Student Name:
Class:
Date Explanation Debit Credit
Mar 1 150,000
22,000
172,000 «- Correct!
26,000
6,000 «- Correct!
33,000
1,200
4,200 «- Correct!
64,000
4,000 «- Correct!
Billed client for completed work.
Paid cash dividends.
Purchased supplies on account.
Collected part of amount owed by client.
Billed client for completed work.
Paid balance due on account.
Paid premium for insurance.
Accounts Receivable
Accounts Payable
Services Revenue
Cash
Prepaid Insurance
Cash
Cash
Accounts Receivable
Accounts Receivable
Services Revenue
Dividends
Cash
Office Supplies
Accounts Payable
Cash
Utilities Expense
Prepaid Rent
McGraw-Hill/Irwin
Instructor
Owner invested cash and equipment for stock.
General Journal
VENTURE CONSULTANTS
Cash
Office Equipment
Common Stock
Problem 02-02A
Prepaid six months’ rent.
Purchased equipment and supplies on credit.
Received cash for services.
Services Revenue
Cash
Office Equipment
Office Supplies
Accounts Payable
Cash
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-02A
Account No. 101
Date Explanation Debit Credit Balance
Mar 1 150,000 150,000
26,000 144,000
64,000 148,000
12 4,200 143,800
19 5,000 138,800
22 3,500 142,300
29 5,100 137,200
31 500 136,700
Correct!
Account No. 106
Date Explanation Debit Credit Balance
Accounts Receivable
25 3,820 7,820
Correct!
Account No. 124
Date Explanation Debit Credit Balance
Correct!
Account No. 128
Date Explanation Debit Credit Balance
Mar 19 5,000 5,000
Correct!
Account No. 131
Date Explanation Debit Credit Balance
Mar 2 6,000 6,000
Correct!
Account No. 163
Date Explanation Debit Credit Balance
Correct!
Account No. 201
Date Explanation Debit Credit Balance
30 600 600
Correct!
VENTURE CONSULTANTS
General Ledger
Cash
Accounts Payable
Office Equipment
Prepaid Rent
Prepaid Insurance
Office Supplies
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-02A
Account No. 307
Date Explanation Debit Credit Balance
Mar 1 172,000 172,000
Correct!
Account No. 319
Date Explanation Debit Credit Balance
Mar 29 5,100 5,100
Correct!
Account No. 403
Date Explanation Debit Credit Balance
Mar 6 4,000 4,000
97,500 11,500
25 3,820 15,320
Correct!
Account No. 690
Date Explanation Debit Credit Balance
Mar 31 500 500
Correct!
Account Title Debits Credits
136,700$
7,820
1,800
5,000
6,000
25,000
600$
172,000
15,320
500
Dividends
187,920$ 187,920$
Correct! Correct!
Total
Cash
Accounts receivable
Office supplies
Prepaid insurance
Prepaid rent
Office equipment
Accounts payable
Common Stock
Services revenue
Utilities expense
Utilities Expense
Services Revenue
Dividends
VENTURE CONSULTANTS
Common Stock
Mar 1 150,000$
22,000
26,000
33,000
1,200
64,000
97,500
12 4,200
19 5,000
22 3,500
25 3,820
29 5,100
30 600
31 500
Check figures:
(2) Ending balances
136,700$
7,820$
600$
(3) 187,920$
VENTURE CONSULTANTS
Invested cash
Invested office equipment
Prepaid six months’ rent
Purchased office equipment on credit
Purchased office supplies on credit
Completed services and received cash
Completed services for account receivable
due in 30 days
Paid account payable created March 3
Paid cash for annual insurance premium
Accounts Receivable
Accounts Payable
Total debits
Received partial payment for March 9 work
Completed services on credit
Paid cash dividends
Purchased office supplies on credit
Paid cash for month’s utility bill
Cash
Student Name:
Class:
64,300$ 3,500$
26,240
3,160
148,000
44,000 282,200
285,700$ Total liabilities and equity 285,700$
Correct! Correct!
1,960 73,500$
157,000
44,000
80,000
60,000 304,490
Accounts payable
Note payable
Liabilities
Assets
Cash
Accounts receivable
377,990$ 377,990$
Correct! Correct!
22,290$
Equity, December 31, 2012
Equity, December 31, 2013
Increase in equity in 2013
35,000
23,290
(36,000)
22,290$
NETTLE DISTRIBUTION
Debt Ratio
Problem 02-04A
McGraw-Hill/Irwin
Instructor
Total liabilities
Accounts payable
Total equity
Owner’s Equity
Total equity
Total liabilities and equity
Balance Sheet
NETTLE DISTRIBUTION
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2013
Liabilities
Equity
Cash
Accounts receivable
Office supplies
Trucks
Office equipment
December 31, 2012
«- Correct!
NETTLE DISTRIBUTION
Assets
Office equipment
Total assets
Office supplies
Trucks
Building
Land
Total Assets
Owner investment
Add net income
Deduct dividends
Increase in equity during 2013
2012 2013
64,300$ 15,640$
26,240 19,390
3,160 1,960
44,000 44,000
148,000 157,000
– 80,000
– 60,000
3,500 33,500
– 40,000
140,000$
100,000
40,000
35,000
3,000
Check figures:
(2) Net income 23,290$
(3) Debt ratio 19.40%
Cash Nettle invested in business
Cash dividends paid per month
Accounts payable
Note payable
Cost of building and land
Cash paid for building and land
Note payable signed for building and land
Office supplies
Office equipment
Trucks
Building
Land
NETTLE DISTRIBUTION
December 31
December 31
Cash
Accounts receivable