Jawaban Kiesso

CHAPTER 2
The Recording Process
ASSIGNMENT CLASSIFICATION TABLE

Brief A B
Question Exercise Exercis Proble Proble
Study Objectives s s Do It! es ms ms
1 Explain what an
. account 1 1
is and how it helps in
the
recording process.
2 Define debits and 2, 3, 4, 5, 1, 2, 5 1 2, 4, 6, 1A, 2A, 1B, 2B,
. credits
and explain their use in 6, 7, 8, 9, 7, 14 3A, 5A 3B, 5B
recording business 14, 21
transactions.
3 Identify the basic steps
. in 10, 19 4 6, 7
the recording process.
4 Explain what a journal 11, 12, 13, 3, 6 2 3, 5, 6, 7 1A, 2A, 1B, 2B,
. is
and how it helps in the 14, 16 10, 11, 3A, 5A 3B, 5B
12
recording process.
5
. Explain what a ledger is 17 8
and how it helps in the
recording process.
6 2A, 3A, 2B, 3B,
. Explain what posting is 15 7, 8 3 9, 12 5A 5B
and how it helps in the
recording process.
7 Prepare a trial balance 18, 20 9, 10 4 9, 10, 11, 2A, 3A, 2B, 3B,
.
and explain its 13, 14,
purposes. 15 4A, 5A 4B, 5B
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS,
1/e, Solutions Manual (For Instructor Use Only) 2-1
ASSIGNMENT CHARACTERISTICS TABLE
Proble Difficul Time

m ty Allotted
Numbe
r Description Level (min.)
1A Journalize a series of transactions. Simple 20–30
2A Journalize transactions, post, and prepare a trial balance. Simple 30–40

Journalize and post transactions, and prepare a trial Moderat
3A balance. e 40–50
Moderat
4A Prepare a correct trial balance. e 30–40
Moderat
5A Journalize transactions, post, and prepare a trial balance. e 40–50
1B Journalize a series of transactions. Simple 20–30
2B Journalize transactions, post, and prepare a trial balance. Simple 30–40

Moderat
3B Journalize transactions, post, and prepare a trial balance. e 40–50
Moderat
4B Prepare a correct trial balance. e 30–40
Moderat
5B Journalize transactions, post, and prepare a trial balance. e 40–50
2-2 Copyright © 2011 John Wiley & Sons, Inc.

Weygandt, IFRS, 1/e, Solutions Manual (For Instructor Use
Only)
WEYGANDT IFRS 1E
CHAPTER 2
THE RECORDING PROCESS
Time
Number SO BT Difficulty (min.)
BE1 2 C Simple 6–8
BE3 4 AP Simple 4–6
BE4 3 C Moderate 4–6
BE10 7 AN Moderate 6–8
DI1 2 C Simple 3–5
DI2 4 AP Simple 3–5
EX1 1 K Simple 2–4
EX2 2 C Simple 10–15
EX3 4 AP Simple 8–10
EX5 4 AP Simple 6–8
EX6 2–4 AP Simple 6–8
EX7 2–4 AP Simple 8–10
EX8 5 K Simple 2–4
EX9 6, 7 AP Simple 10–12
EX10 4, 7 AP Moderate 10–12
EX13 7 AN Moderate 6–8
EX14 2, 7 AP Simple 8–10
Copyright © 2011 John Wiley & Sons, Inc. Weygandt,

IFRS, 1/e, Solutions Manual (For Instructor Use Only)
2-3
THE RECORDING PROCESS (Continued)
Number SO BT Difficulty Time (min.)
P1A 2, 4 AP Simple 20–30
P2A 2, 4, 6, 7 AP Simple 30–40
P3A 2, 4, 6, 7 AP Moderate 40–50
P4A 7 AN Moderate 30–40
P5A 2, 4, 6, 7 AP Moderate 40–50
P1B 2, 4 AP Simple 20–30
P2B 2, 4, 6, 7 AP Simple 30–40
P3B 2, 4, 6, 7 AP Moderate 40–50
P4B 7 AN Moderate 30–40
P5B 2, 4, 6, 7 AP Moderate 40–50
BYP1 2 C Simple 8–10
BYP2 2, 6 AN Simple 8–10
BYP3 — AP Simple 15–20
BYP4 6, 7 AP, S Moderate 20–30
BYP5 3, 6 S Simple 10–15
BYP6 7 AN, E Moderate 10–15

Weygandt, IFRS, 1/e, Solutions Manual (For Instructor
Use Only)
Correl
ation
Chart
betwe
en
Bloom’
s
Taxon
omy,
Study
Object
ives
and
End-
of-
Chapt
er
Exerci
ses
and
Proble
ms
St
1
. Explain
is and h
recordi
2 Define
. and
explain
recordi
busines
C
o
3
. Identify
the rec
2
-
5 4 Explain
. and B
L in the
how it helps
recording
O
O
process.
M
’
S
T
A
5 ExplainXwhat a ledger is
. and
O in the
how it helps
recording
N
process.
O
6 ExplainMwhat posting is
. and Y
how it helps in the
recording
T
process.
A
B
L
7 Prepare a trial balance
. and E
explain its purposes.
Broadening Your Perspective

ANSWERS TO QUESTIONS
1. A T account has the following parts: (a) the title, (b) the left or debit side, and (c) the right or credit side.
2. Disagree. The terms debit and credit mean left and right respectively.
3. Jeff is incorrect. The double-entry system merely records the dual effect of a transaction on the
accounting equation. A transaction is not recorded twice; it is recorded once, with a dual effect.
4. Maria is incorrect. A debit balance only means that debit amounts exceed credit amounts in an
account. Conversely, a credit balance only means that credit amounts are greater than debit
amounts in an account. Thus, a debit or credit balance is neither favorable nor unfavorable.
5. (a) Asset accounts are increased by debits and decreased by credits.

(2) Liability accounts are decreased by debits and increased by credits.
(3) Revenues, share capital, and retained earnings are increased by credits and decreased by
debits. Expenses and dividends are increased by debits and decreased by credits.
6. (a) Accounts Receivable—debit balance.

(2) Cash—debit balance.
(3) Dividends—debit balance.
(4) Accounts Payable—credit balance.
(5) Service Revenue—credit balance.
(6) Salaries Expense—debit balance.
(7) Share Capital—Ordinary—credit balance.
7. (a) Accounts Receivable—asset—debit balance.

(2) Accounts Payable—liability—credit balance
(3) Equipment—asset—debit balance.
(4) Dividends—equity—debit balance.
(5) Supplies—asset—debit balance.
8. (a) Debit Supplies and credit Accounts Payable.

(2) Debit Cash and credit Notes Payable.
(3) Debit Salaries Expense and credit Cash.
9. (1) Cash—both debit and credit entries.

(2) Accounts Receivable—both debit and credit entries.
(3) Dividends—debit entries only.
(4) Accounts Payable—both debit and credit entries.
(5) Salaries Expense—debit entries only.
(6) Service Revenue—credit entries only.
10. The basic steps in the recording process are:

1. Analyze each transaction for its effect on the accounts.
2. Enter the transaction information in a journal.
3. Transfer the journal information to the appropriate accounts in the ledger.

