ACCT 211 Connect Homework Chapter 2 Problems Liberty University Solution

Question 1

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.

1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).

2. Post the journal entries from part 1 to the ledger accounts.

3. Prepare a trial balance as of April 30.

Question 2

Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March.

1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).

2. Post the journal entries from part 1 to the ledger accounts.

3. Prepare a trial balance as of the end of March.

Question 3

Business transactions completed by Hannah Venedict during the month of September are as follows.

1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Fees Earned (402); Salaries Expense (601); and Utilities Expense (602).

2. Post the journal entries from part 1 to the ledger accounts.

3. Prepare a trial balance as of the end of September

Question 4

The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2016 and 2017.

1. Prepare balance sheets for the business as of December 31, 2016 and 2017. (Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities.)

Question 5

2. Compute net income for 2017 by comparing total equity amounts for these two years and using the following information: During 2017, the owner invested $33,000 additional cash in the business (in exchange for common stock) and the company paid $31,200 cash in dividends.

Question 6

3. Compute the 2017 year-end debt ratio for the business.

Question 7

Yi Min started an engineering firm called Min Engineering. He began operations and completed seven transactions in May, which included his initial investment of $20,000 cash. After those seven transactions, the ledger included the following accounts with normal balances.

1. Prepare a trial balance for this business as of the end of May.

Question 8

The following seven transactions produced the account balances shown above.

2. Prepare a Cash T-account for the above transaction, and compute the ending Cash balance (code each entry with one of the transaction codes a through g).