Horngren’s Accounting, Volume 1, 11th Canadian Edition by Tracie Miller-Nobles Solution manual

Accounts payable  $ 3,670
Unearned revenue  750
Note payable  7,200
Amber Wilson, capital  136,000
Amber Wilson, withdrawals  450 
Canoe rental revenue  12,400
Rent expense  1,200 
Salaries expense  3,300 
Utilities expense  445 
Telephone expense  500 
Total  $160,020  $160,020
Req. 5
CANYON CANOE COMPANY
Income Statement
For the Two Months Ended December 31, 2020
Revenue 
Canoe rental revenue  $12,400
Expenses 
Rent expense  $1,200 
Salaries expense  3,300 
Utilities expense  445 
Telephone expense  500 
Total expenses  5,445
Net income  $ 6,955
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
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Req. 6
CANYON CANOE COMPANY
Statement of Owner’s Equity
For the Two Months Ended December 31, 2020
Amber Wilson, capital, November 1, 2020  $ 0
Add: Investment by owner  136,000
Net income for the two months  6,955
142,955
Less: Withdrawals by owner  (450)
Amber Wilson, capital, December 31, 2020  $142,505
Req. 7
CANYON CANOE COMPANY
Balance Sheet
December 31, 2020
Assets  Liabilities 
Cash  $ 12,125 Accounts payable  $ 3,670
Accounts receivable  5,750 Unearned revenue  750
Office supplies  1,250 Note payable  7,200
Prepaid rent  3,000 Total liabilities  11,620
Land  85,000
Building  35,000 Owner’s Equity 
Canoes  12,000 Amber Wilson, capital  142,505
Total assets  $154,125 Total liabilities and owner’s equity  $154,125
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-54
Practice Set
(20-30 min.) E2-23
Req. 1
Journal
Date  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Nov. 1 Cash  15,000
Truck  3,000 
A. Hideaway, Capital  18,000
2 Prepaid Rent  4,000 
Cash  4,000
3 Prepaid Insurance  4,800 
Cash  4,800
4 Cleaning Supplies  320 
Accounts Payable  320
5 Equipment  1,500 
Accounts Payable  1,500
7 Equipment  3,900 
Cash  3,900
9 Accounts Receivable  4,700 
Service Revenue  4,700
10 Cash  200 
Accounts Receivable  200
15 Salaries Expense  400 
Cash  400
16 Cash  15,000 
Unearned Revenue  15,000
17 Cash  400 
Service Revenue  400
18 Utilities Expense  175 
Accounts Payable  175
20 Cash  36,000 
Note Payable  36,000
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-57
(continued) E2-23
Date  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Nov. 21 Cash  500 
Accounts Receivable  500
25 Accounts Payable  750 
Cash  750
29 Advertising Expense  200 
Cash  200
30 A. Hideaway, Withdrawals  1,400 
Cash  1,400
Req. 2 and 3
Cash  Accounts Payable
Nov. 1 15,000  4,000 Nov. 2  Nov. 25 750 320 Nov. 4
Nov. 10 200  4,800 Nov. 3 1,500 Nov. 5
Nov. 16 15,000 3,900 Nov. 7 175 Nov. 18
Nov. 17 400 400 Nov. 15 1,245 Bal
Nov. 20 36,000 750 Nov. 25
Nov. 21 500 200 Nov. 29 
1,400 Nov. 30 
Bal 51,650 
Accounts Receivable  Unearned Revenue
Nov. 9 4,700  200 Nov. 10  15,000 Nov. 16
500 Nov. 21  15,000 Bal
Bal 4,000 
Cleaning Supplies Note Payable
Nov. 4 320  36,000 Nov. 20
Bal 320  36,000 Bal
Prepaid Rent A. Hideaway, Capital
Nov. 2 4,000  18,000 Nov. 1
Bal 4,000  18,000 Bal
Prepaid Insurance A. Hideaway, Withdrawals
Nov. 3 4,800  Nov. 30 1,400 
Bal 4,800  Bal 1,400 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
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(continued) E2-23
Req. 2 and 3
Equipment  Service Revenue
Nov. 5 1,500  4,700 Nov. 9
Nov. 7 3,900  400 Nov. 17
Bal 5,400  5,100 Bal
Truck  Salaries Expense
Nov. 1 3,000  Nov. 15 400 
Bal 3,000  Bal 400