Only)
Questions Chapter 2 (Continued)
11. The advantages of using the journal in the recording process are:
(1) It discloses in one place the complete effects of a transaction.
(2) It provides a chronological record of all transactions.
(3) It helps to prevent or locate errors because the debit and credit amounts for each entry can
be easily compared.
12. (a) The debit should be entered first.

(2) The credit should be indented.
13. When three or more accounts are required in one journal entry, the entry is referred to as a
compound entry. An example of a compound entry is the purchase of equipment, part of which is
paid for with cash and the remainder is on account.
14. (a) No, debits and credits should not be recorded directly in the ledger.
(2) The advantages of using the journal are:
1. It discloses in one place the complete effects of a transaction.
2. It provides a chronological record of all transactions.
3. It helps to prevent or locate errors because the debit and credit amounts for each entry
can be easily compared.
15. The advantage of the last step in the posting process is to indicate that the item has been posted.
16. (a) Cash 9,000

Share Capital—Ordinary 9,000
(Issued shares for cash)
(b) Prepaid Insurance 800

Cash . 800
(Paid one-year insurance policy)
(c) Supplies 2,000

Accounts Payable 2,000
(Purchased supplies on account)
(d) Cash 7,500

Service Revenue 7,500
(Received cash for services rendered)
17. (a) The entire group of accounts maintained by a company, including all the asset, liability, and
equity accounts, is referred to collectively as the ledger.
(2) A chart of accounts is a list of accounts and the account numbers that identify their location in
the ledger. The chart of accounts is important, particularly for a company that has a large
number of accounts, because it helps organize the accounts and define the level of detail that
a company desires in its accounting system.

Questions Chapter 2 (Continued)
18. A trial balance is a list of accounts and their balances at a given time. The primary purpose of a
trial balance is to prove (check) that the debits equal the credits after posting. A trial balance also
facilitates the discovery of errors in journalizing and posting. In addition, it is useful in preparing
financial statements.
19. No, Jim is not correct. The proper sequence is as follows:

(2) Business transaction occurs.
(3) Information entered in the journal.
(a) Debits and credits posted to the ledger.
(e) Trial balance is prepared.
(4) Financial statements are prepared.
20. (a) The trial balance would balance.

(2) The trial balance would not balance.
21. The normal balances are Cash debit, Accounts Payable credit, and Interest Expense debit.

Only)
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 2-1
(a) (b) (c)

Norma
Debit Credit l
Balanc
Effect Effect e
1 Decrea Increas Cre
. Accounts Payable se e dit
2 Increa Decrea Debi
. Advertising Expense se se t
. Service Revenue se e dit
. Accounts Receivable se se t
. Share Capital—Ordinary se e dit
. Dividends se se t
BRIEF EXERCISE 2-2
Account Debited Account Credited

Share Capital—
June 1 Cash Ordinary
2 Equipment Accounts Payable
3 Rent Expense Cash
Accounts
12 Receivable Service Revenue
BRIEF EXERCISE 2-3
June 1 Cash 5,000

2 Equipment 900
Accounts Payable 900
3 Rent Expense 800

Cash 800
12 Accounts Receivable 300
Service Revenue 300

BRIEF EXERCISE 2-4
The basic steps in the recording process are:
1. Analyze each transaction. In this step, business documents are

examined to determine the effects of the transaction on the
accounts.
2. Enter each transaction in a journal. This step is called

journalizing and it results in making a chronological record of the
transactions.
3. Transfer journal information to ledger accounts. This step is

called posting. Posting makes it possible to accumulate the
effects of jour-nalized transactions on individual accounts.
debit
Cash
R$80
BRIEF EXERCISE 2-5 0.
Credits
(2) Debit-Credit increase
(1) Effect on Accounting Analysis revenues:
Equation
credit
Debits Service
Aug. 1 The asset Cash is increased; increase Revenue
the equity account Share assets: R$800.
Capital is increased. debit Cash
R$8,000. Debits
Credits increase increase
4 The asset Prepaid equity: credit Share expenses:
Insurance is increased; Capital — Ordinary debit Salaries
the asset Cash is R$8,000. Expense
decreased. R$1,000.
Debits increase Credits
assets: decrease
16 The asset Cash is debit Prepaid assets:
increased; the revenue Insurance R$1,800. credit Cash
Service Revenue is Credits decrease R$1,000.
increased. assets:
credit Cash
R$1,800.
27 The expense Salaries Debits
Expense is increased; the increase
asset Cash is decreased. assets:
Copyright © 2011 John Wiley &
Sons, Inc. Weygandt, IFRS, 1/e,
2-10 Solutions Manual (For Instructor Use
Only)
BRIEF EXERCISE 2-6
Aug. 1 Cash 8,000

4 Prepaid Insurance 1,800

Cash 1,800
16 Cash 800
Service Revenue 800
27 Salaries Expense 1,000

Cash 1,000
BRIEF EXERCISE 2-7
Service
Cash Revenue
5/1 5,00
2 2,400 5/5 0
5/1 3,00
5 3,000 5/15 0
Ending Bal. Ending Bal.
5,400 8,000
Accounts
Receivable
5/1 2,40
5/5 5,000 2 0
Ending Bal.
2,600
BRIEF EXERCISE 2-8
Cash
Dat Debi Credi
e Explanation Ref. t t Balance
May 2,40
12 J1 0 2,400
3,00
15 J1 0 5,400
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS, 1/e, Solutions Manual (For Instructor Use Only) 2-11
BRIEF EXERCISE 2-8 (Continued)
Accounts Receivable
Da Debi Balanc
te Explanation Ref. t Credit e
M 5,00
ay 5 J1 0 5,000
1
2 J1 2,400 2,600
Service Revenue
Da
te Explanation Ref. Debit Credit Balance
M
ay 5 J1 5,000 5,000
1
5 J1 3,000 8,000
BRIEF EXERCISE 2-9
CLELAND COMPANY
Trial Balance
June 30, 2011
De Cre
bit dit
Cash................................................................. 8,8
......................... $ 00
Accounts
Receivable ..................................................... 3,0
..... 00
Equipment ....................................................... 17,0
....................... 00
Accounts $
Payable .......................................................... 9,00
...... 0
Share Capital— 20,0
Ordinary.................................................... 00
Dividends......................................................... 1,2
....................... 00
Service
Revenue.......................................................... 8,00
......... 0
Salaries 6,0
Expense.......................................................... 00
........
Rent
Expense .......................................................... 1,0
.............. 00
$37,0 $37,0
00 00

Only)
BRIEF EXERCISE 2-10
KWUN COMPANY
Trial Balance
December 31, 2011
Deb Credi
it t
Cash ............................................................... £14,8
.......................... 00
Prepaid
Insurance .......................................................
........ 3,500
Accounts
Payable.......................................................... 3,00
...... £ 0
Unearned
Revenue......................................................... 2,20
..... 0
Ordinary ................................................... 00
Dividends.........................................................
....................... 4,500
Service
Revenue ......................................................... 25,6
......... 00
Salaries
Expense ......................................................... 18,60
........ 0
Rent
Expense.......................................................... 2,40
.............. 0
£43,8 £43,80
00 0
SOLUTIONS FOR DO IT! REVIEW EXERCISES

DO IT! 2-1
Josh would likely need the following accounts in which to record the
transactions necessary to ready his photography studio for opening
day:
Cash (debit balance) Notes Payable (credit balance)

