Additional Perspective 2-1
Requirement 1
Entries are numbered for posting.
Additional Perspective 2-1 (continued)
Requirement 1 (concluded)
Additional Perspective P2-1 (continued)
Requirement 2
Additional Perspective 2-1 (concluded)
Requirement 3
Additional Perspective 2-2
Additional Perspective 2-3
Additional Perspective 2-4
Additional Perspective 2-5
Additional Perspective 2-6
Additional Perspective 2-7
For transaction (a):
Step 1. Analyze customer invoice.
Step 2. Determine assets increase and stockholders’ equity increases (and revenues increase).
Step 3. Increase assets with a debit and increase revenues with a credit.
Step 4. Accounts Receivable 500
Service Revenue 500
(Provide services on account)
For transaction (b):
Step 1. Analyze employee paycheck.
Step 2. Determine assets decrease and stockholders’ equity decreases (and expenses increase).
Step 3. Decrease assets with a credit and increase expenses with a debit.
Step 4. Salaries Expense 1,200
Cash 1,200
(Pay salary for the current month)
For transaction (c):
Step 1. Analyze purchase receipt for equipment.
Step 2. Determine one asset increases and another asset decreases.
Step 3. Increase assets with a debit and decrease assets with a credit.
Step 4. Equipment 2,700
Cash 2,700
(Purchase office equipment)
Step 5. All transactions are posted to the general ledger accounts.
Step 6. A trial balance is prepared using the balance of each general ledger account. Total debits should equal total credits in the trial balance.