Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 2, Problem 69.1C
To determine
Journal Entries:
Journal entries are medium of recording business transactions. A business enterprise must record all the business transaction to evaluate net income or loss and analyze the financial performance of a company during a specified accounting period.
Journalize transactions which occurred during the month of January.
Expert Solution & Answer
Answer to Problem 69.1C
| Date | Accounts and Explanation | Debit | Credit |
| Jan. | |||
| 1 | Cash | $16,000 | |
| Common Stock | $16,000 | ||
| 1 | Cash | 25,000 | |
| Notes Payable | 25,000 | ||
| 1 | Legal Expense | 1,200 | |
| Cash | 1,200 | ||
| 1 | Equipment | 7,000 | |
| Cash | 7,000 | ||
| 1 | Rent Expense | 800 | |
| Cash | 800 | ||
| 3 | Prepaid Insurance | 3,600 | |
| Cash | 3,600 | ||
| 3 | Supplies | 2,500 | |
| Accounts Payable | 2,500 | ||
| 5 | No | ||
| 8 | Prepaid Rent | 10,000 | |
| Cash | 10,000 | ||
| 12 | Advertising Expense | 4,500 | |
| Cash | 4,500 | ||
| 18 | Accounts Payable | 1,000 | |
| Cash | 1,000 | ||
| 25 | Cash | 400 | |
| Accounts Receivable | 600 | ||
| Sales Revenue | 1,000 | ||
| 25 | Artist Fee Expense | 800 | |
| Cash | 800 | ||
| 28 | Cash | 3,800 | |
| Unearned Sales Revenue | 3,800 | ||
| 30 | Cash | 200 | |
| Accounts Receivable | 200 | ||
| 30 | Salaries Expense | 2,400 | |
| Cash | 2,400 | ||
Explanation of Solution
| Date | Assets | Liabilities | Equity |
| Jan. | |||
| 1 | Cash (Increase) | Common Stock (Increase) | |
| 1 | Cash (Increase) | Notes Payable (Increase) | |
| 1 | Cash (Decrease) | Legal Expense (Decrease) | |
| 1 | Equipment (Increase) | ||
| Cash (Decrease) | |||
| 1 | Cash (Decrease) | Rent Expense (Decrease) | |
| 3 | Prepaid Insurance (Increase) | ||
| Cash (Decrease) | |||
| 3 | Supplies (Increase) | Accounts Payable (Increase) | |
| 8 | Prepaid Rent (Increase) | ||
| Cash (Decrease) | |||
| 12 | Cash (Decrease) | Advertising Expense (Decrease) | |
| 18 | Cash (Decrease) | Accounts Payable (Decrease) | |
| 25 | Cash (Increase) | Sales Revenue (Increase) | |
| Accounts Receivable (Increase) | |||
| 25 | Cash (Decrease) | Artist Fee Expense (Decrease) | |
| 28 | Cash (Increase) | Unearned Sales Revenue (Increase) | |
| 30 | Cash (Increase) | ||
| Accounts Receivable (Decrease) | |||
| 30 | Cash (Decrease) | Salaries Expense (Decrease) | |
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Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021. In 2022, the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended 31 December 2022 $ $ Revenue 11,600,000 Expenses Salaries & Wages 7,600,000 Employer NIS Contribution 1,400,000 Rent and Rates 2.400,000 Interest 500,000 Maintenance 120,000 Depreciation 550,000 Loss on Disposal of Vehicle 80,000 Telephone 235,000 Electricity 255,000 General Expenses 700,000 Donations 85,000 Provision for Bad Debts 80,000 Fines and Penalties 115,000 Drawings 105,000 14,225,000 Net Loss 2,625,000 Notes to the Income Statement 1. $55,000 of the drawings relate to Mrs. Shine and $50,000 to Mr. Rain 2. Gross Salary for Mrs. Shine was $250,000 per month, and $200,000 for Mr. Rain. Both partners worked in the business during the year. 3. The annual…
Mrs. Shine was registered in Jamaica as a sole trader in 2015. To grow her practice Mrs. Shine decided to enter into a partnership agreement with Mr. Rain, thus the status of the business was changed in 2021.