Photography Supplies Accounts Payable
(debit balance) (credit balance)
Photography Equipment Share Capital—Ordinary (credit balance)
(debit balance)

DO IT! 2-2
Each transaction that is recorded is entered in the general journal.
The three activities would be recorded as follows:
1. Cash 8,000
2. Photography Supplies 1,100
Cash 400
3. No entry because no transaction has occurred.
DO IT! 2-3
Ca
sh
4/ 1,60 4/1 60
1 0 6 0
4/ 3,40 4/2 30
3 0 0 0
4/ 4,10
30 0
DO IT! 2-4
BOARDIN’ COMPANY
Trial
Balance
December 31, 2011
De
bit Credit
Cash.......................................................
R 6,00
............................. $ 0
Accounts 8,00
Receivable ............................................
........ 0
Supplies .................................................
5,00
........................... 0
Equipment ..............................................
80,0
.......................... 00
Notes R 20,0
Payable .................................................
................ $ 00
Accounts 11,0
Payable .................................................
......... 00
Salaries
Payable ................................................. 3,00
............ 0
Ordinary.............................................. 00
Dividends................................................
8,00
.......................... 0
Service 88,0
Revenue................................................
............. 00
Supplies 2,00
Expense ................................................
......... . 0
Salaries
Expense................................................ 38,0
........... . 00
R$147,
000 R$147,000
Only)
SOLUTIONS TO EXERCISES
EXERCISE 2-1
1. False. An account is an accounting record of a specific asset,

liability, or equity item.
2. False. An account shows increases and decreases in the item it

relates to.
3. False. Each asset, liability, and equity item has a separate

account.
4. False. An account has a left, or debit side, and a right, or credit

side.
5. True.

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EXERCISE 2-3
General Journal J1
Account Titles and Ref
Date Explanation . Debit Credit
Jan. Cash.............................................
2 ................ 10,000
Share Capital—
Ordinary.............. 10,000
Equipment ...................................
3 .............. 4,000
Cash.........................................
........... 4,000
Supplies ......................................
9 ............... 500
Accounts
Payable .......................... 500
Accounts
11 Receivable ............................. 1,800
Service
Revenue............................. 1,800
Advertising
16 Expense.............................. 200
Cash.........................................
........... 200
Cash.............................................
20 ................ 700
Accounts
Receivable .................... 700
Accounts
23 Payable ................................... 300
Cash.........................................
........... 300
Dividends.....................................
28 .............. 1,000
Cash.........................................
........... 1,000
EXERCISE 2-4
Oct. 1 Debits increase assets: debit Cash ¥150,000.

Credits increase equity: credit Share Capital—Ordinary
¥150,000.
2 No transaction.
3 Debits increase assets: debit Office Furniture ¥19,000.

Credits increase liabilities: credit Accounts Payable
¥19,000.

EXERCISE 2-4 (Continued)
Oct. 6 Debits increase assets: debit Accounts Receivable

¥32,000. Credits increase revenues: credit Service
Revenue ¥32,000.
27 Debits decrease liabilities: debit Accounts Payable

¥7,000. Credits decrease assets: credit Cash ¥7,000.
30 Debits increase expenses: debit Salaries Expense

¥25,000. Credits decrease assets: credit Cash
¥25,000.
EXERCISE 2-5
General Journal
Dat Account Titles and Ref
e Explanation . Debits Credit
Oct. Cash ............................................ 150,00
1 ................ 0
Share Capital—Ordinary............ 150,000
2 No entry.
Office
Furniture ....................................
3 ... 19,000
Accounts
Payable ........................ 19,000
Accounts
6 Receivable............................. 32,000
Service
Revenue........................... 32,000
Accounts
27 Payable................................... 7,000
Cash.........................................
......... 7,000
Salaries
30 Expense .................................... 25,000
Cash.........................................
......... 25,000

Weygandt, IFRS, 1/e, Solutions Manual (For
Instructor Use Only)
EXERCISE 2-6
(1) 1. Increase the asset Cash, increase the liability Notes

Payable.
2. Increase the asset Computer, decrease the asset Cash.
3. Increase the asset Supplies, increase the liability Accounts
Payable.
(b) Cash ........................................................

1. ..................... 50,000
Notes
Payable ..............................................
..... 50,000
Computer..................................................
2. .................. 25,000
Cash ...................................................
.................. 25,000
Supplies ...................................................
3. ................... 7,000
Accounts
Payable............................................ 7,000
EXERCISE 2-7
(1) Assets = Liabilities + Equity

1. + + (Issue shares)
2. – – (Expense)
3. + + (Revenue)
4. – – (Dividends)
(b)
1. Cash .................................................
............................ 4,000
Share Capital—
Ordinary ............................... 4,000
Rent
Expense...........................................
2. ................. 1,100
Cash ...........................................
.......................... 1,100
Accounts
Receivable......................................
3. ........ 5,200
Consulting ............................
Revenue ........... 5,200
Dividends...........................................
4. ......................... 700
Cash ...........................................
.......................... 700
EXERCISE 2-8
1. False. The general ledger contains all the asset, liability, and
equity accounts.
2. True.
3. False. The accounts in the general ledger are arranged in
financial statement order: first the statement of financial
position accounts followed by the income statement accounts.
4. True.
5. False. The general ledger is not a book of original entry;
transactions are first recorded in the general journal, then in
the general ledger.
EXERCISE 2-9
(a)
Cash Notes Payable

4,00
Aug. Aug. 1,00 Aug. 12 0
1 5,000 12 0
1
0 2,400
3 Share Capital—Ordinary
1 900 Aug. 1 5,000
Bal. 7,300
Service Revenue
Accounts Receivable Aug. 10 2,400
Aug. 25 1,600 Aug. 31 25 1, 600
900
Bal. 700 Bal. 4, 000
Office Equipment
Aug. 12 5,000
(b TERESA GONZALEZ, INVESTMENT
) BROKER
Trial Balance
August 31,
2011
Cash .......................................................
..............................
Accounts
Receivable............................................
..........
Office
Equipment .............................................
................
Notes
Payable ..................................................
.................
Share Capital—
Ordinary................................................
Service
Revenue ...............................................
..............
© 2011 John Wiley

& Sons, Inc.
Weygandt, IFRS,
1/e, Solutions
2-20 Copyright Manual (For
EXERCISE 2-10
(a)
General Journal
e Explanation . Debit Credit
Apr. Cash..............................................
1 ................ 15,000
Share Capital—
Ordinary................... 15,000
Cash..............................................
12 ................ 900
Service
Revenue.................................. 900
(Received cash for
services provided)
Salaries
15 Expense...................................... 600
Cash..........................................
............... 600
(Paid salaries to date)
Accounts
25 Payable .................................... 1,500
Cash..........................................
............... 1,500
(Paid creditors on account)
Cash..............................................
29 ................ 400
Accounts
Receivable ......................... 400
(Received cash in payment
of account)
Cash..............................................
30 ................ 1,000
Unearned
Revenue ............................. 1,000
(Received cash for future
services)
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS, 1/e, Solutions Manual (For Instructor Use Only) 2-21
EXERCISE 2-10 (Continued)
SIMON LANDSCAPING
(b) COMPANY
Trial Balance
April 30, 2011
Deb Cre
it dit
$15,2
Cash . .. .. ......... ............ .. .. .......... .. ......
.. ....... .. .. ............ ........... .. .
00
Accounts
Receivable.....................................................
... 2,800
Supplies ..........................................................
...................... 1,800
Accounts
Payable..........................................................
.... $ 300
Unearned
Revenue........................................................ 1,0
.... 00
Ordinary ................................................. 00
Service
Revenue ........................................................ 4,1
........ 00
Salaries
Expense ........................................................
....... 600
$20,4 $20,4
00 00
EXERCISE 2-11
(a) Oct. Cash....................................................
1 .................... 5,000
Ordinary .......................... 00
Cash....................................................
10 .................... 650
Service
Revenue......................................... 650
(Received cash for services
provided)
Cash....................................................
10 .................... 4,000
Notes
Payable.......................................... 4,0
.... 00
(Obtained loan from bank)
Cash....................................................
20 .................... 500
Accounts
Receivable ................................ 500
(Received cash in payment of
account)
Accounts
20 Receivable ........................................ 940
Service
Revenue......................................... 940
(Billed clients for services
provided)
EXERCISE 2-11
(Continued)
(b) HEEREY CO.

