Question

Exercise 2-11 Presented below is the ledger for Higgs Co. 10/1 10/10 10/10 10/20 600 1,340 350 140 10/25 590 Cash No. 101 5,400 10/4 620 10/12 2,300 10/15 540 10/30 2,600 10/31 Accounts Receivable No. 112 730 10/20 670 Supplies No. 126 600 Equipment No. 157 2,400 540 10/6 10/20 10/4 10/3

Answer 1

Journal Entries:

Date	Account tittle and Explanation	Debit	Credit
Oct.1	Cash	$5,400
	Common stock		$5,400
	[Issued shares of stock for cash]
Oct.10	Cash	$620
	Service revenue		$620
	[Received cash for services provided]
Oct.10	Cash	$2,300
	Notes payable		$2,300
	[Obtained loan from bank]
Oct.20	Cash	$540
	Accounts receivable		$540
	[Received cash in payment of account]
Oct.20	Accounts receivable	$670
	Service revenue		$670
	[Billed clients for services provided]

Trial Balance:

HIGGS CO.
Trial Balance
October 31,2015
	Debit	Credit
Cash	$8,440
Accounts receivable	$860
Supplies	$600
Equipment	$2,400
Notes payable		$2,300
Accounts payable		$1,060
Common stock		$8,000
Dividends	$140
Service revenue		$2,020
Salaries and wages expense	$590
Rent expense	$350
Total	$13,380	$13,380