CRITICAL THINKING PROBLEM 4.1 (continued)
1830000
450000
2460000
1190000
750000 Accounts Payable 250000
350000
3700000 Total Liabilities & Owner’s Equity 3700000Total Assets
Assets
Balance Sheet
Cash
Accounts Receivable
April 30, 2013
Statement of Owner’s Equity
Month Ended April 30, 2013
Ken Oxford, Capital, April 1, 2013
Net Income for April
Fees Income
Salaries Expense
Oxford Beauty Supply
Liabilities
Expenses
Income Statement
Oxford Beauty Supply
Month Ended April 30, 2013
Oxford Beauty Supply
Revenue
CRITICAL THINKING PROBLEM 4.2
PAGE 1
POST.
REF.
1 2013 1
2 June 1 Cash 101 1500000 2
3 Wade Wilson, Capital 301 1500000 3
4 Beginning investment of owner 4
15 Check 202, balance due in 30 days 15
16 16
17 4 Supplies 121 8 0 0 00 17
18 Cash 101 8 0 0 00 18
19 Purchased supplies, Check 203 19
30 Cash 101 250000 30
31 Accounts Payable 202 500000 31
35 35
36 10 Accounts Receivable 111 245000 36
37 Fees Income 401 245000 37
38 Performed services on account 38
CREDIT
GENERAL JOURNAL
DATE DESCRIPTION DEBIT
CRITICAL THINKING PROBLEM 4.2 (continued)
PAGE 2
POST.
REF.
1 2013 1
2 June 11 Accounts Payable 202 150000 2
3 Cash 101 150000 3
4 Paid Davis Office Supply on account 4
15 18 Cash 101 200000 15
16 Accounts Receivable 111 200000 16
17 Received payment on account 17
18 18
19 20 Accounts Payable 202 300000 19
30 Paid utility bill, Check 210 30
31 31
32 28 Wade Wilson, Drawing 302 200000 32
33 Cash 101 200000 33
34 Owner withdrew cash for personal use, 34
CREDIT
GENERAL JOURNAL
DATE DESCRIPTION DEBIT
CRITICAL THINKING PROBLEM 4.2 (continued)
ACCOUNT Cash ACCOUNT NO. 101
2013
June 1 J1 1500000 1500000
2 J1 90000 1410000
3 J1 200000 1210000
4 J1 80000 1130000
28 J3 200000 772500
30 J3 250000 522500
ACCOUNT Accounts Receivable ACCOUNT NO. 111
2013
ACCOUNT Supplies ACCOUNT NO. 121
2013
BALANC
E
GENERAL LEDGER
CREDIT
BALANC
E
DEBIT
CREDITDEBIT
POST
REF.
CREDITDEBIT
DESCRIPTION DEBIT CREDIT
DEBITDATE DESCRIPTION
DATE
DATE DESCRIPTION
POST
REF.
CREDIT
BALANC
E
DEBIT CREDIT
POST
REF.
CRITICAL THINKING PROBLEM 4.2 (continued)
ACCOUNT Office Furniture ACCOUNT NO. 141
2013
ACCOUNT Recording Equipment ACCOUNT NO. 151
2013
ACCOUNT Accounts Payable ACCOUNT NO. 202
2013
ACCOUNT Wade Wilson, Capital ACCOUNT NO. 301
2013
GENERAL LEDGER
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
CRITICAL THINKING PROBLEM 4.2 (continued)
ACCOUNT Wade Wilson, Drawing ACCOUNT NO. 302
ACCOUNT Fees Income ACCOUNT NO. 401
2013
ACCOUNT Advertising Expense ACCOUNT NO. 511
2013
ACCOUNT Rent Expense ACCOUNT NO. 514
2013
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
GENERAL LEDGER
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
BALANC
E
DEBIT CREDIT
CRITICAL THINKING PROBLEM 4.2 (continued)
ACCOUNT Salaries Expense ACCOUNT NO. 517
2013
ACCOUNT Telephone Expense ACCOUNT NO. 520
2013
ACCOUNT Utilities Expense ACCOUNT NO. 523
BALANC
E
DATE DESCRIPTION
POST
REF. DEBIT CREDIT
DESCRIPTION
POST
REF. DEBIT
DEBIT CREDIT
GENERAL LEDGER
DATE
CREDIT
DEBIT CREDIT
DATE
BALANC
E
DEBIT CREDIT
POST
REF.DESCRIPTION
BALANC
E
DEBIT CREDIT
CRITICAL THINKING PROBLEM 4.2 (continued)
522500
45000
80000
600000
750000
Cash
Accounts Receivable
Office Furniture
Recording Equipment
Supplies
California Talent Agency
June 30, 2013
Trial Balance
CRITICAL THINKING PROBLEM 4.2 (continued)
1500000
247500
522500 Accounts Payable 450000
45000
80000
June 30, 2013
California Talent Agency
Balance Sheet
California Talent Agency
Net Income for June
Wade Wilson, Capital, June 1, 2013
Statement of Owner’s Equity
Month Ended June 30, 2010
Assets
Cash
Accounts Receivable
Supplies
Liabilities
SOLUTIONS TO BUSINESS CONNECTIONS
Managerial Focus:
1. Journal: detailed chronological record. Ledger: permanent, classified record of all financial events.
3. For prompt and accurate journalizing of all transactions.
4. Inefficient flow of information; errors and insufficient information.
Ethical Dilemma:
You must check to see if the cash account is going down because of her actions. Is Louisa keeping
the cash from the reversed sales because she has made so many errors? Is this something she does
each month? It is unethical to accept a dinner for fixing her error.
2. Invoice from the supplier.
3. Dates for equipment purchases, posting reference, purchase amount, account balance
($2,355 million at January 31, 2010).
Analyze Online:
Answers will vary depending on the year.
Teamwork:
Answers will vary. Journal Entry to General Ledger to Trial Balance to Financial Statement.
Internet Connection:
Sites that might be displayed are: www.careerbank.com , www.careersinaccounting.com ,
www.account.com .
Suggested experience would require 5 years or more, with an AA degree. Skills would include good
communication skills, detailed and multi-task oriented.
Part A Matching
1. i
Part B Completion
2. year
SOLUTIONS TO PRACTICE TEST