PROBLEM 2A-2
Cash 111
(A) 20,000
90(D)
(C) 2,900
550(E)
1,000(G)
Office Equipment 121
(B) 8,000
Accounts Payable 211
(G) 1,000
8,000 (B)
1,400 (F)
Brett Pillows, Capital 311
20,000 (A)
Brett Pillows, Withdrawals 312
(D) 90
Consulting Fees Earned 411
2,900(C)
Advertising Expense 511
(E) 550
Rent Expense 512
(F) 1,400
PROBLEM 2A-3
(a)
(A) 12,000
(G) 2,500
700 (D)
250 (E)
300 (F)
350 (H)
300 (I)
14,500
1,900
Bal 12,600
(B) 9,000
2,500 (G)
Bal 6,500
(C) 1,300
(H) 350
Bal 1,650
Accounts Payable 211
(D) 700
1,300 (C)
600 Bal
Bill Jolt, Capital 311
12,000 (A)
Bill Jolt, Withdrawals 312
(I) 300
Cleaning
Fees Earned 411
9,000 (B)
Rent Expense 511
(F) 300
Utilities Expense 512
(E) 250
(b)
BILL’S CLEANING SERVICE
TRIAL BALANCE
DECEMBER 31, 201X
Dr.
Cr.
Cash
12
6
0
0
Accounts Receivable
6
5
0
0
Office Equipment
1
6
5
0
Accounts Payable
6
0
0
Bill Jolt, Capital
12
0
0
0
Bill Jolt, Withdrawals
3
0
0
Cleaning Fees Earned
9
0
0
0
Rent Expense
3
0
0
Utilities Expense
2
5
0
Totals
21
6
0
0
21
6
0
0
PROBLEM 2A-4
(a)
GIRTIE LILLIS, ATTORNEY AT LAW
INCOME STATEMENT
FOR MONTH ENDED MAY 31, 201X
Revenue:
Revenue from Legal Fees
$1
8
0
0
Operating Expenses:
Utilities Expense
$
2
5
0
Rent Expense
5
0
0
Salaries Expense
5
0
0
Total Operating Expenses
1
2
5
0
Net Income
$
5
5
0
(b)
GIRTIE LILLIS, ATTORNEY AT LAW
STATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED MAY 31, 201X
Girtie Lillis, Capital, May 1, 201X
$2
7
2
0
Net Income for May
$
5
5
0
Less: Withdrawals for May
(8
0
0)
Decrease in Capital
(2
5
0)
Girtie Lillis, Capital, May 31, 201X
$2
4
7
0
PROBLEM 2A-4(CONCLUDED)
(c)
GIRTIE LILLIS, ATTORNEY AT LAW
BALANCE SHEET
MAY 31, 201X
ASSETS
LIABILITIES AND OWNER’S EQUITY
Cash
$4
0
0
0
Liabilities
Accounts Receivable
1
4
0
0
Accounts Payable
$2
9
0
0
Office Equipment
1
0
0
0
Salaries Payable
1
0
3
0
Total Liabilities
$3
9
3
0
Owner’s Equity
Girtie Lillis, Capital
2
4
7
0
Total Liabilities and
Total Assets
$6
4
0
0
Owner’s Equity
$6
4
0
0
PROBLEM 2A-5
(1, 2)
(A) 30,000
(E) 2,400
(J) 600
1,500 (C)
500 (D)
900 (F)
1,100 (G)
250 (K)
33,000
4,250
28,750
(H) 900
600 (J)
300
(C) 1,500
(B) 14,000
Accounts Payable 211
14,000 (B)
100 (I)
14,100
Andrea Adler, Capital 311
30,000 (A)
Andrea Adler, Withdrawals 312
(K) 250
Delivery Fees Earned 411
2,400 (E)
900 (H)
3,300
Advertising Expense 511
(D) 500
Gas Expense 512
(G) 1,100
Salaries Expense 513
(F) 900
Telephone Expense 514
(I) 100
PROBLEM 2A-5 (CONTINUED)
(3)
ADLER’S DELIVERY SERVICE
TRIAL BALANCE
JULY 31, 201X
Dr.
Cr.
