Chapter 2 Analyzing EX 2-11 Retained earnings account balance . 1, 2 dividends totaled $10,000, and the business incurred a net loss of $320,000 As of January 1, Retained Earnings had a credit balance of $314,000. During the year, Compute the balance of Retained Earnings as of the end of the year. b. Assuming that there have been no recording errors, will the statement of financial position prepared at December 31 balance? Explain. EX 2-12 identifying transactions OBJ. 1, 2 Grand Canyon Tours Co. is a travel agency. The nine transactions recorded by Grand Canyon Tours during April 2014, its first month of operations, are indicated in the fol- lowing T accounts: Equipment 25,000 Dividends 5.000 (9) (1) 123 Cash 75.000 (2) 11,000 (3) (4) (6) (9) 4,000 (3) 3,000 2.700 9,000 5.000 Service Revenue (5) 19,500 Accounts Payable 9.000 (3) Accounts Receivable 19.500 (7) 11,000 (6) 22.000 (5) Supplies 4,000 (8) Operating Expenses 2.700 2,000 Share Capital-Ordinary (1) 75,000 (4) (8) 2,000 (2) Indicate for each debit and each credit: (a) whether an asset, liability, equity, dividends, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased (-). Present your answers in the following form, with transaction (1) given as an example: Account Credited Type Effect equity Account Debited Type Effect asset Transaction (1) EX 2-13 Journal entries OBJ. 1, 2 Based upon the T accounts in Exercise 2-12, prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted of Credit $675,000 EX 2-14 Trial balance OBJ. 4 The accounts in the ledger of Leaf Co, as of December 31, 2014, are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Accounts Payable $ 23,500 Notes Payable $ 50,000 Accounts Receivable 38,100 Prepaid Insurance 6,400 Share Capital-Ordinary 8,000 Rent Expense 36,000 Cash ? Retained Earnings 42,000 Dividends 16,000 Supplies 3,200 Fees Earned 538,000 Supplies Expense 9,000 Insurance Expense 6,000 Unearned Rent 13,500 Land 40,000 Utilities Expense 18,000 Miscellaneous Expense 12,000 Wages Expense 476,800 Prepare an unadjusted trial balance, listing the accounts in their normal order and insert- ing the missing figure for cash. Packspace + Insett Home NA MW 9 Up Delete Erla End Page Down 1 T Shirt AR Home Ctrl 1 End 0 Ins