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MINI-PRACTICE SET 3 (continued)
ACCOUNT 5% Preferred Stock ($100 par, 10,000 shares authorized) ACCOUNT NO.
2013
ACCOUNT Paid-in Capital in Excess of Par—Preferred Stock ACCOUNT NO.
2013
ACCOUNT Common Stock ($10 par, 100,000 shares authorized) ACCOUNT NO.
2013
Jan. 1 Balance ✔20000000
ACCOUNT Paid-in Capital in Excess of Par—Common Stock ACCOUNT NO.
2013
304
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
303
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
302
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
301
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
MINI-PRACTICE SET 3 (continued)
ACCOUNT Common Stock Subscribed ACCOUNT NO.
2013
ACCOUNT Common Stock Dividend Distributable ACCOUNT NO.
2013
Dec. 15 J2 2000000 2000000
ACCOUNT Retained Earnings Appropriat
e
ACCOUNT NO.
2013
ACCOUNT Retained Earnings Unappropriated ACCOUNT NO.
2013
Jan. 1 Balance ✔20837500
July 1 J1 200000 20637500
312
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
311
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
306
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
305
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
MINI-PRACTICE SET 3 (continued)
ACCOUNT ACCOUNT NO.
2013
ACCOUNT Income Summary ACCOUNT NO.
2013
Dec. 31 Adjusting J4 150 0 0 0 00 150 0 0 0 00
31 Adjusting J4 130 0 0 0 00 20 0 0 0 00
ACCOUNT Sales ACCOUNT NO.
2013
ACCOUNT Purchases ACCOUNT NO.
501
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
401
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
399
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
343
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
Treasury Stock—Preferred
MINI-PRACTICE SET 3 (continued)
ACCOUNT Operating Expenses
2013
Dec. 31 J3 650 0 0 0 00 650 0 0 0 00
31 Adjusting J4 950000 65950000
ACCOUNT Interest Income ACCOUNT NO.
ACCOUNT Gain on Early Retirement of Bonds Payable ACCOUNT NO.
2013
ACCOUNT Interest Expense ACCOUNT NO.
2013
April 1 J1 242500 242500
Oct. 1 J1 485000 727500
751
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
711
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
701
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
601
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
MINI-PRACTICE SET 3 (continued)
ACCOUNT ACCOUNT NO.
2013
ACCOUNT Income Tax Expense ACCOUNT NO.
2013
801
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
Amortization of Organization Costs 753
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
MINI-PRACTICE SET 3 (continued) Name
The Kansas Company
Worksheet
Year Ending December 31, 2013
1 Cash 644 8 6 7 00
2 Accounts Receivable 150 0 0 0 00
3 Allowance for Doubtful Accounts 500000 950000
4 Subscriptions Receivable—Common Stock 300000
5 Merchandise Inventory 150 0 0 0 00 130 0 0 0 00 150 0 0 0 00
6 Land 85 0 0 0 00
17 10-Year, 10% Bonds Payable 80 0 0 0 00
18 Premium on Bonds Payable 192000 6000
19 8% Preferred Stock 200 0 0 0 00
20 Paid-in Cap. in Excess of Par—Pref. Stock 11 0 0 0 00
21 Common Stock 200 0 0 0 00
32 11 2 5 0 00
33 700000
34 Totals Carried Forward 3,930 0 6 7 00 3,936 7 9 5 00 307 8 1 0 00 377 5 1 7 00
35
ACCOUNT NAME
TRIAL BALANCE ADJUSTMENTS
DEBIT CREDIT DEBIT CREDIT
MINI-PRACTICE SET 3 (continued)
644 8 6 7 00 644 8 6 7 00
150 0 0 0 00 150 0 0 0 00
33 7 5 0 00 33 7 5 0 00
70 0 0 0 00 70 0 0 0 00
21 0 0 0 00 21 0 0 0 00
400000 400000
270 0 0 0 00 270 0 0 0 00
200000 200000
20 0 0 0 00 20 0 0 0 00
200 0 0 0 00 200 0 0 0 00
69 3 7 5 00 69 3 7 5 00
61 2 0 0 00 61 2 0 0 00
150 0 0 0 00 130 0 0 0 00 150 0 0 0 00 130 0 0 0 00
ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
MINI-PRACTICE SET 3 (continued) Name
The Kansas Company
Worksheet (continued)
Year Ending December 31, 2013
1 Totals Brought Forward 3,930 0 6 7 00 3,936 7 9 5 00 307 8 1 0 00 377 5 1 7 00
2 Gain on Early Retirement of Bonds Payable 8 7 0 00
7 Net Income After Tax
8 Totals
9
10
11
ACCOUNT NAME
TRIAL BALANCE ADJUSTMENTS
DEBIT CREDIT DEBIT CREDIT
MINI-PRACTICE SET 3 (continued)
4,080 8 1 7 00 4,157 2 5 2 00 2,707 7 5 0 00 2,930 0 0 0 00 1,373 0 6 7 00 1,227 2 5 2 00
87000 87000
953800 953800
DEBIT CREDIT
ADJUSTED TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
DEBIT CREDIT DEBIT CREDIT
MINI-PRACTICE SET 3 (continued) Name
Net Sales 2,80000000
Cost of Goods Sold
Merchandise Inventory, January 1 15000000
Purchases 1,88000000
Cost of Goods Available for Sale 2,03000000
Less Merchandise Inventory, December 31 13000000
Unappropriated Retained Earnings
Balance, January 1 20837500
Add: Net Income 14581500
35419000
Deductions:
Year Ended December 31, 2013
Statement of Retained Earnings
The Kansas Company
Summary Income Statement
Year Ended December 31, 2013
The Kansas Company
MINI-PRACTICE SET 3 (continued) Name
Current Assets
Cash 644 8 6 7 00
Accounts Receivable 150 0 0 0 00
Less Allowance for Doubtful Accounts (4 5 0 0 00) 145 5 0 0 00
Total Property, Plant, and Equipment 325 2 5 0 00
Other Assets
Organization Costs 400000
Total Assets 1,252 6 1 7 00
Current Liabilities
Total Long-Term Liabilities 81 8 6 0 00
Total Liabilities 426 6 2 7 00
The Kansas Company
Balance Sheet
Liabilities and Stockholders’ Equity
December 31, 2013
Assets
MINI-PRACTICE SET 3 (continued) Name
Stockholders’ Equity
Paid-in-Capital
8% Preferred Stock, $100 par, 10,000 shares
Total Paid-in Capital 472 0 0 0 00
Retained Earnings
Appropriated 200 0 0 0 00
Unappropriated 215 1 9 0 00
Total Retained Earnings 415 1 9 0 00
Balance Sheet (continued)
December 31, 2013
The Kansas Company
Part A True-False
1. FALSE 9. TRUE
3. TRUE 11. TRUE
5. TRUE 13. TRUE
7. TRUE 15. TRUE
1. j
3. d
5. f
7. a
9. i
11. k
SOLUTIONS TO PRACTICE TEST
