1. ACCOUNTS AND EXPLANATIONS
Journal
DATE
ACCOUNTS AND EXPLANATIONS
POST.
REF.
DEBIT
CREDIT
Sept. 1
Cash
30,000
Liana Garcia, Capital
Received investment from owner. 2
Medical Supplies
10,000
Accounts Payable
Purchased supplies on account.
Rent Expense
4,000
Paid office rent. 3
2,000
Accounts Receivable
3,000
Service Revenue
5,000
Performed service for patients.

2. ACCOUNTS AND EXPLANATIONS
Journal
DATE
ACCOUNTS AND EXPLANATIONS
POST.
REF.
DEBIT
CREDIT
Oct. 15
Cash
50,000
Note Payable
Borrowed money from the bank. 22
Accounts Receivable
3,600
Service Revenue
Performed service on account. 30
2,000
Received cash on account. 31
Utilities Expense
200
Accounts Payable
Received utility bill.
Salary Expense
3,000
Paid salary expense.
Interest Expense

3. ACCOUNTS AND EXPLANATIONS
Journal
DATE
ACCOUNTS AND EXPLANATIONS
DEBIT
CREDIT
Dec. 5
Office Furniture (↑ asset; debit)
800
Accounts Payable (↑ liability; credit) 10
Accounts Receivable (↑ asset; debit)
1,600
Service Revenue (↑ revenue; credit) 12
Cash (↑ asset; debit)
7,000
Note Payable (↑ liability; credit) 19
29,000
Land (↓ asset; credit) 21
Building (↑ asset; debit)
140,000 27
Accounts Payable (↓ liability; debit)
Cash (↓ asset; credit)

4. Interfax Corporation Millions
Trial Balance
December 31, 20X3
Millions
ACCOUNT
DEBIT
CREDIT
Cash
$12
Other assets 40
Accounts payable
$ 1
Other liabilities 19
Capital 25
Revenues 29
Expenses 22
      
Total
$74

5. Investment of cash by the owner
E2-7 Req. 1
May 2
Investment of cash by the owner 5
Borrow cash by signing a note payable 9
Purchase of supplies on account (on credit) 11
Performing service on account 14
Payment of rent expense 22
Payment on account 25
Payment of advertising expense 27
Collection on account 31
Receipt of a utility bill and recording the expense on account

7. The Mane Event Cash Supplies Equipment Building Accounts payable
Trial Balance
October 31, 20X4
DEBIT
CREDIT
ACCOUNT
Cash
$13,000
Supplies
400
Equipment
6,000
Building
40,000
Accounts payable $
Note payable
37,000
Liz Adeva, capital
             
22,000
Total
$59,400
$59,400

8. E2-10 S.W. Bell Advertising Trial Balance December 31, 20X4 Cash
$ 5,000
DEBIT
CREDIT
ACCOUNT
Accounts receivable
9,500
Supplies
200
Building
125,000
Land
29,000
Accounts payable
$ 4,300
Note payable
45,000
S.W. Bell, capital
48,800
S.W. Bell, withdrawals
6,000
Service revenue
86,000
Salary expense
6,000
Rent expense
2,000
Insurance expense
700
Utilities expense
400
Supplies expense
300
               
Total
$184,100
$184,100

9. E2-11 Harvey Spark, M.D. Trial Balance March 31, 20X9 Cash CREDIT
ACCOUNT
DEBIT
Cash
CREDIT
$ 3,400*
Accounts receivable
1,600*
Supplies
600
Land
66,000
Accounts payable
$22,600*
Harvey Spark, capital
42,300*
Service revenue
9,700
Salary expense
1,700
Rent expense
800
Utilities expense
500*
             
Total
$74,600
$74,600

10. Mike Reitmeier, capital 20,400 Mike Reitmeier, withdrawals 7,000
Mike Reitmeier, CPA
E2-13
Trial Balance
May 31, 20X7
ACCOUNT
DEBIT
CREDIT
Cash
$ 4,300
Accounts receivable
1,600
Office supplies
700
Office furniture
5,400
Accounts payable $
Mike Reitmeier, capital
20,400
Mike Reitmeier, withdrawals
7,000
Service revenue
1,600
Salary expense
1,500
1,800
Rent expense
             
Total
$22,300
$22,300

11. Total debits=$53,000=Total credits
Supplies
8,000
Bal. 8,000
Cash
50,000
12,000
5,000
Bal. 33,000
Equipment
12,000
Bal ,000
Accounts Payable
5,000
8,000
Bal. 3,000
Total debits=$53,000=Total credits

12. $75,000 E2-16 b. Cash Feb. 28 Bal. 7,000 March receipts 70,000
March receipts
70,000
March payments X
Mar. 31 Bal.
2,000
$75,000

