Problem 3-5B (LO 3-5)
Orange Designs
Income Statement
For the year ended December 31, 2015
Service revenue $111,900
Expenses:
Salaries 43,000
Rent 19,000
Depreciation 8,000
Problem 3-5B (concluded)
Orange Designs
Statement of Stockholders’ Equity
For the year ended December 31, 2015
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Balance at January 1 $49,000 $16,000 $65,000
Issuance of common stock 11,000 11,000
Orange Designs
Balance Sheet
December 31, 2015
Assets Liabilities
Cash $ 6,000 Accounts payable $ 4,000
Accounts receivable 5,000 Salaries payable 5,000
Supplies 3,000 Utilities payable 1,100
Total liabilities 40,100
Buildings 120,000 Stockholders’ Equity
Accum. depr. (22,000) Common stock 60,000
Retained earnings 18,900
Problem 3-6B (LO 3-6, 3-7)
December 31 Debit Credit
Service Revenue 89,700
Retained Earnings 73,300
Salaries Expense 50,000
Supplies Expense 10,100
Rent Expense 8,500
Retained Earnings 7,000
Fighting Illini
Post-Closing Trial Balance
Accounts Debit Credit
Cash $ 7,600
Accounts Receivable 10,200
Land 120,000
Problem 3-7B (LO 3-4, 3-5, 3-6, 3-7)
Requirements 1 and 2 (adjus!ng entries posted in
Cash Accounts Receivable Supplies
22,000 15,000 27,000
Prepaid Insurance Equipment Accumulated Depr.
24,000 95,000 37,000
Accounts Payable Salaries Payable Utilities Payable
12,000 0 0
Interest Payable Notes Payable Common Stock
0 35,000 35,000
Retained Earnings Dividends Service Revenue
10,000 3,000 227,000
Salaries Expense Depreciation Expense Insurance Expense
158,000 0 0
Supplies Expense Utilities Expense Interest Expense
Problem 3-7B (connued)
Requirement 3
Jaguar Auto Company
Adjusted Trial Balance
December 31, 2015
Accounts Debit Credit
Cash $ 22,000
Accounts Receivable 15,000
Supplies 5,000
Prepaid Insurance 4,000
Equipment 95,000
Problem 3-7B (connued)
Requirement 4
Jaguar Auto Company
Income Statement
For the year ended December 31, 2015
Service revenue $227,000
Expenses:
Salaries 162,000
Depreciation 10,000
Insurance 20,000
Jaguar Auto Company
Statement of Stockholders’ Equity
For the year ended December 31, 2015
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Balance at January 1 $35,000 $10,000 $45,000
Issuance of common stock 0 0
Problem 3-7B (continued)
Jaguar Auto Company
Balance Sheet
December 31, 2015
Assets Liabilities
Cash $22,000 Accounts payable $12,000
Accounts receivable 15,000 Salaries payable 4,000
Supplies 5,000 Utilities payable 2,200
Notes payable 35,000
Equipment 95,000 Total liabilities 54,250
Accumulated depr. (47,000) Stockholders’ Equity
Common stock 35,000
Retained earnings 4,750
Problem 3-7B (continued)
Requirement 5
December 31, 2015 Debit Credit
Service Revenue 227,000
Retained Earnings 229,250
Salaries Expense 162,000
Depreciation Expense 10,000
Insurance Expense 20,000
Supplies Expense 22,000
Utilities Expense 14,200
Retained Earnings 3,000
Problem 3-7B (concluded)
Requirement 6 (closing entries posted in)
Retained Earnings Dividends Service Revenue
10,000 3,000 227,000
Salaries Expense Depreciation Expense Insurance Expense
158,000
0
0
Supplies Expense Utilities Expense Interest Expense
0
12,000
0
Requirement 7
Jaguar Auto Company
Post-Closing Trial Balance
December 31, 2015
Accounts Debit Credit
Cash $ 22,000
Accounts Receivable 15,000
Supplies 5,000
Prepaid Insurance 4,000
Equipment 95,000
Problem 3-8B (LO 3-3, 3-4, 3-5, 3-6, 3-7)
Requirement 1
Cash Accounts Receivable Supplies
Equipment Accumulated Depr. Accounts Payable
Utilities Payable Unearned Revenue Common Stock
Retained Earnings Dividends Service Revenue
Salaries Expense Utilities Expense Supplies Expense
000
0 0 0
Depr. Expense
0
0