会计学原理19版练习答案：Chapter_02_Analyzing and Recording Transactions

1、McGraw-Hill Companies, 2009Solutions Manual, Chapter 255Chapter 2Analyzing and Recording TransactionsQUESTIONS1.a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies, equipment, building, and land.b. Common li

2、ability accounts: accounts payable, notes payable, and unearned revenue, wages payable, and taxes payable.c. Common equity accounts: owner, capital and owner, withdrawals.2.A note payable is formal promise, usually denoted by signing a promissory note to pay a future amount. A note payable can be sh

3、ort-term or long-term, depending on when it is due. An account payable also references an amount owed to an entity. An account payable can be oral or implied, and often arises from the purchase of inventory, supplies, or services. An account payable is usually short-term.3.There are several steps in

4、 processing transactions: (1) Identify and analyze the transaction or event, including the source document(s), (2) apply double-entry accounting, (3) record the transaction or event in a journal, and (4) post the journal entry to the ledger. These steps would be followed by preparation of a trial ba

5、lance and then with the reporting of financial statements.4.A general journal can be used to record any business transaction or event.5.Debited accounts are commonly recorded first. The credited accounts are commonly indented.6.Expense accounts have debit balances because they are decreases to equit

6、y (and equity has a credit balance).7.A transaction is first recorded in a journal to create a complete record of the transaction in one place. (The journal is often referred to as the book of original entry.) This process reduces the likelihood of errors in ledger accounts.8.The recordkeeper prepar

7、es a trial balance to summarize the contents of the ledger and to verify the equality of total debits and total credits. The trial balance also serves as a helpful internal document for preparing financial statements and other reports. 9. The error should be corrected with a separate (subsequent) co

8、rrecting entry. The entrys explanation should describe why the correction is necessary.10. The four financial statements are: income statement, balance sheet, statement of owners equity, and statement of cash flows.11. The income statement lists the types and amounts of revenues and expenses, and re

9、ports whether the business earned a net income (also called profit or earnings) or a net loss. 12. An income statement user must know what time period is covered to judge whether the companys performance is satisfactory. For example, a statement user would not be able to assess whether the amounts o

10、f revenue and net income are satisfactory without knowing whether they were earned over a week, a month, a quarter, or a year.13. The balance sheet provides information that helps users understand a companys financial position at a point in time. Accordingly, it is often called the statement of fina

11、ncial position. The balance sheet lists the types and dollar amounts of assets, liabilities, and equity of the business. 14. (a) Assets are probable future economic benefits obtained or controlled by a specific entity as a result of past transactions or events. (b) Liabilities are probable future sa

12、crifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. (c) Equity is the residual interest in the assets of an entity that remains after deducting its lia

13、bilities. (d) Net assets refer to equity.15. The balance sheet is sometimes referred to as the statement of financial position.16. Debit balance accounts on the Best Buy balance sheet include: Cash and cash equivalents; Short-term investments; Receivables; Merchandise inventories; Other current asse

14、ts; Land and buildings; Leasehold improvements; Fixtures and equipment; Property under capital lease; Goodwill, Tradenames; Long-term investments; Other assetsCredit balance accounts on the Best Buy balance sheet include: Accounts payable; Unredeemed gift card liabilities; Accrued compensation and r

15、elated expenses; Accrued liabilities; Accrued income taxes; Short-term debt; Current portion of long-term debt; Long-term liabilities; Long-term debt; Minority interests; Preferred stock; Common stock; Additional paid-in capital; Retained earnings; Accumulated other comprehensive income.17. Circuit

16、City calls the liability that is incurred due to the purchase of inventory “Merchandise payable.”18. The asset account with receivable in its account title is Accounts and notes receivable, net. The liabilities with payable in their account titles are Accounts payable and Income taxes payable. 19. A

17、pples revenue account is titled “Net Sales.”McGraw-Hill Companies, 2009Solutions Manual, Chapter 257QUICK STUDIESQuick Study 2-1 (5 minutes)The likely source documents include:b.Telephone billc.Sales ticket f.Invoice from supplierh.Bank statementQuick Study 2-2 (10 minutes)a.IIncome statement b.ESta

18、tement of owners equityc.BBalance sheetd.BBalance sheete.BBalance sheetf.IIncome statementg.BBalance sheeth.BBalance sheeti.BBalance sheetQuick Study 2-3 (10 minutes)a.Debitd.Debitg.Creditb.Debite.Debith.Debitc.Creditf.Debiti.CreditQuick Study 2-4 (10 minutes)a.Debite.Debiti.Creditb.Debitf.Creditj.D

