Problem 2-3A (90 minutes)
Part 1
Mar. 1 Cash …………………………………………………….. 101 150,000
Office Equipment …………………………………. 163 22,000
Common Stock ……………………………… 307 172,000
Owner invested cash and equipment for stock.
9 Accounts Receivable ……………………………. 106 7,500
Services Revenue …………………………. 403 7,500
Billed client for completed work.
12 Accounts Payable ………………………………… 201 4,200
Cash ……………………………………………… 101 4,200
29 Dividends …………………………………………….. 319 5,100
Cash ……………………………………………… 101 5,100
Paid cash dividends.
30 Office Supplies …………………………………….. 124 600
Accounts Payable …………………………. 201 600
Problem 2-3A (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
Debit
Credit
Balance
Mar.
1
150,000
150,000
2
6,000
144,000
6
4,000
148,000
12
4,200
143,800
19
5,000
138,800
22
3,500
142,300
29
5,100
137,200
31
G1
500
136,700
Accounts Receivable
Acct. No. 106
Date
Explanation
Debit
Credit
Balance
Mar.
9
7,500
7,500
22
3,500
4,000
25
3,820
7,820
Office Supplies
Acct. No. 124
Date
Explanation
Debit
Credit
Balance
Mar.
3
1,200
1,200
30
600
1,800
Prepaid Insurance
Acct. No. 128
Date
Explanation
Debit
Credit
Balance
Mar.
19
5,000
5,000
Prepaid Rent
Acct. No. 131
Date
Explanation
Debit
Credit
Balance
Mar.
2
6,000
6,000
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Mar.
1
22,000
22,000
3
3,000
25,000
Problem 2-3A (Continued)
Part 2 (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Mar.
3
G1
4,200
4,200
12
4,200
0
30
G1
600
600
Common Stock
Acct. No. 307
Date
Explanation
Debit
Credit
Balance
Mar.
1
172,000
172,000
Dividends
Acct. No. 319
Date
Explanation
Debit
Credit
Balance
Mar.
29
5,100
5,100
Services Revenue
Acct. No. 403
Date
Explanation
Debit
Credit
Balance
Mar.
6
4,000
4,000
9
7,500
11,500
25
3,820
15,320
Utilities Expense
Acct. No. 690
Date
Explanation
Debit
Credit
Balance
Mar.
31
500
500
Problem 2-3A (Concluded)
Part 3
VENTURE CONSULTANTS
Trial Balance
March 31
Debit Credit
Problem 2-4A (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.
Common Stock…………………………... 307 16,500
Owner contributed automobile to business
for stock.
e. Office Equipment ………………………………. 163 5,600
Accounts Payable ………………………. 201 5,600
Problem 2-4A (Part 1 Continued)
i. Accounts Payable …………………………….. 201 2,000
Cash ………………………………………….. 101 2,000
Paid cash on account.
Problem 2-4A (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
Problem 2-4A (Concluded)
Part 3
HV CONSULTING
Trial Balance
September 30
Debit Credit
Problem 2-5A (90 minutes)
Part 1
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2014
Assets Liabilities
Cash …………………………. $ 15,640 Accounts payable …………….. $ 33,500
Accounts receivable …. 19,390 Note payable…………………….. 40,000
Office supplies ………….. 1,960 Total liabilities ………………….. 73,500
Trucks ………………………. 157,000
Office equipment ………. 44,000
Problem 2-6A (35 minutes)
Part 1
MIN ENGINEERING
Trial Balance
May 31
Debit Credit
1. Purchased $890 of office supplies for cash.
2. Paid $4,600 insurance premium in advance.
3. Purchased $12,900 of office equipment on credit (with account payable).
4. Yi Min invested $18,000 cash in the business in exchange for stock.
5. Paid $3,329 cash for dividends.
6. Earned $36,000 cash for engineering services.
7. Paid $7,540 cash for rent expense.
Part 3
Report of Cash Received and Paid
Cash received