Problem 3-6A (Continued)
Part 4
ADVENTURE TRAVEL
Adjusted Trial Balance
April 30, 2015
No. Account Title Debit Credit
101 Cash …………………………………………………. $27,000
106 Accounts receivable ………………………….. 1,750
124 Office supplies ………………………………….. 600
Problem 3-6A (Continued)
Part 5
ADVENTURE TRAVEL
Income Statement
For Month Ended April 30, 2015
Commissions earned ………………………………………….. $9,750
Expenses
Depreciation expense—Computer equipment ……. $ 500
ADVENTURE TRAVEL
Statement of Retained Earnings
For Month Ended April 30, 2015
Retained earnings, April 1, 2015 ……………….. $ 0
Problem 3-6A (Continued)
Part 5—continued
ADVENTURE TRAVEL
Balance Sheet
April 30, 2015
Assets
Cash ………………………………………………………………………. $27,000
Accounts receivable ………………………………………………. 1,750
Office supplies ……………………………………………………….. 600
Problem 3-6A (Continued)
Part 6
Closing entries
April 30 Commissions Earned …………………………….. 405 9,750
Income Summary ……………………………. 901 9,750
To close the revenue account.
To close the dividends account.
Part 7
ADVENTURE TRAVEL
Post-Closing Trial Balance
April 30, 2015
Debit Credit
Cash …………………………………………………. $27,000
Accounts receivable ………………………….. 1,750
Problem 3-6A (Continued)
Part 7—continued
Ledger as of April 30
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
April 1 30,000 30,000
2 1,800 28,200
3 1,000 27,200
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Accumulated Depreciation–Computer Equipment Acct. No. 168
Date Explanation PR Debit Credit Balance
Salaries Payable Acct. No. 209
Date Explanation PR Debit Credit Balance
Problem 3-6A (Continued)
Common Stock Acct. No. 307
Date Explanation PR Debit Credit Balance
April 1 50,000 50,000
Retained Earnings Acct. No. 318
Date Explanation PR Debit Credit Balance
Dividends Acct. No. 319
Date Explanation PR Debit Credit Balance
Commissions Earned Acct. No. 405
Date Explanation PR Debit Credit Balance
Depreciation Expense–Computer Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Salaries Expense Acct. No. 622
Date Explanation PR Debit Credit Balance
Insurance Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
Rent Expense Acct. No. 640
Date Explanation PR Debit Credit Balance
Problem 3-6A (Concluded)
Office Supplies Expense Acct. No. 650
Date Explanation PR Debit Credit Balance
Repairs Expense Acct. No. 684
Date Explanation PR Debit Credit Balance
Telephone Expense Acct. No. 688
Date Explanation PR Debit Credit Balance
Income Summary Acct. No. 901
Date Explanation PR Debit Credit Balance
Problem 3-7A (15 minutes)
1.
B
6.
11.
E
16.
C
2.
Z
7.
12.
C
17.
C
3.
A
8.
13.
A
18.
Z
4.
A
9.
14.
C
19.
A
5.
E
10.
15.
A
20.
E
Problem 3-8A (75 minutes)
Part 1
TYBALT CONSTRUCTION
Income Statement
For Year Ended December 31, 2015
Revenues
Professional fees earned …………………………….. $97,000
Depreciation expense—Equipment ……………… 6,000
Wages expense ………………………………………….. 32,000
Interest expense …………………………………………. 5,100
Insurance expense ……………………………………… 10,000
Rent expense ……………………………………………… 13,400
TYBALT CONSTRUCTION
Statement of Retained Earnings
For Year Ended December 31, 2015
Retained earnings, December 31, 2014 ………….. $121,400
Problem 3-8A (Continued)
TYBALT CONSTRUCTION
Balance Sheet
December 31, 2015
Assets
Current assets
Plant assets
Equipment ………………………………………………….. 40,000
Accumulated depreciation—Equipment ………. (20,000) 20,000
Building ……………………………………………………… 150,000
Accumulated depreciation—Building ………….. (50,000) 100,000
Accounts payable ……………………………………….. $ 16,500
Interest payable ………………………………………….. 2,500
Rent payable ………………………………………………. 3,500
Wages payable …………………………………………… 2,500
Property taxes payable ……………………………….. 900
Unearned professional fees ………………………… 7,500
Current portion of long-term note payable…… 7,000
Problem 3-8A (Continued)
Part 2
(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
Wages Expense………………………………. 32,000
(3) Income Summary ………………………………….. 4,300
(4) Retained Earnings …………………………………. 13,000
Dividends ……………………………………….. 13,000
PROBLEM SET B
Problem 3-1B (15 minutes)
1. H 5. B 9. I
Problem 3-2B (30 minutes)
Part 1
Adjustment (a)
Adjustment (b)
Policy
Cost per Month
Months Active
in Fiscal Year
2015
Fiscal Year
2015
Expense
A
$250
($6,000/24 mo.)
12
$3,000
B
200
($7,200/36 mo.)
7
1,400
C
110
($1,320/12 mo.)
3
330
Total
$4,730
Adjustment (c)
Problem 3-2B (Concluded)
Adjustment (d)
Oct. 31 Depreciation Expense—Building …………………….. 5,400
Accumulated Depreciation—Building ………. 5,400
current salaries. *(4 days x $1,000)
Cash Payment for (e)
Problem 3-3B (90 minutes)
Parts 1 and 2
Cash
Accounts Payable
Bal.
60,000
Bal.
11,200
Accounts Receivable
Salaries Payable
Unadj. Bal.
0
Unadj. Bal.
0
(f)
5,750
(g)
450
Adj. Bal.
5,750
Adj. Bal.
450
Teaching Supplies
Unearned Training Fees
Unadj. Bal.
70,000
Unadj. Bal.
28,600
(b)
50,000
(e)
28,600
Adj. Bal.
20,000
Adj. Bal.
0
Prepaid Insurance
Common Stock
Unadj. Bal.
19,000
Bal.
11,000
(a)
9,500
Adj. Bal.
9,500
Retained Earnings
Prepaid Rent
Bal.
60,500
Unadj. Bal.
3,800
(h)
3,800
Adj. Bal.
0
Dividends
Professional Library
Bal.
20,000
Bal.
12,000
Accumulated Depreciation—
Professional Library
Unadj. Bal.
2,500
(d)
2,400
Adj. Bal.
4,900
Equipment
Bal.
40,000
Accumulated Depreciation—
Equipment
Unadj. Bal.
20,000
(c)
5,000
Adj. Bal.
25,000
Problem 3-3B (Continued)
Parts 1 and 2
Tuition Fees Earned
Advertising Expense
Unadj. Bal.
129,200
Bal.
19,000
(f)
5,750
Adj. Bal.
134,950
Training Fees Earned
Utilities Expense
Unadj. Bal.
68,000
Bal.
13,400
(e)
28,600
Adj. Bal.
96,600
Depreciation Expense—
Professional Library
Unadj. Bal.
0
(d)
2,400
Adj. Bal.
2,400
Depreciation Expense—
Equipment
Unadj. Bal.
0
(c)
5,000
Adj. Bal.
5,000
Salaries Expense
Unadj. Bal.
44,200
(g)
450
Adj. Bal.
44,650
Insurance Expense
Unadj. Bal.
0
(a)
9,500
Adj. Bal.
9,500
Rent Expense
Unadj. Bal.
29,600
(h)
3,800
Adj. Bal.
33,400
Teaching Supplies Expense
Unadj. Bal.
0
(b)
50,000
Adj. Bal.
50,000