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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
Problem 2-5A (90 minutes)
Part 1
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2014
Assets Liabilities
Cash.............................. $ 64,300 Accounts payable................$ 3,500
Accounts receivable.... 26,240
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2015
Assets Liabilities
Cash.............................. $ 15,640 Accounts payable................. $ 33,500
Accounts receivable.... 19,390 Note payable......................... 40,000
Office supplies............. 1,960 Total liabilities....................... 73,500
Part 2
Computation of 2015 net income:
Equity, December 31, 2014........................................................... $282,200
Add net income............................................................................ ?
Part 3
Part 1
MIN ENGINEERING
Trial Balance
May 31
Debit Credit
Cash........................................................... $37,641
Office supplies.......................................... 890
Prepaid insurance..................................... 4,600
Part 2: Likely transactions (following order of trial balance).
1. Purchased $890 of office supplies for cash.
2. Paid $4,600 insurance premium in advance.
Part 3
Report of Cash Received and Paid
Cash received
Owner investment ................................... $18,000
Engineering fees ...................................... 36 ,000
PROBLEM SET B
Problem 2-1B (90 minutes)
Part 1
Sept.1 Cash.........................................................101 38,000
Prepaid twelve months’ rent.
4 Office Equipment....................................163 8,000
Office Supplies........................................124 2,400
Accounts Payable............................201 10,400
Purchased equipment and supplies on credit.
(Continued)
Part 2
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Sept. 1 G1 38,000 38,000
2 G1 9,000 29,000
8 G1 3,280 32,280
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Problem 2-1B (Continued)
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Sept. 4 G1 10,400 10,400
H. Humble, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
H. Humble, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Services Revenue Acct. No. 401
Date Explanation PR Debit Credit Balance
Sept. 8 G1 3,280 3,280
Utilities Expense Acct. No. 690
Date Explanation PR Debit Credit Balance
Problem 2-1B (Concluded)
Part 3
HUMBLE MANAGEMENT SERVICES
Trial Balance
September 30
Debit Credit
Cash................................................................ $21,520
Accounts receivable...................................... 9,800
Office supplies............................................... 2,950
Problem 2-2B (90 minutes) Part 1
Part 1
a. Cash............................................................101 65,000
Owner invested cash and equipment.
b. Land............................................................172 22,000
Purchased land with cash and note payable.
Purchased building.
Purchased 24-month insurance policy.
Collected cash for completed work.
Purchased equipment with cash and note
payable.
Completed services for client.
Purchased equipment on credit.
Problem 2-2B (Part 1 Continued)
Billed client for completed work.
Incurred computer rental expense.
Collected cash on account.
Paid assistant’s wages.
Paid amount due on account.
Paid for repair of equipment.
Owner withdrew cash for personal use.
Paid assistant’s wages.
Paid for advertising expense.
Problem 2-2B (Continued)
Part 2
Cash No. 101 Accounts Payable No. 201
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 65,000 65,000 (h) 950 950
(b) 5,000 60,000 (j) 580 1,530
(c) 34,500 25,500 (m) 950 580
Accounts Receivable No. 106 B. Grechus, Withdrawals No. 302
Date PR Debit Credit Balance Date PR Debit Credit Balance
(g) 4,250 4,250 (o) 6,230 6,230
Date PR Debit Credit Balance
Prepaid Insurance No. 108 (e) 4,600 4,600
Date PR Debit Credit Balance (g) 4,250 8,850
Office Equipment No. 163 Wages Expense No. 601
Date PR Debit Credit Balance Date PR Debit Credit Balance
Computer Equipment No. 164 Computer Rental Expense No. 602
Date PR Debit Credit Balance Date PR Debit Credit Balance
Building No. 170 Advertising Expense No. 603
Date PR Debit Credit Balance Date PR Debit Credit Balance
Land No. 172 Repairs Expense No. 604
Date PR Debit Credit Balance Date PR Debit Credit Balance
Problem 2-2B (Concluded)
Part 3
SOFTWORKS
Trial Balance
April 30
Debit Credit
Cash ............................................................ $ 17,262
Accounts receivable.................................... 9,350
Prepaid insurance........................................ 5,000
Problem 2-3B (90 minutes)
Part 1
Nov. 1 Cash............................................................101 30,000
2 Prepaid Rent...............................................131 4,500
4 Office Equipment.......................................163 2,500
8 Cash............................................................101 3,400
12 Accounts Receivable.................................106 10,200
13 Accounts Payable......................................201 3,100
19 Prepaid Insurance......................................128 1,800
22 Cash............................................................101 5,200
24 Accounts Receivable.................................106 1,750
28 M. Zucker, Withdrawals.............................302 5,300
29 Office Supplies...........................................124 249
30 Utilities Expense........................................690 831
