The Recording Process in Accounting: Solutions for Do It!

CHAPTER 2 The Recording Process SOLUTIONS FOR DO IT! EXERCISES DO IT! 2.1 Tom would likely need the following accounts in which to record the transactions necessary to ready his photography studio for opening day: Cash (debit balance) Equipment (debit balance) Supplies (debit balance) Accounts Payable (credit balance) Notes Payable (credit balance) Share Capital—Ordinary (credit balance) DO IT! 2.2 Each transaction that is recorded is entered in the general journal. The three activities would be recorded as follows: 1. Cash.... 6,500 Share apltal—Ordmary .. 6,500 2. Supplies 1,200 Cash.. 400 Accounts Payable... 800 3. No entry because no transaction has occurred.