Title: Problem 4-5A
QA_Ori:
Part 1
Tybalt CONSTRUCTION
Income Statement
For Year Ended December 31, 2013
Revenues
Professional fees earned $97,000
Expenses
Depreciation expense—Building 11,000
Depreciation expense—Equipment 6,000
Wages expense 32,000
TYBALT CONSTRUCTION
Statement of Owner’s Equity
For Year Ended December 31, 2013
O. Tybalt, Capital, December 31, 2012 $121,400
Tybalt CONSTRUCTION
Balance Sheet
31-Dec-13
Assets
Current assets
Cash $5,000
Short-term investments 23,000
Supplies 8,100
Liabilities
Current liabilities
Accounts payable $16,500
Interest payable 2,500
Equity
Part 2
Closing entries (all dated December 31, 2013)
Instructor note: Entries are shown without an account reference column because no posting is required.
1 Professional Fees Earned 97,000
Rent Earned 14,000
2 Income Summary 110,800
Depreciation Expense—Building 11,000
Depreciation Expense—
Equipment 6,000
3 Income Summary 4,300
4 O. Tybalt, Capital 13,000
Part 3
a. Return on assets = $4,300/[($200,000 + $218,100)/2] = 2.1% (or 0.021)
Title: Problem 4-6AA
QA_Ori:
Part 1
HAWKEYE RANGES
Work Sheet
For Year Ended December 31, 2013
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Account Title Dr. Cr. Dr. Cr. Dr. Cr.
Cash………………………… 14,000 14,000
Accounts receivable……….. (e) 9,300 9,300
Supplies…………………….. 6,500 (b) 3,500 3,000
Equipment………………….. 135,00
0
135,000
Part 2 (all adjusting entries dated December 31, 2013)
Instructor note: Entries are shown without an account reference column because no posting is required.
(a) Salaries Expense 1,200
(b
) Supplies Expense 3,500
(c) Interest Expense 1,875
(d
) Unearned Member Fees 9,200
(e) Accounts Receivable 9,300
(f) Depreciation Expense—Equipment
15,00
0
Part 3 (all reversing entries dated January 1, 2014)
(a
) Salaries Payable 1,200
(c
Part 4
Instructor note: Entries are shown without an account reference column because no posting is required.
2014
4-Jan Salaries Expense 1,500
Cash 1,500
To record payroll.
Title: Problem 4-1B
QA_Ori:
1. Z 6. F 11. A 16. E
Title: Problem 4-2B
QA_Ori:
Part 2
Transactions for July
1-Jul Cash 101 30,000
Buildings 173 150,000
L. Plume, Capital 301 180,000
Owner invested in the business.
Part 3
SAFE STORAGE CO.
Unadjusted Trial Balance
31-Jul-13
No. Account Title Debit Credit
10
1 Cash $22,850
10
Part 4
Adjusting entries
31-Jul Insurance Expense 637 400
Prepaid Insurance 128 400
To record expired insurance
(2/3 x $7,200/12 per month).
SAFE STORAGE CO.
Adjusted Trial Balance
31-Jul-13
No. Account Title Debit Credit
101 Cash $22,850
106 Accounts receivable 1,150
124 Office supplies 1,525
128 Prepaid insurance 6,800
173 Buildings 150,000
Accumulated
Part 5
SAFE STORAGE CO.
Income Statement
For Month Ended July 31, 2013
Storage fees earned $10,950
Expenses
Depreciation expense–Buildings $1,500
sAFE STORAGE CO.
Statement of Owner’s Equity
For Month Ended July 31, 2013
L. Plume, Capital, July 1, 2013 $0
SAFE STORAGE CO.
Balance Sheet
31-Jul-13
Assets
Cash $22,850
Accounts receivable 1,150
Liabilities
Salaries payable $100
Equity