13. Analyze Note Payable, answer: $ 6500
E2-16 c
Accounts Receivable
Feb. 28 Bal.
24,000
March revenues
90,000
on account X
March collections
Mar. 31 Bal.
26,000
$88,000
E2-16 d
Analyze Note Payable, answer: $ 6500

14. Marsha Walker, Consultant
Req. 4
Trial Balance
December 18, 20XX
Cash
ACCOUNT
DEBIT
$12,100
CREDIT
Accounts receivable
1,700
Supplies
300
Equipment
2,000
Furniture
3,600
Accounts payable
$ 3,900
Marsha Walker, capital
14,000
Marsha Walker, withdrawals —
Service revenue
2,500
Rent expense
500
Utilities expense
200
Salary expense
    —
             
Total
$20,400
$20,400

15. ACCOUNTS AND EXPLANATIONS
P2-1A 1.
Total assets
$268,000 ($7,000 + $6,000 + $4,000 + $251,000)
Total liabilities
$211,000 ($31,000 + $180,000)
Net income
$ 45,000 ($112,000 – $38,000 – $14,000 – $8,000 – $7,000)
Journal
DATE
ACCOUNTS AND EXPLANATIONS
POST.
REF.
DEBIT
CREDIT
Accounts Receivable
112,000
Service Revenue
The trial balance amount for Service Revenue comes directly from the Service Revenue account above.

16. The new business would be a partnership.
Req. 3
Hillsboro records transactions in the journal, posts to the accounts in the ledger, computes each account balance, and lists all the accounts along with their balances, on the trial balance. Cash has an ending balance of $7,000.
Req. 4
The new business would be a partnership.

17. ACCOUNTS AND EXPLANATIONS
P2-2A
Journal
DATE
ACCOUNTS AND EXPLANATIONS
POST.
REF.
DEBIT
CREDIT
June 1
Cash (↑ asset; debit)
55,000
Art Levitt, Capital (↑ equity; credit) 5
Rent Expense (↑ expense; debit)
700
Cash (↓ asset; credit) 9
Land (↑ asset; debit)
22,000

18. Continued P2-2A 10 Supplies (↑ asset; debit) 1,20010
Supplies (↑ asset; debit)
1,200
Accounts Payable (↑ liability; credit) 19
Cash (↑ asset; debit)
20,000
Notes Payable (↑ liability; credit) 22
Accounts Payable (↓ liability; debit)
1,000
Cash (↓ asset; credit)
Continued P2-2A

19. Continued P2-2A 30 Cash (↑ asset; debit) 6,00030
Cash (↑ asset; debit)
6,000
Accounts Receivable (↑ asset; debit)
5,000
Service Revenue (↑ revenue; credit)
11,000
Salary Expense (↑ expense; debit)
2,400
Rent Expense (↑ expense; debit)
1,500
Utilities Expense (↑ expense; debit)
400
Cash (↓ asset; credit)
4,300
Art Levitt, Withdrawals (↓ equity; debit)
10,000

20. ACCOUNTS AND EXPLANATIONS
P 2-3A Req. 1
Journal
DATE
ACCOUNTS AND EXPLANATIONS
POST.
REF.
DEBIT
CREDIT
Dec. 2
Cash
30,000
Monica Kaska, Capital 3
Supplies
500
Furniture
2,600
Accounts Payable
3,100 4
1,500
Service Revenue

21. 7 Land 22,000 Cash Accounts Receivable 900 Service Revenue
Continued P 2-3A Req. 1
 Dec 7
Land
22,000
Cash 11
Accounts Receivable
900
Service Revenue 15
Salary Expense
570

22. Dec Accounts Payable 2,600 Cash 1,800 Service Revenue
Continued P 2-3A Req. 1
 Dec 16
Accounts Payable
2,600
Cash 18
1,800
Service Revenue 19
Accounts Receivable
800

23. Monica Kaska, Withdrawals 2,200
Continued P 2-3A Req. 1
Dec. 29
Cash
400
Accounts Receivable 31
Salary Expense
570
Rent Expense
700
Monica Kaska, Withdrawals
2,200

24. Monica Kaska, withdrawals 2,200 Service revenue 5,000 Salary expense
Monica Kaska, Attorney
Trial Balance
December 31, 20XX
ACCOUNT
DEBIT
CREDIT
Cash
$ 5,060
Accounts receivable
1,300
Supplies
500
Furniture
2,600
Land
22,000
Accounts payable $
Monica Kaska, capital
30,000
Monica Kaska, withdrawals
2,200
Service revenue
5,000
Salary expense
1,140
Rent expense
700
             
Total
$35,500
P 2-3A Req. 3

25. ACCOUNT CASH
ACCOUNT NO. 11
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDT
CREDIT
Nov. 15
Bal. 
3,000 16
J.6
6,000
9,000 23
2,100
6,900
2,600
4,300 24
1,900
6,200 30
700
5,500
3,400
P2-4A Req.2