19、ebitc.Creditg.Creditk.Debitd.Credith.Debitl.CreditQuick Study 2-5 (10 minutes)a.Debite.Debiti.Creditb.Creditf.Creditj.Debitc.Debitg.Creditd.Credith.CreditQuick Study 2-6 (15 minutes)Jan.13 Cash.80,000Equipment .30,000D. Tyler, Capital.110,000 Owner invests cash and equipment. 21 Office Supplies.820A

20、ccounts Payable .820 Purchased office supplies on credit.29 Cash.8,700Landscaping Services Revenue .8,700 Received cash for landscaping services.30 Cash.4,000Unearned Landscaping Services Revenue.4,000 Received cash in advance for landscaping services.Quick Study 2-7 (10 minutes)The correct answer i

21、s c.Explanation: If a $2,250 debit to Rent Expense is incorrectly posted as a credit, the effect is to understate the Rent Expense debit balance by $4,500. This causes the Debit column total on the trial balance to be $4,500 less than the Credit column total.Quick Study 2-8 (10 minutes)a.Ie.Bi.Bb.If

22、.Ij.Ic.Ig.Bk.Ed.Bh.Bl.BMcGraw-Hill Companies, 2009Solutions Manual, Chapter 259EXERCISESExercise 2-1 (15 minutes)Type ofIncreaseNormalAccountAccount(Dr. or Cr.)Balancea.Owner Capital.equitycreditcreditb.Accounts Receivable.assetdebitdebitc.Owner Withdrawals.equitydebitdebitd.Cash.assetdebitdebite.Eq

23、uipment.assetdebitdebitf.Fees Earned.revenuecreditcreditg.Wages Expense.expensedebitdebith.Unearned Revenue.liabilitycreditcrediti.Accounts Payable .liabilitycreditcreditj.Postage Expense.expensedebitdebitk.Prepaid Insurance.assetdebitdebitl.Land.assetdebitdebitExercise 2-2 (15 minutes)a.Beginning c

24、ash balance (debit) .$ ? Cash received in October (debits). 104,750Cash disbursed in October (credits) .(101,607)Ending cash balance (debit).$ 17,069Beginning cash balance (debit) .$ 13,926b.Beginning accounts receivable (debit) .$ 83,250Sales on account in October (debits). ?Collections on account

25、in October (credits). (75,924)Ending accounts receivable (debit).$ 85,830Sales on account in October (debits).$ 78,504c.Beginning accounts payable (credit) .$148,000Purchases on account in October (credits). 271,876Payments on accounts in October (debits) . ( ?) Ending accounts payable (credit).$137

26、,492Payments on accounts in October (debits) .$282,384Exercise 2-3 (15 minutes)The company would make the following entry (not required for answer):Cash.12,000Computer Equipment. 90,000Note Payable.37,000Services Revenue .65,000 Accepted cash, equipment and note for services.Thus, of the a through f

27、 items listed, the following effects should be included:a.$37,000 increase in a liability account.b.$12,000 increase in the Cash account.e.$65,000 increase in a revenue account.Explanation: This transaction reflects $65,000 in revenue, which is the value of the service provided. Payment is received

28、in the form of a $12,000 increase in cash, an $90,000 increase in computer equipment, and a $37,000 increase in its liabilities. The net value received by the company is $65,000.Exercise 2-4 (25 minutes)Aug. 1 Cash.14,250Photography Equipment. 61,275M. Harris, Capital.75,525 Owner investment in busi

29、ness.2 Prepaid Insurance .3,300Cash .3,300 Acquired 24 months of insurance coverage.5 Office Supplies .2,707Cash .2,707 Purchased office supplies.20 Cash.3,250Photography Fees Earned.3,250 Collected photography fees. 31 Utilities Expense.871Cash .871 Paid for August utilities.McGraw-Hill Companies,

30、2009Solutions Manual, Chapter 261Exercise 2-5 (30 minutes)CashPhotography EquipmentAug. 114,250 Aug. 23,300Aug. 161,275 203,25052,70731871M. Harris, CapitalBalance10,622Aug. 175,525Office SuppliesPhotography Fees EarnedAug. 52,707Aug. 203,250Prepaid InsuranceUtilities ExpenseAug. 23,300Aug. 31871SPE

31、CIAL PICSTrial BalanceAugust 31 Debit CreditCash.$10,622Office supplies. 2,707Prepaid insurance. 3,300Photography equipment.61,275M. Harris, Capital.$75,525Photography fees earned.3,250Utilities expense. 871_ Totals .$78,775$78,775Exercise 2-6 (30 minutes)CashAccounts Payable(a)14,000(b)406(e)7,742(

32、c)7,742(d)1,652(e)7,742Balance0(h)1,246(g)510(i)1,200Balance7,040S. Amena, Capital(a)14,000Balance14,000Accounts ReceivableS. Amena, Withdrawals(f)2,968(h)1,246(i)1,200Balance1,722Balance1,200Office SuppliesFees Earned(b)406(d)1,652Balance406(f)2,968Balance4,620Office EquipmentRent Expense(c)7,742(g

