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

Cash  40
Purchased supplies for cash. 
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-73
(10-20 min.)  E2-11
Lin’s Tai Chi Retreat
Journal
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Apr.  30 Cash  7,500 
S. Lin, Capital  7,500
Received initial investment from owner. 
30 Supplies  275 
Accounts Payable  275
Purchase of supplies on account. 
30 Land  5,250 
Cash  5,250
Paid cash for land. 
30 Cash  1,375 
Note Payable  1,375
Borrowed money; signed note payable. 
30 Exercise Equipment  1,500 
Cash  1,500
Paid cash for equipment. 
Req. 1 (20-30 min.)  E2-12
2019
Jul.  2  Cash investment by owner
3  Payment of rent expense
9  Purchase of supplies on account (on credit)
11  Service provided on account
22  Collection on account
25  Payment of advertising expense
27  Payment on account
31  Receipt of a utilities bill and recording the expense on account
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
2-74  Copyright © 2020 Pearson Canada Inc.
Req. 2 (journal with posting references—not required)  (continued)  E2-12
Journal  5
Date
2019  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Jul.  2 Cash  1000  5,600 
Anisah Kaur, Capital  3000  5,600
3 Rent Expense  5600  1,400 
Cash  1000  1,400
9 Baking Supplies  1400  54 
Accounts Payable  2000  54
11 Accounts Receivable  1200  1,620 
Service Revenue  4000  1,620
22 Cash  1000  280 
Accounts Receivable  1200  280
25 Advertising Expense  5100  590 
Cash  1000  590
27 Accounts Payable  2000  54 
Cash  1000  54
31 Utilities Expense  5800  564 
Accounts Payable  2000  564
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-75
Req. 2 and 3  (continued)  E2-12
Cash #1000  Accounts Receivable #1200
Jul.  2  5,600 Jul.  3  1,400  Jul.  11  1,620 Jul.  22  280
22  280 25  590  Bal.  1,340 
27  54 
Bal.  3,836
Baking Supplies #1400  Accounts Payable #2000
Jul.  9  54 Jul.  27  54 Jul.  9  54
Bal.  54 31  564
Bal.  564
Anisah Kaur, Capital #3000  Service Revenue #4000
Jul.  2  5,600  Jul.  11  1,620
Bal.  5,600  Bal.  1,620
Advertising Expense #5100  Rent Expense #5600
Jul.  25  590 Jul.  3  1,400
Bal.  590 Bal.  1,400 
Utilities Expense #5800 
Jul.  31  564
Bal.  564
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
2-76  Copyright © 2020 Pearson Canada Inc.
(10-15 min.)  E2-13
Req. 1
Journal  Page 6
Date
2020  Account Titles and Explanations
Post.
Ref.  Debit  Credit
Jul.  2 Accounts Receivable  4,000 
Service Revenue  4,000
Performed energy audit on account. 
14 Cash  4,000 
Accounts Receivable  4,000
Received payment for July 2 transaction. 
Req. 2
Account  Accounts Receivable  Account No. 12001
Date
2020  Item
Jrnl.
Ref.  Debit  Credit  Balance
Jul.  2 6  4,000  4,000
14 6  4,000  0
Horngren’s Accounting, 11Ce  Chapter 2  Instructor’s Solutions Manual
Copyright © 2020 Pearson Canada Inc.  2-77
(15-20 min.)  E2-14
Peterson Engineering
Req. 1
Journal
Page 18
Date
Account Titles and Explanations
Post.
Ref.
Debit
Credit
Sep.   1  Utilities Expense  140 
Cash  140
Paid monthly utilities expense. 
 4  Cash  10,000 
Note Payable  10,000
Borrowed cash on a note payable. 
 8  Accounts Receivable  3,000 
Service Revenue  3,000
Performed service on account.