Trial Balance
October 31,
2011
De Cre
bit dit
Cash.....................................................
9,2
............................ $ 00
Accounts 1,2
Receivable ........................................
......... 40
Supplies...............................................
........................... 400
Furniture..............................................
2,0
........................... 00
Notes 4,0
Payable...............................................
................ $ 00
Accounts
Payable ..............................................
......... 500
Share Capital—
7,0
Ordinary........................................... 00
Dividends ............................................
........................... 300
Service 2,3
Revenue..............................................
............ 90
Store Wages
Expense.............................................
... 500
Rent
Expense .............................................
................. . 250
$13,89
$13,890 0
EXERCISE 2-12
(a)
General Journal J1
Sept. Cash........................................... 10
1 ................ 1 10,000
Share Capital— 31
Ordinary ............ 1 10,000
Equipment................................... 15
5 ............. 7 12,000
Cash........................................ 10
.......... 1 5,000
Accounts 20
Payable ........................ 1 7,000
Accounts 20
25 Payable ................................. 1 3,000
Cash........................................ 10
.......... 1 3,000
Dividends ................................... 33
30 .............. 2 500
Cash........................................ 10
.......... 1 500

EXERCISE 2-12
(Continued)
(b)
No.
Cash 101
Balan
Date Explanation Ref. Debit Credit ce
Sept. 1 J1 10,000 10,000
5 J1 5,000 5,000
25 J1 3,000 2,000
30 J1 500 1,500
Equipme No.
nt 157
Balan
Sept. 5 J1 12,000 12,000
No.
Balanc
Date Explanation Ref. Debit Credit e
Sept. 5 J1 7,000 7,000

25 J1 3,000 4,000
No.
Share Capital—Ordinary 311
Balanc
Sept. 1 J1 10,000 10,000
Dividend No.
s 332
Balanc
Sept. 30 J1 500 500

EXERCISE 2-13
(a) (b) (c)

Erro In Larger
r Balance Difference Column
1. No $400 Debit
2. Yes — —
3. Yes — —
4. No 300 Credit
5. Yes — —
6. No 18 Credit
EXERCISE 2-14
SANFORD DELIVERY SERVICE

Trial Balance
July 31, 2011
Deb Cred
Cash (£82,907 – Debit total without it it
Cash
£66,340)......................................................... £16,5
...................... 67
Accounts
Receivable ......................................................
.... 7,642
Prepaid
Insurance.........................................................
....... 1,968
Delivery
Equipment ....................................................... 49,36
...... 0
Notes
Payable ...........................................................
............ £18,450
Accounts
Payable ...........................................................
..... 8,396
Salaries
Payable ...........................................................
........ 815
Share Capital—
Ordinary.................................................... 40,000
Retained 4,636
Earnings .........................................................
......
Dividends..........................................................
...................... 700
Service
Revenue..........................................................
......... 10,610
Salaries
Expense...........................................................
....... 4,428
Repair
Expense...........................................................
.......... 961
Gas and Oil
Expense..........................................................
. 758
Insurance
Expense ..........................................................
.... 523
£82,9
07 £82,907
EXERCISE 2-15
Transactions 4, 5, and 7 are operating activities.

Transaction 3 is an investing activity.
Transactions 1, 2, and 6 are financing activities.
SOLUTIONS TO PROBLEMS
PROBLEM 2-1A
J1
Ref
Date Account Titles and Explanation . Debit Credit
Apr. Cash ..............................................
1 .................. 40,000
Share Capital—
Ordinary ................. 40,000
Land................................................
4 ................. 30,000
Cash...........................................
............ 30,000
(Purchased land for cash)
Advertising
8 Expense.................................. 1,800
Accounts
Payable ............................. 1,800
(Incurred advertising
expense on account)
Salaries
11 Expense ........................................ 1,500
Cash...........................................
............ 1,500
(Paid salaries)
12 No entry—Not a transaction.
Prepaid
Insurance......................................
13 . 1,500
Cash...........................................
............ 1,500
(Paid for one-year
insurance policy)
Dividends........................................
17 ............... 1,000
Cash...........................................
............ 1,000
(Declared and paid cash
dividends)
Cash ..............................................
20 .................. 5,700
Admission
Revenue ......................... 5,700
provided)
PROBLEM 2-1A (Continued)

Apr. Cash...............................................
25 ................. 2,500
Unearned Admission
Revenue......... 2,500
services)
Cash...............................................
30 ................. 8,900
Admission
Revenue .......................... 8,900
provided)
Accounts
30 Payable ...................................... 900
Cash ..........................................
............. 900
(Paid creditor on account)

PROBLEM 2-2A
(a)
J1
Date Account Titles and Explanation Ref. Debit Credit
May Cash ..............................................
1 .................. 101 25,000
Ordinary ................. 311 0
2 No entry—not a transaction.
Supplies .........................................
3 ................ 126 2,500
Accounts
Payable ............................. 201 2,500
(Purchased supplies on
account)
Rent
Expense ........................................
7 ....... 729 900
Cash...........................................
............ 101 900
(Paid office rent)
Accounts
11 Receivable................................. 112 2,100
Service
Revenue................................ 400 2,100
(Billed client for services
provided)
Cash ..............................................
12 .................. 101 3,500
Unearned
Revenue............................ 209 3,500
services)
Cash ..............................................
17 .................. 101 1,200
Service
Revenue................................ 400 1,200
provided)
Salaries
31 Expense ........................................ 726 2,000
Cash...........................................
............ 101 2,000
(Paid salaries)
Account Titles and Re Cred

Date Explanation f. Debit it
May Accounts Payable ( €2,500 X 20

31 40%)............ 1 1,000
Cash ...................................... 10 1,0
................ 1 00
(Paid creditor on
account)
(b)
No.
Cash 101
De Credi Balan
Date Explanation Ref. bit t ce
May 25,00
1 J1 0 25,000
7 J1 900 24,100
12 J1 3,500 27,600
17 J1 1,200 28,800
2,00
31 J1 0 26,800
1,00
31 J1 0 25,800
No.
Accounts Receivable 112
De Credi Balan
May
11 J1 2,100 2,100
Suppli No.
es 126
De Credi Balan
May 3 J1 2,500 2,500

