d.
144,200$
200
5,000
130,000
50,000
70,000
180,000
150,000$
PROBLEM 3.5
A
DR. SCHEKTER, DVM
May 31, 2015
Cash
DR. SCHEKTER, DVM (continued)
Trial Balance
Office fixtures and equipment
Land
Building
Notes payable
Accounts receivable
Medical instruments
Office supplies
Total Assets: 144,200$ 200
5,000
Accounts receivable
Office supplies
Cash
PROBLEM 3.5
A
DR. SCHEKTER, DVM (concluded)
e.
Note to instructor: It is not uncommon for new small businesses
future.
situation, there were so few revenue and expense transactions in
May that it is difficult, if not impossible, to draw any conclusions
about the expected performance of the veterinary clinic in the
Education.
a.
Jul
y
18 1,500
Ca
p
ital Stock 1,500
22 100
23 2,000
Cash 400
24 25
Cash 25
26 200
Mowin
g
Revenue 200
Payment is due July 30.
Accounts Receivable
services. Payment is due August 1.
Billed Golf View Condominium for mowing
PROBLEM 3.6
A
50 Minutes, Strong
2015 Cash
General Journal
Issued 500 shares of capital stock.
DONEGAN’S LAWN CARE SERVIC
E
Mowing Equipment
Office Supplies
Paid for gasoline to be used in July.
Fuel Expense
and issuing a $1,600 note payable for the balance.
b.
Jul 18 1,500 July 23 400 July 25 150 July 30 150
Jul 30 150 July 24 25 July 26 200
July 31 80
July 31 Bal. 1,145 July 31 Bal. 200
PROBLEM 3.6
A
DONEGAN’S LAWN CARE SERVICE (continued)
Accounts Receivable
Mowing Equipment Office Supplies
Cash
c.
1,145$
200
100
2,000
100$
1,600
3,550$ 3,550$
d.
Donegan’s Retained Earnings balance is zero because the company has been in business for only
two weeks and has not yet updated the Retained Earnings account for any revenue or expense
activities. The procedure to update the Retained Earnings account is discussed in Chapter 5.
PROBLEM 3.6
A
DONEGAN’S LAWN CARE SERVICE
Accounts payable
Mowing equipment
DONEGAN’S LAWN CARE SERVICE
(concluded)
Notes payable
Accounts receivable
Office supplies
Trial Balance
July 31, 2015
Cash
Education.
a.
June 4 1,500
Notes Pa
y
able 1,500
9 1,600
25 200
Cash 200
Borrowed cash from bank by issuing a note
Cash
payable.
Cash
PROBLEM 3.7
A
50 Minutes, Strong
2015
General Journal
SANLUCAS, INC.
Advertising Expense
Paid WLIR Radio for ads to be aired June 27.
b. Cash
June 30 bal. 5,600 June 30 bal. 2,650
Inspection Supplies Accounts Payable
Notes Payable Dividends
June 30 bal. 3,500 June 30 bal. 600
Capital Stock Retained Earnings
Inspection Revenue Salaries Expense
June 1 bal. 8,350 June 1 bal. 4,900
Advertising Expense Testing Expense
June 1 bal. 300 June 1 bal. 1,700
Accounts Receivable
PROBLEM 3.7
A
SANLUCAS, INC. (continued)
Education.
c.
5,600$
2,650
950
1,000$
3,500
PROBLEM 3.7
A
SANLUCAS, INC. (concluded)
Trial Balance
SANLUCAS, INC.
Inspection supplies
Notes payable
June 30, 2015
Cash
Accounts receivable
Accounts payable
Net Total Total Owners’
Error Income Assets Liabilities Equity
NE U NE U
UNENENE
O O O O
PROBLEM 3.8
A
10 Minutes, Difficult
Recorded the issuance of capital stock by
debiting Capital Stock and crediting Cash.
HOME TEAM CORPORATION
Recorded the declaration and payment of a
dividend by debiting Interest Expense and
crediting Cash.
Recorded the payment of an account payable
by debiting Cash and crediting Service
Revenue.
30 Minutes, Medium
a.
1 650,000
Capital Stock 650,000
6 60,000
240,000
Cash 5,500
General Journal
Office Building
Apr. Cash
Issued 10,000 shares of capital stock.
Land
SOLUTIONS TO PROBLEMS SET B
NORTH ENTERPRISES
PROBLEM 3.1B
20__
Made payment on account payable.
b.
Transaction Assets = Liabilities + Owners’ Equity
Apr. 1 + $650,000 (Capital
PROBLEM 3.1B
NORTH ENTERPRISES
(
concluded
)
+ $650,000 (Cash) $0