Problem 2-3A (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Balance
April
3
G1
11,600
13
G1
11,600
0
29
G1
600
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Balance
April
1
G1
106,000
Dividends
Acct. No. 319
Date
Explanation
PR
Debit
Balance
April
28
G1
5,500
5,500
Services Revenue
Acct. No. 403
Date
Explanation
PR
Debit
Balance
April
6
G1
4,000
9
G1
10,000
25
G1
12,890
Utilities Expense
Acct. No. 690
Date
Explanation
PR
Debit
Balance
April
30
G1
435
435
Financial & Managerial Accounting, 5th Edition
88
Problem 2-3A (Continued)
Part 3
LINKWORKS
Trial Balance
April 30
Debit Credit
Cash …………………………………………………………….. $ 59,465
Accounts receivable …………………………………….. 4,490
Office supplies ……………………………………………… 4,200
Problem 2-4A (90 minutes)
Part 1
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2012
Assets Liabilities
Cash …………………………. $ 64,300 Accounts payable ……………. $ 3,500
Accounts receivable …. 26,240
Office supplies ………….. 3,160
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2013
Assets Liabilities
Cash …………………………. $ 15,640 Accounts payable …………….. $ 33,500
Accounts receivable …. 19,390 Note payable …………………….. 40,000
Part 2
Computation of 2013 net income:
Equity, December 31, 2012 ……………………………………………………
$282,200
Equity, December 31, 2013 ……………………………………………………
(304,490)
Increase in equity during 2013 ………………………………………………
$ 22,290
Owner investment ………………………………………………………………..
35,000
Add net income ……………………………………………………………………
?
Deduct dividends ($3,000 x 12) ……………………………………………..
(36,000)
Increase in equity during 2013 ………………………………………………
$ 22,290
Therefore, net income must equal ($22,290+$36,000-$35,000) = $ 23,290
Part 3
Financial & Managerial Accounting, 5th Edition
90
Problem 2-5A (35 minutes)
Part 1
MIN ENGINEERING
Trial Balance
May 31
Debit Credit
Cash ……………………………………………………. $37,641
Office supplies …………………………………….. 890
Prepaid insurance ……………………………….. 4,600
Part 2: Likely transactions (following order of trial balance).
1. Purchased $890 of office supplies for cash.
Part 3
Report of Cash Received and Paid
Cash received
Owner investment ……………………………… $18,000
Engineering fees ……………………………….. 36,000
Problem 2-6A (90 minutes)
Part 1
a. Cash …………………………………………………. 101 60,000
Office Equipment ………………………………. 163 25,000
Common Stock …………………………... 307 85,000
Owner invested cash and equipment for stock.
b. Land …………………………………………………. 172 40,000
Building ……………………………………………. 170 160,000
e. Office Equipment ………………………………. 163 5,600
Accounts Payable ………………………. 201 5,600
Purchased office equipment on account.
f. Salaries Expense ………………………………. 601 1,800
Financial & Managerial Accounting, 5th Edition
92
Problem 2-6A (Part 1 Continued)
i. Accounts Payable …………………………….. 201 2,000
Cash ………………………………………….. 101 2,000
Paid cash on account.
j. Office Equipment ………………………………. 163 20,300
Problem 2-6A (Continued)
Part 2
Cash No. 101
Land No. 172
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
60,000
60,000
(b)
40,000
40,000
(b)
30,000
30,000
(f)
1,800
28,200
Accounts Payable No. 201
(g)
8,000
36,200
Date
PR
Debit
Credit
Balance
(h)
635
35,565
(c)
2,000
2,000
(i)
2,000
33,565
(e)
5,600
7,600
(j)
20,300
13,265
(i)
2,000
5,600
(l)
1,800
11,465
(m)
4,000
15,465
Notes Payable No. 250
(n)
2,800
12,665
Date
PR
Debit
Credit
Balance
(b)
170,000
170,000
Accounts Receivable No. 106
Date
PR
Debit
Credit
Balance
(k)
6,250
6,250
Common Stock No. 307
(m)
4,000
2,250
Date
PR
Debit
Credit
Balance
(a)
85,000
85,000
Office Supplies No. 108
(d)
16,500
101,500
Date
PR
Debit
Credit
Balance
(c)
2,000
2,000
Dividends No. 319
Office Equipment No. 163
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(n)
2,800
2,800
(a)
25,000
25,000
(e)
5,600
30,600
Fees Earned No. 402
(j)
20,300
50,900
Date
PR
Debit
Credit
Balance
(g)
8,000
8,000
(k)
6,250
14,250
Automobiles No. 164
Salaries Expense No. 601
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(d)
16,500
16,500
(f)
1,800
1,800
(l)
1,800
3,600
Building No. 170
Date
PR
Debit
Credit
Balance
Utilities Expense No. 602
(b)
160,000
160,000
Date
PR
Debit
Credit
Balance
(h)
635
635
Financial & Managerial Accounting, 5th Edition
94
Problem 2-6A (Concluded)
Part 3
HV CONSULTING
Trial Balance
September 30
Debit Credit
Cash …………………………………………………… $ 12,665
Accounts receivable ……………………………. 2,250
Office supplies …………………………………….. 2,000
PROBLEM SET B
Problem 2-1B (90 minutes) Part 1
Part 1
a. Cash……………………………………………………. 101 65,000
Office Equipment …………………………………. 163 5,750
Computer Equipment …………………………... 164 30,000
Common Stock …………………………….. 307 100,750
Owner invested cash and equipment for stock.
