Assignment No. 2 - The Recording Process

The Recording Process Principles of Financial Accounting
WORKBOOK SERIES
For
Financial Accounting Fundamentals

Principles of Financial Accounting
Workbook # 2
The Recording Process
Journalizing in General Journal
Posting in General Ledger
Preparing Trial Balance
1
Instructions:
1. Submission Date and Time: December 30, 2020 before 12:00 AM (Wednesday night)
2. Late submission will result in 30% marks deduction.
3. Assignment MUST be attempted in Google Docs. Any other form such as MS-Word, PDF,
photos attachment will not be graded.
4. In case of any technical issue regarding the assignment attempt, it is the RESPONSIBILITY OF
THE STUDENT to resolve the issue. You are strongly advised to contact GIFT University
Support system (online helpline, Labs etc.) to sort out your problems.
5. After completing the assignment workbook, you must SUBMIT it by pressing the submit
button (also MARK AS DONE this option appears on your device)
6. Google Docs automatically saves the data once any changes are made to it, so you can open
and edit the document multiple times.
Good Luck!
2
Accounting Workbook 2
BE2-1
For each of the following accounts indicate the following:
(a) Type of Account
(b) Effect of a debit on the account
(c) Effect of a credit on the accounts
(d) The normal balance of the account

● Write NDB for Normal Debit Balance
● Write NCB for Normal Credit Balance
(a) (b) (c) (d)

Account
Type Effect of Debit Effect of Credit Normal Balance
1. Accounts Payable Liability Decrease Increase NCB
2. Advertising Expense
Expenses Increase Decrease NDB
3. Service Revenue
Revenue Decrease Increase NCB
4. Accounts Receivable
5. Salaries Payable Asset Increase Decrease NDB
6. Cash
Liability Decrease Increase NCB
7. Prepaid Rent
Asset Increase Decrease NDB
8. Unearned Revenue
9. A. J. Ritter, Capital Asset Increase Decrease NDB
10. A. J. Ritter, Drawing

Liability Decrease Increase NCB
3
Asset Increase Decrease NDB
Drawing Increase Decrease NDB
BE2-2
Transactions for the Hank Norris Company for the month of June are presented below. Identify the
accounts to be debited and credited for each transaction.
June 1 Hank Norris invests $50,000 cash in a small welding business of which he is the sole proprietor.
Account Increase/Decrease Debit/Credit
Cash Increase Debit
Hank Norris, Capital Increase Credit
June 2 Purchases equipment on account for $900.
Equipment Increase Debit
Liability Increase Credit
June 3 $800 cash is paid to the landlord for June rent.
Expense Increase Debit
Cash Decrease Credit
4
June 4 Received advance payment of $2,000 for welding services to be provided next month.
Accounts receivable Increase Debit
Revenue Increase Credit
June 5 Purchased land worth $15,000. Paid $10,000 on cash and remaining on account.
Cash Decrease Debit
Liability Increase Credit
June 6 Paid Salaries of $1,500 for the month.
Expense Increase Debit
Cash Decrease Credit
June 12 Bills J. Kronsnoble $300 for welding work done on account.
Accounts receivable Increase Debit
Revenue Increase Credit

5
BE2-3
Using the data in BE2-2, journalize the transactions. (You may omit explanations.)
General Journal
Ref Debit Credit

Date Account Title & Description
. Dr. Cr.
June 1 Cash 50,000
Hank Norris, Capital 50,000
June 2 Equipment 900
Liability 900
June 3 Expense 800
Cash 800
June 4 Accounts receivable 2000
Revenue 2000
June 5 Liability
June 6 Expense 1500
Cash 1500
June 12 Accounts Receivable 300
Revenue 300
6
BE2-5
T. J. Carlin has the following transactions during August of the current year. Indicate
a) Indicate the effect on the accounting equation and
b) Indicate the debit-credit analysis
c) Pass the journal entry
Aug. 1 Opens an office as a financial advisor, investing $8,000 in cash.
Basic Accounting Equation Analysis

7
+ -
+ -
Date Assets = Liabilities T.J. Carline, T.J. Carline,
Revenue Expense
Capital Drawings
+8000 +8000
Debit Credit Analysis
Increase in Cash → Increase in Asset → Debit the Cash Account by 8,000.
Increase in Capital Account → Debit the T.J. Carline, Capital Account by 8,000.
General Journal
Ref Debit Credit

