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b. (cont'd)
Asset
s
$ 22
,
380
71
,
940
1
,
000
1
,
250
PROBLEM 5.6
A
BRUSHSTROKE ART STUDIO, INC. (continued
)
Client fees receivabl
e
Su
pp
lies
BRUSHSTROKE ART STUDIO, INC
.
December 31, 201
5
Balance Shee
t
Cash
Pre
p
aid studio rent
c.
Dec. 31 86
,
000
Income Summar
y
86
,
000
Client Fees Earned
To close Client Fees Earned.
PROBLEM 5.6
A
BRUSHSTROKE ART STUDI
O
December 31, 201
5
(1)
BRUSHSTROKE ART STUDIO, INC. (continued
)
General Journal
(
2
)
d.
22
,
380$ 71
,
940 1
,
000 1
,
250
PROBLEM 5.6
A
BRUSHSTROKE ART STUDIO, INC. (concluded
)
Pre
p
aid studio rent
BRUSHSTROKE ART STUDIO, INC. (concluded
)
December 31, 201
5
After-Closing Trial Balanc
e
Cash
Client fees receivabl
e
Su
pp
lies
50 Minutes, Strong
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Balance sheet accounts:
Equipment
36
,
000
36
,
000
36
,
000
Accumulated Depr.: Equipment
10
,
200
(4)
600
10
,
800
10
,
800
Notes payable
5
,
000
5
,
000
5
,
000
Income taxes payable
12
,
000
(9)
5
,
000
17
,
000
17
,
000
Unearned consulting fees
5
,
950
(6)
2
,
850
3
,
100
3
,
100
Salaries payable
(8)
1
,
700
1
,
700
1
,
700
(7)
11
,
000
Salaries expense
88
,
820
(8)
1
,
700
90
,
520
90
,
520
Telephone expense
2
,
550
2
,
550
2
,
550
Rent expense
22
,
000
(1)
2
,
100
24
,
100
24
,
100
(1) Rent expense for December. (6) Consulting services performed for clients who paid in advance.
(5) Accrued interest on notes payable.
PROBLEM 5.7A
INTERNET CONSULTING SERVICE, INC.
Income Statement Balance Shee
t
INTERNET CONSULTING
Trial Balance
A
djustments
*
A
djusted Trial Balanc
e
Worksheet
For the Month Ended December 31, 2015
SERVICE, INC.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
15 Minutes, Medium
PROBLEM 5.8
A
HHGREGG
every dollar of revenue generated. More impressively, the company's net income
return on the average stockholder investment is almost 17%. Based upon its positive
working capital and its current ratio at year-end, the company appears to have
sufficient liquidity to pay its current liabilities as they come due.
SOLUTIONS TO PROBLEMS SET B
20 Minutes, Easy PROBLEM 5.1B
STRONG KNOT, INC.
PROBLEM 5.1B
STRONG KNOT, INC. (continued)
a. (cont'd) STRONG KNOT, INC.
Balance Shee
t
December 31, 201
5
b.
Office Rent Ex
p
ense 18
,
000
Su
pp
lies Ex
p
ense 1
,
200
Salaries Ex
p
ense 96
,
000
De
p
reciation Ex
p
ense: Automobile 4
,
000
31 18
,
800
Retained Earnin
g
s18
,
800
PROBLEM 5.1B
STRONG KNOT, INC.
December 31, 201
5
(1)
General Journal
STRONG KNOT, INC. (concluded)
To close all ex
p
ense accounts.
Income Summar
y
(
3
)
To transfer net income earned in 2015 to the
Retained Earnin
g
s account
(
$160,000 - $141,200 =
a.
194
,
000$
1
,
800$
28
,
000 5
PROBLEM 5.2B
GARDEN WIZARD
S
Revenues:
GARDEN WIZARD
S
For the Year Ended December 31, 201
5
Income Statement
Ex
p
enses:
Office rent ex
p
ense
Insurance ex
p
ense
Service revenue earne
d
GARDEN WIZARDS
Statement of Retained Earnings
For the Year Ended December 31, 2015
Asset
s
27
,
800$ 4
,
200 1
,
400
140
,
000$ 75
28
,
000
Su
pp
lies
Trucks
Pre
p
aid rent
GARDEN WIZARDS (continued
)
GARDEN WIZARD
S
December 31, 201
5
Balance Shee
t
PROBLEM 5.2B
Cash
a. (cont'd)
E
q
ui
p
ment
