Problem 2-2A (Concluded)
Part 3
ARACEL ENGINEERING
Trial Balance
June 30
Debit Credit
Cash………………………………………..………….. $ 22,945
Accounts receivable…..….…….…….…….…. 29,000
Prepaid insurance……………..….…….…….... 3,000
Office equipment…………….………….……..… 6,150
Drafting equipment.…………………………….. 80,000
Building…………….………………….……..….….. 55,000
Land……………….……………………………….….. 49,000
Accounts payable……………….……………….. $ 1,333
Notes payable………………..…….…….……..… 53,200
Problem 2-3A (90 minutes)
Part 1
Mar. 1 Cash………………….………….…..……..…..…....101 150,000
Office Equipment……….…..…..…....…..…....163 22,000
Common Stock…………….…..…..…..….307 172,000
Owner invested cash and equipment for stock.
2 Prepaid Rent……………………………...….....…131 6,000
Cash..…..….…..………………………………101 6,000
Prepaid six months’ rent.
22 Cash………………..………………....…...…....…..101 3,500
Accounts Receivable……....…..….......106 3,500
Collected part of amount owed by client.
25 Accounts Receivable……………..…..…..…...106 3,820
Services Revenue…………………….…...403 3,820
Billed client for completed work.
29 Dividends…………………………………….………319 5,100
Cash..…..….…..………………………………101 5,100
Paid cash dividends.
30 Office Supplies………………………..……..…...124 600
Accounts Payable……..…..…....….......201 600
31 Utilities Expense……….…..…..…..…..…..…..690 500
Cash..…..….…..………………………………101 500
Paid monthly utility bill.
Problem 2-3A (Continued)
Part 2
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Mar. 1 G1 150,000 150,000
2 G1 6,000 144,000
6 G1 4,000 148,000
12 G1 4,200 143,800
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Mar. 3 G1 1,200 1,200
30 G1 600 1,800
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Mar. 19 G1 5,000 5,000
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Mar. 2 G1 6,000 6,000
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Problem 2-3A (Continued)
Part 2 (Continued)
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Common Stock Acct. No. 307
Date Explanation PR Debit Credit Balance
Mar. 1 G1 172,000 172,000
Dividends Acct. No. 319
Date Explanation PR Debit Credit Balance
Mar. 29 G1 5,100 5,100
Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Utilities Expense Acct. No. 690
Date Explanation PR Debit Credit Balance
Mar. 31 G1 500 500
Problem 2-3A (Concluded)
Part 3
VENTURE CONSULTANTS
Trial Balance
March 31
Debit Credit
Cash …………………………………..……………………….. $136,700
Accounts receivable……………..…….…….….……... 7,820
Office supplies…………………………………………..…. 1,800
Prepaid insurance………………………..……..…….…. 5,000
Prepaid rent……………….………….……..…….…….…. 6,000
Office equipment…………….……………..…..…….….. 25,000
Problem 2-4A (90 minutes)
Part 1
a. Cash……………………….…….…….…..…….….101 60,000
Office Equipment…………...….…….…….….163 25,000
Common Stock…………………………….307 85,000
Owner invested cash and equipment for stock.
Purchased office supplies on account.
d. Automobiles………………….….…….……..….164 16,500
Common Stock……………….…….…….307 16,500
Owner contributed automobile to business
for stock.
e. Office Equipment…………...….…….……..…163 5,600
Accounts Payable…..…….…….…......201 5,600
Purchased office equipment on account.
f. Salaries Expense………….….…….…….…...601 1,800
Cash…………………………………………...101 1,800
Paid assistant’s salary.
Problem 2-4A (Part 1 Continued)
i. Accounts Payable…………….…….…….…...201 2,000
Cash…………………………………………...101 2,000
Paid cash on account.
j. Office Equipment…………...….…….……..…163 20,300
Cash…………………………………………...101 20,300
Purchased new equipment with cash.
m. Cash……………………………….…….….….……101 4,000
Accounts Receivable…..…….………..106 4,000
Received cash due on account.
n. Dividends…………………………………………..319 2,800
Cash…………………………………………...101 2,800
Paid cash dividends.
Financial and Managerial Accounting, 6th Edition
96
Problem 2-4A (Continued)
Part 2
Cash No. 101 Land No. 172
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 60,000 60,000 (b) 40,000 40,000
(b) 30,000 30,000
(f) 1,800 28,200 Accounts Payable No. 201
(g) 8,000 36,200 Date PR Debit Credit Balance
(l) 1,800 11,465
(m) 4,000 15,465 Notes Payable No. 250
(n) 2,800 12,665 Date PR Debit Credit Balance
(b) 170,000 170,000
Accounts Receivable No. 106
Date PR Debit Credit Balance
(k) 6,250 6,250 Common Stock No. 307
(m) 4,000 2,250 Date PR Debit Credit Balance
(a) 85,000 85,000
Office Supplies No. 108 (d) 16,500 101,500
Date PR Debit Credit Balance
(c) 2,000 2,000
Dividends No. 319
Office Equipment No. 163 Date PR Debit Credit Balance
Automobiles No. 164 Salaries Expense No. 601
Date PR Debit Credit Balance Date PR Debit Credit Balance
(d) 16,500 16,500 (f) 1,800 1,800
(l) 1,800 3,600
Building No. 170
Problem 2-4A (Concluded)
Part 3
HV CONSULTING
Trial Balance
September 30
Debit Credit
Cash …………..…………………………..………….. $ 12,665
Accounts receivable……………………………. 2,250
Office supplies…………………………………….. 2,000
Office equipment…………….………….……..… 50,900
Automobiles………………………………………... 16,500
Building…………….………………….……..….….. 160,000
Land……………….……………………………….….. 40,000
Accounts payable……………….……………….. $ 5,600