Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Exercise 3-6 (20 minutes)
adidas AG
Balance Sheet
December 31, 2013
(Euros in millions)
Assets
Noncurrent assets
Exercise 3-7 (20 minutes)
WILSON TRUCKING COMPANY
Income Statement
For Year Ended December 31, 2015
Exercise 3-8 (10 minutes)
Dec. 31 Net Sales ....................................................... 1,014,345
Income Summary .................................. 1,014,345
Exercise 3-9 (20 minutes)
WILSON TRUCKING COMPANY
Balance Sheet
December 31, 2015
Assets
Current assets
Liabilities
Current liabilities
Accounts payable .......................................... $ 12,000
Interest payable ............................................. 4,000
Total current liabilities .................................. 16,000
Exercise 3-10 (10 minutes)
a. $ 4,361 / $ 44,500 = 9.8%
b. $ 97,706 / $ 398,800 = 24.5%
Exercise 3-11 (15 minutes)
Current
Assets
Current
Liabilities
Current
Ratio
Case 1
$ 79,040
/
$ 32,000
=
2.47
Case 2
104,880
/
76,000
=
1.38
Case 3
45,080
/
49,000
=
0.92
Case 4
85,680
/
81,600
=
1.05
Case 5
61,000
/
100,000
=
0.61
Analysis: Company 1 is in the strongest liquidity position. It has about $2.47
Exercise 3-12A (30 minutes)
a.
Dec. 1 Supplies Expense ................................................... 2,000
Cash ................................................................. 2,000
Purchased supplies.
b.
Dec. 2 Insurance Expense ................................................. 1,540
Exercise 3-13A (25 minutes)
a. Initial credit recorded in the Unearned Fees account
July 1 Cash ....................................................................... 3,000
Unearned Fees .............................................. 3,000
Received fees for work to be done for Solana.
Fees Earned................................................... 7,500
Completed work for customer Haru.
31 No adjusting entries required.
b. Initial credit recorded in the Fees Earned account
July 1 Cash ....................................................................... 3,000
Exercise 3-13A –concluded
c. Under the first method (and using entries from a)
Exercise 3-14B (25 minutes)
WESTCOTT COMPANY
December 31, 2015
Unadjusted
Trial Balance
Dr. Cr.
Adjustments
Dr. Cr.
Adjusted
Trial Balance
Dr. Cr.
Cash ....................................................
21
21
Accounts receivable .........................
12
12
Supplies .............................................
24
(d)
9
15
Prepaid insurance .............................
18
(e)
15
3
Equipment ..........................................
39
39
Accumulated depreciation–Equip
15
(a)
3
18
Accounts payable ..............................
6
6
Salaries payable ................................
(b)
6
6
Unearned revenue .............................
12
(c)
12
Common stock ................................
10
10
Retained earnings .............................
32
32
Dividends ...........................................
6
6
Revenue .............................................
75
(c)
12
87
Depreciation expense–Equip ...........
(a)
3
3
Salaries expense ...............................
18
(b)
6
24
Insurance expense ............................
(e)
15
15
Supplies expense ..............................
(d)
9
9
Utilities expense ................................
12
___
__
__
12
___
Totals ..................................................
150
150
45
45
159
159
Exercise 3-15C (30 minutes)
1. Adjusting entries
Oct. 31 Rent Expense ................................................ 2,800
2. Subsequent entries without reversing
Nov. 5 Rent Payable ................................................. 2,800
Rent Expense ................................................ 2,800
3. Reversing entries and subsequent entries
Nov. 1 Rent Payable ................................................. 2,800
Rent Expense ........................................ 2,800
To reverse accrual of rent expense.
Problem 3-1A (10 minutes)
1. E 5. C 9. D
Problem 3-2A (35 minutes)
Part 1
Adjustment (a)
Dec. 31 Office Supplies Expense ................................ 14,846
Office Supplies ......................................... 14,846
To record cost of supplies used
