PROBLEM 2-5B (Continued)
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
J1
2,500
2,500
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 2
J1
3,500
3,500
20
J1
2,600
6,100
(b)
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 2
Rent Expense …………………………………
729
3,500
Accounts Payable …………………..
201
2,500
Cash ………………………………………
101
1,000
(Rented films for cash and
on account)
3
No entry.
9
Cash ………………………………………………
101
4,000
Service Revenue ……………………..
400
4,000
(Received cash for services
provided)
10
Accounts Payable ($2,500 + $900) ………
201
3,400
Cash ………………………………………
101
3,400
(Paid creditors on account)
11
No entry.
12
Advertising Expense ……………………….
610
450
Cash ………………………………………
101
450
(Paid advertising expense)
PROBLEM 2-5B (Continued)
Date
Account Titles and Explanation
Ref.
Debit
Credit
20
Cash ………………………………………………
101
5,400
Service Revenue ……………………..
400
5,400
(Received cash for services
provided)
20
Rent Expense ………………………………….
729
2,600
Cash ………………………………………
101
2,600
(Paid film rental)
Mar. 31
Salaries and Wages Expense ……………
726
2,500
Cash ………………………………………
101
2,500
(Paid salaries expense)
31
Cash ……………………………………………….
101
375
Accounts Receivable ……………………….
112
375
Rent Revenue ………………………….
429
750
(15% X $5,000)
(Received cash and balance
on account for concession
revenue)
31
Cash ……………………………………………….
101
9,000
Service Revenue ……………………..
400
9,000
(Received cash for services
provided)
PROBLEM 2-5B (Continued)
(d) HART THEATER
Trial Balance
March 31, 2015
Debit
Credit
Cash ………………………………………………………..
$16,825
Accounts Receivable …………………………..……
375
Land ………………………………………………………..
22,000
Buildings ………………………………………………….
10,000
Equipment ………………………………………………..
8,000
Accounts Payable …………………………………….
$ 5,100
Common Stock …………………………………………
42,000
Service Revenue ……………………………………….
18,400
Rent Revenue …………………………………………..
750
Advertising Expense …………………………………
450
Salaries and Wages Expense …………………….
2,500
Rent Expense …………………………………………..
6,100
$66,250
$66,250
BYP 2-1 FINANCIAL REPORTING PROBLEM
(a)
Account
(1)
Increase
Side
(1)
Decrease
Side
(2)
Normal
Balance
Accounts Payable
Credit
Debit
Credit
Accounts Receivable
Debit
Credit
Debit
Property, Plant, and Equipment
Debit
Credit
Debit
Cash and Cash Equivalents
Debit
Credit
Debit
Research and Development
Expense
Debit
Credit
Debit
Inventories
Debit
Credit
Debit
(b) 1. Cash is increased.
BYP 2-2 COMPARATIVE ANALYSIS PROBLEM
BYP 2-2
_______________Pepsi_______ ______Coca-Cola_____________
(a) 1. Inventory: debit 1. Accounts Receivable: debit
(b)
1. Increase in Accounts Receivable: Service Revenue or Sales Revenue is increased (credited).
BYP 2-3 Comparative Analysis Problem
Amazon
Wal-Mart
(a)
1.
Interest Expense:
debit
1.
Net Sales Revenues:
credit
2.
Cash and Cash
Equivalents:
debit
2.
Inventories:
debit
3.
Accounts Payable:
credit
3.
Cost of Sales:
debit
(b) The following other accounts are ordinarily involved:
1. Increase in Accounts Receivable: Service Revenue or Sales Revenue is
increased (credited).
BYP 2-4 REAL–WORLD FOCUS
The answer is dependent upon the company selected by the student.
BYP 2-5 Real World Focus
(a) The reason the Green Bay Packers’ issue an annual report is because
they are a publicly owned, nonprofit company. They issue the report to
(b) At the time that the article was written the owners of the NFL teams
and the players’ labor union were negotiating a new contract. Knowing
how profitable the NFL teams are would be useful information for the
(c) Since some of the cost of the stadium that the Packers play in is
covered by taxpayers, the county and state government has an
interest in the team’s finances.
(d) The Packers’ revenues increased during recent years. However,