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EXERCISE 1-13
MADISON COMPANY
Balance Sheet
December 31, 2015
Assets
Cash ................................................................................. $14,000
Accounts receivable ....................................................... 8,500
Supplies ........................................................................... 3,000
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable .................................................... $15,000
Stockholders’ equity
Common stock ......................................................... $50,000
EXERCISE 1-14
(a) Camping fee revenues .......................................................... $140,000
General store revenues ......................................................... 47,000
(b) WYCO PARK
Balance Sheet
December 31, 2015
Assets
Cash ........................................................................................ $ 20,000
Supplies ................................................................................. 2,500
EXERCISE 1-14 (Continued)
WYCO PARK
Balance Sheet (Continued)
December 31, 2015
Liabilities and Stockholders’ Equity
Liabilities
Notes payable .................................................... $ 60,000
Accounts payable .............................................. 11,000
Total liabilities ............................................ $ 71,000
EXERCISE 1-15
LOUISA CRUISE COMPANY
Income Statement
For the Year Ended December 31, 2015
Revenues
Ticket revenue .................................................. $328,000
Expenses
Salaries and wages expense ........................... $142,000
Maintenance and repairs expense .................. 92,000
EXERCISE 1-16
ALEXIS AND RYAN, ATTORNEYS AT LAW
Retained Earnings Statement
For the Year Ended December 31, 2015
Retained earnings, January 1 ................................................ $ 23,000
152,000
Less: Dividends ..................................................................... 64,000
*Legal service revenue .......................................................... $340,000
EXERCISE 1-17
PAULO COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash flows from operating activities
Cash receipts from revenues ........................... $600,000
Cash payments for expenses .......................... (430,000)
Net cash provided by operating activities 170,000
1-24 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
(a) FREDONIA REPAIR INC.
Stockholders’ Equity
Accounts
Accounts
Common
Retained Earnings
Revenues
–
Expenses
–
Dividends
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
+$10,000
+ 10,000
+ –5,000
+ 5,000
+ –400
+ 4,600
+ –300
+ 4,300
+000,000
+ 4,300
–+4,700
+ 9,000
–700
+ 8,300
+ –1,000
+ 7,300
+ –140
+ 7,160
+000,000
+ 7,160
– +120
+$ 7,280
+
+
+$1,100
+ 1,100
+–120
+$980
+
+
+
+
+
+
+
+
+$300
+ 300
+0000
+ 300
+0000
+ 300
+0000
+ 300
+0000
+ 300
+0000
+ 300
+0000
+ 300
+$300
+
+
+
+
+
+
+
+
+
+
+$5,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+$5,000
=
=
=
=
=
=
=
=
=
=
=
+$250
+ 250
+0000
+ 250
+0000
+ 250
+0000
+ 250
+0000
+0250
+0000
+0250
+$250
+
+
+
+
+
+
+
+
+
+
+$10,000
0010,000
+000,
0010,000
10,000
10,000000
00010,000000
00010,000
10,000
10,000
10,000
10,000
$10,000
+
+
+
+
+
+
+
+
+
+
+
+$4,700
4,700
4,700
4,700
4,700
+1,100
5,800
$5,800
–
–$400
–400
–400
–250
–650
–650
–650
–1,000
–1,650
–140
–1,790
–1,790
$1,790
–
–$700
–700
–700
–700
–700
$700
(a)
(b)
(c)
(d)
(e)
(f)
(g)
$13,560
$13,560
PROBLEM 1-1A
SOLUTIONS TO PROBLEMS
PROBLEM 1-1A (Continued)
Key to Retained Earnings Column
(b) Service revenue($4,700 + $1,100) .......................... $5,800
Expenses
Salaries and wages ......................................... $1,000
Rent .................................................................. 400
PROBLEM 1-2A
1-26 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
(a) LA BRAVA VETERINARY CLINIC
Cash
+
Accounts
Receivable
+
Supplies
+
Equipment
=
Notes
Payable
+
Accounts
Payable
+
Common
Stock
+
Retained
Earnings
+
Revenues
–
Expenses
–
Dividends
Bal.
