(50-60 min.) P 2-58A
Req. 1
Journal
DATE
ACCOUNT TITLES
DEBIT
CREDIT
Jan.
2
Cash …………………………………………….
65,000
Common Stock ……………………..
65,000
3
Supplies ………………………………………..
1,000
Equipment ……………………………………
12,000
Accounts Payable ………………….
13,000
4
Cash …………………………………………….
5,500
Service Revenue ……………………
5,500
7
Land …………………………………………….
39,000
Cash ……………………………………..
39,000
11
Accounts Receivable ……………………..
4,100
Service Revenue ……………………
4,100
16
Accounts Payable ………………………….
12,000
Cash ……………………………………..
12,000
17
Advertising Expense ………………………
600
Cash ……………………………………..
600
18
Cash ……………………………………………..
2,000
Accounts Receivable ……………..
2,000
22
Utilities Expenses …………………………
430
Cash ……………………………………..
430
29
Cash …………………………………………….
2,600
Service Revenue ……………………
2,600
31
Salary Expense ……………………………..
2,900
Cash ……………………………………..
2,900
31
Dividends………………………………………
1,800
Cash ……………………………………..
1,800
(continued) P 2-58A
Req. 2
Cash
Accounts Receivable
Jan. 2
65,000
Jan. 7
39,000
Jan. 11
4,100
Jan. 18
2,000
4
5,500
16
12,000
Bal.
2,100
18
2,000
17
600
29
2,600
22
430
31
2,900
Supplies
31
1,800
Jan. 3
1,000
Bal.
18,370
Bal.
1,000
Equipment
Land
Jan. 3
12,000
Jan. 7
39,000
Bal.
12,000
Bal.
39,000
Accounts Payable
Common Stock
Jan. 16
12,000
Jan. 3
13,000
Jan. 2
65,000
Bal.
1,000
Bal.
65,000
Dividends
Service Revenue
Jan. 31
1,800
Jan. 4
5,500
Bal.
1,800
11
4,100
29
2,600
Salary Expense
Bal.
12,200
Jan. 31
2,900
Bal.
2,900
Advertising Expense
Jan. 17
600
Utilities Expense
Bal.
600
Jan. 22
430
Bal.
430
(continued) P 2-58A
Req. 3
Wortham Service, Inc.
Trial Balance
January 31, 20XX
ACCOUNT
DEBIT
CREDIT
Cash …………………………..…………
$18,370
Accounts receivable ………………
2,100
Supplies………………………………..
1,000
Land ……………………………………..
39,000
Equipment …………………………….
12,000
Accounts payable ………………….
$ 1,000
Common stock ………………………
65,000
Dividends ……………………………..
1,800
Service revenue …………………….
12,200
Salary expense ……………………..
2,900
Advertising expense ………………
600
Utilities expense ……………………
430
Total ……………………………………..
$78,200
$78,200
Req. 4
Total resources (assets) = $72,470 ($18,370 + $2,100 + $1,000 + $12,000
+ $39,000)
(40-50 min.) P 2-59A
Reqs. 1 and 2
Cash
Accounts Receivable
(a)
50,000
(c)
47,000
(g)
12,800
(j)
1,600
(b)
60,000
(e)
6,100
Bal.
11,200
(f)
3,790
(h)
100
(j)
1,600
(k)
1,800
Bal.
60,390
Supplies
Music Equipment
(d)
450
(c)
47,000
Bal.
450
Bal.
47,000
Building
Accounts Payable
(a)
107,000
(h)
100
(d)
450
Bal.
107,000
(i)
700
Bal.
1,050
Note Payable
(b)
60,000
Common Stock
Bal.
60,000
(a)
157,000
Bal.
157,000
Service Revenue
(f)
3,790
Salary Expense
(g)
12,800
(e)
6,100
Bal.
16,590
Bal.
6,100
Rent Expense
Advertising Expense
(k)
1,400
(k)
400
Bal.
1,400
Bal.
400
Utilities Expense
(i)
700
Bal.
700
(continued) P 2-59A
Req. 3
Holt Music Services Corporation
Trial Balance
September 30, 2014
ACCOUNT
DEBIT
CREDIT
Cash …………………………..………..
$ 60,390
Accounts receivable ……………..
11,200
Supplies……………………………….
450
Building ……………………………….
107,000
Music equipment ………………….
47,000
Accounts payable …………………
$ 1,050
Note payable… ……………………..
60,000
Common stock ……………………..
157,000
Service revenue ……………………
16,590
Salary expense …………………….