33、)510Balance7,742Balance510Exercise 2-7 (15 minutes)AMENA COMPANYTrial BalanceMay 31, 2009 Debit CreditCash .$ 7,040Accounts receivable.1,722Office supplies . 406Office equipment.7,742Accounts payable .$ 0S. Amena, Capital.14,000S. Amena, Withdrawals.1,200Fees earned.4,620Rent expense. 510_Totals.$18

34、,620$18,620McGraw-Hill Companies, 2009Solutions Manual, Chapter 263Exercise 2-8 (20 minutes)Transactions that created expenses:b.Salaries Expense.1,233Cash .1,233Paid salary of receptionist.d.Utilities Expense.870Cash .870Paid utilities for the office.Note: Expenses are outflows or using up of asset

35、s (or the creation of liabilities) that occur in the process of providing goods or services to customers.Transactions a, c, and e are not expenses for the following reasons:a.This transaction decreased assets in settlement of a previously existing liability, and equity did not change. Cash payment d

36、oes not mean the same as using up of assets (expense was recorded when the supplies were used).c.This transaction involves the purchase of an asset. The form of the companys assets changed, but total assets did not change, and the equity did not decrease.e.This transaction is a distribution of cash

37、to the owner. Even though equity decreased, the decrease did not occur in the process of providing goods or services to customers.Exercise 2-9 (20 minutes)Transactions that created revenues:b.Accounts Receivable.2,300Services Revenue.2,300 Provided services on credit.c.Cash.875Services Revenue.875 P

38、rovided services for cash.Note: Revenues are inflows of assets (or decreases in liabilities) received in exchange for goods or services provided to customers.Transactions that did not create revenues along with the reasons are:a.This transaction brought in cash, but this is an owner investment. d.Th

39、is transaction brought in cash, but it created a liability because the services have not yet been provided to the client.e.This transaction changed the form of the asset from accounts receivable to cash. Total assets were not increased (revenue was recognized when the receivable was originally recor

40、ded).f.This transaction brought in cash and increased assets, but it also increased a liability by the same amount (no goods or services were provided to generate revenue). Exercise 2-10 (15 minutes)TECH TALKIncome StatementFor Month Ended October 31RevenuesConsulting fees earned .$25,620ExpensesSal

41、aries expense.$12,405Rent expense.6,859Telephone expense.560Miscellaneous expenses . 280Total expenses . 20,104Net income.$ 5,516McGraw-Hill Companies, 2009Solutions Manual, Chapter 265Exercise 2-11 (15 minutes)TECH TALKStatement of Owners EquityFor Month Ended October 31D. Shabazz, Capital, October

42、 1 .$ 0Add:Investments by owner .124,114Net income (from Exercise 2-10). 5,516129,630Less: Withdrawals by owner. 2,000D. Shabazz, Capital, October 31 .$127,630Exercise 2-12 (15 minutes)TECH TALKBalance SheetOctober 31AssetsLiabilitiesCash.$ 12,614Accounts payable. $ 12,070Accounts receivable .25,648

43、Office supplies.4,903EquityOffice equipment.27,147D. Shabazz, Capital. 127,630*Land. 69,388 .Total assets.$139,700 Total liabilities & equity. $139,700* Computation shown in Exercise 2-11.Exercise 2-13 (20 minutes)a.Assets-Liabilities=EquityBeginning of the year. $131,000-$56,159=$74,841End of t

44、he year .180,000-72,900= 107,100Net increase in equity.$32,259Net Income.$ ?Plus owner investments.0Less owner withdrawals. (0)Change in equity .$32,259Therefore, income must equal $32,259.b.Net income. $ ?Plus owner investments.0Less owner withdrawals ($650/mo. x 12 mo.). (7,800)Change in equity.$3

45、2,259Therefore, net income must equal ($32,259 + $7,800) = $40,059c.Net income. $ ?Plus owner investments. 45,000Less owner withdrawals. (0)Change in equity.$32,259Therefore, the net loss must equal ($32,259 - $45,000) = $(12,741)d.Net income. $ ?Plus owner investments. 25,000Less owner withdrawals

46、($650/mo. x 12 mo.). (7,800)Change in equity.$32,259Therefore, income must equal ($32,259+$7,800-$25,000)= $15,059McGraw-Hill Companies, 2009Solutions Manual, Chapter 267Exercise 2-14 (15 minutes)(a)(b)(c)(d)Answers$(45,000)$64,665$71,347$(47,000)Computations:Equity, Dec. 31, 2008.$ 0$ 0$ 0$ 0Owner

