*PROBLEM 3-6A
(a) 1. June 30 Supplies ………………………………………… 1,500
2. 30 Interest Expense
3. 30 Prepaid Insurance
4. 30 Service Revenue …………………………….. 1,300
5. 30 Accounts Receivable ……………………… 2,000
6. 30 Depreciation Expense
($2,250 ÷ 2) …………………………………. 1,125
*PROBLEM 3-6A (Continued)
(b) SOMMER GRAPHICS COMPANY
Adjusted Trial Balance
June 30, 2015
Debit
Credit
Cash ………………………………………………………..…
Accounts Receivable ($14,000 + $2,000)……..…
Supplies …………………………………………………..…
Prepaid Insurance …………………………………….…
Equipment ………………………………………………..…
Accumulated Depreciation—Equipment ……..…
Notes Payable …………………………………………..…
Accounts Payable ……………………………………..…
Interest Payable ………………………………………..…
Unearned Service Revenue ……………………….…
Common Stock ……………………………………………
Sales Revenue ………………………………………….…
Service Revenue ($6,000 – $1,300 + $2,000) ..…
Salaries and Wages Expense …………………….…
Supplies Expense ($3,700 – $1,500) ………………
Advertising Expense ……………………………………
Rent Expense ………………………………………………
Utilities Expense ……………………………………….…
Depreciation Expense ……………………………….…
Insurance Expense ($2,700 – $1,800) ………….…
Interest Expense ……………………………………….…
$ 8,600
16,000
1,500
1,800
45,000
30,000
2,200
1,900
1,500
1,700
1,125
900
750
$112,975
$ 1,125
20,000
9,000
750
1,300
22,000
52,100
6,700
$112,975
*PROBLEM 3-6A (Continued)
(c) SOMMER GRAPHICS COMPANY
Income Statement
For the Six Months Ended June 30, 2015
Revenues
Sales revenue ………………………………………… $52,100
Service revenue……………………………………… 6,700
Total revenues ………………………………… $58,800
Expenses
SOMMER GRAPHICS COMPANY
Retained Earnings Statement
For the Six Months Ended June 30, 2015
Retained Earnings, January 1 …………………………………………. $ 0
*PROBLEM 3-6A (Continued)
SOMMER GRAPHICS COMPANY
Balance Sheet
June 30, 2015
Assets
Cash …………………………………………………………….. $ 8,600
Accounts receivable ……………………………………… 16,000
Supplies ……………………………………………………….. 1,500
Liabilities and Stockholders’ Equity
Liabilities
Notes payable ………………………………………… $20,000
Accounts payable …………………………………… 9,000
Unearned service revenue ………………………. 1,300
Interest payable ……………………………………… 750
PROBLEM 3-1B
(a)
J3
Date
Account Titles and Explanation
Ref.
Debit
Credit
2015
June 30
Supplies Expense ……………………….
Supplies
($2,000 – $750) ………………..
631
126
1,250
1,250
30
Utilities Expense …………………………
Accounts Payable ……………….
732
201
150
150
30
Insurance Expense ……………………..
Prepaid Insurance
($3,000 ÷ 12 months) ………..
722
130
250
250
30
Unearned Service Revenue ………….
Service Revenue …………………
209
400
2,800
2,800
30
Salaries and Wages Expense ………
Salaries and Wages
Payable …………………………...
726
212
2,900
2,900
30
Depreciation Expense …………………
Accumulated Depreciation—
Equipment ………………………
711
158
250
250
30
Accounts Receivable …………………..
Service Revenue …………………
112
400
1,700
1,700
PROBLEM 3-1B (Continued)
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Balance
7,150
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
30
Balance
Adjusting
J3
1,700
6,000
7,700
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
30
Balance
Adjusting
J3
1,250
2,000
750
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
30
Balance
Adjusting
J3
250
3,000
2,750
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Balance
15,000
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Adjusting
J3
250
250
PROBLEM 3-1B (Continued)
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Balance
6,250
30
Adjusting
J3
150
6,400
Unearned Service Revenue No. 209
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
30
Balance
Adjusting
J3
2,800
4,000
1,200
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Adjusting
J3
2,900
2,900
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Balance
20,000
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
30
30
Balance
Adjusting
Adjusting
J3
J3
2,800
1,700
7,900
10,700
12,400
PROBLEM 3-1B (Continued)
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Adjusting
J3
1,250
1,250
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Adjusting
J3
250
250
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Adjusting
J3
250
250
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
30
Balance
Adjusting
J3
2,900
4,000
6,900
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Balance
1,000
Utilities Expense No. 732
Date
Explanation
Ref.
Debit
Credit
Balance
2015
June 30
Adjusting
J3
150
150
PROBLEM 3-1B (Continued)
(c) ELSNER COMPANY
Adjusted Trial Balance
June 30, 2015
Debit
Credit
Cash …………………………………………………………..
Accounts Receivable …………………………………..
Supplies ……………………………………………………..
Prepaid Insurance ……………………………………….
Equipment …………………………………………………..
Accumulated Depreciation—
Equipment ……………………………………………….
Accounts Payable ……………………………………….
Unearned Service Revenue ………………………….
Salaries and Wages Payable ………………………..
Common Stock ……………………………………………
Service Revenue …………………………..……………..
Supplies Expense ………………………………………..
Depreciation Expense ………………………………….
Insurance Expense ………………………………………
Salaries and Wages Expense ……………………….
Rent Expense ……………………………………………..
Utilities Expense …………………………..……………..
$ 7,150
7,700
750
2,750
15,000
1,250
250
250
6,900
1,000
150
$43,150
$ 250
6,400
1,200
2,900
20,000
12,400
$43,150
PROBLEM 3-2B
(a)
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Aug. 31
Insurance Expense ($300 X 3) ………..
Prepaid Insurance ………………….
722
130
900
900
31
Supplies Expense ($3,300 – $800) ……...
Supplies ……………………………….
631
126
2,500
2,500
31
Depreciation Expense
($6,000 X 1/4) + ($2,400 X 1/4) ……..
Accumulated Depreciation—
Buildings …………………………..
620
144
2,100
1,500
Accumulated Depreciation—
Equipment ………………………...
150
600
31
Unearned Rent Revenue ………………..
Rent Revenue ………………………..
208
429
4,800
4,800
31
Salaries and Wages Expense ………...
Salaries and Wages Payable …..
726
212
400
400
31
Accounts Receivable …………………….
Rent Revenue ………………………..
112
429
4,000
4,000
31
Interest Expense …………………………..
Interest Payable
[($80,000 X 9%) X 1/12] ……….
718
230
600
600
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
19,600