. Dr. Cr.
Aug. 1 Cash 8000
T.J. Carline, Capital 8000
Aug. 4 Pays insurance in advance for 6 months, $1,800 cash.
Date Assets = Liabilities + - + -
T.J. Carline, T.J. Carline, Revenue Expense
8
Capital Drawings
Aug 4 1800
1800
Increase in prepaid insurance--->Increase in assets---> Debit the account by 1800

Decrease in cash---. decrease in assets---> credit the account by 1800
General Journal
Ref Debit Credit

. Dr. Cr.
Prepaid Insurance 1800
Cash 1800
Aug. 16 Receives $800 from clients for services provided.
Date Assets = Liabilities + - + -
9
T.J. Carline, T.J. Carline,

Revenue Expense
Capital Drawings
Aug 16 800 800
Increase in cash---> Increase in asset---> Debit the cash account by 800

Increase in revenue---> Credit the TJ carline revenue account by 800
General Journal
Ref Debit Credit

. Dr. Cr.
Aug 16 Cash 800
Revenue 800
Aug. 27 Pays secretary $1,000 salary.
10
+ -
+ -
Date Assets = Liabilities T.J. Carline, T.J. Carline,
Revenue Expense
Capital Drawings
August -1000
1000
27
Increase in expense→ Debit the expense account by 1000

Decrease in cash---> Decrease in asset---> Credit the TJ carline cash account by 1000
General Journal
Ref Debit Credit

. Dr. Cr.
Aug 27 Expense 1000
Cash 1000
11
BE2-7
Selected transactions for the Finney Company are presented in journal form below. Post the
transactions to standard 3-column (running balance) accounts. Make one account for each item and
determine each account’s ending balance.
Date Account Titles and Explanation Ref. Debit Credit
May 5 Accounts Receivable 5,000
Service Revenue 5,000
(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 services provided)
18 Unearned Revenue 500
Cash 500
(Received advance payment for future services)
12
General Ledger
Cash Account
Ref
Date Description Dr. Cr. Balance
.
Accounts Receivable 2400 2400
Service revenue 3000 5400
Accounts Receivable Account

Ref
.
Service Revenue 5000 5000
Cash 2400 2600
Unearned Revenue Account
Ref
.
Cash 500 500
Service Revenue Account
13
Ref
.
Accounts receivable 5000 5000
Cash 3000 8000
Account
Ref
.
Unearned Revenue 500 4900
Account
Ref
.
BE2-9
From the ledger balances given below, prepare a trial balance for the Cleland Company at June 30,
2010. Prepare the trial balance and list the accounts in the proper order as per basic accounting
equation. All account balances are normal.
Accounts Payable $9,000, Cash $8,800, Cleland, Capital $20,000; Cleland, Drawing $1,200; Equipment
14
$17,000, Service Revenue $8,000, Accounts Receivable $3,000, Salaries Expense $6,000, and Rent
Expense $1,000.
Cleland Company
Trial Balance
As on month ended June 30, XXXX
Account # Account Title Debit Credit
Accounts payable $9,000
Cash $8,800
Cleland Capital 20,000
Cleland Drawing 1200
Equipment 17,000
Service Revenue 8000
Accounts receivable 3000
Salaries Expense 6000
Rent Expense 1000
$3700 $ 3700
E2-2
Selected transactions for D. Reyes, an interior decorator, in her first month of business, are as follows.
15
Jan. 2 Invested $10,000 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 $1,000 cash for personal use by the 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.
Use the following format, in which the January 2 transaction is given as an example.
Account Debited Account Credited
Date (a) (b) (c) (d) (a) (b) (c) (d)
16
Basic Specific Normal Specific Normal Normal

Effect Basic Type
Type Account Balance Account Balance Balance
D.
Owner’s
Jan 02 Asset Cash Increase Debit Reyes, Increase Credit
Equity
Capital
Jan 03
Jan 09 Asset Supplies Increase Debit Liability Account Increase Credit