No.
De Credi Balan
2,50
May 3 J1 0
31 J1 1,000 1,500
No.
Unearned Revenue 209
De Credi Balan
May 3,50
12 J1 0 3,500

2-29
PROBLEM 2-2A
(Continued)
No.
Da Balan
te Explanation Ref. Debit Credit ce
Ma
y 1 J1 25,000 25,000
No.
Service Revenue 400
Da Balan
May1
1 J1 2,100 2,100
17 J1 1,200 3,300
No.
Salaries Expense 726
Da Balan
2,00
May 31 J1 0 2,000
No.
Rent Expense 729
Da Balan
Ma
y 7 J1 900 900
(c) JANE KENT ACCOUNTANT

Trial
Balance
May 31,
2011
Deb Credi
it t
Cash ................................................. €25,8
.......................... 00
Accounts
Receivable......................................
...... 2,100
Supplies ............................................
........................ 2,500
Accounts 1,5
Payable............................................
...... € 00
Unearned
Revenue......................................... 3,5
....... 00
Ordinary ..................................... 00
Service 3,3
Revenue ..........................................
.......... 00
Salaries
Expense ..........................................
......... 2,000
Rent
Expense.........................................
................ .900
€33,3 33,3
00 € 00

PROBLEM 2-
3A
,0
00
4,0
(a 00 Sh
) (6) ar
& 13,000 e
(c Ca
) pit
CashPrepaid al
Balanc Rent —
e Ba Or
lan di
ce na
3, ry
(4) 00 Bal an ce
0
30 ,00 0
3,000 30,
(7)
00
0
Shop
Equip
ment Retai
Ba ned
lan Earni
Acco
ce ngs
unts
21
Rec
,0
Bal an ce
11 ,00 0
eiva
00
ble 21,00011,
B 00
al 0
an Acco
ce unts
15 Dividend
Paya s
,0 ble
00 3,0
00 Bala nce
19 ,00 0
3,000
(4)
14,0 00
(2)
(7)
4, 000
9,
00 15,
0 00 R
10,000 ep
0 ai
8, r
00 S
Parts
0
Invento er
ry vi
B ce
al s
an R
ce ev
13 en
ue air
Par
Mi
(7)
ts
15,0 00
sc Exp
15 ell
,0 ens
an e
00 eo 4,0
us 00
Ex
Advpe 4,000
ertisns
ing e
Exp
2,0 Wage
ense
00 Expen
(1) 1, 2,000 se
00 3,0
0 00
1,000 3,000
Rep
1 &
J SWeygandt,
Co oIFRS, 1/e,
o h nSolutions
py n sManual
ri ,
g W (For
ht i IInstructor
©l nUse Only)
2 e c
0 y . 2-
1 31
(b)
Account Titles and

Trans. Explanation Debit Credit
Advertising
1. Expense..................................... 1,000
Cash..............................................
........... 1,000
Parts
Inventory..........................................
2. ...... 4,000
Accounts
Payable ............................... 4,000
Miscellaneous
3. Expense ............................... 2,000
Cash..............................................
........... 2,000
Cash..................................................
4. .................. 14,000
Accounts
Receivable ......................... 14,000
Accounts
5. Payable .......................................... 15,000
Cash..............................................
........... 15,000
Repair Parts
6. Expense ................................... 4,000
Parts
Inventory..................................... 4,000
Cash..................................................
7. .................. 6,000
Accounts
Receivable .................................... 9,000
Repair Services
Revenue.................. 15,000
Wage
Expense ..........................................
8. ...... 3,000
Cash..............................................
........... 3,000
Dividends..........................................
9. ................ 3,000
Cash..............................................
........... 3,000
PROBLEM 2-3A
(Continued)
(
d BYTE REPAIR SERVICE,
) INC.
Trial Balance
January 31,
2011
Deb Credi
it t
Cash ....................................................
4,0
............................ $ 00
Accounts 10,0
Receivable.........................................
........ 00
Parts 13,0
Inventory ............................................
................ 00
Prepaid 3,0
Rent...................................................
.............. 00
Shop 21,0
Equipment .........................................
................ 00
Accounts 8,00
Payable..............................................
......... $ 0
Share Capital—
30,0
Ordinary........................................... 00
Retained 11,0
Earnings ...........................................
........... 00
3,0
Dividends.............................................
.......................... 00
Repair Services
15,0
Revenue......................................... 00
Advertising 1,0
Expense ............................................
..... 00
Miscellaneous
2,0
Expense............................................ 00
Repair Parts 4,0
Expense............................................
.... 00
Wage 3,0
Expense ..............................................
............... 00
$64,00
$64,000 0
2-33
PROBLEM 2-4A
STERLING COMPANY
Trial Balance
May 31, 2011
Cred
Debit it
Cash (£5,850 + £520 – 5,9
£405) ....................................... £ 65
Accounts Receivable (£2,570 – 2,3
£210)...................... 60
Prepaid Insurance (£700 +
£100)............................... 800
Supplies (£0 +
£520) ...................................................... 520
Equipment (£8,000 – 7,4
£520).......................................... 80
Accounts Payable (£4,500 – £100 +
£520 –
£210)........................................................ 4,7
......... £ 10
Property Taxes
Payable ............................................... 560
Share Capital—Ordinary (£11,700 + 12,7
£1,000).......... 00
Dividends (£0 + 1,0
£1,000) ................................................ 00
Service
Revenue...................................................... 6,9
....... 60
Salaries Expense (£4,200 + 4,4
£200) ............................. 00
Advertising Expense (£1,100 + 1,5
£405) ...................... 05
Property Tax Expense (£800 +
£100) ....................... 900
£24,9
30 £24,930
PROBLEM 2-5A
(a) &
(c)
No.
Cash 101
Balan
6,00
Apr. 1 Balance 0
5,20
2 J1 800 0
8,00
9 J1 2,800 0
5,00
10 J1 3,000 0
4,50
12 J1 500 0
9,70
25 J1 5,200 0
7,70
29 J1 2,000 0
7,78
30 J1 85 5
6,88
30 J1 900 5
No.
Balan
Apr. 30 J1 85 85
No.
Prepaid Rentals 136
Balan
Apr. 30 J1 900 900
No.
Land 140
Balan
Apr. 1 Balance 10,000
Buildin No.
gs 145
Balan
Apr. 1 Balance 8,000

2-35
PROBLEM 2-5A
(Continued)
Equipm No.
ent 157
Da Balan
Ap
r. 1 Balance 6,000
No.
Da Balan
Ap
r. 1 Balance 2,000
10 J1 1,000 1,000
20 J1 1,000 2,000
No.
Mortgage Payable 275
Da Balan
Ap
r. 1 Balance 8,000
10 J1 2,000 6,000
No.
Da Balan
Ap
r. 1 Balance 20,000
No.
Admission Revenue 405
Da Balan
Ap 9 J1 2,800 2,800
r.
25 J1 5,200 8,000
No.
Concession Revenue 406
Da Balan
Apr. 30 J1 170 170

