PROBLEM 12A-2 (CONCLUDED)
JAMES CO.
BALANCE SHEET
DECEMBER 31, 201X
Assets
Current Assets:
Cash
$24
0
0
00
Petty Cash
6
0
00
Accounts Receivable
1
5
0
00
Merchandise Inventory
4
0
0
00
Supplies
2
5
00
Prepaid Insurance
0
0
00
Total Current Assets
$30
6
3
5
00
Plant and Equipment:
Store Equipment
$ 3
0
0
0
00
Less: Acc. Depr., Store Equip.
7
5
0
00
$ 2
5
0
00
Automobile
2
0
0
0
00
Less: Acc. Depr., Auto
1
7
5
00
1
2
5
00
Total Plant and Equipment
4
0
7
5
00
Total Assets
$34
7
1
0
00
Liabilities
Current Liabilities:
Mortgage Payable
$
2
4
0
00
Accounts Payable
3
0
0
0
00
Salaries Payable
6
5
0
00
Taxes Payable
2
4
0
0
00
Unearned Rent
20
5
0
0
00
Total Current Liabilities
$26
9
0
00
Long-Term Liabilities:
Mortgage Payable
1
0
00
Total Liabilities
$27
1
0
0
00
Owner’s Equity
H. James, Capital
7
6
1
0
00
Total Liabilities & Owner’s Equity
$34
7
1
0
00
12–12
PROBLEM 12A-3 (1)
Balance Sheet
Credit
1,410
5,050
1,830
1,260
10,500
20,050
4,930
24,980
Debit
2,500
2,700
10,600
1,370
3,500
4,310
24,980
24,980
Income
Statement
Credit
10,600
96,250
13,600
3,170
350
123,970
123,970
Debit
11,200
3,240
2,590
63,800
2,700
10,900
10,100
13,600
370
540
119,040
4,930
123,970
JOSH’S SUPPLIES
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Adj. Trial Balance
Credit
1,410
5,050
1,830
1,260
10,500
10,600
96,250
13,600
3,170
350
144,020
Debit
2,500
2,700
10,600
1,370
3,500
4,310
11,200
3,240
2,590
63,800
2,700
10,900
10,100
13,600
370
540
144,020
Adjustments
Credit
(A) 11,200
(E) 540
(D) 370
(B) 10,600
(C) 350
23,060
Debit
(B) 10,600
(C) 350
(A) 11,200
(D) 370
(E) 540
23,060
Trial Balance
Credit
1,040
5,050
2,180
1,260
10,500
96,250
13,600
3,170
133,050
Debit
2,500
2,700
11,200
1,910
3,500
4,310
3,240
2,590
63,800
2,700
10,900
10,100
13,600
133,050
Account Titles
Cash
Accounts Receivable
Merch. Inv. 1/1/1X
Prepaid Insurance
Equipment
Acc. Dep. Equip.
Accounts Payable
Unearned Training
Fees
Mortgage Payable
P. Josh, Capital
P. Josh, Withdrawals
Income Summary
Sales
Sales Returns & Allow.
Sales Discount
Purchases
Purch. Returns &
Allow.
Purchases Discounts
Freight-In
Advertising Expense
Rent Expense
Salaries Expense
Training Fees Earned
Dep. Exp, Equipment
Insurance Expense
Net Income
PROBLEM 12A-3 (CONTINUED)
(2)
JOSH‘S SUPPLIES
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 201X
Revenue:
Gross Sales
$96
2
5
0
00
Less: Sales Ret. & Allow.
$3
2
4
0
00
Sales Discount
2
5
9
0
00
5
8
3
0
00
Net Sales
90
4
2
0
00
Cost of Goods Sold
Merch. Inventory, 1/1/1X
$11
2
0
0
00
Purchases
$63
0
0
00
Less: Purch. Ret. & Allow.
$13
6
0
0
00
Purchase Disc.
3
1
7
0
00
16
7
7
0
00
Net Purchases
$47
0
3
0
00
Add: Freight-In
2
7
0
0
00
Net Cost of Purchases
49
7
3
0
00
Cost of Goods Avail for Sale
$60
9
3
0
00
Less: Merch. Inv. 12/31/1X
10
6
0
0
00
Cost of Goods Sold
50
3
3
0
00
Gross Profit
$40
0
9
0
00
Operating Expenses:
Advertising Expense
$10
9
0
0
00
Rent Expense
10
1
0
0
00
Salaries Expense
13
6
0
0
00
Dep. Exp., Equipment
3
7
0
00
Insurance Expense
5
4
0
00
Total Operating Expenses
35
5
1
0
00
Net Income from Operations
$4
5
8
0
00
Other Income:
Training Fees Earned
3
5
0
00
Net Income
$4
9
3
0
00
PROBLEM 12A-3 (CONTINUED)
JOSH’S SUPPLIES
STATEMENT OF OWNER’S EQUITY
PROBLEM 12A-3 (CONTINUED)
JOSH’S SUPPLIES
BALANCE SHEET
DECEMBER 31, 201X
Assets
Current Assets:
Cash
$2
5
0
0
00
Accounts Receivable
2
7
0
0
00
Merchandise Inventory
10
6
0
0
00
Prepaid Insurance
1
3
7
0
00
Total Current Assets
$17
1
7
0
00
Plant and Equipment:
Equipment
$3
5
0
0
00
Less: Acc. Depreciation
1
4
1
0
00
2
0
9
0
00
Total Assets
$19
2
6
0
00
Liabilities
Current Liabilities
Mortgage Payable
$
8
9
0
00
Accounts Payable
5
0
5
0
00
Unearned Training Fees
1
8
3
0
00
Total Current Liabilities
$7
7
7
0
00
Long-Term Liabilities
Mortgage Payable
3
7
0
00
Total Liabilities
$8
1
4
0
00
Owner’s Equity
P. Josh, Capital
11
1
2
0
00
Total Liabilities and Owner’s Equity
$19
2
6
0
00
PROBLEM 12A-3 (CONTINUED)
(3)
GENERAL JOURNAL
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
Adjusting Entries
Dec.
