Try Magic Notes and save time.Try it free
Try Magic Notes and save timeCrush your year with the magic of personalized studying.Try it free

Related questions with answers

Ronald Hicks owns Wilderness Rentals and uses the following accounts in his business:

General Ledger 101 Cash in Bank 105 Accounts Receivable—201 Accounts Payable—Helen KatzAdventure Equipment Inc.120 Office Equipment301 Ronald Hicks, Capital125 Camping Equipment \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{ }\\ \text{105 Accounts Receivable—} & \text{201 Accounts Payable—}\\ \text{Helen Katz} & \text{Adventure Equipment Inc.}\\ \text{120 Office Equipment} & \text{301 Ronald Hicks, Capital}\\ \text{125 Camping Equipment} & \text{ }\\ \end{matrix}

For each of the following transactions: 1. Indicate the two accounts affected. 2. Indicate whether each account is debited or credited.

DateTransactionsMay 111. Sold on account to Helen Katz an unneeded office typewriter.192. Purchased camping equipment on credit from Adventure Equipment Inc. Payment is due within 30 days.223. Ronald Hicks brought a filing cabinet from home and transferred it to the business (Office Equipment).234.Purchased tents and sleeping bags for cash.\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 11} & \text{1. Sold on account to Helen Katz an unneeded office typewriter.}\\ \text{19} & \text{2. Purchased camping equipment on credit from Adventure Equipment Inc. Payment is due within 30 days.}\\ \text{22} & \text{3. Ronald Hicks brought a filing cabinet from home and transferred it to the business (Office Equipment).}\\ \text{23} & \text{4.Purchased tents and sleeping bags for cash.}\\ \end{array}

Ronald Hicks owns and operates Wilderness Rentals. The following accounts are needed to journalize the month’s transactions.

General Ledger 101 Cash in Bank301 Ronald Hicks, Capital105 Accts. Rec. - Helen Katz305 Ronald Hicks, Withdrawals110 Accts. Rec. - Polk and Co.310 Income Summary120 Office Equipment401 Equipment Rental Revenue125 Camping Equipment501 Advertising Expense201 Accts. Pay. - Adventure505 Maintenance ExpenseEquipment Inc.515 Rent Expense203 Accts. Pay. - Digital Tech520 Salaries ExpenseComputers525 Utilities Expense205 Accts. Pay. - Greg Mollaro \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{301 Ronald Hicks, Capital}\\ \text{105 Accts. Rec. - Helen Katz} & \text{305 Ronald Hicks, Withdrawals}\\ \text{110 Accts. Rec. - Polk and Co.} & \text{310 Income Summary}\\ \text{120 Office Equipment} & \text{401 Equipment Rental Revenue}\\ \text{125 Camping Equipment} & \text{501 Advertising Expense}\\ \text{201 Accts. Pay. - Adventure} & \text{505 Maintenance Expense}\\ \text{Equipment Inc.} & \text{515 Rent Expense}\\ \text{203 Accts. Pay. - Digital Tech} & \text{520 Salaries Expense}\\ \text{Computers} & \text{525 Utilities Expense}\\ \text{205 Accts. Pay. - Greg Mollaro} & \text{ }\\ \end{matrix}

Record the following transactions on page 1 of the general journal in your working papers. For each transaction: 1. Enter the date. Use the current year. 2. Enter the name of the account debited. 3. Enter the amount of the debit. 4. Enter the name of the account credited. 5. Enter the amount of the credit. 6. Enter a source document reference.

DateTransactionsJan. 1Wrote Check 310 for the part-time secretary’s salary, $270.3Bought $2,000 of camping equipment on account from Adventure Equipment Inc., Invoice 320.5Received $500 from a client for equipment rental, Receipt 150.7Wrote Check 311 to pay the electricity bill of $110.11Billed a client, Polk and Co., $1,700 for rental equipment, Sales Invoice 262.12Ronald Hicks withdrew $800 for personal use, Check 312.14Bought a $300 scanner for the office computer from Digital Tech Computers, on account, Invoice 270.16Wrote Check 313 for $1,000 as an installment payment toward the amount owed to Adventure Equipment Inc. 25Received $1,700 from Polk and Co. in payment on their account, Receipt 151.30Paid Digital Tech Computers $300 for the amount owed, Check 314.\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Wrote Check 310 for the part-time secretary's salary, $\$ 270 .$}\\ \text{3} & \text{Bought $\$ 2,000$ of camping equipment on account from Adventure Equipment Inc., Invoice 320.}\\ \text{5} & \text{Received $\$ 500$ from a client for equipment rental, Receipt $150 .$}\\ \text{7} & \text{Wrote Check 311 to pay the electricity bill of $\$ 110$.}\\ \text{11} & \text{Billed a client, Polk and Co., $\$ 1,700$ for rental equipment, Sales Invoice 262.}\\ \text{12} & \text{Ronald Hicks withdrew $\$ 800$ for personal use, Check $312 .$}\\ \text{14} & \text{Bought a $\$ 300$ scanner for the office computer from Digital Tech Computers, on account, Invoice 270.}\\ \text{16} & \text{Wrote Check 313 for $\$ 1,000$ as an installment payment toward the amount owed to Adventure Equipment Inc. }\\ \text{25} & \text{Received $\$ 1,700$ from Polk and Co. in payment on their account, Receipt $151 .$}\\ \text{30} & \text{Paid Digital Tech Computers $\$ 300$ for the amount owed, Check $314 .$}\\ \end{array}

