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

Advertising Expense
Nov. 29 200 
Bal 200 
Utilities Expense
Nov. 18 175 
Bal 175 
Req. 4
CRYSTAL CLEAR CLEANING
Unadjusted Trial Balance
November 30, 2019
Account Title  Debit  Credit
Cash  $51,650 
Accounts receivable  4,000 
Cleaning supplies  320 
Prepaid rent  4,000 
Prepaid insurance  4,800 
Equipment  5,400 
Truck  3,000 
Accounts payable  $ 1,245
Unearned revenue  15,000
Note payable  36,000
A. Hideaway, capital  18,000
A. Hideaway, withdrawals  1,400 
Service revenue  5,100
Salaries expense  400 
Advertising expense  200 
Utilities expense  175 
Total  $75,345  $75,345
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-59
Challenge Exercises
(30-50 min.)  E2-24
a.  Net income for March - Given as follows:
B. Fergus, Capital
March withdrawals  640 Feb. 28 bal.  1,440
March net
income
X
Mar. 31 bal.  2,400
$1,440 + X – $640 = $2,400
X = $1,600
b.  Total cash paid during March:
Cash
Feb. 28 bal.  1,800
March receipts  10,720 March payments  X
Mar. 31 bal.  1,640
$1,800 + $10,720 – X = $ 1,640
X = $10,880
= $1,600
= $10,880
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
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(continued)  E2-24
c.  Cash collections from customers during March:
Accounts Receivable
Feb. 28 bal.  3,840
March sales on
account
12,160
March collections
X
Mar. 31 bal.  6,160
$3,840 + $12,160 – X = $6,160
X = $9,840
d.  Payments on account during March:
Accounts Payable
Feb. 28 bal.  2,080
March payments
on account
X
March purchases
on account
508
Mar. 31 bal.  2,560
$2,080 + $508 – X = $2,560
X = $ 28
= $9,840
X = $28
Horngren’s Accounting, 10Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-61
Req. 1 and 2 (20-30 min.)  E2-25
Effect on Trial Balance  Account(s) Misstated  Relevant Journal Entries (Not Required)
a. Total debits > Total credits  Note Payable  a. Entry  Cash  5,000
$5,000 too low  made  Note Payable  5,000
on the trial balance only  (correct): 
b. Total debits = Total credits  Supplies  b. Entry  Supplies  430 
$90 too high  made:  Accounts Payable  430
Accounts Payable  Correct  Supplies  340 
$90 too high  entry:  Accounts Payable  340
($430 – $340 = $90) 
c. Total debits = Total credits  Supplies  c. Entry  Supplies  200 
$200 too high  made:  Cash  200
Accounts Payable  Correct  Accounts Payable  200 
$200 too high  entry:  Cash  200
d. Total debits < Total credits  Cash  d. Entry  Cash  50 
$450 too low  made:  Service Revenue  500
Correct  Cash  500 
entry:  Service Revenue  500
e. Total debits < Total credits  Utility Expense  e. Entry  Utility Expense  1,000 
$900 too low  made  Cash  1,000
($1,000 – $100 = $900)  (correct): 
Instructional Note: Presentation of answers may vary.
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
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Beyond the Numbers
(15-20 min.)  BN2-1
Balance Sheet Accounts
ASSETS  LIABILITIES
Cash  Accounts payable
Accounts receivable  Note payable
Repair supplies
Office supplies
Repair equipment
Office equipment  OWNER’S EQUITY
Stan Raza, capital
Stan Raza, withdrawals
Income Statement Accounts
REVENUES  EXPENSES
Advertising expense
Service revenue—mountain bike repairs
Service revenue—road bike repairs 
Service revenue—tandem bike repairs 
Insurance expense
Office supplies expense
Repair supplies expense
Rent expense
Salaries expense
Utilities expense
Instructional Note: Some instructors may wish to use this exercise to introduce the Prepaid