PROBLEM 3-2B (Continued)
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Balance
Aug. 31
Adjusting
J1
4,000
4,000
Supplies No. 126
Date
Explanation
Ref.
Debit
Balance
Aug. 31
31
Balance
Adjusting
J1
3,300
800
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Balance
Aug. 31
31
Balance
Adjusting
J1
6,000
5,100
Land No. 140
Date
Explanation
Ref.
Debit
Balance
Aug. 31
Balance
25,000
Buildings No. 143
Date
Explanation
Ref.
Debit
Balance
Aug. 31
Balance
125,000
Accumulated Depreciation—Buildings No. 144
Date
Explanation
Ref.
Debit
Balance
Aug. 31
Adjusting
J1
1,500
Equipment No. 149
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
26,000
PROBLEM 3-2B (Continued)
Accumulated Depreciation—Equipment No. 150
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Adjusting
J1
600
600
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
6,500
Unearned Rent Revenue No. 208
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
31
Balance
Adjusting
J1
4,800
7,400
2,600
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Adjusting
J1
400
400
Interest Payable No. 230
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Adjusting
J1
600
600
Mortgage Payable No. 275
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
80,000
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
100,000
PROBLEM 3-2B (Continued)
Dividends No. 332
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
5,000
Rent Revenue No. 429
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
31
31
Balance
Adjusting
Adjusting
J1
J1
4,800
4,000
80,000
84,800
88,800
Depreciation Expense No. 620
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Adjusting
J1
2,100
2,100
Maintenance and Repairs Expense No. 622
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
3,600
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Adjusting
J1
2,500
2,500
Interest Expense No. 718
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Adjusting
J1
600
600
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Adjusting
J1
900
900
PROBLEM 3-2B (Continued)
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
31
Balance
Adjusting
J1
400
51,000
51,400
Utilities Expense No. 732
Date
Explanation
Ref.
Debit
Credit
Balance
Aug. 31
Balance
9,400
(c) MAQUOKETA RIVER RESORT
Adjusted Trial Balance
August 31, 2015
Debit
Credit
Cash …………………………………………………………..
Accounts Receivable …………………………………..
Supplies ……………………………………………………..
Prepaid Insurance ……………………………………….
Land ……………………………………………………………
Buildings …………………………………………………….
Accumulated Depreciation—Buildings ………….
Equipment …………………………………………………..
Accumulated Depreciation—Equipment ………..
Accounts Payable …………………………..……………
Unearned Rent Revenue ………………………………
$ 19,600
4,000
800
5,100
25,000
125,000
26,000
$ 1,500
600
6,500
2,600
PROBLEM 3-2B (Continued)
(d) MAQUOKETA RIVER RESORT
Income Statement
For the Three Months Ended August 31, 2015
Revenues
Rent revenue …………………………..…………….. $88,800
Expenses
Salaries and wages expense …………………… $51,400
Utilities expense …………………………………….. 9,400
Maintenance and repairs expense …………… 3,600
MAQUOKETA RIVER RESORT
Retained Earnings Statement
For the Three Months Ended August 31, 2015
Retained earnings, June 1 …………………………….. $ 0
Add: Net income ………………………………………….. 18,300
PROBLEM 3-2B (Continued)
MAQUOKETA RIVER RESORT
Balance Sheet
August 31, 2015
Assets
Cash ………………………………………………………… $ 19,600
Accounts receivable …………………………………. 4,000
Supplies …………………………………………………… 800
Prepaid insurance …………………………………….. 5,100
Land ………………………………………………………… 25,000
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable ………………………………. $ 6,500
Mortgage payable ………………………………. 80,000
Unearned rent revenue ………………………. 2,600
PROBLEM 3-3B
(a) Dec. 31 Accounts Receivable ……………………….. 3,500
31 Unearned Service Revenue ………………. 1,300
31 Supplies Expense…………………………….. 3,800
31 Depreciation Expense ………………………. 4,000
31 Interest Expense ……………………………… 150
31 Insurance Expense …………………………... 850
31 Salaries and Wages Expense ……………. 2,100
(b) DELGADO ADVERTISING AGENCY
Income Statement
For the Year Ended December 31, 2015
Revenues
Service revenue…………………………..……………. $63,400
Expenses
Salaries and wages expense ……………………… $12,100
Depreciation expense ……………………………….. 4,000
Rent expense …………………………..……………….. 4,000
PROBLEM 3-3B (Continued)
DELGADO ADVERTISING AGENCY
Retained Earnings Statement
For the Year Ended December 31, 2015
Retained Earnings, January 1 …………………………………………. $ 5,500
Add: Net income …………………………..………………………………. 38,150
DELGADO ADVERTISING AGENCY
Balance Sheet
December 31, 2015
Assets
Cash …………………………………………………………….. $11,000
Accounts receivable ……………………………………… 23,500
Supplies ………………………………………………………. 4,800
Liabilities and Stockholders’ Equity
Liabilities
Notes payable ………………………………………… $ 5,000
Accounts payable …………………………………… 5,000
Unearned service revenue ………………………. 5,900
PROBLEM 3-3B (Continued)
(c) (1) I = P X R X T
$150 = $5,000 X R X 1/2
(2) Salaries and Wages Expense, $12,100 less Salaries and Wages
PROBLEM 3-4B
1. Dec. 31 Salaries and Wages Expense …………….. 2,640
2. 31 Unearned Rent Revenue ……………………. 84,000
3. 31 Advertising Expense …………………………. 5,200
4. 31 Interest Expense ……………………………….. 6,300
Interest Payable