Chapter 4 Heintz and Parry Exercise A Exercise B What is a ledger? What is the process of transferring journal entries to the ledger called? Exercise C Problem A Use the following chart of accounts:...

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Chapter 4 Heintz and Parry Exercise A Exercise B What is a ledger? What is the process of transferring journal entries to the ledger called? Exercise C Problem A Use the following chart of accounts: 100 Cash 300 Frank Burns, Capital 110 Accounts Receivable 301 Frank Burns, Drawing 120 Supplies 400 Service Revenue 125 Prepaid Insurance 500 Advertising Expense 140 Computer 505 Gasoline Expense 150 Equipment 510 Maintenance Expense 170 Delivery Van 515 Rent Expense 200 Accounts Payable 520 Telephone Expense 220 Notes Payable 525 Utilities Expense 530 Wages Expense 6/1 Frank Burns invested $100,000 in his business, which she opened on June 1. 6/1 6/2 Purchased $8,000 of equipment on account. 6/2 6/4 Paid $500 to advertise in the local newspaper. 6/5 Purchased an insurance policy for $2,000. The insurance policy covers a full year term. 6/5 Hired a part-time employee. The employee will be paid $1,500 every two weeks. 6/7 Purchased a $900 computer on account. 6/10 Received $3,000 cash for services rendered. 6/11 Paid $100 for gasoline for the delivery van. 6/12 Purchased $700 of supplies on account. What is a journal entry? What is the proper order in which accounts are recorded in the general journal? What is the purpose of the trial balance? What is the proper order of the accounts on the trial balance? How is a trial balance dated? For each of the following transactions, make the proper journal entry for Delta Company. Transactions for the first 10 days are recorded on page 1 of the general journal. Transactions for days 11 - 20 are on the second page of the general journal. All remaining transactions are recorded on the third page of the general journal. Rented a small building in which to operate the business. The monthly rent of $3,000 is due on the first of each month and was paid. Purchased a $40,000 delivery van to be used in the business. Frank paid $10,000 in cash. A note payable for the balance due was signed requiring $2,000 monthly payments to begin in July. 6/15 Paid the part-time employee for the first two weeks. 6/16 Earned $5,000 in services rendered on account. 6/18 Half of the amount due on account for the equipment purchased on 6/2 was paid. 6/19 Earned $8,000 in services rendered. $6,000 was in cash the balance was on account. 6/20 Paid the amount due on account for the computer purchased on 6/7. 6/23 Received $3,000 on account from clients. 6/24 Paid $200 for the telephone bill. 6/25 Paid the amount due for the supplies acquired on 6/12. 6/29 Paid $400 for the utilities. 6/30 Paid the part-time employee for the last two weeks. 6/30 Incurred maintenance expense of $1,500 for the delivery van on account. 6/30 Withdrew $2,500 at the end of the month for personal reasons. Problem B Using Problem A, post the journal entries in a ledger and prepare a trial balance as of June 30. Problem C Problem D First Company made the following entry to record the acquistion of $500 supplies on account. Supplies Expense 500 Cash 500 First Company made the following entry to record the purchase of a $1,000 year insurance policy. Insurance Expense 1,000 Cash 1,000 First Company made the following entry to record the receipt of $3,000 from clients on account. Cash 3,000 Service Revenue 3,000 Equipment 11,000 Cash 4,000 Accounts Payable 7,000 Make the proper correcting entries. First Company purchased $7,000 of equipment on account paying $4,000 with the balance to be paid next month. Using the trial balance that you prepared in Problem D, prepare Delta Company's income statement, owner's equity statement, and balance sheet.
Answered 1 days AfterMay 18, 2021

Answer To: Chapter 4 Heintz and Parry Exercise A Exercise B What is a ledger? What is the process of...

Munmun answered on May 19 2021
139 Votes
Exercise A
Journal Entry is the recording of the business transaction in the books of accounts. Journal entry is mainly carried out though the prescribed format where day to day transactions are recorded in books of accounts. A proper journal entry
consist of proper date, name of the account ( account head), the debit or credit figure, description of the transaction and a unique reference number. A journal entry is the first step in the accounting cycle. It is a detail recording of all the financial transaction of the business and complication of the accounts that are affected. As most of the business follows double accounting method each and every business transaction has dual impact, i.e. two accounts are affected in recording of journal entry. Further to add each entry has equal debit or credit amount.
Exercise B.
Ledger is a collection of accounts where day to day transactions are recorded. Each of the ledger account has opening carry forward balance which would record the transaction either as debit or credit or in separate column contain opening and closing balance. A ledger is a summary of all amount entered in the journal. Every transaction flows from journal to one or more ledger. The financial statement of an organization is prepared form the summary of total in ledger. Ledgers break up the financial information from the journals into specific accounts such as Cash, Accounts Receivable and Sales, on their own sheets. This allows you to see the details of all your transactions.
Exercise C.
Trail Balance is the list of all ledger having debit of credit balance. For the purpose of audit analysis of Trial Balance is carried out. Trial balance is the report that contains the balance of all ledger account of the company at a certain point of time. The accounts in the trial balance are all major accounts such as that of assets, liabilities, expenses, equity, gain or loss are the primary account used to determine the financial position of the organization.
Preparing a trial balance for a company serves to detect any mathematical errors that have occurred in the double-entry accounting system. If the total debits equal the total credits, the trial balance is considered to be balanced, and there should be no mathematical errors in the ledgers. However, this does not mean there are no errors in a company's accounting system.
Problem A
    Date
    Account No.
    Account Head
    Dr.
    Cr.
    01-Jun
    100
    Cash
    100000
     
     
    300
    Frank Burn,...
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