Expert Solutions

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Listed below are ledger account titles and account balances, as of May 1, for the Platt Hardware Store. Prepare a Chart of Accounts for the store using Exam Figure 1
Accounts Payable-Bell havenBank-$5,000
p. Woodsley,Capital-$5,256.82
Cash-$4,056.82
PrepaidInsurance-$500
Accounts Payable-Taylor Investments-$3,700
Equipment-Store-$4,500
Equipment-Office-$4,400
Supplies-$500
1. The assets division should contain what accounts?
A. 11 P Woodsley, Capital
12 Equipment-Store
13 Equipment-Office
14 Cash
15 Accounts Payable- Taylor Investments
B. 11 Accounts Payable-Bell haven Bank
12 Equipment-Store
13 Equipment-Office
14 P Woodsley, Capital
15 Cash
C. 11 Cash
12 Equipment-Store
13 Equipment-Office
14 Prepaid Insurance
15 Accounts Payable-Taylor Investments
D. 11 Cash
12 Prepaid Insurance
13 Equipment-Store
14 Equipment-Office
15 Supplies

2. The liabilities division should contain what accounts?
A. 21 Accounts Payable-Bellhaven Bank
22 P.Woodsley-Capital
B. 21 Accounts Payable-Bellhaven Bank
22 Accounts Payable-Taylor Investments

3. The owner’s equity division should contain what account(s)?
A. 31 P. Woods ley-Capital
B. 31 P.Woodsley-Capital
32 Merchant’s Bank
C. 31 Merchant’s Bank
32 P. Woodsley-Capital
Use the following information to answer questions 4-11.
Analyze and prepare journal entries for the following transactions on the form provided in Exam Figure 2. Pencil-foot the debit and credit columns. I
(A) 5/1-Purchased a new calculator for the office for $690 on account from J. C. Hollings, Inc., memo 3.
(B) 5/2-Purchased $3,500 of equipment for the store on account from Craft Bank, memo 4.
(C) 5/4-Paid cash, $42.92, for supplies, check 4.
(D) SIS-Paid cash, $1,000, to Bellhaven Bank for amount owner on account, (check 5).

4. You record the debit entry for transaction (A) 5/1 in the journal as Date Description Debit Credit
A. May 1 Equipment-Office 690.00
B. May 1 Equipment-Office 690.00
C. May 1 Calculator 690.00
D. May 1 AlP-J. C. Hollings, Inc. 690.00

5. You record the credit entry for transaction (A) 5/1 in the journal as

6. You record the debit entry for transaction (B) 5/2 In the Journals

7. You record the credit entry for transaction (B) 5/2 in the journal as Date Description Debit ~
A. May 2 AlP-Craft Bank 3,500.00
B. May 2 AlP-Craft Bank
C. May 2 Merchandise
D. May 2 Equipment-Store 3,500. )0 Credit
3,500.00
3,500.00

8. The account titles for transaction (C) 5/4 should appear in the Account Title column of the journal entry as
A. Supplies Cash
B. Equipment-Store
P.Woodsley-Capital
C. Cash Equipment-Store
D. P. Woodsley, Capital Cash

9. The account titles for transaction (D) 5/5 should appear in the Account Title column of the journal entry as
A. Merchant’s Bank
Equipment-Store
B. Cash
Equipment-Store
C. AlP-Bellhaven Bank
Cash
D. Inventory-Merchandise
P. Woodsley Capital

10. Assuming that you’re recording the transactions on the first page of the journal, the page entry at the top right side of the journal should be

11. Posting references on the journal should be
A. made when journalizing.
B. entered when the journal is totaled.
C. entered when posting to the ledger.
D. entered in alphabetical order.
Use the following information to answer questions 1.2-20.
First, add Accounts Payable – J. C. Hollings and Accounts Payable-Craft Bank from the transactions prepared in Exam Figure 2 to the chart of accounts in Exam Figure 1. Next, open all ledger accounts using the form in Exam Figure 3. The post the journal entries from Exam Figure 2 to the ledger accounts and balance each ledger account. Be sure to post the balance of each account (from page 19 of the exam) before you post the transactions you just journalized.

12. After posting the journal entries to the ledger, what is the balar1lceof the Cash account?
A. Debit $4,056.82
B. Credit $3,013.90
C. Credit $1,042.92
D. Debit $3,013.90

13. After posting the journal entries to the ledger, what is the balance of the Equipment-Store
account?
A. Debit $4,500
B. Credit $1,500
c. Debit $8,000
D. Credit $4,500

14. On May 3, what is the balance of the Equipment-Office account?
A. Debit $5,090
B. Debit $690
C. Debit $4,400
D. CreQ1it$5,090

15. What is the balance of the Accounts Payable-Bell haven Bank account?
A. Debit $1,000
B. Debit $4,000
C. credit $5,000
D. Credit $4,000

16. After posting the journal entries to the ledger, what is the balance of the Supplies account?
A. Debit $500
B. Debit $542.92
C. 0 I
D. Credit $542.92

17. After posting the journal entries to the ledger, what is the balance of the Accounts Payable-Craft Bank account?

18. After posting the journal entries to the ledger, the opening balance of the P. Woodsley Capital
account was ~

19. What entry do you make in the Post Ref. column of the ledger to show that you posted the
transactions from the journal?
A. 1
B. J1

20. Asset accounts are increased by
A. entries to the debit side of the account
B. crediting a liability account
C. entries to the right side of the account
D. adding a credit entry to the account’s normal balance.
c. Leave it blank
D. 11