Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 1-31
(a) TERCEK DELIVERIES
Assets
Liabilities
Stockholders’ Equity
Date
Cash
+
Accounts
Receivable
+
Supplies
+
Equipment
=
Notes
Payable
+
Accounts
Payable
+
Common
Stock
+
Retained Earnings
Revenues
–
Expenses
–
Dividends
June 1
June 2
June 3
June 5
June 9
June 12
June 15
June 17
June 20
June 23
June 26
June 29
June 30
$10,000
+ –2,000
8,000
+ –500
+ 7,500
+ 7,500
+ –300
7,2000
– 7,200
+ +1,250
8,450
+ 8,450
+ +1,500
9,950
–500
+ 9,450
+ –250
9,200
–100
9,100
–1,000
$ 8,100
+
+
+
+
+
+
+
+
+
+
+
+
+$4,800
4,800
4,800
4,800
–1,250
3,550
3,550
3,550
3,550
3,550
3,550
$3,550
+
+
+
+
+
+
+
+
+
+
+050
+$150
150
150
150
150
150
150
150
$150
+
+
+
+
+
+
+
+
+$14,000
14,000
+14,000
+0014,000
+ 14,000
14,000
14,000
14,000
+14,000
14,000
14,000
14,000
$14,000
=
=
=
=
=
=
=
=
=
=
=
=
+$12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
12,000
–500
11,500
11,500
11,500
$ 11,500
+
+
+
+
+
+
+
+
+
+
+
+
+$150
+ 150
+00
+ 150
+100
+ 250
+ 250
+0250
+0
+0250
–100
150
$150
+
+
+
+
+
+
+
+
+$10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
$10,000
+
+
+
+
+
+
+
+
+
+
+
+
$4,800
4,800
4,800
4,800
4,800
4,800
1,500
6,300
6,300
6,300
6,300
$6,300
–
–
–
–
–
–
–
–
–
–
–$ 500
–500
–500
–500
–500
–500
–100
–600
–600
–600
–250
–850
–850
–1,000
$1,850
–
–
–
–
–
–
–
–
–
–$300
–300
–300
–300
–300
–300
–300
–300
–300
$300
(a)
(b)
(c)
(d)
(e)
(f)
(g)
$25,800
$25,800
PROBLEM 1-4A
PROBLEM 1-4A (Continued)
Key to Retained Earnings Column
(b) TERCEK DELIVERIES
Income Statement
For the Month Ended June 30, 2015
Revenues
Service revenue ($4,800 + $1,500) ………………… $6,300
Expenses
Salaries and wages expense ……………………….. $1,000
Rent expense ……………………………………………… 500
(c) TERCEK DELIVERIES
Balance Sheet
June 30, 2015
Assets
Cash …………………………………………………………………. $ 8,100
Accounts receivable ………………………………………….. 3,550
Liabilities and Stockholders’ Equity
Liabilities
Total liabilities ……………………………………… $11,650
Stockholders’ equity
Common stock …………………………………………… 10,000
Retained earnings ($4,450 – $300) ……………….. 4,150 14,150
Total liabilities and stockholders’ equity .. $25,800
PROBLEM 1-5A
(a)
Donatello
Company
Leonardo
Company
Michelangelo
Company
Raphael
Company
(a)
$ 27,000
(d)
$50,000
(g)
$120,000
(j)
$ 50,000
(b)
95,000
(e)
62,000
(h)
70,000
(k)
220,000
(c)
4,000
(f)
51,000
(i)
431,000
(l)
465,000
(b) LEONARDO COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2015
Retained earnings, January 1 ……………………… $20,000
58,000
Less: Dividends ………………………………………… 51,000
(c) The sequence of preparing financial statements is income statement,
retained earnings statement, and balance sheet. The interrelationship
PROBLEM 1-1B
1-34 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
(a) TAYLOR MADE TRAVEL AGENCY
Stockholders’ Equity
Cash
+
Accounts
Receivable
+
Supplies
+
Equipment
=
Accounts
Payable
+
Common
Stock
+
Retained Earnings
Revenues
–
Expenses
–
Dividends
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
+$8,000
+ 8,000
+ –400
+ 7,600
+ –2,500
+ 5,100
+000,000
+ 5,100
+ –500
+ 4,600
–+2,000
+ 6,600
+ –200
+ 6,400
+ –300
+ 6,100
+–2,000
+ 4,100
–+5,700
+$9,800
+
+
+
+
+
+$6,500
+ 6,500
+ 0,000
+ 6,500
+ 0,000
+ 6,500
+ 0,000
+ 6,500
–5,700
+ $800
+
+
+
+
+
+
+$500
+ 500
+0000
+ 500
+0000
+ 500
+0000
+ 500
+0000
+ 500
+
+$500
+
+
+
+
+
+
+
+
+$2,500
+ 2,500
+00,000
+ 2,500
+00,000
+ 2,500
+00,000
+ 2,500
+00,000
+ 2,500
+00,000
+ 2,500
+00,000
+ 2,500
+$2,500
=
=
=
=
=
=
=
=
=
=
+$300
+ 300
+0000
+ 300
+0000
+ 300
+0000
+ 300
+–300
+ 0
+0000
+
+$ 0
+
+
+
+
+
+
+$8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
$8,000
+
+
+
+
+
+
+
+000,000
–$8,500
+ 8,500
+ 8,500
+000,000
+ 8,500
+ 8,500
+
+$8,500
–
–
–
–
–
–
–
–
–
–
–
–
$ 400
400
400
300
700
700
700
700
700
2,000
2,700
$2,700
–
–
–
–
–
$200
200
200
200
$200
(a)
(b)
(c)
(d)
(e)
$13,600
$13,600
PROBLEM 1-1B (Continued)
Key to Retained Earnings Column
(b) Service revenue …………………………………………………………….. $8,500
Expenses
Salaries and wages …………………………………. $2,000
PROBLEM 1-2B
1-36 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
(a) Randy Coburn, ATTORNEY AT LAW
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.
