Problem 2-3B (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
Problem 2-4B (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.
Common Stock…………………………... 307 8,000
Owner contributed automobile to business
for stock.
e. Office Equipment ………………………………. 163 1,200
Accounts Payable ………………………. 201 1,200
Problem 2-4B (Part 1 Continued)
i. Accounts Payable …………………………….. 201 500
Cash ………………………………………….. 101 500
Paid cash on account.
Problem 2-4B (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 2-4B (Concluded)
Part 3
NUNCIO CONSULTING
Trial Balance
June 30
Debit Credit
Problem 2-5B (60 minutes)
Part 1
TAMA CO.
Balance Sheet
December 31, 2014
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, 2015
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 2015 net income:
Equity, December 31, 2014 …………………………………………………. $127,500
Equity, December 31, 2015 …………………………………………………. (150,000)
Increase in equity during 2015 ……………………………………………. $ 22,500
Owner investment during 2015 …………………………………………… $ 15,000
2015 Net income …………………………..……………………………………. ?
Dividends during 2015 ($250 x 12) …………………………..………….. (3,000)
Increase in equity during 2015 ……………………………………………. $ 22,500
Therefore, 2015 income must equal ($22,500+ $3,000– $15,000) = $ 10,500
Part 3
Debt ratio = $262,000 / $412,000 = 63.6%
Problem 2-6B (35 minutes)
Part 1
GOULD SOLUTIONS
Trial Balance
April 30
Debit Credit
1. Purchased $760 of office supplies for cash.
2. Paid $1,800 cash for prepaid rent.
3. Purchased $12,250 office equipment on credit.
4. Gould invested $15,000 cash in the business in exchange for stock.
5. Paid $5,200 cash for dividends.
6. Earned $20,400 cash in consulting fees.
7. Paid $7,658 cash for operating expenses.
Part 3
Report of Cash Received and Paid
Cash received
Owner investment …………………………..…. $15,000
Consulting fees ………………………………… 20,400
Office Equipment …………………………..….. 163 8,000
Computer Equipment ………………………… 167 20,000
Common Stock…………………………... 307 73,000
Owner invests cash and equipment for stock.
2 Prepaid Rent …………………………..………… 131 3,300
Billed customer for services.
8 Accounts Payable ……………………………. 201 1,420
Cash ………………………………………….. 101 1,420
Paid balance due on account payable.
10 No entry necessary in the journal.
Cash ………………………………………….. 101 1,728
Purchased ads in local newspaper.
22 Cash …………………………………………………. 101 1,400
Accounts Receivable …………………. 106 1,400
Collected accounts receivable.
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Solutions Manual, Chapter 2
117
Serial Problem, Business Solutions (Continued)
28 Accounts Receivable ……………………….. 106 5,208
Computer Services Revenue ……… 403 5,208
Billed customer for services.
31 Wages Expense ………………………………… 623 875
Cash …………………………………………. 101 875
Paid employee for part-time work.
31 Dividends …………………………………………. 319 3,600
Cash …………………………………………. 101 3,600
Paid cash for dividends.
Nov. 1 Mileage Expense ………………………………. 676 320
Cash …………………………………………. 101 320
Reimbursed Rey for mileage.
2 Cash …………………………………………………. 101 4,633
Computer Services Revenue ………. 403 4,633
Collected accounts receivable.
22 Miscellaneous Expenses …………………… 677 250
Cash ………………………………………….. 101 250
Record donation. (Some companies use a Donations account.)
24 Accounts Receivable ………………………… 106 3,950
Cash ………………………………………….. 101 2,000
Paid cash for dividends.
Serial Problem, Business Solutions (Continued)
Part 2
General Ledger accounts
Cash Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Oct. 1 45,000 45,000
2 3,300 41,700
5 2,220 39,480
8 1,420 38,060
15 4,800 42,860
17 805 42,055
20 1,728 40,327
22 1,400 41,727
31 875 40,852
31 3,600 37,252
Nov. 1 320 36,932
2 4,633 41,565
5 1,125 40,440
18 2,208 42,648
28 5,208 5,208
Nov. 8 5,668 10,876
18 2,208 8,668
24 3,950 12,618