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

29  1,500 27  5,000 
Bal.  11,500
Note Receivable  Office Supplies
Dec.  15  45,000 Dec.  18  15,000  Dec.  15  9,600
Bal.  30,000
Office Equipment  Moving Equipment
Dec.  15  12,300 Dec.  15  132,200
Storage Equipment  Accounts Payable
Dec.  15  12,000 Dec.  15  33,000
21  6,900
Bal.  39,900
Mortgage Payable  H. Martinez, Capital
Dec.  24  18,000 Dec.  15  39,000  Dec. 15  53,000
Bal.  21,000 
H. Martinez, Withdrawals  Moving Fees Income
Dec.  19  400 Dec.  15  259,800
27  5,000 17  4,000
Bal.  5,400 21  1,500
29  2,400
Bal.  267,700
Storage Fees Income  Interest Income
Dec.  15  57,900  Dec.  18  1,800
17  600 
23  400 
Bal.  58,900 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-83
(continued)  P2-7A
Canada-Wide Movers
Req. 2 and 3 (continued)
Insurance Expense  Legal Expense
Dec.  15  6,300 Dec.  29  900
Office Supplies Expense  Rent Expense
Dec.  15  2,100 Dec.  15  47,100
Salaries Expense  Utilities Expense
Dec.  15  161,100 Dec.  15  2,400
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
2-84  Copyright © 2020 Pearson Canada Inc.
(continued)  P2-7A
Req. 4
CANADA-WIDE MOVERS
Unadjusted Trial Balance
December 31, 2020
Account Title  Debit  Credit
Cash  $ 11,500 
Accounts receivable  9,400 
Note receivable  30,000 
Office supplies  9,600 
Office equipment  12,300 
Moving equipment  132,200 
Storage equipment  12,000 
Accounts payable  $ 39,900
Mortgage payable  21,000
H. Martinez, capital  53,000
H. Martinez, withdrawals  5,400 
Moving fees income  267,700
Storage fees income  58,900
Interest earned  1,800
Insurance expense  6,300 
Legal expense  900 
Office supplies expense  2,100 
Rent expense  47,100 
Salaries expense  161,100 
Utilities expense  2,400 
Total  $442,300  $442,300
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-85
Problems
Group B
Req. 1 (transaction analysis)  (20-30 min.)  P2-1B
Yuan Research
Date  Analysis of Transactions
2020
Apr.  1  Given in the problem; not required for Apr. 1 transaction.
5  The expense Office Rent Expense is increased. Increases in expenses are
recorded by debits; therefore, debit Office Rent Expense.
The asset Cash is decreased. Decreases in assets are recorded by credits;
therefore, credit Cash.
10  The asset Supplies is increased. Increases in assets are recorded by debits;
therefore, debit Supplies.
The liability Accounts Payable is increased. Increases in liabilities are
recorded by credits; therefore, credit Accounts Payable.
19  The liability Accounts Payable is decreased. Decreases in liabilities are
recorded by debits; therefore, debit Accounts Payable.
The asset Cash is decreased. Decreases in assets are recorded by credits;
therefore, credit Cash.
21  The asset Land is increased. Increases in assets are recorded by debits;
therefore, debit Land.
The asset Cash is decreased. Decreases in assets are recorded by credits;
therefore, credit Cash.
22  The asset Cash is increased. Increases in assets are recorded by debits;
therefore, debit Cash.
The liability Note Payable is increased. Increases in liabilities are recorded by
credits; therefore, credit Note Payable.
30  The expenses Salaries Expense and Utilities Expense are increased. Increases
in expenses are recorded by debits; therefore, debit Salaries Expense and
Utilities Expense.
The asset Cash is decreased. Decreases in assets are recorded by credits;
therefore, credit Cash for the sum of the three debit amounts.
30  The assets Cash and Accounts Receivable are increased. Increases in assets
are recorded by debits; therefore, debit Cash and Accounts Receivable.
The revenue Service Revenue is increased. Increases in revenues are recorded
by credits; therefore, credit Service Revenue for the sum of the debits to Cash