6,100
Rent expense… …………………….
1,400
Advertising expense ……………..
400
Utilities expense …………………..
700
Total …………………………………….
$234,640
$234,640
(15-30 min.) P 2-60B
Dear Ramona,
This trial balance lists the accounts of the company, along with their
balances at December 31, 2014. The trial balance provides the data for
computing total assets, total liabilities, and net income or net loss.
Tampa Outdoor Design
Student responses may vary.
(45-60 min.) P 2-61B
Req. 1
Analysis of Transactions
ASSETS
= LIABILITIES + STOCKHOLDERS’ EQUITY
Cash +
Accounts
Receivable +
Supplies +
Equipment =
Accounts
Payable +
Common
Stock +
Retained
Earnings
Type of Stockholders’
Equity Transaction
Bal.
2,050
3,350
21,700
8,900
13,600
4,600
a)
9,800
9,800
Issued stock
b)
5,800
5,800
Service revenue
c)
(4,900)
(4,900)
d)
700
700
e)
600
(600)
f)
3,400
3,400
Service revenue
g)
(1,500)
(1,500)
Rent expense
(2,000)
(2,000)
Advertising expense
h)
(2,400)
___
(2,400)
Dividends
Bal.
7,450
6,150
700
21,700
4,700
23,400
7,900
$36,000 $36,000
(continued) P 2-61B
Req. 2
Computer Works, Inc.
Income Statement
Month Ended June 30, 2014
Revenues:
Service revenue ($5,800 + $3,400) ………..
$9,200
Expenses:
Advertising expense ……………………
$2,000
Rent expense ………………………………
1,500
Total expenses …………………………...
3,500
Net income …………………………………………
$5,700
Req. 3
Computer Works, Inc.
Statement of Retained Earnings
For the Month Ended June 30, 2014
Retained earnings, May 31, 2014 ……………………….
$ 4,600
Add: Net income ………………………………………………
5,700
Subtotal
10,300
Less: Dividends declared ………………………………….
(2,400)
Retained earnings, June 30, 2014 ………………………
$ 7,900
(continued) P 2-61B
Req. 4
Computer Works, Inc.
Balance Sheet
June 30, 2014
ASSETS
LIABILITIES
Cash …………………………
$ 7,450
Accounts payable ……………..
$ 4,700
Accounts receivable …..
6,150
STOCKHOLDERS’
Supplies ……………………
700
EQUITY
Equipment …………………
21,700
Common stock ………………….
23,400
Retained earnings ……………..
7,900
Total stockholders’ equity ….
31,300
Total liabilities and
Total assets ……………….
$36,000
stockholders’ equity …..
$36,000
(30-40 min.) P 2-62B
Req. 1
Journal
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
a.
Cash …………………………..…………………..
9,800
Common Stock ………………………..
9,800
b.
Cash …………………………..…………………..
5,800
Service Revenue ……………………..
5,800
c.
Accounts Payable …………………………..
4,900
Cash ……………………………………….
4,900
d.
Supplies …………………………………………
700
Accounts Payable ……………………
700
e.
Cash …………………………..…………………..
600
Accounts Receivable… …………….
600
f.
Accounts Receivable ……………………….
3,400
Service Revenue ……………………..
3,400
g.
Rent Expense ………………………………….
1,500
Advertising Expense ………………………..
2,000
Cash ……………………………………….
3,500
h.
Dividends ………………………………………..
2,400
Cash ……………………………………….
2,400
(continued) P 2-62B
Reqs. 2 and 3
Cash
Accounts
Receivable
Supplies
Equipment
2,050
4,900
3,350
600
700
21,700
9,800
1,500
3,400
5,800
2,000
6,150
700
21,700
600
2,400
7,450
Accounts
Payable
Common Stock
Retained
Earnings
Dividends
4,900
8,900
13,600
4,600
2,400
700
9,800
4,700
23,400
4,600
2,400
Service
Revenue
Rent Expense
Advertising
Expense
5,800
1,500
2,000
3,400
9,200
1,500
2,000
(50-60 min.) P 2-63B
Req. 1
Journal
DATE
ACCOUNT TITLES
DEBIT
CREDIT
Apr.
2
Cash …………………………………………………
70,000
Common Stock …………………………..
70,000
3
Supplies ……………………………………………
2,000
Equipment ………………………………………..
9,200
Accounts Payable ………………………
11,200
4
Cash …………………………………………………
1,400
Service Revenue ………………………..