Cash
28
7
5
0
Accounts Receivable
3
0
0
Office Equipment
1
5
0
0
Delivery Trucks
14
0
0
0
Accounts Payable
14
1
0
0
A. Adler, Capital
30
0
0
0
A. Adler, Withdrawals
2
5
0
Delivery Fees Earned
3
3
0
0
Advertising Expense
5
0
0
Gas Expense
1
1
0
0
Salaries Expense
9
0
0
Telephone Expense
1
0
0
Totals
47
4
0
0
47
4
0
0
(4a)
ADLER’S DELIVERY SERVICE
INCOME STATEMENT
FOR MONTH ENDED JULY 31, 201X
Revenue:
Delivery Fees Earned
$3
3
0
0
Operating Expenses:
Advertising Expense
$
5
0
0
Gas Expense
1
1
0
0
Salaries Expense
9
0
0
Telephone Expense
1
0
0
Total Operating Expenses
2
6
0
0
Net Income
$
7
0
0
PROBLEM 2A-5 (CONCLUDED)
(4b)
ADLER’S DELIVERY SERVICE
STATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JULY 31, 201X
A. Adler, Capital, July 1, 201X
$
0
Investment in July
30
0
0
0
Total investment for July
30
0
0
0
Net Income for July
$
7
0
0
Less: Withdrawals for July
(2
5
0)
Increase in Capital
4
5
0
A. Adler, Capital, July 31, 201X
$30
4
5
0
(4c)
ADLER’S DELIVERY SERVICE
BALANCE SHEET
JULY 31, 201X
ASSETS LIABILITIES AND OWNER’S EQUITY
Cash
$28
7
5
0
Liabilities
Accounts Receivable
3
0
0
Accounts Payable
$14
1
0
0
Office Equipment
1
5
0
0
Delivery Trucks
14
0
0
0
Owner’s Equity
A. Adler, Capital
30
4
5
0
Total Liabilities and
Total Assets
$44
5
5
0
Owner’s Equity
$44
5
5
0
SOLUTIONS TO SET B PROBLEMS
PROBLEM 2B-1
Accounts Affected
Category
Inc.
↑
Dec.
↓
Rules
T-Account update
A. Cash
Asset
↑
Dr.
Cash
B. O’Brien, Capital
B. O’Brien, Capital
Capital
↑
Cr.
(A) 25,000
25,000 (A)
B. Delivery Trucks
Asset
↑
Dr.
Delivery Trucks
Accounts Payable
Accounts Payable
Liability
↑
Cr.
(B) 12,000
12,000 (B)
C. Rent Expense
Expense
↑
Dr.
Rent Expense
Accounts Payable
Accounts Payable
Liability
↑
Cr.
(C) 1,100
12,000 (B)
1,100 (C)
D. Cash
Asset
↑
Dr.
Cash
Delivery Fees Earned
Delivery Fees Earned
Revenue
↑
Cr.
(A) 25,000
(D) 1,500
1,500 (D)
E. Accounts Receivable
Asset
↑
Dr.
Accounts Receivable
Delivery Fees Earned
Delivery Fees Earned
Revenue
↑
Cr.
(E) 600
1,500 (D)
600 (E)
F. B. O’Brien, Withdrawals
Withdrawal
↑
Dr.
B. O’Brien,
Withdrawals
Cash
Cash
Asset
↓
Cr.
(F) 700
(A)25,000
(D) 1,500
700 (F)
PROBLEM 2B-2
Cash 111
(A) 30,000
115 (D)
(C) 1,100
600 (E)
700 (G)
Office Equipment 121
(B) 5,000
Accounts Payable 211
(G) 700
5,000 (B)
1,000 (F)
Bill Palu, Capital 311
30,000 (A)
Bill Palu, Withdrawals 312
(D) 115
Consulting Fees Earned 411
1,100 (C)
Advertising Expense 511
(E) 600
Rent Expense 512
(F) 1,000
PROBLEM 2B-3
(a)
15,000 (A)
1,000 (G)
800 (D)
200 (E)
250 (F)
200 (H)
1,100 (I)
16,000
2,550
Bal. 13,450
15,000 (B)
1,000 (G)
Bal. 14,000
1,900 (C)
200 (H)
Bal. 2,100
Accounts Payable 211
800 (D)
1,900 (C)
1,100 Bal.
Breck Jal, Capital 311
15,000 (A)
Breck Jal, Withdrawals 312
1,100 (I)
Cleaning Fees Earned 411
15,000 (B)
Rent Expense 511
250 (F)
Utility Expense 512
200 (E)
(b)
BRECK’S CLEANING SERVICE
TRIAL BALANCE
MAY 31, 201X
Dr.
Cr.
Cash
13
4
5
0
Accounts Receivable
14
0
0
0
Office Equipment
2
1
0
0
Accounts Payable
1
1
0
0
Breck Jal, Capital
15
0
0
0
Breck Jal, Withdrawals
1
1
0
0
Cleaning Fees Earned
15
0
0
0
Rent Expense
2
5
0
Utilities Expense
2
0
0
Totals
31
1
0
0
31
1
0
0