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BRIEF EXERCISE 4-6 (Continued)
Maintenance and Repairs Expense
Date
Explanation
Ref.
Debit
Credit
Balance
7/31
Balance
2,500
2,500
7/31
Closing entry
2,500
0
BRIEF EXERCISE 4-7
Accumulated Depreciation—Equipment
Common Stock
Supplies
Accounts Payable
BRIEF EXERCISE 4-8
follows:
1. Analyze business transactions.
2. Journalize the transactions.
BRIEF EXERCISE 4-9
1. Service Revenue ................................................................ 870
BRIEF EXERCISE 4-10
HAMIDI COMPANY
Partial Balance Sheet
Current assets
Cash ......................................................................................... $ 4,100
Debt investments .................................................................... 6,700
BRIEF EXERCISE 4-11
CL
Accounts payable
CL
Income taxes payable
CA
Accounts receivable
LTI
Debt investments (long-term)
PPE
Accum. depreciation—buildings
PPE
Land
PPE
Buildings
CA
Inventory
CA
Cash
IA
Patents
IA
Copyrights
CA
Supplies
*BRIEF EXERCISE 4-12
Nov. 1 Salaries and Wages Payable ..................................... 2,100
The balances after posting the reversing entry are Salaries and Wages
SOLUTIONS FOR DO IT! REVIEW EXERCISES
DO IT! 4-1
Income statement debit column—Utilities Expense
DO IT! 4-2
Dec. 31 Income Summary ......................................... 41,000
Dec. 31 Retained Earnings ....................................... 22,000
DO IT! 4-3
RYAN COMPANY
Partial Balance Sheet
Current assets
Cash ....................................................................... $4,300
Debt investments .................................................. 1,200
DO IT! 4-4
NA
Interest revenue
SE
Common stock
CL
Utilities payable
PPE
Accumulated depreciation—equipment
CL
Accounts payable
PPE
Equipment
CA
Supplies
NA
Salaries and wages expense
LTL
Bonds payable
LTI
Debt investments (long-term)
IA
Goodwill
CL
Unearned rent revenue
SOLUTIONS TO EXERCISES
EXERCISE 4-1
NANDURI COMPANY
Worksheet
For the Month Ended June 30, 2015
Account Titles
Trial Balance
Adjustments
Adj. Trial Balance
Income Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
2,320
2,320
2,320
Accounts
Receivable
2,440
2,440
2,440
Supplies
1,880
(a) 1,380
500
500
Accounts Payable
1,120
1,120
1,120
Unearned Service
Revenue
240
(b) 140
100
100
Common Stock
3,600
3,600
3,600
Service Revenue
2,400
(b) 140
2,540
2,540
Salaries and
Wages Expense
560
(c) 210
770
770
Miscellaneous
Expense
160
160
160
Totals
7,360
7,360
Supplies Expense
(a) 1,380
1,380
1,380
Salaries and
Wages Payable
(c) 210
210
210
Totals
1,730
1,730
7,570
7,570
2,310
2,540
5,260
5,030
Net Income
230
230
Totals
2,540
2,540
5,260
5,260
EXERCISE 4-2
DESOUSA COMPANY
(Partial) Worksheet
For the Month Ended April 30, 2015
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Account Titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
10,000
10,000
Accounts Receivable
7,840
7,840
Prepaid Rent
2,280
2,280
Equipment
23,050
23,050
Accum. Depreciation
Equipment
4,921
4,921
Notes Payable
5,700
5,700
Accounts Payable
4,920
4,920
Common Stock
20,000
20,000
Retained Earnings
7,960
7,960
Dividends
3,650
3,650
Service Revenue
15,590
15,590
Salaries and Wages
Expense
10,840
10,840
Rent Expense
760
760
Depreciation Expense
671
671
Interest Expense
57
57
Interest Payable
57
57
Totals
59,148
59,148
12,328
15,590
46,820
43,558
Net Income
3,262
3,262
Totals
15,590
15,590
46,820
46,820
EXERCISE 4-3
DESOUSA COMPANY
Income Statement
For the Month Ended April 30, 2015
Revenues
Service revenue ....................................................... $15,590
Expenses
Salaries and wages expense .................................. $10,840
Rent expense ........................................................... 760
DESOUSA COMPANY
Retained Earnings Statement
For the Month Ended April 30, 2015
Retained Earnings, April 1 ....................................................... $7,960
DESOUSA COMPANY
Balance Sheet
April 30, 2015
Assets
Current assets
Cash .......................................................................... $10,000
Accounts receivable ................................................ 7,840
EXERCISE 4-3 (Continued)
DESOUSA COMPANY
Balance Sheet (Continued)
April 30, 2015
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable ........................................................... $5,700
Accounts payable .................................................... 4,920
Interest payable ........................................................ 57
EXERCISE 4-4
(a) Apr. 30 Service Revenue ...................................... 15,590
30 Income Summary ..................................... 12,328
Salaries and Wages Expense .......... 10,840
Rent Expense .................................... 760
30 Income Summary ..................................... 3,262
Retained Earnings ............................ 3,262
(b)
Income Summary
Retained Earnings
(2) 12,328
(1) 15,590
(4) 3,650
Bal. 7,960
(3) 3,262
(3) 3,262
15,590
15,590
Bal. 7,572
EXERCISE 4-4 (Continued)
(c) DESOUSA COMPANY
Post-Closing Trial Balance
April 30, 2015
Debit
Credit
Cash ..................................................................... $10,000
Accounts Receivable .......................................... 7,840
Prepaid Rent ....................................................... 2,280
Equipment ........................................................... 23,050
Accumulated Depreciation—Equipment ........... $ 4,921
EXERCISE 4-5
(a) Accounts Receivable .......................................... 1,100
Service Revenue ......................................... 1,100
Insurance Expense ............................................. 300
EXERCISE 4-5 (Continued)
(b)
Income Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Accounts Receivable
X
Prepaid Insurance
X
Accum. Depreciation—Equip.
X
Salaries and Wages Payable
X
Service Revenue
X
Salaries and Wages
Expense
X
Insurance Expense
X
Depreciation Expense
X
EXERCISE 4-6
(a) Accounts Receivable—$25,000 ($34,000 – $9,000).
are made.
(b) Accounts Receivable ................................................ 9,000
Insurance Expense ................................................... 6,000
Supplies Expense ..................................................... 4,500
Depreciation Expense ............................................... 10,000
Salaries and Wages Expense ................................... 5,600
