 2007
  Debit Credit
Cash   $  3 840
Accounts Receivable $  3 231  
Supplies 800  
Equipment 3 000  
Accounts Payable   2 666
Unearned Revenue 2 200  
R. Salem Woolley, Capital   9 000
R. Salem Woolley, Drawing 800  
Service Revenue   2 380
Salaries Expense 3 400  
Office Expense

910

 

 

$14 341

$17 886


Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer in payment of its account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a typewriter on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890, and Service Revenue was credited for $89.
4. A debit posting to Salaries Expense of $367 was omitted.
5. A payment of a balance due for $309 was credited to Cash for $309 and credited to Accounts Payable for $390.
6. The withdrawal of $500 cash for Woolley's personal use was debited to Salaries Expense for $500 and credited to cash for $500.

Instructions

Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made). ( If the answer is zero, please leave a blank space)

RON WOOLLEY Co.
Trial Balance
as at 30 June 2007
  Debit Credit
Cash
Accounts Receivable
Supplies
Equipment
Accounts Payable
Unearned Revenue
R. Woolley, Capital
R. Woolley, Drawing
Service Revenue
Salaries Expense
Office Expense

 

Exercise P2-5A

The Russo Theatre, owned by Alan Russo, will begin operations in March. The Russo will be unique in that it will show only triple features of sequential theme movies. As of 1 March, the ledger of Russo showed: No. 101 Cash $16 000; No. 140 Land $42 000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $18 000; No. 157 Equipment $16 000; No. 201 Accounts Payable $12 000; and No. 301 A. Russo, Capital $80 000. During the month of March the following events and transactions occurred.


Mar. 2   Rented the three Star Wars movies (Star Wars, The Empire Strikes Back, and The Return of the Jedi) to be shown for the first 3 weeks of March. The film rental was $9 000; $3 000 was paid in cash and $6 000 will be paid on March 10.
3   Ordered the first three Star Trek movies to be shown the last 10 days of March. It will
    cost $300 per night.
9   Received $6500 cash from admissions.
10   Paid balance due on Star Wars movies rental and $3 000 on March 1 accounts payable.
11   Russo Theatre contracted with M. Brewer Company to operate the concession stand. Brewer is to pay 10% of gross concession receipts (payable monthly) for the right to operate the concession stand.
12   Paid advertising expenses $800.
20   Received $7 200 cash from customers for admissions.
20   Received the Star Trek movies and paid the rental fee of $3 000.
31   Paid salaries of $4 800.
31   Received statement from M. Brewer showing gross receipts from concessions of $8 000 and the balance due to Russo Theatre of $800 ($8 000 × 10%) for March. Brewer paid one-half the balance due and will remit the remainder on 5 April.
31   Received $12 000 cash from customers for admissions.

In addition to the accounts identified above, the chart of accounts includes: No. 112 Accounts Receivable, No. 405 Admission Revenue, No. 406 Concession Revenue, No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense.

Instructions
(a)Journalise the March transactions.
(b)Post the March journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.
(c)Prepare a trial balance on 31 March 2007.

(a)

Date

  Account Titles and Explanation Debit Credit
Mar. 2   9 000  
        6 000
      Cash   3 000
         
3   No entry.      
           
9      
       
           
10    
       
           
11   No entry.      
           
12    
       
           
20      
       
           
20    
       
           
31    
       
           
31   Cash    
     
       
           
31      
       
           


(b)
Cash          

No. 101

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 1   Balance       16 000
2     J1  
9     J1  
10     J1  
12     J1  
20     J1  
20     J1  
31     J1  
31     J1  
31     J1 12 000  
             

Accounts Receivable

          No. 112

Date

  Explanation   Ref. Debit Credit

Balance

Mar.31    

J1

 
             

Land

          No. 140

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 1   Balance      
             

Buildings

          No. 145

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 1   Balance      
             

Equipment

          No. 157

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 1   Balance      
             

Accounts Payable

      No. 201

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 1   Balance      
2     J1  
10     J1  
             

A. Russo, Capital

          No. 301

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 1   Balance      
             
Admission Revenue           No. 405

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 9     J1  
20     J1  
31     J1  
             

Concession Revenue

          No. 406

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 31     J1  
             

Advertising Expense

          No. 610

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 12     J1  
             

Film Rental Expense

          No. 632

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 2     J1  
20     J1  
             

Salaries Expense

          No. 726

Date

  Explanation   Ref. Debit Credit

Balance

Mar. 31     J1  



(c)
RUSSO THEATRE
Trial Balance
as at March 2007
     
  Debit Credit
Cash  
Accounts Receivable  
Land  
Buildings  
Equipment  
Accounts Payable  
A. Russo, Capital  
Admission Revenue  
Concession Revenue  
Advertising Expense  
Film Rental Expense  
Salaries Expense  
 



Copyright © 2000-2008 by John Wiley & Sons, Inc. or related companies. All rights reserved.