1,400
7
Land …………………………………………………
42,500
Cash ………………………………………….
42,500
11
Accounts Receivable …………………………
2,800
Service Revenue ………………………..
2,800
16
Accounts Payable ……………………………..
9,200
Cash ………………………………………….
9,200
17
Utilities Expense ……………………………….
150
Cash ………………………………………….
150
18
Cash …………………………………………………
300
Accounts Receivable ………………….
300
22
Utilities Expense ………………………………..
170
Cash …………………………………………..
170
29
Cash ………………………………………………….
2,500
Service Revenue …………………………
2,500
30
Salary Expense ………………………………….
4,900
Cash …………………………………………..
4,900
30
Dividends ………………………………………….
2,600
Cash …………………………………………..
2,600
(continued) P 2-63B
Req. 2
Cash
Accounts Receivable
Apr. 2
70,000
Apr. 7
42,500
Apr. 11
2,800
Apr. 18
300
4
1,400
16
9,200
Bal.
2,500
18
300
17
150
29
2,500
22
170
30
4,900
Supplies
30
2,600
Apr. 3
2,000
Bal.
14,680
Bal.
2,000
Equipment
Land
Apr. 3
9,200
Apr. 7
42,500
Bal.
9,200
Bal.
42,500
Accounts Payable
Common Stock
Apr. 16
9,200
Apr. 3
11,200
Apr. 2
70,000
Bal.
2,000
Bal.
70,000
Dividends
Service Revenue
Apr. 30
2,600
Apr. 4
1,400
Bal.
2,600
11
2,800
29
2,500
Bal.
6,700
Salary Expense
Utilities Expense
Apr. 30
4,900
Apr. 17
150
Bal.
4,900
22
170
Bal.
320
(continued) P 2-63B
Req. 3
Auguetta Brickworks, Inc.
Trial Balance
April 30, 20XX
ACCOUNT
DEBIT
CREDIT
Cash…………………………………….
$14,680
Accounts receivable ……………..
2,500
Supplies ………………………………
2,000
Land …………………………………….
42,500
Equipment …………………………...
9,200
Accounts payable …………………
$ 2,000
Common stock ……………………..
70,000
Dividends …………………………….
2,600
Service revenue ……………………
6,700
Salary expense …………………….
4,900
Utilities expense …………………..
320
Total …………………………………….
$78,700
$78,700
Req. 4
(40-50 min.) P 2-64B
Reqs. 1 and 2
Cash
Accounts Receivable
(a)
38,000
(c)
45,500
(g)
3,600
(j)
1,200
(b)
50,000
(e)
4,200
Bal.
2,400
(f)
4,600
(h)
400
(j)
1,200
(k)
2,750
Supplies
Bal.
40,950
(d)
1,900
Bal.
1,900
Music Equipment
(c)
45,500
Building
Bal.
45,500
(a)
110,000
Bal.
110,000
Note Payable
(b)
50,000
Accounts Payable
Bal.
50,000
(h)
400
(d)
1,900
(i)
900
Common Stock
Bal.
2,400
(a)
148,000
Bal.
148,000
Service Revenue
Salary Expense
(f)
4,600
(e)
4,200
(g)
3,600
Bal.
4,200
Bal.
8,200
Rent Expense
Advertising Expense
(k)
1,800
(k)
950
Bal.
1,800
Bal.
950
Utilities Expense
(i)
900
Bal.
900
(continued) P 2-64B
Req. 3
Lone Star Entertainment Corporation
Trial Balance
March 31, 2014
ACCOUNT
DEBIT
CREDIT
Cash……………………………………….
$ 40,950
Accounts receivable ………………..
2,400
Supplies …………………………………
1,900
Building …………………………..……..
110,000
Music equipment …………………….
45,500
Accounts payable ……………………
$ 2,400
Note payable …………………………..
50,000
Common stock ………………………..
148,000
Service revenue ………………………
8,200
Salary expense ……………………….
4,200
Rent expense ………………………….
1,800
Advertising expense ………………..
950
Utilities expense ……………………..
900
Total ……………………………………….
$208,600
$208,600
Challenge Exercises and Problem
(20-40 min.) E 2-65
a. Total cash paid during December:
Cash
Nov. 30 Bal.
10,000
Dec. receipts
96,000
Dec. payments
X
= $101,000
Dec. 31 Bal.
5,000
Nov 30 Bal.
Dec. sales
on account
Dec. collections
X
= $49,000
Dec. 31 Bal.
= $49,000
= $19,000
= $20,000