Chap 2 Homework
Chap 2 Homework
After recording the transactions in T-accounts and calculating the balance of each account,
prepare a trial balance. Use May 31, 2017, as its report date.
2. The following trial balance is prepared from the general ledger of HG's Auto
Maintenance.
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1. A purchase of supplies on account for $245 was posted as a debit to Supplies and as a
debit to Accounts Payable.
2. An investment of $500 cash by the owner was debited to Hal Griffin, Capital and credited
to Cash.
3. In computing the balance of the Accounts Receivable account, a debit of $600 was omitted
from the computation.
4. One debit of $300 to the Hal Griffin, Withdrawals account was posted as a credit.
5. Office equipment purchased for $800 was posted to the Shop Equipment account.
6. One entire entry was not posted to the general ledger. The transaction involved the receipt
of $125 cash for repair services performed for cash.
Prepare a corrected trial balance for the HG's Auto Maintenance as of October 31.
3. Based on the following trial balance for Sally's Salon, prepare an income statement,
statement of owner's equity, and a balance sheet. Sally Crawford made no additional
investments in the company during the year.
Sally’s Salon
Trial Balance
December 31
Cash $ 6,500
Accounts receivable 475
Beauty supplies 2,500
Beauty shop equipment 17,000
Accounts payable $ 745
S. Crawford, Capital 21,155
S. Crawford, Withdrawals 36,000
Revenue earned 72,000
Beauty supplies expense 3,425
Rent expense 6,000
Wages expense 22,000
Totals $93,900 $93,900
4. Use the information in each of the following separate cases to calculate the unknown
amount.
a. Corentine Co. had $152.000 of accounts payable on September 30 and $132.500 on
October 31. Total purchases on account during October were $281,000. Determine how much
cash was paid on accounts payable during October.
b. On September 30, Valerian Co. had a $102, 500 balance in Accounts Receivable. During
October, the company collected $102, 890 from its credit customers. The October 31 balance
in Accounts Receivable was $89,000. Determine the amount of sales on account that occurred
in October.
c. During October, Alameda Company had $102, 500 of cash receipts and $103, 150 of cash
disbursements. The October 31 Cash balance was $18,600. Determine how much cash the
company had at the close of business on September 30.
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