a. General Journal Current Yr. Sept. 2 (1) Cash Capital Stock Issued capital stock for $1,170,000 1,170,000 1,170,000 The first entry is completed as an example for the student (2) 4 (3) 12 (4) 19 (5) 29 (6) 30 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Student to input value Student to input journal entry description Student to input general ledger account b . Cash Sep. 2 Sep. 30 Sep. 30 bal. Sep. 4 Sep. 29 Sep. 19 0 Sep. 30 bal. Office Supplies 0 Sep. 4 0 Sep. 30 bal. Building 0 Notes Payable Sep. 4 Sep. 4 Sep. 30 bal. Student to input value Land Sep. 12 Sep. 30 bal. Accounts Receivable Sep. 30 0 Sep. 30 bal. Accounts Payable Sep. 12 Sep. 30 bal. Capital Stock Sep. 2 0 Client Revenue Sep. 19 Sep. 30 bal. 0 Sep. 30 bal. 0 Salary Expense Sep. 29 0 Sep. 30 bal. 0 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. c. Student to input value Georgia Corporation Trial Balance September 30, Current Year Debit Cash……………………………………. Accounts receivable……………………… Office supplies………………………… Land……………………………………. Building…………………………………. Notes payable…………………………. Accounts payable………………………. Capital stock………………………….. Client revenue…………………………. Salary expense…………………………. Total……………………………………. $ Credit - $ - Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. PROBLEM 3.2A ENVIRONMENTAL SERVICES, INC. a. (1) (a) (b) (2) (a) (b) (c) (3) (a) (b) (4) (a) (b) (5) (a) (b) (6) (a) (b) (7) (a) (b) Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. PROBLEM 3.2A ENVIRONMENTAL SERVICES, INC. (continued) Student to input value Student to input journal entry description Student to input general ledger account b. General Journal Current Yr. (1) 1 Accounts Receivable Testing Service Revenue Billed customers for services rendered. 2,500 2,500 The first entry is completed as an example for the student (2) 3 (3) 5 (4) 17 (5) 22 (6) 29 (7) 30 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. PROBLEM 3.2A ENVIRONMENTAL SERVICES, INC. (concluded) c. d. Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. CASE 3.2 MEASURING INCOME a. Discussion of “fairness and reasonableness” of income measurement policies: (1) (2) (3) (4) (5) b. Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. NE ments based on the financial statements to the follow cial statements to respond ember 31? How can you tell? 131 b. Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. Organize your analysis in tabular form as shown for the February ! transaction. Transaction cet in terms of A Assets Liabilities + sh account during the year than credito Feb. 1 Owners' Equity - +$600,000 (Cash) L + E. $0 +$600,000 (Capital Stock) LO3-3, LO3-4, LO3-5, LO3-6, LO3-7, LO3-8 PROBLEM 3.2A Analyzing and Journalizing Transactions Environmental Services, Inc., performs various tests on wells and septic systems. A few of the company's business transactions occurring during August are described as follows. 1. On August 1, the company billed customers $2.500 on account for services rendered, Customers are required to make full payment within 30 days. (Environmental Services uses an account entitled Testing Service Revenue when billing customers.) 2. On August 3, the company purchased testing supplies costing $3,800, paying $800 cash and charging the remainder on the company's 30-day account at Penn Chemicals. The testing sup- plies are expected to last several months. 3. On August 5, the company returned to Penn Chemicals $100 of testing supplies that were not needed. The return of these supplies reduced by $100 the amount owed to Penn Chemicals. 4. On August 17, the company issued an additional 2,500 shares of capital stock at $8 per share, The cash raised will be used to purchase new testing equipment in September. 5. On August 22, the company received $600 cash from customers it had billed on August 1. 6. On August 29, the company paid its outstanding account payable to Penn Chemicals. 