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

2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Jul.  2 Cash  10,000 
B. Anderson, Capital  10,000
Investment by owner. 
4 Utilities Expense  400 
Cash  400
Paid utilities expense. 
5 Equipment  2,100 
Accounts Payable  2,100
Purchased equipment on account. 
10 Accounts Receivable  2,000 
Service Revenue  2,000
Performed services for client on account. 
12 Cash  7,000 
Note Payable  7,000
Received cash in return for signing a note
payable. 
19 B. Anderson, Withdrawal  500 
Cash  500
Owner took cash from the business. 
21 Office Supplies  800 
Cash  800
Paid cash for office supplies. 
27 Accounts Payable  2,100 
Cash  2,100
Paid off the liability incurred on July 5. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
2-70  Copyright © 2020 Pearson Canada Inc.
(10-20 min.)  E2-8
Date  Analysis of Transactions and Journal Entries
Dec.  4  The asset Cash is increased; therefore, debit Cash.
The liability Note Payable is increased; therefore,
credit Note Payable.
Cash ........................................................................ 20,000
Note Payable ................................................... 20,000
8  The asset Equipment is increased; therefore,
debit Equipment.
The liability Accounts Payable is increased; therefore,
credit Accounts Payable.
Equipment ............................................................... 4,000
Accounts Payable ............................................ 4,000
12  The asset Accounts Receivable is increased; therefore,
debit Accounts Receivable.
The revenue Service Revenue is increased; therefore,
credit Service Revenue.
Accounts Receivable ............................................... 6,000
Service Revenue .............................................. 6,000
19  The asset Cash is increased; therefore, debit Cash.
The asset Land is decreased; therefore, credit Land.
Cash ........................................................................ 24,000
Land ................................................................ 24,000
22  The asset Supplies is increased; therefore, debit
Supplies.
The asset Cash is decreased; therefore,
credit Cash.
Supplies ................................................................ 1,200
Cash ................................................................ 1,200
27  The liability Accounts Payable is decreased; therefore,
debit Accounts Payable.
The asset Cash is decreased; therefore, credit Cash.
Accounts Payable .................................................... 4,000
Cash ................................................................ 4,000
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-71
(10-25 min.)  E2-9
Journal
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Mar.  1 Cash  15,000 
Yula Gregore, Capital  15,000
Investment by owner. 
1 Rent Expense  4,000 
Cash  4,000
Paid rent for yoga studio. 
4 Studio Supplies  4,000 
Accounts Payable  4,000
Purchased studio supplies on account. 
6 Cash  3,000 
Service Revenue  3,000
Performed services for cash. 
9 Accounts Payable  1,000 
Cash  1,000
Paid cash on account. 
17 Accounts Receivable  800 
Service Revenue  800
Performed service on account. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
2-72  Copyright © 2020 Pearson Canada Inc.
(10-20 min.)  E2-10
Journal
Date  Account Titles and Explanations
Post.
Ref.  Debit  Credit
May 3  Cash  2,500 
Liam Deresh, Capital  2,500
Owner invested cash in the business. 
4 Rent Expense  1,100 
Cash  1,100
Paid one month’s rent for equipment. 
6 Accounts Receivable  1,700 
Service Revenue  1,700
Performed DJ services on account. 
11 Equipment  600 
Cash  600
Purchased equipment for cash. 
14 Liam Deresh, Withdrawals  500 
Cash  500
Owner withdrew case for personal use. 
18 Supplies  40