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

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(continued)  P2-1A
Req. 2  (journal entries)  Baycrest Cinema Company
Journal
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Nov.  1 Cash  350,000 
Darrell Palusky, Capital  350,000
Investment in the business by the owner. 
1 Rent Expense  6,000 
Cash  6,000
Paid November rent on a theatre building. 
2 Land  320,000 
Cash  320,000
Purchased land for a theatre site. 
5 Cash  220,000 
Note Payable  220,000
Borrowed from the bank on a note payable. 
10 Supplies  1,000 
Accounts Payable  1,000
Purchased theatre supplies on account. 
16 Salaries Expense  2,900 
Cash  2,900
Paid cash for salaries. 
22 Accounts Payable  600 
Cash  600
Made payment on account. 
28 Darrell Palusky, Withdrawals  8,000 
Cash  8,000
Owner withdrew cash from the company. 
29 Property Tax Expense  1,400 
Cash  1,400
Paid property tax on the land for the new
theatre. 
30 Cash  20,000 
Service Revenue  20,000
Receive cash for services provided. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-67
(20-25 min.)  P2-2A
Req. 1
Date  Account Titles and Explanations
Post.
Ref.  Debit  Credit
July 1 Cash  63,000 
V. York, Capital  63,000
5 Rent Expense  510 
Cash  510
9 Land  23,000 
Cash  23,000
10 Office Supplies  1,600 
Accounts Payable  1,600
19 Cash  22,000 
Note Payable  22,000
22 Accounts Payable  1,100 
Cash  1,100
28 Advertising Expense  240 
Accounts Payable  240
31 Cash  6,400 
Accounts Receivable  6,000 
Service Revenue  12,400
31 Salaries Expense  2,200 
Rent Expense  1,900 
Utilities Expense  560 
Cash  4,660
31 Cash  1,120 
Unearned Revenue  1,120
31 V. York, Withdrawals  7,200 
Cash  7,200
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
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(25-30 min.)  P2-3A
WeReDoIt Construction
Journal
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Sep.  3 Cash  72,000 
Z. Slipewicz, Capital  72,000
Owner deposited a cheque to start the business. 
4 Supplies  600 
Furniture  4,400 
Accounts Payable  5,000
Purchased supplies and furniture on account. 
5 Rent Expense  1,500 
Cash  1,500
Paid rent for September. 
6 Cash  2,400 
Service Revenue  2,400
Performed design services and received cash. 
7 Land  44,000 
Cash  44,000
Purchased land for future office site. 
10 Accounts Receivable  5,800 
Service Revenue  5,800
Designed a bathroom, billed it on account. 
14 Accounts Payable  4,400 
Cash  4,400
Paid for September 4 furniture purchase. 
15 Salaries Expense  940 
Cash  940
Paid assistant’s salary. 
17 Cash  3,400 
Accounts Receivable  3,400
Received cash on account. 
22 Cash  5,000 
Service Revenue  5,000
Received cash for cottage renovation. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-69
(continued)  P2-3A
Journal
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Sep.  25 Accounts Receivable  1,600 
Service Revenue  1,600
Prepared a design for a customer on account. 
30 Salaries Expense  940 
Cash  940
Paid assistant’s salary. 
30 Z. Slipewicz, Withdrawals  5,600 
Cash  5,600
Owner withdrawal of cash from the company. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
2-70  Copyright © 2020 Pearson Canada Inc.
Req. 1  (journal entries) (45-60 min.)  P2-4A
Kiki’s Jewellery Repair