No.
Advertising Expense 610
Da Re Credi Balan
te Explanation f. Debit t ce
Apr.
12 J1 500 500
No.
Film Rental Expense 632
Da Re Credi Balan
Ap
r. 2 J1 800 800
2
0 J1 1,000 1,800
No.
Da Re Credi Balan
Apr.
29 J1 2,000 2,000
(b
) J
1
Da Account Titles and
te Explanation Ref. Debit Credit
Ap Film Rental
r. 2 Expense ............................... 632 800
Cash .................................
.................. 101 800
(Paid film
rental)
Cash........................................
9 ...................... 101 2,800
Admission 405 2,800
Revenue......................
provided)
Mortgage
1 Payable ................................
0 .... 275 2,000
Accounts
Payable .................................
... 201 1,000
Cash .................................
.................. 101 3,000
(Made payments on
mortgage and
accounts
payable)

Dat
e Account Titles and Explanation Ref. Debit Credit
Apr.
Advertising
12 Expense................................. 610 500
Cash ..........................................
........... 101 500
(Paid advertising
expenses)
Film Rental
20 Expense ................................. 632 1,000
Accounts
Payable ........................... 201 1,000
(Rented film on account)
Cash..............................................
25 .................. 101 5,200
Admission
Revenue........................ 405 5,200
(Received cash for
services
provided)
Salaries
29 Expense........................................ 726 2,000
Cash ..........................................
........... 101 2,000
(Paid salaries expense)
Cash..............................................
30 .................. 101 85
Accounts
Receivable ................................ 112 85
Concession
Revenue ..................... 406 170
(17% X $1,000)
(Received cash and
balance on account for
concession revenue)
30 Prepaid
Rentals .......................................... 136 900
Cash ..................................................... 101 900
(Paid cash for future film
rentals)

PROBLEM 2-5A
(Continued)
LAKE
(d) THEATER
Trial Balance
April 30,
2011
De Cred
bit it
....................................
.................................... 6,8
........Cash $ 85
Accounts
Receivable.........................................
........ 85
Prepaid
Rentals ..............................................
............. 900
Land.....................................................
10,0
............................ 00
8,0
Buildings..............................................
.......................... 00
6,0
Equipment ...........................................
.......................... 00
Accounts 2,0
Payable..............................................
......... $ 00
Mortgage 6,0
Payable..............................................
......... 00
Share Capital—
20,0
Ordinary........................................... 00
Admission 8,0
Revenue.............................................
...... 00
Concession
Revenue.............................................
.... 170
Advertising
Expense ............................................
..... 500
Film Rental 1,8
Expense.............................................
..... 00
Salaries
Expense ............................................ 2,0
........... . 00
$36,170 $36,170
PROBLEM 2-1B
J1
Account Titles and
Date Explanation Ref. Debit Credit
Mar. Cash ................................................
1 .................. 20,000
Share Capital—
Ordinary................... 20,000
Land ................................................
3 .................. 12,000
Buildings .........................................
................ 2,000
Equipment........................................
............... 1,000
Cash ...........................................
............. 15,000
(Purchased Heeren’s Golf
Land)
Advertising
5 Expense ................................... 700
Cash ...........................................
............. 700
(Paid for advertising)
Prepaid
Insurance .......................................
6 . 600
Cash ...........................................
............. 600
(Paid for one-year insurance
policy)
Equipment........................................
10 ............... 1,050
Accounts
Payable............................... 1,050
(Purchased equipment on
account)
Cash ................................................
18 .................. 340
Golf
Revenue.......................................
. 340
provided)
Cash ................................................
19 .................. 1,000
Unearned
Revenue ............................. 1,000
(Received cash for coupon
books sold)

PROBLEM 2-1B (Continued)

Mar. Dividends.....................................
25 ............... 800
Cash .........................................
........... 800
(Declared and paid cash
dividend)
Salaries
30 Expense...................................... 250
Cash .........................................
........... 250
(Paid salaries)
Accounts
30 Payable.................................... 1,050
Cash .........................................
........... 1,050
(Paid creditor on account)
Cash .............................................
31 ................ 200
Golf
Revenue.................................... 200
(Received cash for
services
provided)

PROBLEM 2-2B
(a)
J1
Apr. Cash ................................................ 10
1 .................. 1 40,000
Share Capital— 31
Ordinary................... 1 40,000
No entry—not a
1 transaction.
Rent
Expense.......................................... 72
2 ....... 9 1,000
Cash ........................................... 10
............. 1 1,000
(Paid monthly office rent)
Supplies .......................................... 12
3 ................. 6 4,000
Accounts 20
Payable............................... 1 4,000
(Purchased supplies on
account from Smile
Company)
Accounts 11
10 Receivable................................... 2 5,100
Service 40
Revenue ................................. 0 5,100
(Billed clients for services
provided)
Cash ................................................ 10
11 .................. 1 1,000
Unearned 20
Revenue ............................. 9 1,000
service)
Cash ................................................ 10
20 .................. 1 2,100
Service 40
Revenue ................................. 0 2,100
provided)
Salaries 72
30 Expense ......................................... 6 2,400
.
Cash ........................................... 10
............. 1 2,400
(Paid monthly salary)
R
Da Account Titles and ef Cred
te Explanation . Debits it
Acco
unts
Apr. Paya
30 ble .... .. .. ........ .. .. ....... .. .......
201 1,600
C 101 1,600
a
s
h
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
(Paid Smile Company
on
a
c
c
o
u
n
t
)
(b)
Cash No. 101

Expl
anati Cre
Date on Ref. Debit dit Balance
40,00 40,00
Apr. 1 J1 0 0
1,0 39,00
2 J1 00 0
40,00
11 J1 1,000 0
42,10
20 J1 2,100 0
2,4 39,70
30 J1 00 0
1,6 38,10
30 J1 00 0
Acco
unts
Recei
vable No. 112
Expl
anati Cre
Apr.
10 J1 5,100 5,100
Suppl
ies No. 126
Expl
anati Cre
Apr. 3 J1 4,000 4,000
Acco
unts
Paya
ble No. 201
Expl
anati Cre
4,0
Apr. 3 J1 00 4,000
30 J1 1,600 2,400
Unear
ned
Reve
nue No. 209
Expl
anati Cre
Apr. 1,0
11 J1 00 1,000

Share Capital— No.
Ordinary 311
D
at Credi Balan
e Explanation Ref. Debit t ce
A
pr 40,0
. 1 J1 00 40,000
No.
Service Revenue 400
D
at Credi Balan
5,10
Apr. 10 J1 0 5,100
2 2,10
0 J1 0 7,200
No.
D
at Credi Balan
Apr. 30 J1 2,400 2,400
No.
Rent Expense 729
D
at Credi Balanc
e Explanation Ref. Debit t e
A
pr
. 2 J1 1,000 1,000
(c MARIA JUAREZ,
) DENTIST
Trial Balance
April 30, 2011
Deb Cred
it it
.............................
.............................
.......................Cas $38,1
h 00
Accounts 5,10
Receivable ........................................
......... 0
4,00
Supplies...............................................
........................... 0
Accounts
Payable .............................................
.......... $ 2,400
Unearned
Revenue ............................................
......... 1,000
Share Capital—
Ordinary........................................... 40,000
Service
Revenue.............................................
............. 7,200
Salaries 2,40
Expense.............................................
............ 0
Rent 1,00
Expense ............................................
.................. . 0
$50,6
00 $50,600
PROBLEM 2-3B
(a)
Account Titles and

Trans. Explanation Debit Credit
Cash ........................................... 50,00
1. ................ 0
Share Capital—Ordinary........... 50,000
2. No entry—Not a transaction.
3. Prepaid Rent 24,000