In 2022, the partnership income statement for Shine & Rain was as follows:
Income Statement for the year ended 31 December 2022
$
$
Revenue
11,600,000
Expenses
Salaries & Wages
7,600,000
Employer NIS Contribution
1,400,000
Rent and Rates
2.400,000
Interest
500,000
Maintenance
120,000
Depreciation
550,000
Loss on Disposal of Vehicle
80,000
Telephone
235,000
Electricity
255,000
General Expenses
700,000
Donations
85,000
Provision for Bad Debts
80,000
Fines and Penalties
115,000
Drawings Net Loss 2,625,000
105,000
14,225,000
Notes to the Income Statement
$55,000 of the drawings…
Chapter 2 Solutions
Cornerstones of Financial Accounting
Ch. 2 - What is the conceptual framework of accounting?Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the constraint on providing useful...Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Of all the events that occur each day, how would...Ch. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - In analyzing a transaction, can a transaction only...Ch. 2 - How do revenues and expenses affect the accounting...Ch. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - The words debit and credit are used in two ways in...Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 19DQCh. 2 - Prob. 20DQCh. 2 - Prob. 21DQCh. 2 - Prob. 22DQCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Which principle requires that expenses be recorded...Ch. 2 - Taylor Company recently purchased a piece of...Ch. 2 - Prob. 8MCQCh. 2 - The effects of paying salaries for the current...Ch. 2 - Which of the following statements is false? The...Ch. 2 - Which of the following statements are true? Debits...Ch. 2 - Debits will: increase assets. expenses, and...Ch. 2 - Which of the following statements are true? A...Ch. 2 - Posting: involves transferring the information in...Ch. 2 - A trial balance: lists only revenue and expense...Ch. 2 - CORNERSTONE 2.1 Cornerstone Exercise 2-16...Ch. 2 - Prob. 17CECh. 2 - CORNERSTONE 2.1 Four statements are given below....Ch. 2 - Prob. 19CECh. 2 - Cornerstone Exercise 2-20 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-21 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-22 Transaction Analysis The...Ch. 2 - Cornerstone Exercise 2-23 Debit and Credit...Ch. 2 - Cornerstone Exercise 2-24 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-25 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-26 Preparing a Trial...Ch. 2 - Prob. 27BECh. 2 - Brief Exercise 2-28 Assumptions and Principles...Ch. 2 - Brief Exercise 2-2? Events and Transactions...Ch. 2 - Brief Exercise 2-30 Transaction Analysis Galle...Ch. 2 - Brief Exercise 2-31 Debit and Credit Procedures...Ch. 2 - Brief Exercise 2-32 Journalize Transactions Galle...Ch. 2 - Brief Exercise 2-33 Posting Journal Entries Listed...Ch. 2 - Brief Exercise 2-34 Preparing a Trial Balance The...Ch. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Exercise 2-37 Events and Transactions Several...Ch. 2 - Exercise 2-38 Events and Transactions The...Ch. 2 - Exercise 2-39 Transaction Analysis OBJECTIVE e The...Ch. 2 - Exercise 2-40 Transaction Analysis Amanda Webb...Ch. 2 - Exercise 2-41 Transaction Analysis and Business...Ch. 2 - Exercise 2-42 Inferring Transactions from Balance...Ch. 2 - Exercise 2-43 Transaction Analysis Goal Systems, a...Ch. 2 - Exercise 2-44 Transaction Analysis OBJECTIVE 9...Ch. 2 - Prob. 45ECh. 2 - Exercise 2-46 Normal Balances and Financial...Ch. 2 - OBJECTIVE 9 Exercise 2-47 Debit and Credit Effects...Ch. 2 - Prob. 48ECh. 2 - Exercise 2-49 Journalizing Transactions Kauai...Ch. 2 - Exercise 2-50 Journalizing Transactions Remington...Ch. 2 - Exercise 2-51 Transaction Analysis and Journal...Ch. 2 - Exercise 2-52 Accounting Cycle Rosenthal...Ch. 2 - Exercise 2-53 Preparing a Trial Balance...Ch. 2 - Exercise 2-54 Effect of Errors on a Trial Balance...Ch. 2 - Problem 2-55A Events and Transactions The...Ch. 2 - Problem 2-56A Analyzing Transactions Luis Madero,...Ch. 2 - Problem 2-57A Inferring Transactions from...Ch. 2 - Prob. 58APSACh. 2 - Problem 2-59A Journalizing Transactions Monroe...Ch. 2 - Problem 2-60A Journalizing and Posting...Ch. 2 - Problem 2-61A The Accounting Cycle Karleens...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 55BPSBCh. 2 - Prob. 56BPSBCh. 2 - Prob. 57BPSBCh. 2 - Problem 2-58B Debit and Credit Procedures A list...Ch. 2 - Problem 2-593 Journalizing Transactions Monilast...Ch. 2 - Problem 2-603 Journalizing and Posting...Ch. 2 - Problem 2-6B The Accounting Cycle Sweetwater...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 63.1CCh. 2 - Prob. 63.2CCh. 2 - Prob. 63.3CCh. 2 - Prob. 64.1CCh. 2 - Prob. 64.2CCh. 2 - Case 2-64 Analysis of the Effects of Current Asset...Ch. 2 - Prob. 64.4CCh. 2 - Prob. 65.1CCh. 2 - Prob. 65.2CCh. 2 - Prob. 66.1CCh. 2 - Prob. 66.2CCh. 2 - Prob. 66.3CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Prob. 67.2CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Case 2-68 Accounting for Partially Completed...Ch. 2 - Prob. 68.2CCh. 2 - Prob. 69.1CCh. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...Ch. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...
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