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Exercise 2-5

Presented below is information related to Lachapelle Real Estate Agency.

Oct. 1		Arthur Lachapelle begins business as a real estate agent with a cash investment of $17,973.
2		Hires an administrative assistant.
3		Purchases office furniture for $2,277, on account.
6		Sells a house and lot for J. Baxter; bills J. Baxter $4,314 for realty services performed.
27		Pays $1,318 on the balance related to the transaction of October 3.
30		Pays the administrative assistant $2,996 in salary for October.

Journalize the transactions. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit

Exercise 2-6

Federlin Industries had the following transactions.

1.		Borrowed $5,438 from the bank by signing a note.
2.		Paid $3,372 cash for a computer.
3.		Purchased $924 of supplies on account.

Indicate what accounts are increased and decreased by each transaction.

	Debit Analysis	Credit Analysis
1.

2.

3.

Journalize each transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.

2.

3.

Exercise 2-7

Kahl Enterprises had the following selected transactions.

1.		Jo Kahl invested $4,537 cash in the business.
2.		Paid office rent of $1,077.
3.		Performed consulting services and billed a client $5,898.
4.		Jo Kahl withdrew $851 cash for personal use.

Indicate the effect each transaction has on the accounting equation, using plus and minus signs.

	Assets	=	Liabilities + Owner’s Equity
1.		=
2.		=
3.		=
4.		=

Journalize each transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.

2.

3.

4.

Exercise 2-9

Selected transactions from the journal of Trisha Spoor, investment broker, are presented below.

Date	Account Titles and Explanation	Ref.	Debit	Credit
Aug.1	Cash		6,055
	Owner's Capital			6,055
	(Owner’s investment of cash in business)
10	Cash		2,906
	Service Revenue			2,906
	(Received cash for services performed)
12	Equipment		6,055
	Cash			3,633
	Notes Payable			2,422
	(Purchased equipment for cash and notes payable)
25	Accounts Receivable		2,059
	Service Revenue			2,059
	(Billed clients for services performed)
31	Cash		1,090
	Accounts Receivable			1,090
	(Receipt of cash on account)

Post the transactions to T-accounts. (Post entries in the order presented in the problem statement.)

Cash




Accounts Receivable


Equipment

Notes Payable

Owner’s Capital

Service Revenue

Prepare a trial balance at August 31, 2014.

TRISHA SPOOR, INVESTMENT BROKER Trial Balance August 31, 2014
	Debit	Credit
	$	$





Total	$	$

Exercise 2-10

The T-accounts below summarize the ledger of Zimmer Landscaping Company at the end of the first month of operations.

Cash
No. 101
4/1	10,906	4/15	2,482
4/12	874	4/25	1,318
4/29	250
4/30	1,108
Accounts Receivable
No. 112
4/7	2,690	4/29	250
Supplies
No. 126
4/4	3,359
Accounts Payable
No. 201
4/25	1,318	4/4	3,359
Unearned Service Revenue
No. 209
		4/30	1,108
Owner’s Capital
No. 301
		4/1	10,906
Service Revenue
No. 400
		4/7	2,690
		4/12	874
Salaries and Wages Expense
No. 726
4/15	2,482

Prepare the complete general journal from which the postings to Cash were made. (Record entries in the order presented in the T-Accounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit

Prepare a trial balance at April 30, 2014.

ZIMMER LANDSCAPING COMPANY Trial Balance April 30, 2014
	Debit	Credit
	$	$







Total	$	$