PROBLEM 3-3A
(a) Sept. 30 Accounts Receivable ………………………… 1,100
30 Rent Expense …………………………………… 1,000
30 Supplies Expense …………………………….. 850
30 Depreciation Expense ……………………….. 700
30 Interest Expense ………………………………. 100
30 Unearned Rent Revenue ……………………. 850
30 Salaries and Wages Expense …………….. 725
(b) EVERETT CO.
Income Statement
For the Quarter Ended September 30, 2015
Revenues
Service revenue………………………………………….. $17,100
Expenses
Salaries and wages expense ……………………….. 8,725
Rent expense ……………………………………………… 2,900
PROBLEM 3-3A (Continued)
EVERETT CO.
Retained Earnings Statement
For the Quarter Ended September 30, 2015
Retained Earnings, July 1, 2015 ……………………… $ 0
Add: Net income …………………………………………. 4,575
4,575
EVERETT CO.
Balance Sheet
September 30, 2015
Assets
Cash …………………………………………………………….. $ 8,700
Accounts receivable ……………………………………… 11,500
Supplies ……………………………………………………….. 650
Liabilities and Stockholders’ Equity
Liabilities
Notes payable ………………………………………… $10,000
Accounts payable …………………………………… 2,500
Salaries and wages payable ……………………. 725
Stockholders’ equity
has been outstanding one month.
PROBLEM 3-4A
1. Dec. 31 Insurance Expense ………………………………… 4,890
2. Dec. 31 Unearned Rent Revenue ………………………… 84,000
3. Dec. 31 Interest Expense ……………………………………. 1,800
4. Dec. 31 Salaries and Wages Expense …………………. 2,000
PROBLEM 3-5A
(a), (c) & (e)
Cash No. 101
Date
Explanation
Ref.
Credit
Balance
Nov. 1
8
10
12
20
22
25
29
Balance
J1
J1
J1
J1
J1
J1
J1
1,700
2,700
400
1,700
2,400
700
4,120
7,220
4,520
4,120
2,420
3,020
Accounts Receivable No. 112
Date
Explanation
Ref.
Credit
Balance
Nov. 1
10
27
Balance
J1
J1
3,420
4,250
830
2,730
Supplies No. 126
Date
Explanation
Ref.
Credit
Balance
Nov. 1
17
30
Balance
Adjusting
J1
J1
1,100
1,800
2,500
1,400
Equipment No. 153
Date
Explanation
Ref.
Credit
Balance
Nov. 1
15
Balance
J1
12,000
14,000
PROBLEM 3-5A (Continued)
Accumulated Depreciation—Equipment No. 154
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
30
Balance
Adjusting
J1
200
2,000
2,200
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
15
17
20
Balance
J1
J1
J1
2,700
2,000
700
2,600
4,600
5,300
2,600
Unearned Service Revenue No. 209
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
29
30
Balance
Adjusting
J1
J1
1,250
600
1,200
1,800
550
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
8
30
Balance
Adjusting
J1
J1
700
350
700
0
350
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
Balance
10,000
Retained Earnings No. 320
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
Balance
3,950
PROBLEM 3-5A (Continued)
Service Revenue No. 407
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 12
27
30
Adjusting
J1
J1
J1
3,100
1,900
1,250
3,100
5,000
6,250
Depreciation Expense No. 615
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 30
Adjusting
J1
200
200
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 30
Adjusting
J1
1,100
1,100
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 8
25
30
Adjusting
J1
J1
J1
1,000
1,700
350
1,000
2,700
3,050
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 22
J1
400
400
PROBLEM 3-5A (Continued)
(b) General Journal
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Nov. 8
Salaries and Wages Payable …………..
Salaries and Wages Expense …………
Cash ………………………………………
212
726
101
700
1,000
1,700
10
Cash ……………………………………………..
Accounts Receivable ………………
101
112
3,420
3,420
12
Cash ……………………………………………..
Service Revenue …………………….
101
407
3,100
3,100
15
Equipment …………………………………….
Accounts Payable …………………..
153
201
2,000
2,000
17
Supplies ……………………………………….
Accounts Payable …………………..
126
201
700
700
20
Accounts Payable ………………………….
Cash ………………………………………
201
101
2,700
2,700
22
Rent Expense ………………………………..
Cash ………………………………………
729
101
400
400
25
Salaries and Wages Expense …………
Cash ………………………………………
726
101
1,700
1,700
27
Accounts Receivable ……………………..
Service Revenue …………………….
112
407
1,900
1,900
29
Cash ……………………………………………..
Unearned Service Revenue ……..
101
209
600
600
PROBLEM 3-5A (Continued)
(d) & (f) SCHILLING EQUIPMENT REPAIR
Trial Balances
November 30, 2015
Before
Adjustment
After
Adjustment
Dr.
Cr.
Dr.
Cr.
Cash …………………………………….
Accounts Receivable …………….
Supplies ……………………………….
Equipment …………………………….
Accumulated Depreciation—
Equipment ………………………….
Accounts Payable ………………….
Unearned Service Revenue ……
Salaries and Wages Payable…..
Common Stock ……………………..
Retained Earnings …………………
Service Revenue ……………………
Depreciation Expense ……………
Supplies Expense ………………….
Salaries and Wages Expense …
Rent Expense ………………………..
$ 3,020
2,730
2,500
14,000
–0–
–0–
2,700
400
$25,350
$ 2,000
2,600
1,800
–0–
10,000
3,950
5,000
$25,350
$ 3,020
2,730
1,400
14,000
200
1,100
3,050
400
$25,900
$ 2,200
2,600
550
350
10,000
3,950
6,250
$25,900
(e) 1. Nov. 30 Supplies Expense …………………… 631 1,100
PROBLEM 3-5A (Continued)
(g) SCHILLING EQUIPMENT REPAIR
Income Statement
For the Month Ended November 30, 2015
Revenues
Service revenue……………………………………….. $6,250
Expenses
Salaries and wages expense …………………….. $3,050
Supplies expense …………………………………….. 1,100
SCHILLING EQUIPMENT REPAIR
Retained Earnings Statement
For the Month Ended November 30, 2015
Retained Earnings, November 1 ……………………………………… $3,950
PROBLEM 3-5A (Continued)
SCHILLING EQUIPMENT REPAIR
Balance Sheet
November 30, 2015
Assets
Cash …………………………………………………………….. $ 3,020
Accounts receivable ……………………………………… 2,730
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable …………………………………… $ 2,600
Unearned service revenue ………………………. 550