s
Payable
Jan 11 Asset Cash Increase Debit Revenue Service Increase Credit

revenue
Jan 16 Expens Advertis Increase Debit Asset Cash Decreas Debit

e ement e
Jan 20 Asset Cash Increase Debit Revenue Service Increase Credit

Revenue
Jan 23 Liability Account Decreas Credit Asset Cash Decreas Debit

s e e
payable
Jan 28 Drawin Personal increase debit Asset Cash Decreas Debit

g drawing e
P2-1A
Frontier Park was started on April 1 by C. J. Mendez. The following selected events and transactions
occurred during April.
Apr. 1 Mendez invested $40,000 cash in the business.
4 Purchased land costing $30,000 for cash.
8 Incurred advertising expense of $1,800 on account.
11 Paid salaries to employees $1,500.
17
12 Hired park manager at a salary of $4,000 per month, effective May 1.
13 Paid $1,500 cash for a one-year insurance policy.
17 Withdrew $1,000 cash for personal use.
20 Received $5,700 in cash for admission fees.
25 Sold 1000 admission tickets for $25 each to be used in next month by customers.
30 Received $8,900 in cash admission fees.
30 Paid $900 on balance owed for advertising incurred on April 8.
Mendez uses the following accounts: 101 Cash, 105 Prepaid Insurance, 110 Land, 201 Accounts
Payable, 205 Unearned Admission Revenue, 301 C. J. Mendez, Capital; 302 C. J. Mendez, Drawing; 401
Admission Revenue, 505 Advertising Expense, and 507 Salaries Expense.
Instructions
a) Journalize the April transactions in oage J1 of the journal.

b) Post to ledger accounts.
c) Prepare trial balance in proper format.
(a)
General Journal
J1
Ref Debit Credit
. Dr. Cr.
April 1 Cash 101 40,000
CJ Mendez Capital 301 40,000
April 4 Land 110 30,000
Cash 101 30,000
April 8 Advertising Expense 505 18,00
18
Accounts Payable 201 18,00
April 11 Salaries Expense 507 1500
Cash 101 1500
April 13 Prepaid Insurance 105 1500
Cash 101 1500
April 17 CJ Mendez Drawing 302 1000
Cash 101 1000
April 20 Cash 101 5700
Admission Revenue 401 5700
April 25 Cash 101 25000
Unearned AdmissionRevenue 205 25000
April 30 Cash 101 8900
Admission Revenue 401 8900
April 30 Accounts payable 201 900
Cash 900
19
(b)
General Ledger
Cash Account 101
Ref
.
April 1 CJ Mendez Capital J1 40,000 40,000
20
April 4 Land J1 30,000 10,000
April 11 Salaries Expense J1 15,00 11,500
April 13 Prepaid Insurance J1 15,00 13,000
April 17 CJ Mendaez Drawing J1 1000 14,000
April 20 Admission Revenue J1 5700 8,300
April 25 Unearned admission revenue J1 25000 33,300
April 30 Admission Revenue J1 8900 42,200
April 30 Accounts payable J1 900 41,300
CJ Mendez Capital Account

301
Ref
.
April 1 Cash J1 40,000 40,000
21
Land Account
110
Ref
.
April 4 Cash J1 30,000 30,000
Advertising expense Account

505
Ref
.
April 8 Accounts Payable J1 1800 1800
Salaries Expense Account

507
Ref
.
April 11 Cash J1 1500 1500
22
CJ Mendez Drawing Account
302
Ref
.
April 17 Cash J1 1000 1000
Admission Revenue Account

401
Ref
.
April 20 Cash J1 5700 5700
April 30 Cash J1 8900 14,600
Unearned Admission Revenue Account

205
Date Description Ref Dr. Cr. Balance
23
April 25 Cash J1 25000 25000
Accounts Payable Account

201
Ref
.
April 8 Advertising Expenses J1 1800 1800
April 30 Cash J1 900 900
Prepaid Insurance Account

105
Ref
.
April 13 Cash J1 1500 1500
24
(c)
Frontier Park
Trial Balance
As on month ended April 30, XXXX
Account Title Debit Credit

Account #
101 Cash $41,300
105 Prepaid Insurance 1500
110 Land 30,000
201 Accounts Payable $900
205 Unearned admission revenue 25000
301 CJ mendez Capital 40,000
302 Drawing 1000
401 Admission Revenue 5700
505 Advertising Expense 1800
Salaries Expense 1500
77,100 79,600
P2-2A
Jane Kent is a licensed CPA. During the first month of operations of her business, the following events
and transactions occurred.
25
May 1 Kent invested $25,000 cash.
2 Hired a secretary-receptionist joining next month at a salary of $2,000 per month.
3 Purchased $2,500 of supplies on account from Read Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a tax assignment and billed client $2,100 for services provided.
12 Received $3,500 advance on a management consulting engagement.
17 Received cash of $1,200 for services completed for H. Arnold Co.
31 Paid secretary-receptionist $2,000 salary for the month.
31 Paid 40% of balance due Read Supply Company.
Jane 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 Jane Kent, Capital; No. 400
Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.
Instructions
a) Journalize the transactions.
b) Post to the ledger accounts.
c) Prepare a trial balance on May 31, 2010.
(a)
General Journal
J1
26
Ref Debit Credit

