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Problem 2-6B (35 minutes)
Part 1
GOULD SOLUTIONS
Trial Balance
April 30
Debit Credit
Cash ...................................................................... $19,982
Office supplies ..................................................... 760
Prepaid rent ......................................................... 1,800
Office equipment ................................................. 12,250
Accounts payable................................................. $12,250
Common stock..................................................... 15,000
Part 2: Likely transactions (following order of trial balance).
1. Purchased $760 of office supplies for cash.
2. Paid $1,800 cash for prepaid rent.
3. Purchased $12,250 office equipment on credit.
Part 3
Report of Cash Received and Paid
Cash received
Owner investment.................................... $15,000
Consulting fees ....................................... 20,400
Total cash received ................................. $35,400
Cash paid
Office supplies ......................................... 760
Prepaid rent ............................................. 1,800
Serial Problem — SP 2
Part 1 (120 minutes) Serial Problem, Business Solutions
2015
Oct. 1 Cash..........................................................101 45,000
Office Equipment.....................................163 8,000
Computer Equipment..............................167 20,000
Common Stock.................................307 73,000
Owner invests cash and equipment for stock.
6 Accounts Receivable ..............................106 4,800
Computer Services Revenue...........403 4,800
Billed customer for services.
8 Accounts Payable ...................................201 1,420
Cash...................................................101 1,420
Paid balance due on account payable.
10 No entry necessary in the journal.
12 Accounts Receivable ..............................106 1,400
Computer Services Revenue...........403 1,400
Billed customer for services.
Purchased ads in local newspaper.
22 Cash..........................................................101 1,400
Accounts Receivable ......................106 1,400
Collected accounts receivable.
Serial Problem, Business Solutions (Continued)
28 Accounts Receivable ..............................106 5,208
Computer Services Revenue ..........403 5,208
Billed customer for services.
Paid cash for dividends.
Nov. 1 Mileage Expense......................................676 320
Cash ..................................................101 320
Reimbursed Rey for mileage.
2 Cash..........................................................101 4,633
Computer Services Revenue...........403 4,633
Collected cash revenue from client.
5 Computer Supplies..................................126 1,125
Cash ..................................................101 1,125
Purchased computer supplies for cash.
24 Accounts Receivable...............................106 3,950
Computer Services Revenue...........403 3,950
Billed customer for services.
25 No entry necessary.
28 Mileage Expense......................................676 384
Cash...................................................101 384
Reimbursed Rey for mileage.
Serial Problem, Business Solutions (Continued)
Part 2
General Ledger accounts
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Oct. 1 45,000 45,000
2 3,300 41,700
5 2,220 39,480
8 1,420 38,060
15 4,800 42,860
17 805 42,055
20 1,728 40,327
22 1,400 41,727
31 875 40,852
31 3,600 37,252
Accounts Receivable Acct. No.106
Date Explanation PR Debit Credit Balance
Oct. 6 4,800 4,800
12 1,400 6,200
15 4,800 1,400
22 1,400 0
Computer Supplies Acct. No. 126
Date Explanation PR Debit Credit Balance
Oct. 3 1,420 1,420
Nov. 5 1,125 2,545
Serial Problem, Business Solutions (Continued)
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Oct. 5 2,220 2,220
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Oct. 1 8,000 8,000
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Oct. 3 1,420 1,420
8 1,420 0
Common Stock Acct. No. 307
Date Explanation PR Debit Credit Balance
Dividends Acct. No. 319
Date Explanation PR Debit Credit Balance
Financial and Managerial Accounting, 6th Edition
124
Serial Problem, Business Solutions (Concluded)
Computer Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Oct. 6 4,800 4,800
12 1,400 6,200
28 5,208 11,408
24 3,950 25,659
Wages Expense Acct. No. 623
Date Explanation PR Debit Credit Balance
Oct. 31 875 875
Nov.30 1,750 2,625
Advertising Expense Acct. No. 655
Date Explanation PR Debit Credit Balance
Oct. 20 1,728 1,728
Mileage Expense Acct. No. 676
Date Explanation PR Debit Credit Balance
Miscellaneous Expenses Acct. No. 677
Date Explanation PR Debit Credit Balance
Repairs Expense—Computer Acct. No. 684
Date Explanation PR Debit Credit Balance
Oct. 17 805 805
Serial Problem, Business Solutions (Continued)
Part 3
BUSINESS SOLUTIONS
Trial Balance
November 30
Debit Credit
Cash.................................................................. $38,264
Accounts receivable....................................... 12,618
Computer supplies.......................................... 2,545
Prepaid insurance........................................... 2,220
Prepaid rent..................................................... 3,300
Office equipment............................................. 8,000
Computer equipment...................................... 20,000
Accounts payable............................................ $ 0
Common stock................................................ 73,000
