Chapter 2

l. Paid
m. Paid
n. Paid
o. Paid

Analyzing Transactions

87

salary of assistant, $1,600.

cash for miscellaneous expenses, $325.
installment due on note payable, $250.
gas, oil, and repairs on automobile for April, $400.

Instructions
1. Record the above transactions directly in the following T accounts, without journalizing: Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles;
Equipment; Notes Payable; Accounts Payable; Travis Fortney, Capital; Professional
Fees; Rent Expense; Salary Expense; Blueprint Expense; Automobile Expense;
Miscellaneous Expense. To the left of each amount entered in the accounts, place
the appropriate letter to identify the transaction.
2. Determine account balances of the T accounts. Accounts containing a single entry
only (such as Prepaid Insurance) do not need a balance.
3. Prepare an unadjusted trial balance for Travis Fortney, Architect, as of April 30, 2010.

PR 2-2A
Journal entries and
trial balance

objs. 1, 2, 3, 4

4. c. $2,725

On October 1, 2010, Cody Doerr established Banyan Realty, which completed the following transactions during the month:
a. Cody Doerr transferred cash from a personal bank account to an account to be used
for the business, $17,500.
b. Purchased supplies on account, $1,000.
c. Earned sales commissions, receiving cash, $12,250.
d. Paid rent on office and equipment for the month, $3,800.
e. Paid creditor on account, $600.
f. Withdrew cash for personal use, $3,000.
g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.
h. Paid office salaries, $3,100.
i. Determined that the cost of supplies used was $725.
Instructions
1. Journalize entries for transactions (a) through (i), using the following account titles:
Cash; Supplies; Accounts Payable; Cody Doerr, Capital; Cody Doerr, Drawing;
Sales Commissions; Rent Expense; Office Salaries Expense; Automobile Expense;
Supplies Expense; Miscellaneous Expense. Journal entry explanations may be
omitted.
2. Prepare T accounts, using the account titles in (1). Post the journal entries to these
accounts, placing the appropriate letter to the left of each amount to identify the
transactions. Determine the account balances, after all posting is complete. Accounts
containing only a single entry do not need a balance.
3. Prepare an unadjusted trial balance as of October 31, 2010.
4. Determine the following:
a. Amount of total revenue recorded in the ledger.
b. Amount of total expenses recorded in the ledger.
c. Amount of net income for October.

PR 2-3A
Journal entries and
trial balance

On July 1, 2010, Jessie Halverson established an interior decorating business, Photogenic

Designs. During the month, Jessie Halverson completed the following transactions
related to the business:

objs. 1, 2, 3, 4

3. Total of Credit
column: $53,400

July 1. Jessie transferred cash from a personal bank account to an account to be

used for the business, $18,000.
4. Paid rent for period of July 4 to end of month, $1,750.
10. Purchased a truck for $15,000, paying $1,000 cash and giving a note payable
for the remainder.