47、investments.112,50064,66585,347201,871Owner withdrawals.(45,000)(51,000)(8,000)(53,000)Net income (loss) . 27,000 78,000 (6,000) (47,000)Equity, Dec. 31, 2009.$94,500$91,665$71,347$101,871Exercise 2-15 (25 minutes)a.Belle created a new business and invested $12,000 cash, $15,200 of equipment, and $2

48、4,000 in automobiles.b.Paid $4,800 cash in advance for insurance coverage.c.Paid $2,000 cash for office supplies.d.Purchased $300 of office supplies and $9,700 of equipment on credit.e.Received $9,000 cash for delivery services provided.f.Paid $4,600 cash towards accounts payable.g.Paid $820 cash fo

49、r gas and oil expenses.Exercise 2-16 (30 minutes)a.Cash .12,000Equipment.15,200Automobiles .24,000D. Belle, Capital.51,200Owner invested in business.b.Prepaid Insurance.4,800Cash.4,800 Purchased insurance coverage.c.Office Supplies.2,000Cash.2,000 Purchased supplies with cash.d.Office Supplies.300Eq

50、uipment.9,700Accounts Payable.10,000 Purchased supplies and equipment on credit.e.Cash .9,000Delivery Services Revenue.9,000 Received cash from customer.f.Accounts Payable .4,600Cash.4,600 Made payment on payables.g.Gas and Oil Expense .820Cash.820Paid for gas and oil.McGraw-Hill Companies, 2009Solu

51、tions Manual, Chapter 269Exercise 2-17 (20 minutes)Description(1)Difference between Debit and Credit Columns(2)Column with the Larger Total(3)Identify account(s) incorrectly stated(4)Amount that account(s) is overstated or understateda.$1,870 debit to Rent Expense is posted as a $1,780 debit.$90 cre

52、ditRent ExpenseRent Expense is understated by $90b.$3,560 credit to Cash is posted twice as two credits to Cash.$3,560creditCashCash is understated by $3,560c.$7,120 debit to the Withdrawals account is debited to Owners Capital.$0 Owner, CapitalOwner, WithdrawalsOwner, Capital is understated by $7,1

53、20Owner, Withdrawals is understated by $7,120d.$1,630 debit to Prepaid Insurance is posted as a debit to Insurance Expense.$0 Prepaid Insurance Insurance ExpensePrepaid Insurance is understated by $1,630 Insurance Expense is overstated by $1,630e.$31,150 debit to Machinery is posted as a debit to Ac

54、counts Payable.$0 Machinery Accounts PayableMachinery is understated by $31,150 Accounts Payable is understated by $31,150f.$4,460 credit to Services Revenue is posted as a $446 credit.$4,014 debitServices RevenueServices Revenue is understated by $4,014g.$820 debit to Store Supplies is not posted.$

55、820 creditStore SuppliesStore Supplies is understated by $820Exercise 2-18 (15 minutes)a.The debit column is correctly stated because the erroneous debit (to Accounts Payable) is deducted from an account with a (larger assumed) credit balance.b.The credit column is understated by $22,500 because Acc

56、ounts Payable was debited it should have been credited.c.The Office Equipment account balance is correctly stated.d.The Accounts Payable account balance is understated by $22,500. It should have been increased (credited) by $11,250 but the posting error decreased (debited) it by $11,250.e.The credit

57、 column is $22,500 less than the debit column, or $213,750 in total ($236,250 - $22,500).Exercise 2-19 (15 minutes)a.Co.Liabilities /Assets=DebtRatioNetIncome/AverageAssets=ROA 1$56,000$147,0000.38$21,000$200,0000.105 251,500104,5000.49 12,00070,0000.171 312,00090,5000.1320,000100,0000.200 431,00092

58、,0000.347,50040,0000.188 547,000 64,0000.73 3,800 40,0000.095 626,50032,5000.82 66050,0000.013b. Company 6 relies most heavily on creditor (non-owner) financing with 82% of its assets financed by liabilities.c. Company 3 relies least on creditor (non-owner) financing at only 13%. This implies that 8

59、7% of the assets are financed by equity (owners).d. The companies with the highest debt ratios indicate the greatest risk. The two companies with the highest debt ratios are 5 and 6.e. Company 3 yields the highest return on assets at 20%; followed by Company 4 at 18.8%.f.As an investor, one prefers

60、high returns at low risk. Company 3 is the preferred investment since it yields the lowest risk (debt ratio is 13%) and highest return on assets (20%).McGraw-Hill Companies, 2009Solutions Manual, Chapter 271PROBLEM SET AProblem 2-1A (90 minutes)Part 1a. Cash.101 195,000 Office Equipment.1638,200Drafting