LarsonChap2PROBsetA

Problem sET A

Problem 2-1A (90 minutes)
Part 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 equip. & 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.

13 Accounts 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.

28 R. 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.
Problem 2-1A (Continued)
Part 2 Cash
Acct. No. 101
Date

Explanation
PR
Debit Credit
Balance
April
1

G1
100,000

100,000

2

G1

7,200
92,800

6

G1
2,000

94,800

13

G1

14,400
80,400

19

G1

6,000
74,400

22

G1
6,400

80,800

28

G1

6,200
74,600

30

G1

700
73,900

Accounts Receivable
Acct. No. 106
Date

Explanation
PR
Debit Credit
Balance
April
9

G1
8,000

8,000

22

G1

6,400
1,600

25

G1
2,640

4,240

Office Supplies
Acct. No. 124
Date

Explanation
PR
Debit Credit
Balance
April
3

G1
2,400

2,400

29

G1
800

3,200

Prepaid Insurance
Acct. No. 128
Date

Explanation
PR
Debit Credit