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ACC 2301 Study Guide - Midterm Guide: General Ledger, Trial Balance, Accounting Equation

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emilypena887
22 Nov 2021
School
UHD
Department
Accounting
Course
ACC 2301
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Document Summary

Identifying the basic steps of measuring external transactions. Analyze external transactions impact on the accounting equation. Assess whether the impact results in a debit or credit to an account balance. Post transactions to t-accounts in the general ledger. Analyze the impact on the equation: source documents used to identify affected accounts, assess whether transactions result in debit or credit, record using debits and credits, transactions are posted to the general ledger, prepare the trial balance. Accountants include conventions capturing transaction effects in accounts. Records of amounts allowed because of related transactions. List of all account"s names used in transaction recording. Financial position affected assets increase and liabilities will increase. Sometimes transactions won"t affect a total of either side. Michael will sell shares of common stock for ,000 and obtain the funds necessary to begin his business. So, we know that the company receives cash from investors (they become the owner of the company by receiving common stock shares)

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Related Questions

The proper sequence for the steps in the accounting cycle is as follows:

 

  1. analyze and record transactions, post-transaction to the ledger, prepare a trial balance, prepare financial statements, journalize closing entries, analyze adjustment data and prepare to adjust entries

  2. prepare a trial balance, analyze adjustment data, prepare to adjust entries,  prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger

  3. analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare to adjust entries,  prepare financial statements, journalize closing entries and post to the ledger

  4. prepare financial statements, journalize closing entries and post to the ledger, analyze and record transactions, post transactions to the ledger, prepare a trial balance, analyze adjustment data, prepare to adjust entries.

American Laser, Inc., reported the following account balances on January 1. Accounts Receivable $ 5,000 Accumulated Depreciation 30,000 Additional Paid-in Capital 90,000 Allowance for Doubtful Accounts 2,000 Bonds Payable 0 Buildings 247,000 Cash 10,000 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 10,000 Retained Earnings 120,000 Treasury Stock 0 The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash. Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash. Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Oct. 3 Wrote off a $500 balance due from a customer who went bankrupt.

Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

1

Issued 5,000 shares of $1 par common stock for $50,000 cash. Record the transaction.

2

Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Record the transaction.

3

Reissued 2,000 shares of treasury stock for $24,000 cash. Record the transaction.

4

Reissued 600 shares of treasury stock for $4,600 cash. Record the transaction.

5

Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Record the transaction.

6

Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Record the transaction.

7

Wrote off a $500 balance due from a customer who went bankrupt. Record the transaction.

8

Prepare the closing entry for Dividends. Record the transaction.

Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

UnadjustedPost-closing Unadjusted

Unadjusted

Post-closing

Dates:Jan 01

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31

to:Oct 03

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31

General Ledger Account
Cash
No. Date Debit Credit Balance
Dec 31 10,000
Accounts Receivable
No. Date Debit Credit Balance
Dec 31 5,000
Allowance for Doubtful Accounts
No. Date Debit Credit Balance
Dec 31 2,000
Buildings
No. Date Debit Credit Balance
Dec 31 247,000
Accumulated Depreciation—Buildings
No. Date Debit Credit Balance
Dec 31 30,000
Notes Payable (long-term)
No. Date Debit Credit Balance
Dec 31 10,000
Common Stock
No. Date Debit Credit Balance
Dec 31 10,000
Additional Paid-In Capital—Common Stock
No. Date Debit Credit Balance
Dec 31 90,000
Retained Earnings
No. Date Debit Credit Balance
Dec 31 120,000

Identifying effects of transactions using the accounting equation.

The following transactions were completed by the company.

a. The owner (Alex Carr) invested $15, 400 cash in the company in exchange for its common stock.

b. The company purchased supplies for $600 cash. c. The company purchased $10, 200 in equipment on credit (record liability as Note Payable)

d. The company purchased $220 of additional supplies on credit.

e. The company purchased land for $9, 200 cash.

Required. Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)