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Financial & Managerial Accounting, 5th Edition
102
Problem 2-3B (90 minutes)
Part 1
Sept. 1 Cash .......................................................... 101 38,000
Office Equipment ..................................... 163 15,000
Common Stock................................. 307 53,000
Owner invested in the business for stock.
2 Prepaid Rent ............................................ 131 9,000
Cash .................................................. 101 9,000
Prepaid twelve months’ rent.
4 Office Equipment ..................................... 163 8,000
Problem 2-3B (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Sept.
1
G1
38,000
38,000
2
G1
9,000
29,000
8
G1
3,280
32,280
13
G1
10,400
21,880
19
G1
1,900
19,980
22
G1
7,700
27,680
28
G1
5,300
22,380
30
G1
860
21,520
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Sept.
12
G1
15,400
15,400
22
G1
7,700
7,700
24
G1
2,100
9,800
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Sept.
4
G1
2,400
2,400
29
G1
550
2,950
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Sept.
19
G1
1,900
1,900
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Sept.
2
G1
9,000
9,000
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Sept.
1
G1
15,000
15,000
4
G1
8,000
23,000
Problem 2-3B (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Sept.
4
G1
10,400
10,400
13
G1
10,400
0
29
G1
550
550
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Sept.
1
G1
53,000
53,000
Dividends
Acct. No. 319
Date
Explanation
PR
Debit
Credit
Balance
Sept.
28
G1
5,300
5,300
Problem 2-3B (Concluded)
Part 3
HUMBLE MANAGEMENT SERVICES
Trial Balance
September 30
Debit Credit
Cash .................................................................. $21,520
Accounts receivable ....................................... 9,800
Office supplies ................................................. 2,950
Financial & Managerial Accounting, 5th Edition
106
Problem 2-4B (60 minutes)
Part 1
TAMA CO.
Balance Sheet
December 31, 2012
Assets
Liabilities
Cash ...................................
$ 20,000
Accounts payable ................................
$ 4,000
Accounts receivable .........
35,000
Office supplies ..................
8,000
Office equipment...............
40,000
Equity
Machinery ..........................
28,500
Total equity ................................
127,500
Total assets .......................
$131,500
Total liabilities & equity ................................
$131,500
TAMA CO.
Balance Sheet
December 31, 2013
Assets
Liabilities
Cash ...................................
$ 5,000
Accounts payable ................................
$ 12,000
Accounts receivable .........
25,000
Note payable ................................
250,000
Office supplies ..................
13,500
Total liabilities ................................
262,000
Office equipment...............
40,000
Machinery ..........................
28,500
Building ..............................
250,000
Equity
Land ...................................
50,000
Total equity ................................
150,000
Total assets .......................
$412,000
Total liabilities & equity ................................
$412,000
Part 2
Calculation of 2013 net income:
Equity, December 31, 2012 .......................................................... $127,500
Equity, December 31, 2013 .......................................................... (150,000)
Problem 2-5B (35 minutes)
Part 1
GOULD SOLUTIONS
Trial Balance
April 30
Debit Credit
Cash ...................................................................... $19,982
Office supplies ..................................................... 760
Prepaid rent ......................................................... 1,800
Part 2: Likely transactions (following order of trial balance).
1. Purchased $760 of office supplies for cash.
2. Paid $1,800 cash for prepaid rent.
Part 3
Report of Cash Received and Paid
Cash received
Owner investment .................................... $15,000
Financial & Managerial Accounting, 5th Edition
108
Problem 2-6B (90 minutes)
Part 1
a. Cash .......................................................... 101 35,000
Office Equipment ..................................... 163 11,000
Common Stock ................................. 307 46,000
Owner invested cash and equipment for stock.
b. Land .......................................................... 172 7,500
Building .................................................... 170 40,000
f. Salaries Expense ..................................... 601 1,000
Cash .................................................. 101 1,000
Paid assistant’s salary.
Problem 2-6B (Part 1 Continued)
i. Accounts Payable ................................... 201 500
Cash .................................................. 101 500
Paid cash on account.
j. Office Equipment ..................................... 163 3,400
Problem 2-6B (Continued) Part 2
Cash No. 101
Land No. 172
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
35,000
35,000
(b)
7,500
7,500
(b)
15,000
20,000
(f)
1,000
19,000
Accounts Payable No. 201
(g)
3,200
22,200
Date
PR
Debit
Credit
Balance
(h)
540
21,660
(c)
500
500
(i)
500
21,160
(e)
1,200
1,700
(j)
3,400
17,760
(i)
500
1,200
(l)
1,000
16,760
(m)
2,200
18,960
Notes Payable No. 250
(n)
1,100
17,860
Date
PR
Debit
Credit
Balance
(b)
32,500
32,500
Accounts Receivable No. 106
Date
PR
Debit
Credit
Balance
(k)
4,200
4,200
Common Stock No. 307
(m)
2,200
2,000
Date
PR
Debit
Credit
Balance
(a)
46,000
46,000
Office Supplies No. 108
(d)
8,000
54,000
Date
PR
Debit
Credit
Balance
(c)
500
500
Dividends No. 319
Office Equipment No. 163
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(n)
1,100
1,100
(a)
11,000
11,000
(e)
1,200
12,200
Fees Earned No. 402
(j)
3,400
15,600
Date
PR
Debit
Credit
Balance
(g)
3,200
3,200
(k)
4,200
7,400
Automobiles No. 164
Salaries Expense No. 601
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(d)
8,000
8,000
(f)
1,000
1,000
(l)
1,000
2,000
Building No. 170
Date
PR
Debit
Credit
Balance
Utilities Expense No. 602
(b)
40,000
40,000
Date
PR
Debit
Credit
Balance
(h)
540
540
Problem 2-6B (Concluded)
Part 3
NUNCIO CONSULTING
Trial Balance
June 30
Debit Credit
Cash ............................................................ $17,860
Accounts receivable .................................. 2,000
Office supplies ............................................ 500
Office equipment ........................................ 15,600
Financial & Managerial Accounting, 5th Edition
112
Serial Problem — SP 2
Part 1 (120 minutes)
2013
Oct. 1 Cash .......................................................... 101 55,000
Office Equipment ..................................... 163 8,000
Computer Equipment .............................. 167 20,000
Common Stock................................. 307 83,000
Owner invests cash and equipment for stock.
2 Prepaid Rent ............................................ 131 3,300
Cash .................................................. 101 3,300
Paid four months’ rent in advance.
3 Computer Supplies ................................. 126 1,420
Accounts Payable ............................ 201 1,420
Serial Problem, Success Systems (Continued)
28 Accounts Receivable ............................. 106 5,208
Computer Services Revenue ......... 403 5,208
Paid cash for dividends.
Nov. 1 Mileage Expense ..................................... 676 320
Cash ................................................. 101 320
Reimbursed Lopez for mileage.
2 Cash .......................................................... 101 4,633
Computer Services Revenue .......... 403 4,633
Collected cash revenue from client.