Cash 24,000
4. Furniture & Equipment 30,000

Cash 10,000
5. Prepaid Insurance 1,800

Cash 1,800
6. Office Supplies 500

Cash 500
7. Office Supplies 1,500

8. Cash 8,000
Accounts Receivable . 12,000
Service Revenue 20,000
9. Accounts Payable 400

Cash 400
10.Cash 3,000
Accounts Receivable 3,000
11.Utility Expense 200

Trans Account Titles and Cre

. Explanation Debit dit
Salaries
12. Expense .................................. 5,600
5,60
Cash ...................... ......
............. ........ 0
(b)
Cash Furniture & Equipment
(
50,00 4
(1) 0 24,0 ) 30,000
(3) 00 30,000
10,0
(4) 00
1,80
(5) 0
Accounts
(6) 500 Payable
20,0
(8) 8,000 (4) 00
1,50
(9) 400 (7) 0
(10) 3,000 (9) 400
5,60
(12) 0 (11) 200
18,70 21,3
0 00
(3) 24,0
00
Prepai 24,0
Accounts Receivable d
(8) 12,000 00
Insura
3,00 nce
(10) 0 (5) 1,8
9,000 00
1,8
00
Office Supplies
(
6 Pre
) 500 paid
(7) 1,500 Ren
2,000 t
20,000
Share Capital—Ordinary Utilit
(1) 50,0 00
y
Salari Expe
50,000 es nse
Expen (11) 2
se 0
(12) 5,6 0
Service Revenue 00 2
(8) 20,0 00
5,6 0
00 0
2-46 Copyright © 2011 John Wiley &

Sons, Inc. Weygandt, IFRS, 1/e,
Solutions Manual (For Instructor Use Only)
(c SLOWHAND
) SERVICES
Trial Balance
May 31, 2011
Deb Credi
it t
.............................................................. £18,7
..............Cash 00
Accounts
Receivable............................................. 9,000
Office
Supplies .................................................
....... 2,000
Prepaid
Insurance ..............................................
.... 1,800
Prepaid
Rent....................................................... 24,00
...... 0
Furniture & 30,00
Equipment.......................................... 0
Accounts
Payable.................................................
.. £21,300
Share Capital—
Ordinary....................................... 50,000
Service
Revenue ................................................
..... 20,000
Salaries
Expense ................................................
.... 5,600
Utility
Expense.................................................
........ 200
£91,3
00 £91,300

PROBLEM 2-4B
SYED MOIZ CO.

Trial Balance
June 30, 2011
De Cre
bit dit
...........................................................Cash( 3,7
$3,340+$360) $ 00
Accounts Receivable ($2,731 – 2,3
$360)............................ 71
Supplies ($1,200 –
$620) .................................................... 580
Equipment ($2,600 + 3,2
$620)................................................ 20
Accounts Payable ($3,666 – $306 – 3,0
$360).................... $ 00
Unearned
Revenue ......................................................... 1,1
..... 00
Ordinary.................................................... 00
Dividends ($800 + 1,4
$600)..................................................... 00
Service Revenue ($2,480 + 3,2
$801) .................................... 81
Salaries Expense ($3,200 + $700 – 3,3
$600) ..................... 00
Office
Expense...........................................................
........... 810
$15,3
81 $15,381
PROBLEM 2-5B
(a) &
(c)
No.
Cash 101
Balan
Mar. 1 Balance 9,000

2 J1 1,500 7,500
9 J1 4,000 11,500
10 J1 4,100 7,400
12 J1 450 6,950
20 J1 5,000 11,950
20 J1 2,000 9,950
31 J1 2,500 7,450
31 J1 450 7,900
31 J1 9,000 16,900
No.
Balan
Mar.
31 J1 450 450
No.
Land 140
Balan
Buildin No.
gs 145
Balan

No.
Equipment 157
Balan

2-49
PROBLEM 2-5B
(Continued)
No.
Da Balan
Ma
r. 1 Balance 7,000
2 J1 2,000 9,000
10 J1 4,100 4,900
No.
Da Balanc
te Explanation Ref. Debit Credit e
Ma
r. 1 Balance 46,000
No.
Admission Revenue 405
Da Balanc
Ma
r. 9 J1 4,000 4,000
20 J1 5,000 9,000
31 J1 9,000 18,000
No.
Concession Revenue 406
Da Balanc
Mar.3
1 J1 900 900
No.
Advertising Expense 610
Da Balanc
Mar.1
2 J1 450 450
No.
Film Rental Expense 632
Da Balan
Ma 3,50
r. 2 J1 0 3,500
2,00
20 J1 0 5,500

No.
Re Credi Balan
Date Explanation f. Debit t ce
Mar.
31 J1 2,500 2,500
(b) J
1
R
Date Account Titles and Explanation ef. Debit Credit
Mar. Film Rental 63
2 Expense.................................. 2 3,500
Accounts 20
Payable ............................ 1 2,000
Cash................................... 10
................... 1 1,500
(Rented films for cash
and
on account)
3 No entry.
Cash ......................................... 10
9 ....................... 1 4,000
Admission 40
Revenue ........................ 5 4,000
(Received cash for
services
provided)
Accounts Payable ($2,000 + 20
10 $2,100)......... 1 4,100
Cash................................... 10
................... 1 4,100
(Paid creditors on
account)
11 No entry.
Advertising 61
12 Expense.................................. 0 450
Cash................................... 10
................... 1 450
(Paid advertising
expense)
Cash ......................................... 10
20 ....................... 1 5,000
Admission 40
Revenue ........................ 5 5,000
(Received cash for
services
provided)
Film Rental 63
20 Expense.................................. 2 2,000
Cash................................... 10
................... 1 2,000
(Paid film rental)
Dat Ref
e Account Titles and Explanation . Debit Credit
Mar. Salaries
31 Expense......................................... 726 2,500
Cash ..........................................
............ 101 2,500
(Paid salaries expense)
Cash...............................................
31 .................. 101 450
Accounts
Receivable ................................. 112 450
Concession
Revenue....................... 406 900
(15% X $6,000)
(Received cash and balance
on account for concession
revenue)
Cash...............................................
31 .................. 101 9,000
Admission
Revenue......................... 405 9,000
provided)
JOSIE
(d) THEATER
Trial Balance
March 31,
2011
De
bit Credit
..........................................................
$16,90
...................Cash 0
Accounts
Receivable.......................................
...... .450
Land...................................................
.......................... .24,000
Buildings............................................
........................ .10,000
Equipment .........................................
........................ .10,000
Accounts $ 4,90
Payable............................................
........ 0
Share Capital—
46,0
Ordinary........................................ 00
Admission 18,0
Revenue..........................................
...... 00
Concession
Revenue..........................................
.... 900
Advertising
Expense...........................................
... .450
Film Rental
Expense ..........................................
.... .5,500
Salaries
Expense ..........................................
.......... .2,500
$69,800 $69,800
BYP 2-1 FINANCIAL REPORTING PROBLEM
(a) (1) (1) (2)

Norma
Increase Decrease l
Balanc
Account Side Side e
Cred
Trade Payables Credit Debit it
Debi
Trade Receivables Debit Credit t
Property, Plant, and Debi
Equipment Debit Credit t
Cred
Taxes Payable Credit Debit it
Debi
Interest Expense Debit Credit t
Debi
Inventory Debit Credit t
(2) 1. Cash is increased.