. Dr. Cr.
May 1 Cash 101 25,000
Jane Kent Capital 301 25,000
May 3 Supplies 126 2500
Account Payable 201 2500
May 7 Rent Expense 729 900
Cash 101 900
May 11 Cash 101 2100
Account receivable 400 2100
May 12 Cash 101 3500
Unearned Revenue 205 3500
May 17 Cash 101 1200
Service Revenue 400 1200
May 31 Salary Expense 726 20000
Cash 101 2000
May 31 Accounts payable 201 1000
Cash 101 1000
27
My(b)
General Ledger
Cash Account 101
28
May 1 Jane Kent Capital JI 25000 25000
May 7 Rent expense J1 900 24100
May 11 Account receivable J1 2100 26,200
May 12 Unearned revenue J1 3500 29,700
May 17 Service revenue J1 1200 30,900
May 31 Salary expense J1 20000 50,900
May 31 Accounts payable J1 1000 49,900
Accounts receivable Account

112
Ref
.
May 11 Cash J1 2100 2100
Account
29
Account
Ref
.
Account
Ref
.
Account
30
Ref
.
Account
Ref
.
Account
Ref
.
31
Account
Ref
.
Account
Ref
.
(c)
Jane Kent Consultancy
Trial Balance
___________________________________________
Account # Account Title Debit Credit
32
[End of Worksheet]
33

Assignment No. 2 - The Recording Process

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Assignment No. 2 - The Recording Process

Hochgeladen von

Copyright:

Verfügbare Formate

The Recording Process Principles of Financial Accounting

Financial Accounting Fundamentals

Posting in General Ledger

Preparing Trial Balance

For each of the following accounts indicate the following:

(a) Type of Account

(b) Effect of a debit on the account

(c) Effect of a credit on the accounts

(d) The normal balance of the account

(a) (b) (c) (d)

1. Accounts Payable Liability Decrease Increase NCB

5. Salaries Payable Asset Increase Decrease NDB

9. A. J. Ritter, Capital Asset Increase Decrease NDB

10. A. J. Ritter, Drawing

Asset Increase Decrease NDB

Drawing Increase Decrease NDB

accounts to be debited and credited for each transaction.

Account Increase/Decrease Debit/Credit

Cash Increase Debit

Hank Norris, Capital Increase Credit

June 2 Purchases equipment on account for $900.

Account Increase/Decrease Debit/Credit

Equipment Increase Debit

Liability Increase Credit

June 3 $800 cash is paid to the landlord for June rent.

Account Increase/Decrease Debit/Credit

Expense Increase Debit

Cash Decrease Credit

Account Increase/Decrease Debit/Credit

Accounts receivable Increase Debit

Revenue Increase Credit

Account Increase/Decrease Debit/Credit

Cash Decrease Debit

Liability Increase Credit

June 6 Paid Salaries of $1,500 for the month.

Account Increase/Decrease Debit/Credit

Expense Increase Debit

Cash Decrease Credit

June 12 Bills J. Kronsnoble $300 for welding work done on account.

Account Increase/Decrease Debit/Credit

Accounts receivable Increase Debit

Revenue Increase Credit

Ref Debit Credit

June 1 Cash 50,000

Hank Norris, Capital 50,000

June 2 Equipment 900

June 3 Expense 800

June 4 Accounts receivable 2000

June 6 Expense 1500

June 12 Accounts Receivable 300

a) Indicate the effect on the accounting equation and

b) Indicate the debit-credit analysis

c) Pass the journal entry

Aug. 1 Opens an office as a financial advisor, investing $8,000 in cash.

Basic Accounting Equation Analysis

Debit Credit Analysis

Increase in Cash → Increase in Asset → Debit the Cash Account by 8,000.

Ref Debit Credit

Aug. 1 Cash 8000

T.J. Carline, Capital 8000

Aug. 4 Pays insurance in advance for 6 months, $1,800 cash.

Basic Accounting Equation Analysis

Date Assets = Liabilities + - + -