Problem 3-7C (continued)
David’s Services
Balance Sheet
December 31, 2015
Assets Liabilities
Cash $18,100 Accounts payable $10,500
Accts. receivable 16,200 Salaries payable 4,200
Supplies 3,000 Utilities payable 1,900
Notes payable 40,000
Equipment 95,000
Accum. depr. (40,800) Stockholders’ Equity
Common stock 24,000
Retained earnings 12,650
Total stockholders’ equity 36,650
Problem 3-7C (continued)
Requirement 5
December 31, 2015 Debit Credit
Service Revenue 224,900
Retained Earnings 220,250
Salaries expense 162,700
Depreciation expense 13,600
Insurance expense 11,250
Supplies expense 17,400
Utilities expense 13,300
Retained Earnings 2,500
Problem 3-7C (concluded)
Requirement 6 (closing entries posted in red)
Retained Earnings Dividends Service Revenue
10,500
2,500
224,900
12,650 0 0
Salaries Expense Depreciation Expense Insurance Expense
158,500
0
0
0 0 0
Supplies Expense Utilities Expense Interest Expense
0
11,400
0
0 0 0
Requirement 7
Post-Closing Trial Balance
Account Title Debit Credit
Cash $ 18,100
Accounts Receivable 16,200
Supplies 3,000
Prepaid Insurance 3,750
Equipment 95,000
Accumulated Depreciation $ 40,800
Accounts Payable 10,500
Salaries Payable 4,200
Utilities Payable 1,900
Interest Payable 2,000
Notes Payable 40,000
Common Stock 24,000
Retained Earnings 12,650
Total $136,050 $136,050
Problem 3-8C
Requirement 1
Cash Accounts Receivable Supplies
4,500 8,300 3,700
4,500 8,300 3,700
Equipment Accumulated Depr. Accounts Payable
26,400 5,800 4,200
26,400 5,800 4,200
Utilities Payable Unearned Revenue Common Stock
5,500 0 19,000
5,500 0 19,000
Retained Earnings Dividends Service Revenue
8,400 0 0
8,400 0 0
Salaries Expense Utilities Expense Supplies Expense
000
0 0 0
Depr. Expense
0
0
Problem 3-8C (continued)
Requirement 2
(a) Debit Credit
Accounts Receivable 62,000
Cash 18,000
(b) Debit Credit
Cash 45,000
(c) Debit Credit
Cash 12,000
(d) Debit Credit
Salaries Expense 36,000
(e) Debit Credit
Utilities Payable 5,500
Utilities Expense 7,500
(f) Debit Credit
Cash 7,000
(g) Debit Credit
Dividends 3,000
Problem 3-8C (continued)
Requirement 3 (entries posted in red)
Cash Accounts Receivable Supplies
4,500
7,000
8,300
3,700
34,500 25,300 3,700
Equipment Accumulated Depr. Accounts Payable
26,400 5,800 4,200
26,400 5,800 4,200
Utilities Payable Unearned Revenue Common Stock
5,500 0
19,000
0 7,000 31,000
Retained Earnings Dividends Service Revenue
8,400 0
0
8,400 3,000 80,000
Salaries Expense Misc. Expense Supplies Expense
0
0
0
36,000 7,500 0
Depr. Expense
0
0