PROBLEM SET B
Problem 2-1B (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.
12 Accounts Receivable ………………………… 106 15,400
Services Revenue ………………………. 401 15,400
Billed client for completed work.
13 Accounts Payable …………………………….. 201 10,400
Cash ………………………………………….. 101 10,400
28 Dividends …………………………..…………….. 319 5,300
Cash ………………………………………….. 101 5,300
Paid cash for dividends.
29 Office Supplies …………………………………. 124 550
Accounts Payable ………………………. 201 550
Problem 2-1B (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 2-1B (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
Acct. No. 401
Date
Explanation
PR
Debit
12
G1
18,680
G1
20,780
Utilities Expense
Acct. No. 690
Date
Explanation
PR
Debit
Sept.
Problem 2-1B (Concluded)
Part 3
HUMBLE MANAGEMENT SERVICES
Trial Balance
September 30
Debit Credit
Cash ………………………………………………………… $21,520
Accounts receivable ………………………………… 9,800
Office supplies …………………………………………. 2,950
Problem 2-2B (90 minutes)
Part 1
a. Cash …………………………………………………….. 101 65,000
Office Equipment …………………………………. 163 5,750
Computer Equipment …………………………... 164 30,000
Common Stock …………………………..…. 307 100,750
Problem 2-2B (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
Problem 2-2B (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 2-2B (Concluded)
Part 3
SOFTWORKS
Trial Balance
April 30
Debit Credit
Cash …………………………………………………….. $ 17,262
Problem 2-3B (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.
12 Accounts Receivable ……………………………. 106 10,200
Services Revenue …………………………. 403 10,200
Billed client for completed work.
13 Accounts Payable ………………………………… 201 3,100
Cash ……………………………………………… 101 3,100
28 Dividends …………………………………………….. 319 5,300
Cash ……………………………………………… 101 5,300
Paid cash for dividends.
29 Office Supplies …………………………………….. 124 249
Accounts Payable …………………………. 201 249
Problem 2-3B (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
30,000
30,000
2
G1
4,500
25,500
8
G1
3,400
28,900
13
G1
3,100
25,800
19
G1
1,800
24,000
22
G1
5,200
29,200
28
G1
5,300
23,900
30
G1
831
23,069
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Nov.
12
G1
10,200
10,200
22
G1
5,200
5,000
24
G1
1,750
6,750
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Nov.
4
G1
600
600
29
G1
249
849
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Nov.
19
G1
1,800
1,800
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Nov.
2
G1
4,500
4,500
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
15,000
15,000
4
G1
2,500
17,500
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Nov.
4
G1
3,100
3,100
13
G1
3,100
0
29
G1
249
249