26. ACCOUNT ACCOUNTS RECEIVABLE
ACCOUNT NO. 12
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
8,000 16
J.6
6,000
2,000 17
1,700
3,700

27. DEBIT Nov. Bal.  600 J.6 800 1,400 Nov. Bal.  15,000
ACCOUNT SUPPLIES
ACCOUNT NO. 13
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
600 22
J.6
800
1,400
ACCOUNT EQUIPMENT
ACCOUNT NO. 14
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
15,000

28. ACCOUNT ACCOUNTS PAYABLE
ACCOUNT NO. 21
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
DEBIT
CREDIT
Nov. 15
Bal. 
4,600 22
J.6
800
5,400 23
J.6
2,600
2,800

29. Nov. Bal.  20,000 Nov. Bal.  2,300 J.6 2,100 4,400 ACCOUNT NO. 31
ACCOUNT ROBERT QUIROGA, CAPITAL
ACCOUNT NO. 31
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
20,000
ACCOUNT ROBERT QUIROGA, WITHDRAWALS
ACCOUNT NO. 32
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
2,300 23
J.6
2,100
4,400

30. Nov. Bal.  7,100 J.6 1,700 8,800 1,900 10,700 ACCOUNT SERVICE REVENUE
ACCOUNT NO. 41
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
7,100 17
J.6
1,700
8,800 24
1,900
10,700

31. REF. DEBIT Nov. Bal.  1,800 J.6 2,100 3,900 DATE ITEM REF. DEBIT Nov.
ACCOUNT SALARY EXPENSE
ACCOUNT NO. 51
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
1,800 30
J.6
2,100
3,900
ACCOUNT RENT EXPENSE
ACCOUNT NO. 52
JRNL.
BALANCE
DATE
ITEM
REF.
DEBIT
CREDIT
Nov. 15
Bal. 
1,000 30
J.6
700
1,700

32. Robert Quiroga, Registered Dietician
Trial Balance
November 30, 20X3
ACCT. NO.
ACCOUNT
DEBIT
CREDIT 11
Cash
$ 3,400 12
Accounts receivable
3,700 13
Supplies
1,400 14
Equipment
15,000 21
Accounts payable
$ 2,800 31
Robert Quiroga, capital
20,000 32
Robert Quiroga, withdrawals
4,400 41
Service revenue
10,700 51
Salary expense
3,900 52
Rent expense
1,700
             
Total
$33,500
P2-4A Req.3

33. Online Cable Services
Trial Balance
March 31, 20X1
ACCOUNT
DEBIT
CREDIT
Cash
$ 6,600
Accounts receivable
2,540
Supplies
600
Office furniture
21,300
Computers
46,000
Accounts payable
$ 2,800
Note payable
18,300
Meredith Ballard, capital
50,800
Meredith Ballard, withdrawals
5,000
Service revenue
13,200
Salary expense
1,300
Rent expense
1,200
Advertising expense
300
Utilities expense
260
             
Total
$85,100
P2-5a Req.1

34. Online Cable Services
Income Statement
Month Ended March 31, 20X1
Revenues:
Service revenue
$13,200
Expenses:
Salary expense
$1,300
Rent expense
1,200
Advertising expense
300
Utilities expense
260
Total expenses
3,060
Net income
$10,140

35. Serrano Carpet Installers
Trial Balance
January 31, 20X7
ACCOUNT
DEBIT
CREDIT
Cash
$ 7,300
Accounts receivable
2,200
Supplies
400
Equipment
32,000
Automobile
13,000
Accounts payable
$ 1,100
Note payable
25,000
Vince Serrano, capital
31,000
Vince Serrano, withdrawals
2,600
Service revenue
4,100
Salary expense
1,300
Rent expense
1,000
Advertising expense
800
Insurance expense
600
             
Total
$61,200
P2-6A

36. Serrano Carpet Installers
P2-7A
Serrano Carpet Installers
Income Statement
Month Ended January 31, 20X7
Revenues:
Service revenue
$4,100
Expenses:
Salary expense
$1,300
Rent expense
1,000
Advertising expense
800
Insurance expense
600
Total expenses
3,700
Net income
$ 400

37. Serrano Carpet Installers
Statement of Owner’s Equity
Month Ended January 31, 20X7
Vince Serrano, capital, January 1, 20X7 $
Add: Investment by owner
31,000
Net income for the month
31,400
Less: Withdrawals by owner
(2,600)
Vince Serrano, capital, January 31, 20X7
400
$28,800

38. Serrano Carpet Installers
Balance Sheet
January 31, 20X7
ASSETS
LIABILITIES
Cash
$ 7,300
Accounts payable
$ 1,100
Accounts receivable
2,200
Note payable
25,000
Supplies
400
Total liabilities
26,100
Equipment
32,000
OWNER’S EQUITY
Automobile
13,000
Vince Serrano, capital
             
Total liabilities and
Total assets
$54,900
owner’s equity
28,800