Chapter 02 – Accounting System and Financial Statements
Problem 2-3B (Concluded)
Part 3
HUMBLE MANAGEMENT SERVICES
Trial Balance
September 30
Debit Credit
Cash ………………………………………………………… $21,520
Accounts receivable ………………………………… 9,800
Office supplies …………………………………………. 2,950
Problem 2-4B (60 minutes)
Part 1
TAMA CO.
Balance Sheet
December 31, 2012
Assets
Liabilities
Cash ……………………………..
$ 20,000
Accounts payable …………..………………
Accounts receivable ……...
35,000
Office supplies ……………...
8,000
Office equipment…………...
40,000
Equity
Machinery ……………………..
28,500
Total equity …………………….…….
Total assets …………………..
$131,500
Total liabilities & equity …..………………………
$131,500
TAMA CO.
Balance Sheet
December 31, 2013
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 …..………………………
Part 2
Calculation of 2013 net income:
Equity, December 31, 2012 …………………………………………………. $127,500
Equity, December 31, 2013 …………………………………………………. (150,000)
Increase in equity during 2013 ……………………………………………. $ 22,500
Owner investment during 2013 …………………………………………… $ 15,000
2013 Net income ………………………………………………………………… ?
Dividends during 2013 ($250 x 12) ………………………………………. (3,000)
Increase in equity during 2013 ……………………………………………. $ 22,500
Therefore, 2013 income must equal ($22,500+ $3,000– $15,000) = $ 10,500
Part 3
Debt ratio = $262,000 / $412,000 = 63.6%
Problem 2-6B (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 for stock.
e. Office Equipment ………………………………. 163 1,200
Accounts Payable ………………………. 201 1,200
Purchased office equipment on account.
Problem 2-6B (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
Chapter 02 – Accounting System and Financial Statements
Serial Problem — SP 2
Part 1 (120 minutes)
2013
Oct. 1 Cash …………………………………………………. 101 55,000
Office Equipment ………………………………. 163 8,000
Computer Equipment ………………………… 167 20,000
Common Stock…………………………... 307 83,000
Owner invests cash and equipment for stock.
2 Prepaid Rent …………………………………….. 131 3,300
Cash ………………………………………….. 101 3,300
Paid four months’ rent in advance.
Chapter 02 – Accounting System and Financial Statements
Serial Problem, Success Systems (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
Chapter 02 – Accounting System and Financial Statements
Serial Problem, Success Systems (Continued)
Part 2
General Ledger accounts
Cash Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Oct. 1 55,000 55,000
2 3,300 51,700
5 2,220 49,480
8 1,420 48,060
Accounts Receivable Acct. No.106
Date
Explanation
PR
Debit
Credit
Balance
Oct. 6 4,800 4,800
12 1,400 6,200
Computer Supplies Acct. No. 126
Date
Explanation
PR
Debit
Credit
Balance