Serial Problem — SP 4 (Continued)
Part 2
Ledger accounts as of March 31 before posting of March 31 adjusting entries
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 48,372
Jan. 4 625 47,747
5 25,000 72,747
9 2,668 75,415
15 600 74,815
16 4,000 78,815
17 5,742 73,073
22 4,653 77,726
31 1,250 76,476
16 5,260 72,015
19 3,830 68,185
31 128 68,057
Accounts Receivable—Alex’s Engineering Co. Acct. No. 106.1
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Jan. 11 5,500 5,500
Feb. 11 5 ,500 0
Accounts Receivable—Wildcat Services Acct. No. 106.2
Date Explanation PR Debit Credit Balance
Serial Problem — SP 4 (Continued)
Accounts Receivable—Easy Leasing Acct. No. 106.3
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Mar. 24 9 ,047 9 ,047
Accounts Receivable—IFM Co. Acct. No. 106.4
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 3,000
Mar. 30 2 ,220 5 ,220
Accounts Receivable—Liu Corporation Acct. No. 106.5
Date Explanation PR Debit Credit Balance
Accounts Receivable—Gomez Co. Acct. No. 106.6
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 2,668
Jan. 9 2 ,668 0
Accounts Receivable—Delta Co. Acct. No. 106.7
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Feb. 23 3,220 3,220
Mar. 9 3 ,220 0
Accounts Receivable—KC, Inc. Acct. No. 106.8
Date Explanation PR Debit Credit Balance
Serial Problem — SP 4 (Continued)
Accounts Receivable—Dream, Inc. Acct. No. 106.9
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Merchandise Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Jan. 7 5,800 5,800
13 3,560 2,240
15 600 2,840
17 58 2,782
24 496 2,286
Computer Supplies Acct. No. 126
Date Explanation PR Debit Credit Balance
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,665
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 825
Feb. 1 2,475 3,300
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Serial Problem — SP 4 (Continued)
Accumulated Depreciation—Office Equipment Acct. No. 164
Date Explanation PR Debit Credit Balance
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 20,000
Accumulated Depreciation—Computer Equipment Acct. No. 168
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,250
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,100
Jan. 7 5,800 6,900
17 5,800 1,100
Wages Payable Acct. No. 210
Date Explanation PR Debit Credit Balance
Unearned Computer Services Revenue Acct. No. 236
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,500
Jan. 11 1,500 0
Serial Problem — SP 4 (Continued)
Common Stock Acct. No. 307
98,000
Retained Earnings Acct. No. 318
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 7,360
Dividends Acct. No. 319
Date Explanation PR Debit Credit Balance
Feb. 15 4,800 4,800
Computer Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Sales Acct. No. 413
Date Explanation PR Debit Credit Balance
Sales Returns and Allowances Acct. No. 414
Date Explanation PR Debit Credit Balance
Jan. 20 500 500
Serial Problem — SP 4 (Continued)
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Jan. 22 47 47
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Depreciation Expense—Office Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Depreciation Expense—Computer Equipment Acct. No. 613
Date Explanation PR Debit Credit Balance
Wages Expense Acct. No. 623
Date Explanation PR Debit Credit Balance
Insurance Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
Rent Expense Acct. No. 640
Date Explanation PR Debit Credit Balance
Serial Problem — SP 4 (Continued)
Computer Supplies Expense Acct. No. 652
Date Explanation PR Debit Credit Balance
Advertising Expense Acct. No. 655
Mileage Expense Acct. No. 676
Date Explanation PR Debit Credit Balance
Feb. 27 192 192
Mar. 31 128 320
Miscellaneous Expenses Acct. No. 677
Date Explanation PR Debit Credit Balance
Repairs Expense—Computer Acct. No. 684
Date Explanation PR Debit Credit Balance
Serial Problem — SP 4 (Continued) Part 3
BUSINESS SOLUTIONS
Partial Work Sheet
March 31, 2016
Acct.
No. Account Title Unadjusted
Trial Balance Adjustments Adjusted
Trial Balance
101 Cash…..…..…………………………
68,057 68,057
106.1 Alex’s Engineering Co……....... 0 0
106.2 Wildcat Services………............
2,800 2,800
106.3 Easy Leasing……………………..
9,047 9,047
106.4 IMF Co……………......................
5,220 5,220
106.5 Liu Corporation…................... 0 0
106.6 Gomez Co.………………………… 0 0
106.7 Delta Co.……………………………. 0 0
106.8 KC, Inc……………………………….
5,800 5,800
201 Accounts payable…………….... 0 0
210 Wages payable....................... 0(c) 875 875
236 Unearned computer
services revenue…..............
0 0
307 Common stock....................... 98,000 98,000
318 Retained earnings.................. 7,360 7,360
319 Dividends……….……................
4,800 4,800
403 Computer services revenue………. 25,307 25,307
413 Sales……………………………….... 19,240 19,240
414 Sales returns and allow…..........
500 500
415 Sales discounts……................ 47 47
502 Cost of goods sold……...........
13,910 (g) 142 14,052
612 Depreciation expense–
Office equipment................. 0(f) 400 400
613 Depreciation expense–
Serial Problem — SP 4 (Continued)
Part 4
BUSINESS SOLUTIONS
Income Statement
For Three Months Ended March 31, 2016
Revenues
Computer services revenue……….……….…….……….. $25,307
Net sales*……………….……………..……..……….……….…. 18 ,693
Total revenues…….……………………………………………… 44,000
Computer supplies expense…………….…………………. 1,305
Advertising expense………………….….…….….…………. 600
Mileage expense……………………………………….……….. 320
Repairs expense—Computer…….….……….……….….. 960
Total expenses…………………………….…………….………. 25 ,167
Net income……………..……………………………………………. $18 ,833
* Net sales = $19,240 – $500 – $47 = $18,693
Part 5
BUSINESS SOLUTIONS
Statement of Retained Earnings
For Three Months Ended March 31, 2016
Retained earnings, Dec. 31, 2015…………………….….. $ 7,360
Plus: Net income……………………………….……….……… 18 ,833