P2-1

1.
April 1 Cash.......................................................... 101 100,000
Office Equipment..................................... 163 24,000
R. Ricci, Capital ................................ 301 124,000
Owner invested cash and equipment.

2 Prepaid Rent ............................................ 131 7,200

Cash .................................................101 7,200
Prepaid twelve months’ rent.

3 Office Equipment..................................... 163 12,000

Office Supplies ........................................ 124 2,400
Accounts Payable ............................ 201 14,400
Purchased . & supplies on credit.

6 Cash.......................................................... 101 2,000

Services Revenue ............................ 403 2,000
Received cash for services.

9 Accounts Receivable .............................. 106 8,000

Services Revenue ............................ 403 8,000
Billed client for completed work.

13Accounts Payable.................................... 201 14,400

Cash .................................................. 101 14,400
Paid balance due on account.

19 Prepaid Insurance ................................... 128 6,000

Cash .................................................. 101 6,000
Paid premium for insurance.

22 Cash.......................................................... 101 6,400

Accounts Receivable....................... 106 6,400
Collected part of amount owed by client.
 25 Accounts Receivable .............................. 106 2,640
Services Revenue ............................ 403 2,640
Billed client for completed work.

28R. Ricci, Withdrawals ........................... 302 6,200

Cash .................................................. 101 6,200
Owner withdrew cash.

29 Office Supplies ........................................ 124 800

Accounts Payable ............................ 201 800
Purchased supplies on account.

30 Utilities Expense...................................... 690 700

Cash .................................................. 101 700
Paid monthly utility bill
2.

CASH
DATE DEBIT CREDIT BALANCE

April 1 100,000 100,000

2 7,200 92,800
6 2,000 94,800
13 14,400 80,400
19 6,000 74,400
22 6,400 80,800
28 6,200 74,600
30 700 73,900

ACCOUNTS RECEIVABLE

DATE DEBIT CREDIT BALANCE

April 9 8,000 8,000

22 6,400 1,600
25 2,640 4,240

OFFICE SUPPLIES

DATE DEBIT CREDIT BALANCE

 April 3 2,400 2,400
29 800 3,200

PREPAID INSURANCE

DATE DEBIT CREDIT BALANCE

April 19 6,000 6,000

PREPAID RENT

DATE DEBIT CREDIT BALANCE

April 2 7,200 7,200

OFFICE EQUIPMENT

DATE DEBIT CREDIT BALANCE

April 1 24,000 24,000
3 12,000 36,000

ACCOUNTS PAYABLE

DATE DEBIT CREDIT BALANCE

April 3 14,400 14,400
13 14,400 0
 29 800 800

R.RICCI, CAPITAL
DATE DEBIT CREDIT BALANCE
April 1 124,000 124,000

R.RICCI, WITHDRAWALS
DATE DEBIT CREDIT BALANCE
April 28 6,200 6,200

SERVICE REVENUE

DATE DEBIT CREDIT BALANCE

April 6 2,000 2,000
9 8,000 10,000
25 2,640 12,640

UTILITIES EXPENSE

DATE DEBIT CREDIT BALANCE

April 30 700 700
 VIVA CONSULTANTS SERVICES
TRIAL BALANCE
AS AT 30 APRIL
Debit Credit
Cash 73,900
Accounts Receivable 4,240
Office Supplies 3,200
Prepaid Insurance 6,000
Prepaid Rent 7,200
Office equipment 36,000
Accounts Payable 800
R.Ricci, Capital 124,000
R.Ricci, Withdrawals 6,200
Service Revenue 12,640
Utilities expense 700
137,440 137,440

Problem AP2-1
1.
a. Dr Cash 5,000
Building 50,000
Cr Capital 55,000

b. Dr Cash 30,000
Cr Note Payable 30,000
c. Dr Office Supplies 2,100
Cr Accounts Payable 2,100
d. Dr Office Furniture 18,000
Cr Cash 18,000

e. Dr Salary Expense 2,200

Cr Cash 2,200

f. Dr Accounts Receivable 5,100

Cr Service Revenue 5,100

g. Dr Accounts Payable 800

Cr Cash 800

h. Dr Advertising Expense 600

Cr Accounts Payable 600
i. Dr Cash 1,600
Cr Service Revenue 1,600

j. Dr Cash 1,200
Cr Accounts Receivable 1,200

k. Dr Rent Expense 700

Cr. Utilities Expense 400
Cr Cash 1,100

l. Dr Withdrawal 7,500
Cr Cash 7,500

3.

CAMELIA CONSULTING SERVICE

 TRIAL BALANCE
AS AT 30 JUNE 2006
Account Debit Credit

Cash $ 8,200
Accounts receivable 3,900
Office Supplies 2,100
Office furniture 18,000
Building 50,000
Accounts payable $ 1,900
Note payable 30,000
Capital 55,000
Withdrawal 7,500
Service revenue 6,700
Salary expense 2,200
Rent expense 700
Advertising expense 600
Utilities expense 400
Total $ 93,600 $ 93,600

PROBLEM AP2-2

Date Account Titles and Explanation Debit Credit

Oct 1 Cash 5,000
Equipment 20,000
Capital 25,000
2 Furniture 600
Cash 600
 4 Equipment 2,500
Notes Payable 2,500
5 Cash 1,200
Service Revenue 1,200
9 Office Supplies 1,100
Accounts Payable 1,100
11 Accounts Receivable 1,500
Service Revenue 1,500
16 No Journal Entry Required
17 Cash 1,500
Accounts Receivable 1,500
19 Accounts Payable 150
Office Supplies 150
26 Bank 1,500
Cash 1,500
(if cash and bank are treated as different
account)
OR NO RECORDING
(if cash and bank are treated as similar
account)
28 Salary Expense 250
Rent Expense 500
Bank 750
29 Drawings 400
Cash 400
30 Notes Payable 500
Cash 500
3. Trial balance

THE BEAUTY
TRIAL BALANCE
AS AT 31 OCTOBER 2006
Debit Credit
Cash ($5,000 - $600 + $1,200 + $1,500 –
$1,500 – $400 - $500) $ 4,700
Bank ($1,500 – $750) 750
Equipment ($20,000 + $2,500) 22,500
Furniture 600
Office supplies ($1,100 – $150) 950
Accounts receivable ($1,500 – $1,500) -
Accounts payable ($1,100 – $150) $ 950
Notes payable ($2,500 – $500) 2,000
Capital 25,000
Service revenue ($1,200 + $1,500) 2,700
Rent expense 500
Salary expense 250
Drawings 400
Total 30,650 30,650