$4,000
+1,400
5,400
–2,700
2,700
+3,000
5,700
–400
5,300
–4,150
1,150
–450
700
+2,000
2,700
$2,700
+
+
+
+
+
+
+
+
+
$1,500
–1,400
100
00,000
100
+4,900
5,000
00,000
5,000
00,000
5,000
00,000
5,000
00,000
5,000
$5,000
+
+
+
+
+
+
+
+
+
$400
0000
400
0000
400
0000
400
0000
400
0000
400
0000
400
0000
400
$400
+
+
+
+
+
+
+
+
+
$5,000
00,000
5,000
00,000
5,000
00,000
5,000
+1,000
6,000
00,000
6,000
00,000
6,000
00,000
6,000
$6,000
=
=
=
=
=
=
=
=
=
+$2,000
+ 2,000
+$2,000
+
+
$4,200
00,000
4,200
–2,700
1,500
00,000
1,500
+600
2,100
00,000
2,100
00,000
2,100
00,000
2,100
+180
$2,280
+
+
+
+
+
+
+
+
+
$6,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
$6,000
+
+
+
+
+
+
+
+
+
$ 700
000,000
700
000,000
700
700
000,000
700
700
700
000,000
700
$ 700
+
+
+
+
+
+
+$7,900
7,900
7,900
7,900
7,900
7,900
$7,900
–
–
–
–
–$3,000
–900
–250
4,150
4,150
4,150
–180
$4.330
–
–
–
–$450
450
450
$450
$14,100
$14,100
PROBLEM 1-2B (Continued)
(b) RANDY COBURN, ATTORNEY AT LAW
Income Statement
For the Month Ended August 31, 2015
Revenues
Service revenue……………………………………… $7,900
Expenses
Salaries and wages expense …………………… $3,000
RANDY COBURN, ATTORNEY AT LAW
Retained Earnings Statement
For the Month Ended August 31, 2015
Retained earnings, August 1 …………………………. $ 700
4,270
Less: Dividends …………………………………………… 450
PROBLEM 1-2B (Continued)
RANDY COBURN, ATTORNEY AT LAW
Balance Sheet
August 31, 2015
Assets
Cash ………………………………………………………………… $ 2,700
Accounts receivable …………………………………………. 5,000
Liabilities and Stockholders’ Equity
Liabilities
Notes payable …………………………..……………….. $2,000
Accounts payable ………………………………………. 2,280
PROBLEM 1-3B
(a) BLUSHE COSMETICS CO.
Income Statement
For the Month Ended June 30, 2015
Revenues
Service revenue…………………………………….. $5,300
Expenses
Utilities expense ……………………………………. $1,200
Gasoline expense ………………………………….. 600
BLUSHE COSMETICS CO.
Retained Earnings Statement
For the Month Ended June 30, 2015
Retained Earnings, June 1 ……………………………. $ 0
2,700
Less: Dividends ………………………………………….. 800
BLUSHE COSMETICS CO.
Balance Sheet
June 30, 2015
Assets
Accounts receivable ……………………………………………………… 4,000
Supplies ………………………………………………………………………. 1,300
Equipment ……………………………………………………………………. 25,000
Total assets …………………………………………………………… $38,300
PROBLEM 1-3B (Continued)
BLUSHE COSMETICS CO.
Balance Sheet (Continued)
June 30, 2015
Liabilities and Stockholders’ Equity
Liabilities
Notes payable …………………………..…………………. $13,000
Accounts payable ………………………………………… 1,400
(b) BLUSHE COSMETICS CO.
Income Statement
For the Month Ended June 30, 2015
Revenues
Service revenue ($5,300 + $800) …………….. $6,100
Expenses
Utilities expense …………………………………… $1,200
Gasoline expense ($600 + $100) …………….. 700
BLUSHE COSMETICS CO.
Retained Earnings Statement
For the Month Ended June 30, 2015
Retained earnings, June 1 ……………………………. $ 0
Add: Net income ……………………………………….. 3,400
3,400
Less: Dividends …………………………………………. 800
Retained earnings, June 30 ………………………….. $2,600