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2-41 Solutions
139,800 (12)
Solutions 2-42
2.36 a. continued.
Deposit with Suppliers (A) Equipment (A)
Accounts Payable (L) Advances from Customers (L)
2-43 Solutions
Solutions 2-44
2.36 a. continued.
Rent Expense (SE) Depreciation Expense (SE)
(17) 1,500
Income Tax Expense (SE)
b. ZEALOCK BOOKSTORE
Income Statement
For the Six Months Ending December 31, 2008
Sales Revenue ...................................................................... $ 172,800
c. ZEALOCK BOOKSTORE
Balance Sheet
December 31, 2008
Assets
Current Assets:
Cash ............................................................................ $ 24,350
2-45 Solutions
Solutions 2-46
2.36 c. continued.
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable ....................................................... $ 5,600
2.37 (Zealock Bookstore; analysis of transactions and preparation of
comparative income statements and balance sheet.)
Cash (A) Accounts Receivable (A)
2-47 Solutions
2.37 a. continued.
Accumulated Depreciation (XA) Note Payable (L)
Interest Payable (L) Income Tax Payable (L)
Rent Expense (SE) Depreciation Expense (SE)
Solutions 2-48
2-49 Solutions
2.37 a. continued.
b. ZEALOCK BOOKSTORE
Comparative Income Statement
For 2008 and 2009
2008 2009
Sales Revenue ............................................... $ 353,700 $ 172,800
c. ZEALOCK BOOKSTORE
Comparative Balance Sheet
December 31, 2008 and 2009
2009 2008
Assets
Current Assets:
Cash ........................................................... $ 85,230 $ 24,350
Accounts Receivable .................................. 13,150 5,800
Solutions 2-50
2.37 c. continued.
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts Payable ...................................... $ 11,800 $ 5,600
Note Payable ............................................. 75,000 30,000
2.38 (Portobello Co.; reconstructing the income statement and balance sheet.)
T-accounts to derive the amounts in the income statement and balance
sheet appear below.
Cash Accounts Receivable
2-51 Solutions
2.38 continued.
Advances to Employees Prepaid Taxes
Accumulated Depreciation—
Computer System (at Cost) Computer System
Accumulated Depreciation—
Accounts Payable Notes Payable
Solutions 2-52
2-53 Solutions
2.38 continued.
Common Stock Retained Earnings
Interest Expense
(10) 3,000
Solutions 2-54
2.38 continued.
PORTOBELLO CO.
Income Statement
For the Year Ended December 31, 2008
Revenues:
Sales ...................................................................................... $ 227,200
2-55 Solutions
2.38 continued.
PORTOBELLO CO.
Balance Sheet
December 31, 2008
Assets
Current Assets:
Cash ........................................................... $ 4,700
Delivery Trucks ......................................... $ 60,000
Less Accumulated Depreciation ............... (4,500) 55,500
Total Noncurrent Assets ....................... $ 94,500
Total Assets ........................................... $ 198,700
Shareholders' Equity:
Common Stock .......................................... $ 51,000
Solutions 2-56
2.39 (Computer Needs, Inc.; reconstructing the income statement and balance
sheet.)
T-accounts.
Cash Accounts Receivable
Inventory Prepayments
Property, Plant and Equipment Accumulated Depreciation
Other Current Liabilities Mortgage Payable
Common Stock Retained Earnings
2-57 Solutions
2.39 continued.
Sales Cost of Goods Sold
COMPUTER NEEDS, INC.
Income Statement
For the Years Ended December 31, 2007 and 2008
2008 2007
Sales ..................................................................... $ 197,200 $ 152,700
Solutions 2-58
2.39 continued.
COMPUTER NEEDS, INC.
Balance Sheet
For the Years Ended December 31, 2007 and 2008
2008 2007
Assets
Cash ...................................................................... $ 4,812 $ 15,600
Accounts Receivable ............................................ 40,300 32,100
Inventories ........................................................... 60,700 46,700
Prepayments ........................................................ 1,800 1,500
2.40 (Embotelladora; effect of errors on financial statements.)
Shareholders'
Assets Liabilities Equity
f. NO O/S $ 17,900 U/S $ 17,900
2.41 (Forgetful Corporation; effect of recording errors on financial statements.)
a. Actual Entry:
Cash .......................................................................... 1,400
2.41 b. continued.
Correct Entries:
Machine .................................................................... 5,000
Assets
=
Liabilities
+
Shareholders'
Equity
(Class.)
+5,000
–5,000
Depreciation Expense .............................................. 500
Accumulated Depreciation .................................. 500
Assets
=
Liabilities
+
Shareholders'
Equity
(Class.)
–500
–500
IncSt → RE
c. Actual Entry:
None for accrued interest.
Correct Entry:
