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11
Preparing a Worksheet
2. Cash received before the service is performed or goods sold. It represents a liability until service is
performed or goods are provided to customer.
4. Calculates the cost of ending inventory.
6. To calculate cost of goods sold, the cost of ending inventory is subtracted. This figure for ending
7. The question in this case is whether Jim should use the petty cash fund for his own personal use.
SOLUTIONS TO CONCEPT CHECKS
1.
Adjusting Entries
Income Summary
62
0
0
0
00
Merchandise Inventory
62
0
0
0
00
Merchandise Inventory
13
0
0
0
00
Income Summary
13
0
0
0
00
2. a.
Unearned Dog Walking Fees
2
0
0
00
Earned Dog Walking Fees
2
0
0
00
b. Liability
3.
a.
1
b.
1
c.
4
d.
2
e.
3
4.
Income Summary
2
1
0
0
00
Merchandise Inventory
2
1
0
0
00
Merchandise Inventory
5
0
00
Income Summary
5
0
00
5.
A.
$390
B.
$850
C.
$390
D.
$850
E.
$390
F.
$850
SOLUTIONS TO SET A EXERCISES
11A-1.
(a)
Credit
Liability
(b)
Debit
Cost of Goods Sold
(c)
Debit
Cost of Goods Sold
(d)
Debit
Expense
(e)
Credit
Contra-Cost of Goods Sold
(f)
Debit
Contra-Revenue
(g)
Credit
Liability
(h)
Credit
Contra-Cost of Goods Sold
11-4
11A-5.
Balance Sheet
Credit
11
3
39
1
54
54
Debit
9
5
15
4
16
49
5
54
MANNON COMPANY
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Income Statement
Credit
15
54
4
73
5
78
Debit
11
11
26
1
9
11
5
4
78
78
Adj. Trial Balance
Credit
11
3
39
15
54
4
1
127
Debit
9
5
15
4
16
11
11
26
1
9
11
5
4
127
Adjustments
Credit
(A) 11
(C) 5
(D) 4
(B) 15
(E) 1
36
Debit
(B)15
(A) 11
(E) 1
(C) 5
(D) 4
36
Trial Balance
Credit
7
3
39
―
54
4
107
Debit
9
5
11
9
16
―
11
26
1
8
11
107
Account Titles
Cash
Accounts Receivable
Merchandise Inventory
Store Supplies
Store Equipment
Acc. Dep., Store Equip.
Accounts Payable
J. Mannon, Capital
Income Summary
Sales
Sales Ret. & Allow.
Purchases
Purchases Discount
Freight-In
Salaries Expense
Advertising Expense
Store Supplies Expense
Dep. Exp., Store Equip.
Salaries Payable
Net Loss
SOLUTIONS TO SET B EXERCISES
11B-1.
(a)
Credit
Liability
(b)
Debit
Cost of Goods Sold
(c)
Debit
Cost of Goods Sold
(d)
Debit
Expense
(e)
Credit
Contra-Cost of Goods Sold
(f)
Debit
Contra-Revenue
(g)
Credit
Liability
(h)
Credit
Contra-Cost of Goods Sold
11B-2.
(a)
Net Sales:
Sales
-
Sales R & A
-
Sales Disc.
=
Net Sales
$21,700
-
$250
-
$480
=
$20,970
(b)
Cost of Goods Sold:
Beg. Inv.
+
Net Purchases
-
End. Inven.
Cost of Goods Sold
$680
+
$13,800
-
$500
=
$13,980
(c)
Gross Profit:
Net Sales
-
Cost of Goods Sold
=
Gross Profit
$20,970
-
$13,980
=
$6,990
(d)
Net Income:
Gross Profit
-
Operating Expense
=
Net Income
$6,990
-
$3,000
=
$3,990
11B-3.
Account
Category
Incr. Or Decr.
Rules
Amount
Unearned Janitorial Service Revenue
Liability
Decrease
Debit
$430
Janitorial Service Revenue
Revenue
Increase
Credit
$430
11B-4.
(a)
$42,000
+
$360,000
-
0
=
$402,000
(b)
$49,000
+
$360,000
-
$57,000
=
$352,000
(c)
0
+
$360,000
-
$27,000
=
$333,000
11B-5
Income Statement Balance Sheet
Credit
Debit
10
6
MICHAUD COMPANY
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Credit
Debit
Adj. Trial Balance
Credit
Debit
10
6
Adjustments
Credit
Debit
Trial Balance
Credit
Debit
10
6
Account Titles
Cash
Accounts Receivable
Copyright © 2016 Pearson Education, Inc.
11-7
SOLUTIONS TO SET A PROBLEMS
PROBLEM 11A-1
a
Net sales is $5,975.
b
Cost of goods sold is $1,082.
c
Gross profit is $4,893.
d
Net income is $3,293.
PROBLEM 11A-2
Balance Sheet
Credit
Debit
791
1,252
340
Income Statement
Credit
JIM’S HARDWARE
WORKSHEET
FOR THE YEAR ENDED DEC. 31, 201X
Debit
Adj. Trial Balance
Credit
Debit
791
1,252
340
Adjustments
Credit
(A) 600
Debit
(B) 340
Trial Balance
Credit
Debit
791
1,252
600
Account Titles
Cash
Accounts Receivable
Merchandise Inventory
11-9
PROBLEM 11A-3
Balance Sheet
Credit
7,700
6,038
5,558
300
19,596
5,649
25,245
Debit
5,372
260
2,512
1,825
397
669
9,410
4,800
25,245
25,245
Income Statement
Credit
1,825
53,114
16
372
55,327
55,327
CAROL COMPANY
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Debit
4,951
96
2,550
29,316
8,124
2,325
825
576
210
205
500
49,678
5,649
55,327
Adj. Trial Balance
Credit
7,700
6,038
5,558
1,825
53,114
16
372
300
74,923
Debit
5,372
260
2,512
1,825
397
669
9,410
4,800
4,951
96
2,550
29,316
8,124
2,325
825
576
210
205
500
74,923
Adjustments
Credit
(A) 4,951
(D) 205
(C) 210
(E) 500
(B) 1,825
(F) 300
7,991
Debit
(B)1,825
(A) 4,951
(F) 300
(C) 210
(D) 205
(E) 500
7,991
Trial Balance
Credit
7,200
6,038
5,558
—
53,114
16
372
72,298
Debit
5,372
260
2,512
4,951
602
879
9,410
4,800
—
96
2,550
29,316
7,824
2,325
825
576
72,298
Account Titles
Cash
Petty Cash
Accounts Receivable
Merchandise Inventory
Prepaid Rent
Office Supplies
Office Equipment
Acc. Dep., Office Equip.
Accounts Payable
K. Carol, Capital
K. Carol, Withdrawals
Income Summary
Sales
Sales Ret. & Allow.
Sales Discount
Purchases
Purchases Discount
Purchases Ret. & Allow.
Office Salaries Expense
Insurance Expense
Advertising Expense
Utilities Expense
Office Supplies Expense
Rent Expense
Dep. Exp., Office Equip.
Office Salaries Payable
Net Income