2. Cash is decreased.
3. Cash is decreased or Trade Payables are increased.
(3) 1. Cash is decreased.

2. Cash is decreased or Notes or Mortgage Payable is
increased.

BYP 2-2 COMPARATIVE ANALYSIS PROBLEM
(a
) Cadbury Nestl é
deb debi
1. Inventory: it 1. Trade Receivables: t
Property, Plant, deb Cash and Cash debi
2. and it 2. Equivalents: t
Equipment:
cre Cost of Goods Sold (expense):
3. Trade Payables: dit 3. debit
deb cre
4. Interest Expense: it 4. Sales (revenue): dit
(2) The following other accounts are ordinarily involved:
1. Increase in Trade Receivable: Sales is increased (credited).

2. Decrease in Wages Payable: Cash is decreased (credited).
3. Increase in Property, Plant, and Equipment: Notes Payable
is increased (credited) or Cash is decreased (credited).
4. Increase in Interest Expense: Cash is decreased (credited).

BYP 2-3 EXPLORING THE WEB
The answer is dependent upon the company selected by the

student.

IFRS, 1/e, Solutions Manual (For Instructor Use
Only) 2-55
BYP 2-4 DECISION MAKING ACROSS THE ORGANIZATION
(a) May 1 Correct.
5 Cash 250
Lesson Revenue 250
7 Cash 300
Unearned Boarding Revenue . 300
14 Office Equipment 800

Cash . 800
15 Dividends 400
Cash . 400
20 Cash 184
Riding Revenue . 184
30 Correct.
31 Hay and Feed Supplies 1,700

(2) The errors in the entries of May 14 and 20 would prevent the
trial balance from balancing.
(c) Net income as $4,50

reported................................................... 0
Add: 5/15, Salaries expense (Dividends 40
paid)....... $ 0
1,7
5/31, Hay and feed expense (still on hand)..... 00 2,100
6,600
Less: 5/7, Boarding revenue
unearned..................... 300
Correct net $6,30
income ........................................................... 0
(d) Cash as
reported .............................................................. $12,4
. 75
Add: 5/20, Transposition
error ................................... $ 36
5/31, Purchase on 1,7
account................................ 00 1,736
$14,
211
BYP 2-5 COMMUNICATION ACTIVITY
Date: May 25, 2010
To: Accounting Instructor
From: Student
In the first transaction, bills totaling $6,000 were sent to customers

for services rendered. Therefore, the asset Accounts Receivable is
increased $6,000 and the revenue Service Revenue is increased
$6,000. Debits increase assets and credits increase revenues, so
the journal entry is:
Accounts
Receivable.................................................................
....... 6,000
Service
Revenue ...............................................................
........ 6,000
(Bill customers for services provided)
The $6,000 amount is then posted to the debit side of the general
ledger account Accounts Receivable and to the credit side of the
general ledger account Service Revenue.
In the second transaction, $2,000 was paid in salaries to employees.

Therefore, the expense Salaries Expense is increased $2,000 and
the asset Cash is decreased $2,000. Debits increase expenses and
credits decrease assets, so the journal entry is:
Salaries
Expense ....................................................................
........... 2,000
Cash ......................................................................
........................ 2,000
(Salaries paid)
The $2,000 amount is then posted to the debit side of the general
ledger account Salaries Expense and to the credit side of the
general ledger account Cash.
BYP 2-6 ETHICS CASE
(1) The stakeholders in this situation are:
Mary Jansen, assistant chief accountant.

Users of the company’s financial
statements. The Casey Company.
(2) By adding $1,000 to the Equipment account, that account total

is inten-tionally misstated. By not locating the error causing the
imbalance, some other account may also be misstated by
$1,000. If the amount of $1,000 is determined to be immaterial,
and the intent is not to commit fraud (cover up an embezzlement
or other misappropriation of assets), Mary’s action might not be
considered unethical in the preparation of interim financial
statements. However, if Mary is violating a company accounting
policy by her action, then she is acting unethically.
(3) Mary’s alternatives are:
1. Miss the deadline but find the error causing the imbalance.
2. Tell her supervisor of the imbalance and suffer the

consequences.
3. Do as she did and locate the error later, making the

adjustment in the next quarter.

Jawaban Kiesso

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CHAPTER 2

The Recording Process

ASSIGNMENT CLASSIFICATION TABLE

Proble Difficul Time

1A Journalize a series of transactions. Simple 20–30

2A Journalize transactions, post, and prepare a trial balance. Simple 30–40

1B Journalize a series of transactions. Simple 20–30

2B Journalize transactions, post, and prepare a trial balance. Simple 30–40

2-2 Copyright © 2011 John Wiley & Sons, Inc.

Copyright © 2011 John Wiley & Sons, Inc. Weygandt,

2-4 Copyright © 2011 John Wiley & Sons, Inc.

Broadening Your Perspective

5. (a) Asset accounts are increased by debits and decreased by credits.

6. (a) Accounts Receivable—debit balance.

7. (a) Accounts Receivable—asset—debit balance.

8. (a) Debit Supplies and credit Accounts Payable.

9. (1) Cash—both debit and credit entries.

10. The basic steps in the recording process are:

2-6 Copyright © 2011 John Wiley & Sons, Inc.

12. (a) The debit should be entered first.

16. (a) Cash 9,000

(b) Prepaid Insurance 800

(c) Supplies 2,000

(d) Cash 7,500

Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS,

19. No, Jim is not correct. The proper sequence is as follows:

20. (a) The trial balance would balance.

2-8 Copyright © 2011 John Wiley & Sons, Inc.

BRIEF EXERCISE 2-1

(a) (b) (c)

BRIEF EXERCISE 2-2

Account Debited Account Credited

BRIEF EXERCISE 2-3

June 1 Cash 5,000

3 Rent Expense 800

Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS,

The basic steps in the recording process are:

1. Analyze each transaction. In this step, business documents are

2. Enter each transaction in a journal. This step is called

3. Transfer journal information to ledger accounts. This step is

Aug. 1 Cash 8,000

4 Prepaid Insurance 1,800

27 Salaries Expense 1,000

BRIEF EXERCISE 2-7

BRIEF EXERCISE 2-8

BRIEF EXERCISE 2-9

2-12 Copyright © 2011 John Wiley & Sons, Inc.

SOLUTIONS FOR DO IT! REVIEW EXERCISES

Cash (debit balance) Notes Payable (credit balance)

Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS,

1. False. An account is an accounting record of a specific asset,

2. False. An account shows increases and decreases in the item it

3. False. Each asset, liability, and equity item has a separate

4. False. An account has a left, or debit side, and a right, or credit

Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS,

Oct. 1 Debits increase assets: debit Cash ¥150,000.

3 Debits increase assets: debit Office Furniture ¥19,000.

Copyright © 2011 John Wiley & Sons, Inc. Weygandt, IFRS,

Oct. 6 Debits increase assets: debit Accounts Receivable

27 Debits decrease liabilities: debit Accounts Payable

30 Debits increase expenses: debit Salaries Expense

2-18 Copyright © 2011 John Wiley & Sons, Inc.

(1) 1. Increase the asset Cash, increase the liability Notes