EXERCISE 4-7
(a) Service Revenue ……………………………………………. 4,300
Income Summary …………………………..………………. 3,500
Income Summary …………………………..………………. 800
Retained Earnings …………………………..…………….. 628
(b) KAY MAGILL COMPANY
Post-Closing Trial Balance
June 30, 2015
Account Titles
Debit
Credit
Cash ……………………………………………………………… $3,712
Accounts Receivable ……………………………………… 3,904
Supplies ……………………………………………………….. 480
EXERCISE 4-8
(a)
General Journal J15
Date
Account Titles
Ref.
Debit
Credit
July 31
Service Revenue …………………………...
400
64,000
Rent Revenue ………………………………..
429
6,500
Income Summary …………………..
350
70,500
31
Income Summary …………………………..
350
78,600
Salaries and Wages Expense …
726
55,700
Utilities Expense ……………………
732
14,900
Depreciation Expense ……………
711
8,000
31
Retained Earnings …………………………
320
8,100
Income Summary …………………..
350
8,100
31
Retained Earnings …………………………
320
16,000
Dividends ……………………………..
332
16,000
(b)
Retained Earnings No. 320
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Balance
25,200
31
Close net loss
J15
8,100
17,100
31
Close dividends
J15
16,000
1,100
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Close revenue
J15
70,500
70,500
31
Close expenses
J15
78,600
(8,100)
31
Close net loss
J15
8,100
0
EXERCISE 4-8 (Continued)
(c) PLEVIN COMPANY
Post-Closing Trial Balance
July 31, 2015
Debit
Credit
Cash …………………………………………………………… $9,840
Accounts Receivable …………………………………… 8,780
Equipment …………………………..……………………… 15,900
EXERCISE 4-9
(a) PLEVIN COMPANY
Income Statement
For the Year Ended July 31, 2015
Revenues
Service revenue…………………………..……….. $64,000
Expenses
Salaries and wages expense …………………. 55,700
Utilities expense …………………………..………. 14,900
EXERCISE 4-9 (Continued)
PLEVIN COMPANY
Retained Earnings Statement
For the Year Ended July 31, 2015
Retained Earnings, August 1, 2014 ………………. $25,200
Less: Net loss ……………………………………………. $ 8,100
(b) PLEVIN COMPANY
Balance Sheet
July 31, 2015
Assets
Current assets
Cash………………………………………………………. $9,840
Accounts receivable ……………………………….. 8,780
Total current assets …………………………. $18,620
Property, plant, and equipment
Equipment ……………………………………………… 15,900
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable …………………………………… $4,220
EXERCISE 4-10
EXERCISE 4-11
(a) June 30 Service Revenue …………………………….. 18,100
30 Income Summary ……………………………. 13,100
Salaries and Wages Expense ……. 8,800
30 Income Summary ……………………………. 5,000
30 Retained Earnings …………………………... 2,500
(b)
Income Summary
June 30 13,100
June 30 18,100
June 30 5,000
18,100
18,100
EXERCISE 4-12
(a) 1. Cash ……………………………………………………….. 700
Salaries and Wages Expense ……………………. 700
2. Service Revenue ………………………………………. 100
Cash ……………………………………………………….. 1,000
3. Accounts Payable ……………………………………. 670
Equipment ………………………………………………. 760
(b) 1. Salaries and Wages Expense ……………………. 700
2. Service Revenue ………………………………………. 100
3. Equipment ………………………………………………. 90
EXERCISE 4-13
1. Accounts Payable ($840 – $480) ……………………….. 360
2. Supplies …………………………..…………………………….. 560
3. Dividends ……………………………………………………….. 500
EXERCISE 4-14
(a) MARTELL BOWLING ALLEY
Balance Sheet
December 31, 2015
Assets
Current assets
Cash …………………………..…………. $18,040
Accounts receivable ………………. 14,520
Prepaid insurance ………………….. 4,680
EXERCISE 4-14 (Continued)
MARTELL BOWLING ALLEY
Balance Sheet (Continued)
December 31, 2015
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable(due 2015) ………………………….... $22,000
Accounts payable ……………………………………… 12,300
Interest payable ………………………………………… 2,600
Total current liabilities ……………………….. $ 36,900
Long-term liabilities
some caution is needed.
EXERCISE 4-15
CL
Accounts payable
PPE
Accumulated depreciation–
equipment
CA
Accounts receivable
PPE
Buildings
CA
Cash
PPE
Land
SE
Common stock
LTL
Notes payable (due in 2 years)
IA
Patents
CA
Supplies
CL
Salaries and wages payable
PPE
Equipment
CA
Inventory
CA
Prepaid expenses
CA
Stock investments
EXERCISE 4-16
D. GYGI COMPANY
Balance Sheet
December 31, 2015
(in thousands)
Assets
Current assets
Cash …………………………..………………………. $ 2,668
Short-term investments ……………………….. 3,690
Accounts receivable ……………………………. 1,696
Inventory …………………………………………….. 1,256
Prepaid insurance ……………………………….. 880
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable (due in 2016) …………………. $ 500
Accounts payable ……………………………….. 1,444
Total current liabilities ………………….. $ 1,944
Long-term liabilities
Long-term debt ……………………………………. 1,000
Notes payable ……………………………………… 400
EXERCISE 4-17
(a)
NORSTED COMPANY
Income Statement
For the Year Ended July 31, 2015
Revenues
Service revenue ………………………………… $62,000
Rent revenue …………………………………….. 8,500
Total revenues ……………………………. $70,500
Expenses
NORSTED COMPANY
Retained Earnings Statement
For the Year Ended July 31, 2015
Retained Earnings, August 1, 2014 ……………. $21,200
Less: Net loss …………………………………………. $7,800