b. Land ……………………………………………………. 172 22,000
f. Computer Equipment …………………………... 164 4,500
Cash …………………………………………….. 101 800
Notes Payable ………………………………. 250 3,700
Purchased equipment with cash and notes
payable.
g. Accounts Receivable …………………………... 106 4,250
Financial & Managerial Accounting, 5th Edition
96
Problem 2-1B (Part 1 Continued)
i. Accounts Receivable …………………………... 106 10,200
Fees Earned …………………………………. 402 10,200
Billed client for completed work.
j. Computer Rental Expense ……………………. 602 580
m. Accounts Payable ……………………………….. 201 950
Cash …………………………………………….. 101 950
Paid amount due on account.
n. Repairs Expense …………………………………. 604 608
Problem 2-1B (Continued)
Part 2
Cash No. 101
Accounts Payable No. 201
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
65,000
65,000
(h)
950
950
(b)
5,000
60,000
(j)
580
1,530
(c)
34,500
25,500
(m)
950
580
(d)
5,000
20,500
(e)
4,600
25,100
Notes Payable No. 250
(f)
800
24,300
Date
PR
Debit
Credit
Balance
(k)
5,100
29,400
(b)
17,000
17,000
(l)
1,800
27,600
(f)
3,700
20,700
(m)
950
26,650
(n)
608
26,042
(o)
6,230
19,812
Common Stock No. 307
(p)
1,800
18,012
Date
PR
Debit
Credit
Balance
(q)
750
17,262
(a)
100,750
100,750
Accounts Receivable No. 106
Dividends No. 319
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(g)
4,250
4,250
(o)
6,230
6,230
(i)
10,200
14,450
(k)
5,100
9,350
Fees Earned No. 402
Date
PR
Debit
Credit
Balance
Prepaid Insurance No. 108
(e)
4,600
4,600
Date
PR
Debit
Credit
Balance
(g)
4,250
8,850
(d)
5,000
5,000
(i)
10,200
19,050
Office Equipment No. 163
Wages Expense No. 601
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
5,750
5,750
(l)
1,800
1,800
(h)
950
6,700
(p)
1,800
3,600
Computer Equipment No. 164
Computer Rental Expense No. 602
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
30,000
30,000
(j)
580
580
(f)
4,500
34,500
Building No. 170
Advertising Expense No. 603
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(c)
34,500
34,500
(q)
750
750
Land No. 172
Repairs Expense No. 604
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(b)
22,000
22,000
(n)
608
608
Problem 2-1B (Concluded)
Part 3
SOFTWORKS
Trial Balance
April 30
Debit Credit
Cash …………………………………………………….. $ 17,262
Accounts receivable ………………………………. 9,350
Prepaid insurance ………………………………….. 5,000
Office equipment …………………………………… 6,700
Problem 2-2B (90 minutes)
Part 1
Nov. 1 Cash……………………………………………………. 101 30,000
Office Equipment …………………………………. 163 15,000
Common Stock …………………………….. 307 45,000
Owner invested cash and equipment for stock.
2 Prepaid Rent ……………………………………….. 131 4,500
Cash …………………………………………….. 101 4,500
Prepaid six months’ rent.
4 Office Equipment …………………………………. 163 2,500
Problem 2-2B (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Balance
Nov.
1
G1
30,000
30,000
2
G1
25,500
8
G1
3,400
28,900
13
G1
25,800
19
G1
24,000
22
G1
5,200
29,200
28
G1
23,900
30
G1
23,069
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Balance
Nov.
12
G1
10,200
10,200
22
G1
5,000
24
G1
1,750
6,750
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Balance
Nov.
4
G1
600
600
29
G1
249
849
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Balance
Nov.
19
G1
1,800
1,800
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Balance
Nov.
2
G1
4,500
4,500
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Balance
Nov.
1
G1
15,000
15,000
4
G1
2,500
17,500
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Balance
Nov.
4
G1
3,100
13
G1
3,100
0
29
G1
249
Problem 2-2B (Continued)
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Balance
Nov.
1
G1
45,000
Dividends
Acct. No. 319
Date
Explanation
PR
Debit
Balance
Nov.
28
G1
5,300
5,300
Services Revenue
Acct. No. 403
Date
Explanation
PR
Debit
Balance
Nov.
8
G1
3,400
12
G1
13,600
24
G1
15,350
Utilities Expense
Acct. No. 690
Date
Explanation
PR
Debit
Balance
Nov.
30
G1
831
831
Part 3
ZUCKER MANAGEMENT SERVICES
Trial Balance
November 30
Debit Credit
Cash ………………………………………………………… $23,069
Accounts receivable ………………………………… 6,750
Office supplies …………………………………………. 849
Prepaid insurance ……………………………………. 1,800