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
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.
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
Serial Problem — SP 2
Part 1 (120 minutes) Serial Problem, Business Solutions
2015
Owner invests cash and equipment.
2 Prepaid Rent……………………………………...131 3,300
Cash……………………………………………101 3,300
Paid four months’ rent in advance.
3 Computer Supplies………………….…………126 1,420
Accounts Payable……….…………......201 1,420
Purchased supplies on credit.
10 No entry necessary in the journal.
12 Accounts Receivable ……………………..….106 1,400
Computer Services Revenue………..403 1,400
Billed customer for services.
15 Cash……………………………….….……………..101 4,800
Accounts Receivable ………….……...106 4,800
Collected accounts receivable.
17 Repairs Expense—Computer……...........684 805
Cash……………………………………………101 805
Paid for computer repairs.
Serial Problem, Business Solutions (Continued)
28 Accounts Receivable ……………………..….106 5,208
Computer Services Revenue ……….403 5,208
Billed customer for services.
31 Wages Expense………………………………....623 875
Cash ………………………………………..…101 875
Paid employee for part-time work.
31 S. Rey, Withdrawals……………..………….…302 3,600
Cash ………………………………………..…101 3,600
Owner withdrew cash.
13 No entry necessary. (No revenue recognized until work performed.)
18 Cash……………………………….……….………..101 2,208
Accounts Receivable………….……....106 2,208
Collected accounts receivable.
22 Miscellaneous Expenses…………............677 250
Cash……………………………………………101 250
Record donation. (Some companies use a Donations account.)
Cash……………………………………………101 2,000
Owner withdrew cash.
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
5 1,125 40,440
18 2,208 42,648
22 250 42,398
28 384 42,014
30 1,750 40,264
30 2,000
38,264
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
24 3,950 12,618
Computer Supplies Acct. No. 126
Date Explanation PR Debit Credit Balance
Oct. 3 1,420 1,420
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
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Oct. 3 1,420 1,420
8 1,420 0
S. Rey, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
Oct. 1 73,000 73,000
S. Rey, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
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
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
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
Accounts payable…………………………………….. $ 0
S. Rey, Capital………………………………………..… 73,000
S. Rey, Withdrawals…………………………………. 5,600
Computer services revenue…..…….…………… 25,659
Wages expense………………………………………… 2,625
Totals……………………………………….……………... $98 ,659 $98 ,659