b. (cont’d)
Asset
s
$ 22
,
380
71
,
940
1
,
000
1
,
250
,
,
,
,
,
,
,
,
,
p
,
,
,
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
,
,
,
,
,
,
p
,
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:
23
400
(7)
11
000
34
400
34
400
6
300
(1)
2
100
4
200
4
200
300
(2)
50
250
250
600
(3)
150
450
450
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
30
000
30
000
30
000
32
700
32
700
32
700
60
000
60
000
60
000
Salaries payable
(8)
1
,
700
1
,
700
1
,
700
(5)
100
100
100
257
(6)
2
850
271
271
(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
51
000
(9)
5
000
56
000
56
000
560
(2)
50
610
610
1
600
(3)
150
1
750
1
750
(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.
49
100
49
100
49
100
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
p
p
,
p
,
,
,
,
,
31 18
,
800
Retained Earnin
g
s18
,
800
,
g
,
g
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 – $141,200 =
,
y
(
)
a.
194
,
000$
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
,
,
,
,
,
,
,
,
,
p
,
,
,
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