Regina Delgado, owner of Hot Suds Car Wash, uses these accounts:

General Ledger 101 Cash in Bank401 Wash Revenue125 Office Equipment510 Maintenance Expense205 Accounts Payable—520 Rent ExpenseO’Brian’s Office Supply 301 Regina Delgado, Capital 305 Regina Delgado, Withdrawals \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Wash Revenue}\\ \text{125 Office Equipment} & \text{510 Maintenance Expense}\\ \text{205 Accounts Payable—} & \text{520 Rent Expense}\\ \text{O’Brian’s Office Supply} & \text{ }\\ \text{301 Regina Delgado, Capital} & \text{ }\\ \text{305 Regina Delgado, Withdrawals} & \text{ }\\ \end{matrix}

In your working papers: 1. Determine which accounts are affected for each transaction. 2. Prepare T accounts for the accounts affected. 3. Enter the amount of the debit and the amount of the credit in the T accounts.

DateTransactionsJan. 71. Received a check for $1,675 for car wash services.122. Paid the monthly rent of $450 by writing Check 212 .153. Regina Delgado withdrew $250 for her personal use, Check 213.294. Had the computer repaired at O’Brian’s Office Supply for $245 and was given until next month to pay. \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 7} & \text{1. Received a check for $\$1,675$ for car wash services.}\\ \text{12} & \text{2. Paid the monthly rent of $\$ 450$ by writing Check 212 .}\\ \text{15} & \text{3. Regina Delgado withdrew $\$ 250$ for her personal use, Check 213.}\\ \text{29} & \text{4. Had the computer repaired at O'Brian's Office Supply for $\$ 245$ and was given until next month to pay. }\\ \end{array}


Ronald Hicks uses these accounts in his business, Wilderness Rentals.

General Ledger 101 Cash in Bank301 Ronald Hicks, Capital105 Accounts Receivable—305 Ronald Hicks, WithdrawalsHelen Katz401 Equipment Rental Revenue120 Office Equipment505 Maintenance Expense125 Camping Equipment525 Utilities Expense\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{301 Ronald Hicks, Capital}\\ \text{105 Accounts Receivable—} & \text{305 Ronald Hicks, Withdrawals}\\ \text{Helen Katz} & \text{401 Equipment Rental Revenue}\\ \text{120 Office Equipment} & \text{505 Maintenance Expense}\\ \text{125 Camping Equipment} & \text{525 Utilities Expense}\\ \end{matrix}

Analyze each of the following trans actions using the format shown in the example. Record your answers in your working papers. a. Explain the debit. b. Explain the credit. On Jan. 2 Ronald Hicks paid the bill for office cleaning, 100.a.Theexpenseaccount505MaintenanceExpenseisincreased.Increasesinexpensesarerecordedasdebits.b.Theassetaccount101CashinBankisdecreased.Decreasesinassetsarerecordedascredits.100. a. The expense account 505 Maintenance Expense is increased. Increases in expenses are recorded as debits. b. The asset account 101 Cash in Bank is decreased. Decreases in assets are recorded as credits.

DateTransactionsJan. 31. Ronald Hicks withdrew $500 from his business for his own use, Check 225.82. The business received $1,200 cash in rental fees from various customers. 123. The business paid a telephone bill of $85, Check 226.\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 3} & \text{1. Ronald Hicks withdrew $\$500$ from his business for his own use, Check 225.}\\ \text{8} & \text{2. The business received $\$1,200$ cash in rental fees from various customers. }\\ \text{12} & \text{3. The business paid a telephone bill of $\$85$, Check 226.}\\ \end{array}




Create an account to view solutions

Create an account to view solutions

Recommended textbook solutions

Glencoe Accounting: First Year Course 1st Edition by Glencoe McGraw-Hill

Glencoe Accounting: First Year Course

1st EditionISBN: 9780078688294Glencoe McGraw-Hill
548 solutions
Financial Accounting 4th Edition by Don Herrmann, J. David Spiceland, Wayne Thomas

Financial Accounting

4th EditionISBN: 9781259730948Don Herrmann, J. David Spiceland, Wayne Thomas
1,097 solutions
Fundamentals of Financial Management 14th Edition by Eugene F. Brigham, Joel F Houston

Fundamentals of Financial Management

14th EditionISBN: 9781285867977 (1 more)Eugene F. Brigham, Joel F Houston
845 solutions
Century 21 Accounting: General Journal 11th Edition by Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

Century 21 Accounting: General Journal

11th EditionISBN: 9781337623124Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman
1,012 solutions

More related questions