c.
Georgia Corporation
Trial Balance
September 30, 2015
Debit Credit
Cash……………………………………. 925,000$
Accounts receivable……………………
…
70,000
Office supplies………………………… 500
Land……………………………………. 200,000
Building…………………………………. 700,000
Notes payable…………………………. 800,000$
Accounts payable………………………. 500
Ex. 3.12 a. Feb. 1 Cash……………………………………………. 800,000
5 Cash……………………………………………. 100,000
8 Land………………………………………….. 150,000
540,000
60,000
Cash…………………………………….. 200,000
11 Office Supplies…………………………………. 800
14 Advertising Expense……………………………. 500
Cash ……………………………………. 500
25 12,000
Cash…………………………………… 12,000
28 600
Cash…………………………………… 600
Paid for office supplies purchased February 11.
Purchased land, building, and equipment
building for $750,000. Paid $200,000 and issued
a note payable for the balance.
Accounts Payable………………………………
Salary Expense…………………………………
Paid salary expense incurred in February.
Issued capital stock for $800,000.
Purchased offices supplies on account.
Paid the newspaper $500 for an advertisement to
be printed on February 18.
Borrowed cash from bank by issuing a note
payable.
Buildings……………………………………….
Office Equipment………………………………
…
Education.
b. Cash
Feb. 1 800,000 Feb. 8 200,000 Feb. 24 16,000
Feb. 5 100,000 Feb. 14 500
Office Supplies Land
Feb. 11 800 Feb. 20 200 Feb. 8 150,000
Feb. 28 bal. 600 Feb. 28 bal. 150,000
Buildings Office Equipment
Advertising Expense Salary Expense
Feb. 14 500 Feb. 25 12,000
Feb. 28 bal. 500 Feb. 28 bal. 12,000
Accounts Receivable
c.
Elaine Consulting
Trial Balance
February 28, 2015
Debit Credit
Cash……………………………………. 700,900$
Accounts receivable……………………
…
16,000
Office supplies………………………… 600
Land……………………………………. 150,000
Building…………………………………. 540,000
Office equipment………………………. 60,000
Notes payable…………………………. 650,000$
Ex. 3.13 Transaction
Ex. 3.14 Transaction
Ex. 3.15
a. The company’s most recent balance sheet is dated January 29, 2012. Thus, it is apparent
financial year does not coincide with the calendar year.
Education.
30 Minutes, Medium
a.
1 500,000
Ca
p
ital Stock 500,000
10 100,000
200,000
Cash 60,000
Notes Pa
y
able 240,000
Issued 25,000 shares of Capital Stock.
Feb.
SOLUTIONS TO PROBLEMS SET
A
HEARTLAND CONSTRUCTION
20__
PROBLEM 3.1A
General Journal
Cash
Land
Office Building
Purchased land and office building.
b.
Transaction Assets = Liabilities + Owners’ Equity
Feb. 1 + $500,000 (Capital
Feb. 10 + $100,000 (Land) $0
+ $200,000 (Office Building)
– $60,000 (Cash)
Feb. 16 + $12,000 (Computer Systems) $0 $0
– $12,000 (Cash)
Feb. 18 + $9,000 (Office Furnishings) $0
– $1,000 (Cash)
+ $240,000 (Notes
Payable)
PROBLEM 3.1
A
HEARTLAND CONSTRUCTION
(
concluded
)
+ $500,000 (Cash) $0
+ $8,000 (Accounts
Payable)
30 Minutes, Medium
a. (1) (a)
(b)
(2) (a)
PROBLEM 3.2
A
ENVIRONMENTAL SERVICES, INC.
The asset Accounts Receivable was increased. Increases in assets are recorded by debits.
Debit Accounts Receivable, $2,500.
Revenue has been earned. Revenue increases owners’ equity. Increases in owners’ equity
are recorded by credits. Credit Testing Service Revenue, $2,500.
The asset Testing Supplies was increased. Increases in assets are recorded by debits.
b.
1 2,500
Testin
g
Service Revenue 2,500
3 3,800
Cash 800
Accounts Pa
y
able 3,000
29 2,900
Cash 2,900
PROBLEM 3.2
A
ENVIRONMENTAL SERVICES, INC. (continued)
20__ Accounts Receivable
Billed customers for services rendered.
General Journal
Aug.
Testing Supplies
(1)
(2)
(3)
Purchased testing supplies.
(6)
Declared and paid a cash dividend.
Accounts Payable
Received partial payment for services billed on
Paid outstanding balance owed for testing supplies
purchased on Aug. 3.
Aug. 1.
g
c.
d.
The realization principle requires that revenue be recorded when it is earned , even if cash for the
goods or services provided has not been received.
The matching principle requires that expenses incurred in an accounting period be matched with
PROBLEM 3.2
A
ENVIRONMENTAL SERVICES, INC. (concluded)
35 Minutes, Medium
Revenue Expenses = Assets Liabilities =
NE I D D NE D
INEII NEI
Sept. 1
Transaction
Sept. 3
Income Statement Net
Income
a.
PROBLEM 3.3A
WEIDA SURVEYING, INC.
Balance Sheet Owners’
Equity
b.
Se
p
t. 1 4,400
Cash 4,400
3 5,620
Surve
y
in
g
Revenue 5,620
9 2,830
Surve
y
in
g
Revenue 2,830
26 400
1,490
Surve
y
in
g
Revenue 1,890
29 165
Cash 165
PROBLEM 3.3
A
WEIDA SURVEYING, INC. (concluded)
Rent Expense
Paid September rent.
General Journal
Billed Fine Line Homes for surveying services.
Accounts Receivable
Collected cash from Sunset Ridge Development for
services provided.
Cash
Cash
Accounts Receivable
Sept. 20.
Collected partial payment from Thompson
and billed remainder.
Accounts Payable
Paid newspaper for advertisement published on
Education.