Financial Accounting: An Integrated Statements Approach, 2nd Edition

The Zuni Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies;

Office Equipment; Accounts Payable; Capital Stock; Dividends; Fees Earned; Rent Expense;

Advertising Expense; Utilities Expense; Miscellaneous Expense.

Journalize the following selected transactions in a journal. Show the effects of each transac-

tion on the financial statements using the margin notation illustrated in this chapter.

Aug. 1 Paid rent for the month, $1,500.

2 Paid advertising expense, $700.

4 Paid cash for supplies, $1,050.

6 Purchased office equipment on account, $7,500.

8 Received cash from customers on account, $3,600.

12 Paid creditor on account, $1,150.

20 Paid dividends, $1,000.

25 Paid cash for repairs to office equipment, $500.

30 Paid telephone bill for the month, $195.

31 Fees earned and billed to customers for the month, $10,150.

31 Paid electricity bill for the month, $380.

On October 27, 2006, Lintel Co. purchased $1,320 of supplies on account.

a. Journalize the October 27, 2006, transaction.

b. Prepare a T account for Supplies. Enter a debit balance of $585 as of October 1, 2006.

c. Prepare a T account for Accounts Payable. Enter a credit balance of $6,150 as of October 1,

2006.

d. Post the October 27, 2006, transaction to the accounts and determine account balances.

The following selected transactions were completed during May of the current year:

1. Billed customers for fees earned, $12,190.


2. Purchased supplies on account, $1,250.


3. Received cash from customers on account, $9,150.


4. Paid creditors on account, $750.

a. Journalize the above transactions in a two-column journal, using the appropriate number

to identify the transactions.

b. Post the entries prepared in (a) to the following T accounts: Cash, Supplies, Accounts

Receivable, Accounts Payable, Fees Earned. To the left of each amount posted in the

accounts, place the appropriate number to identify the transactions.

The accounts in the ledger of Haleakala Park Co. as of March 31, 2006, are listed in alphabetical

order, as follows. All accounts have normal balances. The balance of the cash account has been

intentionally omitted.

Accounts Payable $ 18,710 Notes Payable $ 40,000

Accounts Receivable 37,500 Prepaid Insurance 3,000

Capital Stock 50,000 Rent Expense 60,000

Cash? Retained Earnings 36,640

Dividends 20,000 Supplies 2,100

Fees Earned 310,000 Supplies Expense 7,900

Insurance Expense 6,000 Unearned Rent 9,000

Land 85,000 Utilities Expense 41,500

Miscellaneous Expense 8,900 Wages Expense 175,000

Prepare a trial balance, listing the accounts in their proper order and inserting the missing figure

for cash.

190 Chapter 4 Accounting Information Systems

Exercise 4-17

Transactions

Goals3, 4

Exercise 4-18

Journalizing and posting

Goals3, 4

Exercise 4-19

Transactions and T accounts

Goals3, 4

Exercise 4-20

Trial balance

Goals3, 4