(e) Debit Credit
Supplies Expense 3,900
Exercise 3-13 (LO 3-3)
(a) Debit Credit
Interest Receivable 270
(b) Debit Credit
Rent Expense 3,000
(c) Debit Credit
Unearned Revenue 5,500
(d) Debit Credit
Depreciation Expense 5,500
(e) Debit Credit
Salaries Expense 5,000
(f) Debit Credit
Supplies Expense 3,500
Exercise 3-14 (LO 3-3, 3-4)
Requirement 1
(a) Debit Credit
Rent Expense 2,400
(b) Debit Credit
Unearned Revenue 750
(c) Debit Credit
Salaries Expense 700
(d) Debit Credit
Supplies Expense 3,200
Exercise 3-14 (concluded)
Requirement 2
Adjusted Trial Balance
Accounts Debit Credit
Cash $ 10,000
Accounts Receivable 15,000
Prepaid Rent 4,800
Supplies 800
Exercise 3-15 (LO 3-5)
Volunteers Inc.
(in millions)
Raiders Inc.
(in millions)
Year
Net
Income (Loss)
Retained
Earnings
Net
Income (Loss)
Retained
Earnings
2006 — $ 0 $ 35 $ 11
2007 $ 30 30 (43) (32)
2008 (7) 23 63 31
2009 41 64 63 94
2010 135 199 102 196
2011 30 229 135 331
Exercise 3-16 (LO 3-5)
Requirement 1
Fightin’ Blue Hens Corporation
Income Statement
For the year ended December 31, 2015
Service revenue $500,000
Expenses:
Salaries $400,000
Rent 20,000
Depreciation 40,000
Requirement 2
Fightin’ Blue Hens Corporation
Statement of Stockholders’ Equity
For the period ended December 31, 2015
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Balance at July 1 $300,000 $60,000 $360,000
Issuance of common stock 0 0
Add: Net income for 2015 35,000 35,000
Less: Dividends (0) (0)
Exercise 3-16 (concluded)
Requirement 3
Fightin’ Blue Hens Corporation
Balance Sheet
December 31, 2015
Assets Liabilities
Cash $ 12,000 Accounts payable $ 12,000
Accounts receivable 150,000 Salaries payable 11,000
Stockholders’ Equity
Equipment 400,000 Common stock 300,000
Accumulated depr. (135,000) Retained earnings 95,000 *
* Retained earnings = Beginning retained earnings + Net income − Dividends
Exercise 3-17 (LO 3-6)
Requirement 1
December 31, 2015 Debit Credit
Service Revenue 50,000
Interest Revenue 6,000
Retained Earnings 40,000
Salaries Expense 15,000
Rent Expense 6,000
Advertising Expense 3,000
Depreciation Expense 11,000
Retained Earnings 3,000
Requirement 2
Retained Earnings
Exercise 3-18 (LO 3-6)
Requirement 1
December 31, 2015 Debit Credit
Service Revenue 54,000
Retained Earnings 51,000
Salaries Expense 20,000
Advertising Expense 13,000
Rent Expense 10,000
Retained Earnings 4,000
Requirement 2
Retained Earnings
Exercise 3-19 (LO 3-6, 3-7)
Requirement 1
December 31, 2015 Debit Credit
Service Revenue 500,000
Retained Earnings 465,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Requirement 2
Fightin’ Blue Hens Corporation
Post-Closing Trial Balance
December 31, 2015
Accounts Debit Credit
Cash $ 12,000
Accounts Receivable 150,000
Prepaid Rent 6,000
Office Supplies 30,000
Equipment 400,000
Exercise 3-20 (LO 3-3, 3-4, 3-5, 3-6, 3-7)
Requirement 1
Debit Credit
1. Cash 20,000
2. Cash 35,000
Accounts Receivable 30,000
3. Salaries Expense 23,000
4. Prepaid Rent 12,000
5. Supplies 22,000
6. Dividends 2,000
Exercise 3-20 (connued)
Requirement 2
Debit Credit
1. Salaries Expense 4,000
2. Rent Expense 3,000
3. Supplies Expense 25,000
4. Unearned Revenue 5,000