(9) Increase in Cash ________ _______ (10) Decrease in Land ________ _______ (a) (b) ANSWER: Cr. Cr. Dr. Dr. Cr. Dr. Cr. Cr. Cr. Cr. Cr. Dr. Cr. Dr. Dr. Dr. Dr. Dr. Cr. Dr. Moderate DIFFICULTY: Bloom’s: Applying ACCT.WARD.16.02-02 - 02-02 LEARNING OBJECTIVES: ACCT.ACBSP.APC.02 - GAAP ACCREDITING STANDARDS: - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Record the following selected transactions for April in a two-column journal, identifying each entry by letter: Received $18,000 from Long, owner. Purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder. Paid $2,300 for rent for April. Purchased $1,500 of supplies on account. Recorded $9,800 of fees earned on account. Received $7,500 in cash for fees earned. Paid $1,200 to creditors on account. Paid wages of $3,425. Received $7,900 from customers on account. Recorded owner's withdrawal of $1,875. (a) Cash 18,000 ANSWER: Katie Long, Capital 18,000 Equipment 27,000 Cash 10,000 Payable 17,000 Rent Expense 2,300 Cash 2,300 Supplies 1,500 Accounts Payable 1,500 Accounts Receivable 9,800 Fees Earned 9,800 Cash 7,500
(9) Increase in Cash ________ _______ (10) Decrease in Land ________ _______ ANSWER: (a) (b) Cr. Cr. Dr. Dr. Cr. Dr. Cr. Cr. Cr. Cr. Cr. Dr. Cr. Dr. Dr. Dr. Dr. Dr. Cr. Dr. DIFFICULTY: Moderate Bloom’s: Applying LEARNING OBJECTIVES: ACCT.WARD.16.02-02 - 02-02 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Record the following selected transactions for April in a two-column journal, identifying each entry by letter: Received $18,000 from Long, owner. Purchased equipment for $27,000, paying $10,000 in cash and giving a note payable for the remainder. Paid $2,300 for rent for April. Purchased $1,500 of supplies on account. Recorded $9,800 of fees earned on account. Received $7,500 in cash for fees earned. Paid $1,200 to creditors on account. Paid wages of $3,425. Received $7,900 from customers on account. Recorded owner's withdrawal of $1,875. ANSWER: (a) Cash 18,000 Katie Long, Capital 18,000 Equipment 27,000 Cash 10,000 Payable 17,000 Rent Expense 2,300 Cash 2,300 Supplies 1,500 Accounts Payable 1,500 Accounts Receivable 9,800 Fees Earned 9,800 Cash 7,500
Test-Bank-for-Accounting-26th-Edition-by-Warren.docx