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PART II ? JOURNAL ENTRIES (26 points) The ledger...

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PART II ? JOURNAL ENTRIES (26 points) The ledger accounts given below, with an identification number for each, are used by Wayne Company. Instructions: Indicate the appropriate entries for the month of June by placing the appropriate identification number(s) in the debit and credit columns provided. Item 0 is given as an example. Write "none" if no entry is appropriate. 1. Cash 7. Salaries Payable 13. Service Revenue 2. Accounts Receivable 8. Accounts Payable 14. Equipment Expense 3. Supplies 9. Unearned Service Revenue 15. Advertising Expense 4. Prepaid Salaries 10. Notes Payable 16. Supplies Expense 5. Prepaid Advertising 11. Common Stock 17. Rent Expense 6. Equipment 12. Dividends 18. Salaries Expense ??????????????????????????????????????????? Entry Account(s) Account(s) No. Entry Information Debited Credited 0. June 1 H. Wayne invested $25,000 in the business. 1 11 ??????????????????????????????????????????? 1. June 4 Purchased supplies costing $2,000 on account. ??????????????????????????????????????????? 2. June 5 Equipment was purchased at a cost of $5,000; a three-month, 12% note payable was signed for this amount. ??????????????????????????????????????????? 3. June 8 Received $7,000 from customers for services rendered during the week. ??????????????????????????????????????????? 4. June 10 Wayne agreed to hire B. Kiner as an assistant. She will be paid at the rate of $4,000 monthly, receiving $2,000 on the 15th and 30th of each month. She will begin work June 16. ??????????????????????????????????????????? 5. June 14 Paid $400 cash to the Daily News for advertisements run this past week. ??????????????????????????????????????????? 6. June 16 B. Kiner began work. ??????????????????????????????????????????? 7. June 19 Paid $2,000 in cash to Santo Company for June rent. ??????????????????????????????????????????? 8. June 25 Paid supplier for supplies purchased on June 4. ??????????????????????????????????????????? 9. June 26 Paid the Daily News $400 for an advertisement that will run the first week in July. ??????????????????????????????????????????? 10. June 27 Received $9,000 from customers for services to be rendered early in July. ??????????????????????????????????????????? 11. June 28 Billed customers $6,000 for services rendered but not collected during June. ??????????????????????????????????????????? 12. June 30 Wayne paid $900 of dividends. ??????????????????????????????????????????? 13. June 30 B. Kiner was paid $2,000 cash for her salary. ??????????????????????????????????????????? PART III ? SHORT PROBLEMS (10 points) Instructions: Present the solutions, with appropriate supporting calculations, for each of the following independent problems. A. Given the following information, compute 2008 net income for Orson Company. B. Stockholders? equity?January 1, 2008 $125,000 B. Stockholders? equity?December 31, 2008 160,000 Stockholder investments during 2008 20,000 Dividends paid during 2008 38,000 B. Indicate the impact on the accounting equation of each of the following transactions. 1. Owner investment of cash. 2. Purchase of equipment for cash 3. Borrowed money from bank by issuing a note payable. 4. Purchase of office furniture for cash. 5. Purchase of supplies on account. 6. Collect cash from customers for services performed. 7. Purchased 24-month insurance policy 8. Paid monthly payroll. PART IV ? TYPES OF ACCOUNTS (10 points) Instructions: Place a check in the appropriate columns to designate whether each of the following accounts: (1) has a debit or credit normal balance; and (2) is an asset, liability, or stockholders? equity account. ??????????????????????????????????????????? (1) (2) Stockholders? Account Debit Credit Asset Liability Equity ??????????????????????????????????????????? 1. Service Revenue ??????????????????????????????????????????? 2. Salaries Expense ??????????????????????????????????????????? 3. Supplies ??????????????????????????????????????????? 4. Common Stock ??????????????????????????????????????????? 5. Accounts Payable ??????????????????????????????????????????? 6. Salaries Payable ??????????????????????????????????????????? 7. Dividends ??????????????????????????????????????????? 8. Accounts Receivable ??????????????????????????????????????????? 9. Prepaid Insurance ??????????????????????????????????????????? 10. Notes Payable ??????????????????????????????????????????

 

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