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PROBLEM 12.5B (continued)
1 307 1 2 7 93 311 5 4 7 93 249 9 3 7 93 254 4 0 0 00 57 1 9 0 00 57 1 4 7 93 1
ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
PROBLEM 12.6B
The Game Place
Worksheet
1 Cash 3246500
2 Accounts Receivable 6 6 9 00
3 Prepaid Advertising 4 8 0 00 (c) 3 2 0 00
4 Supplies 4 2 5 00 (d) 2 7 5 00
5 Merchandise Inventory 1850000 (a) 20 0 0 0 00 (b) 18 5 0 0 00
24 Purchases Returns & Allow. 7 7 0 00
25 Freight In 2 7 5 00
26 Rent Expense 2640000
27 Wages Expense 1800000 (h) 80000
28 Payroll Taxes Expense 181100 (i) 6120
29 Depreciation Exp., Store Equip. (e) 4 5 0 0 00
Year Ended December 31, 2013
ACCOUNT NAME
TRIAL BALANCE ADJUSTMENTS
DEBIT CREDIT DEBIT CREDIT
PROBLEM 12.6B (continued)
32 4 6 5 00 32 4 6 5 00 1
66900 66900 2
4 9 60 4 9 60 13
1 1 60 1 1 60 14
150000 150000 15
15000 15000 16
43 0 0 0 00 43 0 0 0 00 17
187220 187220 28
450000 450000 29
150000 150000 30
32000 32000 31
27500 27500 32
$18,500).
BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT DEBIT
ADJUSTED TRIAL BALANCE INCOME STATEMENT
CREDIT
CRITICAL THINKING PROBLEM 12.1
Ben’s Jewelers
Worksheet
1 1305000
2 4990000
3 200000 (c) 1 0 0 0 00
ADJUSTMENTS
DEBIT CREDIT DEBIT CREDIT
ACCOUNT NAME
TRIAL BALANCE
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Year Ended December 31, 2013
CRITICAL THINKING PROBLEM 12.1 (continued)
13 0 5 0 00 13 0 5 0 00 1
49 9 0 0 00 49 9 0 0 00 2
823000 823000 10
439000 439000 11
500000 500000 12
424000 424000 23
10 7 7 0 00 10 7 7 0 00 24
700000 700000 25
79 9 5 0 00 79 9 5 0 00 26
35 5 0 0 00 35 5 0 0 00 27
CREDIT
BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT DEBIT
ADJUSTED TRIAL BALANCE INCOME STATEMENT
CRITICAL THINKING PROBLEM 12.1 (continued)
Ben’s Jewelers
Worksheet (Continued)
Year Ended December 31, 2013
1 1,067 8 8 0 00 1,067 8 8 0 00 224 5 6 5 00 232 2 3 8 00
2(e) 2 6 4 5 00
ACCOUNT NAME
TRIAL BALANCE ADJUSTMENTS
DEBIT CREDIT DEBIT CREDIT
Totals Brought Forward
Office Supplies Expense
CRITICAL THINKING PROBLEM 12.1 (continued)
1,180 2 9 5 00 1,187 9 6 8 00 846 4 8 5 00 975 9 4 0 00 333 8 1 0 00 212 0 2 8 00 1
264500 264500 2
330000 330000 3
ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
CRITICAL THINKING PROBLEM 12.1 (continued)
POST.
REF.
1 1
2 2013 Instruction 2 2
3 Dec. 31 Income Summary 105 9 0 0 00 3
4 Merchandise Inventory 105 9 0 0 00 4
5 5
18 31 Depreciation Expense—Store Equipment 11 3 6 0 00 18
19 Accumulated Depreciation—Store Equipment 11 3 6 0 00 19
20 20
21 31 Depreciation Expense—Office Equipment 330000 21
22 Accumulated Depreciation—Office Equipment 3300 0022
23 23
34 State Unemployment Tax Payable 2 7 0 00 34
35 35
Adjusting Entries
30
DATE DESCRIPTION DEBIT CREDIT
GENERAL JOURNAL PAGE
CRITICAL THINKING PROBLEM 12.1 (continued)
POST.
REF.
1 1
2 2013 Instruction 3 2
3 Dec. 31 Sales 86223000 3
4 Purchases Returns and Allowances 424000 4
5 Purchases Discounts 1077000 5
6 Income Summary 877240 00 6
7 7
25 25
26 31 Ben Waites, Capital 3000000 26
27 Ben Waites, Drawing 3000000 27
28 28
GENERAL JOURNAL PAGE 32
DATE DESCRIPTION DEBIT CREDIT
a. Net Sales Sales $862,230
b. Net Delivered Purchases $504,810
Net Delivered Cost of Purchases 496,800
c. Cost of Goods Sold Merchandise Inventory, January 1, 2013 $105,900
Net Delivered Cost of Purchases 496,800
CRITICAL THINKING PROBLEM 12.1 (continued)
CRITICAL THINKING PROBLEM 12.2
1.
Under the accrual basis of accounting, expenses are recorded when incurred and not necessarily when
SOLUTIONS TO BUSINESS CONNECTIONS
Ethical Dilemma:
Financial Statement Analysis:
2.
3.
Teamwork:
Prepaid expenses: debit the appropriate expense account and credit Prepaid Expenses.
Accumulated depreciation: debit Depreciation Expense and credit Accumulated Depreciation.
Inventories increased by 1.6 percent.
You should count the row only once. Counting a row twice will misrepresent the amount of
inventory and create false financial statements.
Since service companies will not have inventory, the inventory adjustment would not be needed.
SOLUTIONS TO PRACTICE TEST
Part A True-False
1. 14.
TRUE
TRUE