7. On August 30, a cash dividend totaling $6,800 was declared and paid to the company's stockholders. connes and Construction, a real estate deven vhile the company was being organa cash in the business in exchange for W $360,000, of which $120,000 2. A cash payment of $72,000 of the purchase price. Vorld for $14.400 cash. y Furnishings at a cost of $100 urchase, and an agreement was Iments due March 1 and April sign a promissory note. Instructions a. Prepare an analysis of each of these transactions. Transaction I serves as an example of the form of analysis to be used. 1. (a) The asset Accounts Receivable was increased. Increases in assets are recorded by debits. Debit Accounts Receivable $2,500. (b) Revenue has been earned. Revenue increases owners' equity. Increases in owners equity are recorded by credits. Credit Testing Service Revenue $2,500. b. Prepare journal entries, including explanations, for these transactions. c. How does the realization principle influence the manner in which the August 1 billing to cus- tomers is recorded in the accounting records? d. How does the matching principle influence the manner in which the August 3 purchase of test- ing supplies is recorded in the accounting records? Weida Surveying, Inc., provides land surveying services. During September, its transactions es owners' Equity Problem Set A - - ooo b. 131 Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. Organize your analysis in tabular form as shown for the February 1 transaction. NE NE Transaction Assets Liabilities + Owners' Equity Feb. 1 +$600,000 (Cash) statements of Home he following items. $0 +$600,000 (Capital Stock) LO3-3, LO3-4, LO3-5, LO3-6, LO3-7, LO3-8 PROBLEM 3.2A Analyzing and Journalizing Transactions an credits? How can Environmental Services, Inc., performs various tests on wells and septic systems. A few of the company's business transactions occurring during August are described as follows. 1. On August 1, the company billed customers $2,500 on account for services rendered. Customers are required to make full payment within 30 days. (Environmental Services uses an account entitled Testing Service Revenue when billing customers.) 2. On August 3, the company purchased testing supplies costing $3,800, paying $800 cash and charging the remainder on the company's 30-day account at Penn Chemicals. The testing sup- plies are expected to last several months. 3. On August 5, the company returned to Penn Chemicals $100 of testing supplies that were not needed. The return of these supplies reduced by $100 the amount owed to Penn Chemicals. 4. On August 17, the company issued an additional 2,500 shares of capital stock at $8 per share. The cash raised will be used to purchase new testing equipment in September. 5. On August 22, the company received $600 cash from customers it had billed on August 1. 6. On August 29, the company paid its outstanding account payable to Penn Chemicals. 7. On August 30, a cash dividend totaling $6,800 was declared and paid to the company's stockholders. connect Instructions 1 serves as an example of the 3-8). Tuleuger accounts (use the T account for e. Prepare a trial balance dated May 31, current year. Assume accounts with zero bodo Exercises not included in the trial balance. LO3-3, LO3-5, LO3-8, LO3-9 EXERCISE 3.11 Journalizing. Posting, and Preparing a Trial Balance Georgia Corporation incorporated on Septembee 2 consent year. The company engaged in sex Sept. 2 Sept. 4 Sept. 12 Issued capital stock in exchange for $1,170.000 cash. Purchased land and a building for $1.080,000. The value of the land was $240388 and the value of the building was $840,000. The company paid $120.006) cache issued a note payable for the balance. Purchased office supplies for $600 on account. The supplies will last for several months. Billed clients $216,000 on account. Recorded and paid salary expense of $72,000. Received $132,000 from clients billed on September 19. Sept. 19 Sept. 29 Sept. 30 LO3-3, LO3-6, LO3-5 EXERCISE 3.13 Analyzing Transac A partial list of the account titles used by the company includes the following. Cash Notes Payable Accounts Receivable Accounts Payable Office Supplies Capital Stock Land Client Revenue Building Salary Expense a. Prepare journal entries, including explanations, for these transactions. b. Post each entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3-8). €. Prepare a trial balance dated September 30, current year. Assume accounts with zero balans are not included in the trial balance, follos
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