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

and Accounts Receivable.
30  The owner’s equity of the business is decreased. Decreases in owner’s equity
are recorded by debits. Decreases due to withdrawals by the owner are debited
to the owner, withdrawals account; therefore, debit G. Yuan, Withdrawals.
The asset Cash is decreased. Decreases in assets are recorded by credits;
therefore, credit Cash.
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
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Req. 2  (journal entries) (continued)  P2-1B
Journal  Page 1
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Apr.  1 Cash  40,000 
G. Yuan, Capital  40,000
Initial investment by owner in the business. 
5 Office Rent Expense  400 
Cash  400
Paid the month’s rental for shared office
space. 
10 Supplies  600 
Accounts Payable  600
Purchased supplies on account. 
19 Accounts Payable  100 
Cash  100
Paid for some of the supplies purchased on
April 10. 
22 Land  25,000 
Cash  25,000
Purchased land for an office site. 
22 Cash  15,000 
Note Payable  15,000
Borrowed from the bank with a note payable. 
30 Salaries Expense  3,500 
Utilities Expense  350 
Cash  3,850
Paid expenses with cash. 
30 Cash  1,300 
Accounts Receivable  2,400 
Service Revenue  3,700
Revenues earned during the month. 
30 G. Yuan, Withdrawals  1,200 
Cash  1,200
Cash withdrawal by owner. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-87
(20-25 min.)  P2-2B
Date  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Mar. 1  Cash  62,000
V. Yang, Capital  62,000
5  Rent Expense  570 
Cash  570
9  Land  14,000 
Cash  14,000
10  Office Supplies  1,500 
Accounts Payable  1,500
19  Cash  27,000 
Note Payable  27,000
22  Accounts Payable  1,400 
Cash  1,400
28 Advertising Expense  220 
Accounts Payable  220
31  Cash  6,700 
Accounts Receivable  5,800 
Service Revenue  12,500
31  Salaries Expense  2,100 
Rent Expense  1,500 
Utilities Expense  350 
Cash  3,950
31  Cash  1,000 
Unearned Revenue  1,000
31  V. Yang, Withdrawals  7,100 
Cash  7,100
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
2-88  Copyright © 2020 Pearson Canada Inc.
Jameson Translation Services (25-30 min.)  P2-3B
Journal  Page 1
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Jan.  2 Cash  60,000 
Scott Jameson, Capital  60,000
Initial investment in business by the owner. 
3 Supplies  750 
Furniture  2,800 
Accounts Payable  3,550
Purchased supplies and furniture on account. 
3 Rent Expense  1,100 
Cash  1,100
Paid rent for January. 
4 Cash  2,250 
Translation Revenue  2,250
Performed translation services for cash. 
7 Land  38,000 
Cash  38,000
Acquired land for future office site. 
11 Accounts Receivable  1,200 
Translation Revenue  1,200
Performed translation services on account. 
15 Salaries Expense  975 
Cash  975
Paid salary of the office manager. 
16 Accounts Payable  2,800 
Cash  2,800
Paid for furniture purchased on January 3. 
18 Cash  600 
Accounts Receivable  600
Received partial payment on client account. 
19 Accounts Receivable  11,350 
Translation Revenue  11,350
Performed translation services on account. 
22 Utilities Expense  300 
Cash  300
Paid water and electricity bills. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-89
(continued)  P2-3B
Journal  Page 2
Date
2020  Account Titles and Explanations
Post.