31
Income Summary
11
2
0
0
00
Merchandise Inventory
11
2
0
0
00
31
Merchandise Inventory
10
6
0
0
00
Income Summary
10
6
0
0
00
31
Unearned Training Fees
3
5
0
00
Training Fees Earned
3
5
0
00
31
Depreciation Expense, Equipment
3
7
0
00
Accumulated Depreciated, Equipment
3
7
0
00
31
Insurance Expense
5
4
0
00
Prepaid Insurance
5
4
0
00
Closing Entries
31
Sales
96
2
5
0
00
Training Fees Earned
3
5
0
00
Purchases Returns and Allowance
13
6
0
0
00
Purchases Discount
3
1
7
0
00
Income Summary
113
3
7
0
00
31
Income Summary
107
8
4
0
00
Sales Returns and Allowances
3
2
4
0
00
Sales Discount
2
5
9
0
00
Purchases
63
8
0
0
00
Freight-In
2
7
0
0
00
Advertising Expense
10
9
0
0
00
Rent Expense
10
1
0
0
00
Salaries Expense
13
6
0
0
00
Depreciation Expense, Equipment
3
7
0
00
Insurance Expense
5
4
0
00
31
Income Summary
4
9
3
0
00
P. Josh, Capital
4
9
3
0
00
31
P. Josh, Capital
4
3
1
0
00
P. Josh, Withdrawals
4
3
1
0
00
12–17
PROBLEM 12A-4
(1)
Balance Sheet
Credit
730
1,180
85
8,539
4,923
13,462
Debit
1,260
4,800
100
32
2,600
3,300
13,462
13,462
Income Statement
Credit
4,800
23,100
285
290
28,475
28,475
CULLEN LUMBER
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 201X
Debit
4,450
220
14,600
2,565
370
790
177
180
200
23,552
4,923
28,475
Adjusted Trial Balance
Credit
730
1,180
4,800
23,100
285
290
85
37,014
Debit
1,260
4,800
100
32
2,600
3,300
4,450
220
14,600
2,565
370
790
177
180
200
37,014
Adj. Entries
Credit
(A) 4,450
(C) 177
(D) 180
(E) 200
(B) 4,800
(F) 85
9,892
Debit
(B) 4,800
(A) 4,450
(F) 85
(C) 177
(D) 180
(E) 200
9,892
Trial Balance
Trial Balance
Credit
530
1,180
23,100
285
290
31,929
Debit
1,260
4,450
277
212
2,600
3,300
220
14,600
2,480
370
790
31,929
Account Titles
Accounts Receivable
Merch. Inventory
Lumber Supplies
Prepaid Insurance
Lumber Equipment
Acc. Dep., Lumber Equip.
Accounts Payable
J. Cullen, Withdrawals
Income Summary
Sales
Sales Returns & Allow.
Purchases
Purchases Discount
Purch. Ret & Allow.
Wages Expense
Advertising Expense
Rent Expense
Lumber Supplies Expense
Insurance Expense
Dep. Exp., Lumber Equip.
Wages Payable
Net Income
PROBLEM 12A-4 (CONTINUED)
(2)
CULLEN LUMBER
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 201X
Revenue:
Gross Sales
$23
1
0
0
00
Less: Sales Ret. and Allow.
2
2
0
00
Net Sales
$22
8
8
0
00
Cost of Goods Sold
Merchandise Inv. 1/1/1X
$4
4
5
0
00
Purchases
$14
6
0
0
00
Less: Purch. Discount
$
2
8
5
00
Purch. Ret. and Allow.
2
9
0
00
5
7
5
00
Net Cost of Purchases
14
0
2
5
00
Cost of Goods Avail. for Sale
$18
4
7
5
00
Less: Merch. Inv. 12/31/1X
4
8
0
0
00
Cost of Goods Sold
13
6
7
5
00
Gross Profit
$9
2
0
5
00
Operating Expenses:
Wages Expense
$2
5
6
5
00
Advertising Expense
3
7
0
00
Rent Expense
7
9
0
00
Lumber Supplies Expense
1
7
7
00
Insurance Expense
1
8
0
00
Depreciation Expense, Equip.
2
0
0
00
Total Operating Expenses
4
2
8
2
00
Net Income
$4
9
2
3
00
PROBLEM 12A-4 (CONTINUED)
CULLEN LUMBER
STATEMENT OF OWNER’S EQUITY
PROBLEM 12A-4 (CONTINUED)
CULLEN LUMBER
BALANCE SHEET
DECEMBER 31, 201X
Assets
Current Assets:
Cash
$1
3
7
0
00
Accounts Receivable
1
2
6
0
00
Merchandise Inventory
4
8
0
0
00
Lumber Supplies
1
0
0
00
Prepaid Insurance
3
2
00
Total Current Assets
$7
5
6
2
00
Plant and Equipment:
Lumber Equipment
$2
6
0
0
00
Less: Acc. Depr., Lumber Equip.
7
3
0
00
1
8
7
0
00
Total Assets
$9
4
3
2
00
Liabilities
Current Liabilities
Accounts Payable
$1
1
8
0
00
Wages Payable
8
5
00
Total Current Liabilities
$1
2
6
5
00
Owner’s Equity
J. Cullen, Capital
8
1
6
7
00
Total Liabilities and Owner’s Equity
$9
4
3
2
00