1.
2.
3.
4.
5.
6.
7.
8.
$ 9,000
–2,900
6,100
+1,300
7,400
–800
6,600
+2,500
9,100
–400
8,700
–2,800
5,900
000,000
5,900
+10,000
$15,900
+
+
+
+
+
+
+
+
+
$1,700
00,000
1,700
–1,300
400
00,000
400
+4,800
5,200
00,000
5,200
00,000
5,200
00,000
5,200
$5,200
+
+
+
+
+
+
+
+
+
$600
0000
600
0000
600
0000
600
0000
600
0000
600
0000
600
0000
600
$600
+
+
+
+
+
+
+
+
+
$ 6,000
000,000
6,000
000,000
6,000
+2,100
8,100
000,000
8,100
000,000
8,100
000,000
8,100
000,000
8,100
$ 8,100
=
=
=
=
=
=
=
=
=
+$10,000
+$10,000
+
$3,600
–2,900
700
00,000
700
+1,300
2,000
00,000
2,000
00,000
2,000
00,000
2,000
+170
2,170
$2,170
+
+
+
+
+
+
+
+
+
$13,000
13,000
13,000
13,000
13,000
13,000
13,000
13,000
$13,000
+
0
+
+
+
+
+
+
+
+
$700
700
700
700
700
700
700
700
$700
+
+$7,300
7,300
7,300
7,300
7,300
$7,300
–
–$1,700
–900
–200
–2,800
–170
–2,970
$ 2,970
–
–$400
–400
–400
–400
$400
$29,800
$29,800
PROBLEM 1-2A (Continued)
(b) LA BRAVA VETERINARY CLINIC
Income Statement
For the Month Ended September 30, 2015
Revenues
Service revenue.................................................. $7,300
Expenses
Salaries and wages expense ............................. $1,700
Rent expense ...................................................... 900
LA BRAVA VETERINARY CLINIC
Retained Earnings Statement
For the Month Ended September 30, 2015
Retained earnings, September 1 ........................................... $ 700
5,030
Less: Dividends ..................................................................... 400
PROBLEM 1-2A (Continued)
LA BRAVA VETERINARY CLINIC
Balance Sheet
September 30, 2015
Assets
Cash ............................................................................. $15,900
Accounts receivable ................................................... 5,200
Liabilities and Stockholders’ Equity
Liabilities
Notes payable ..................................................... $10,000
Accounts payable ............................................... 2,170
Total liabilities ............................................. $12,170
PROBLEM 1-3A
(a) NIMBUS FLYING SCHOOL
Income Statement
For the Month Ended May 31, 2015
Revenues
Service revenue............................................ $6,800
Expenses
Gasoline expense ......................................... $2,500
Rent expense ................................................ 900
NIMBUS FLYING SCHOOL
Retained Earnings Statement
For the Month Ended May 31, 2015
Retained Earnings, May 1 ................................... $ 0
2,150
Less: Dividends .................................................. 500
NIMBUS FLYING SCHOOL
Balance Sheet
May 31, 2015
Assets
Cash ......................................................................................... $ 4,650
Accounts receivable ............................................................... 7,400
PROBLEM 1-3A (Continued)
NIMBUS FLYING SCHOOL
Balance Sheet (Continued)
May 31, 2015
Liabilities and Stockholders’ Equity
Liabilities
Notes payable ..................................................... $28,000
Accounts payable ............................................... 1,400
Total liabilities ............................................. $29,400
(b) NIMBUS FLYING SCHOOL
Income Statement
For the Month Ended May 31, 2015
Revenues
Service revenue ($6,800 + $900) ................. $7,700
Expenses
Gasoline expense ($2,500 + $1,500) ........... $4,000
Rent expense ............................................... 900
NIMBUS FLYING SCHOOL
Retained Earnings Statement
For the Month Ended May 31, 2015
Retained Earnings, May 1 ................................... $ 0
1,550
Less: Dividends ................................................. 500
