Help with my Accounting homework?...clarification?

Question

Sorry, about the previous question, could you help me put the right amount on each side under the right Titles. I have worked on this for so long now. Cash total is the hardest for me.

PACIFIC MACHINING
Trial Balance
December 31, 2005

Account Titles Debit Credit
Cash
Accounts Receivable
Prepaid Rent
Land
Accounts Payable
Interest Payable
Notes Payable
Common stock
Retained Earnings
Dividends
Service Revenue
Operating Expense
Salaries Expense
Rent Expense
Interest Expense
Totals

Accounting events for 2005:
1. Paid cash for accrued salaries $2,100
2. Performed services for cash 40,500
3. Borrowed and issued Note 20,000
4. Paid cash for land 25,000
5. Rent paid for one year beginning 2/1/2005 5,400
6. Services performed on account 82,000
7. Operating expenses incurred on account 49,100
8. Accounts receivable collected 76,300
9. Paid accounts payable 48,000
10. Paid cash for salaries 41,000
11. Cash dividend paid 5,000

Answer 1

dont u think it'll be too long too answer??? yet i know none of them...!!! lol

tc

Answer 2

Paid Cash On Accounts Payable

Answer 3

I'll help you with the cash part, since that's giving you the hardest time.

1) Credit cash $2,100
2) Debit cash $40,500
3) Debit cash $20,000
4) Credit cash $25,000
5) Credit cash $5,400
6) No effect on cash
7) No effect on cash
8) Debit cash $76,300
9) Credit cash $48,000
10) Credit cash $41,000
11) Credit cash $5,000

When preparing your trial balance, you need to add up all the cash debits and credits to get the balance in the cash account (it's $10,300 by the way). Now you just have to figure out the other side of the entries. Just remember that if you pay cash, it's a credit, if you receive cash, it's a debit, and if it's "on account," cash isn't affected.

Good luck!

Answer 4

My profile is an Aries with Capricorn rising and Taurus moon....

Answer 5

i aint accountant sry...

Answer 6

1. Paid cash for accrued salaries $2,100
Dr A/cs payable $2,100 (Left side in T-accounts for AP a/c)
Cr Cash $2,100 (Right side in T-a/cs for Cash a/c)

2. Performed services for cash 40,500
Dr Cash $40,500 (L side in T-a/cs for Cash a/c)
Cr Service revenue $40,500 (R side for Service revenue a/c)

3. Borrowed and issued Note 20,000
Dr Cash $20,000 (L side for Cash a/c)
Cr Notes payable $20,000 (R side for Notes payable a/c)

4. Paid cash for land 25,000
Dr Land $25,000 (L side for Land a/c)
Cr Cash $25,000 (R side for Cash a/c)

5. Rent paid for one year beginning 2/1/2005 5,400
Dr Rent expense $4,950 (L side for rent expense a/c)
Dr Prepaid rent $450 (L side for prepaid rent a/c)
Cr Cash $5,400 (R side for cash a/c)

6. Services performed on account 82,000
Dr A/cs receivable $82,000 (L side for AR a/c)
Cr Service revenue $82,000 (R side for service revenue a/c)

7. Operating expenses incurred on account 49,100
Dr Op'g exp $49,100 (L side for Op'g exp a/c)
Cr A/cs payable $49,100 (R side for AP a/c)

8. Accounts receivable collected 76,300
Dr Cash $76,300 (L side of for cash a/c)
Cr A/cs receivable $76,300 (R side for AR a/c)

9. Paid accounts payable 48,000
Dr A/cs payable $48,000 (L side for AP a/c)
Cr Cash $48,000 (R side for cash a/c)

10. Paid cash for salaries 41,000
Dr Salaries expense $41,000 (L side for salaries exp a/c)
Cr Cash $41,000 (R side for cash a/c)

11. Cash dividend paid 5,000
Dr Dividends $5,000 (L side for dividends a/c)
Cr Cash $5,000 (R side for cash a/c)

Explanatory note for Qn 5: 12 mths' rent was paid on 1 Feb $5,400, i.e. each mth is $450. By 31 Dec, 11 mths' rent shd be expensed off and you shd recognise 1 mth's prepayment as the rent for Jan 2006 is prepaid.

Also, we're not told the interest rate on the notes payable. If you do know the rate, you shd calculate the interest payable and:
Dr Interest expense (L side for interest exp a/c)
Cr A/cs payable or cash (R side of either AP or cash a/c)