EXERCISE 4-17 (Continued)
(b)
NORSTED COMPANY
Balance Sheet
July 31, 2015
Assets
Current assets
Cash ………………………………………………………. $14,200
Accounts receivable ……………………………….. 9,780
Total current assets …………………………. $23,980
Property, plant, and equipment
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable …………………………………… $4,100
Salaries and wages payable …………………….. 2,080
Total current liabilities ……………………… $ 6,180
Long-term liabilities
*EXERCISE 4-18
(a) Dec. 31 Salaries and Wages Expense
Jan. 6 Salaries and Wages Payable ……………… 4,800
Salaries and Wages Expense
(b) Dec. 31 Salaries and Wages Expense …………….. 4,800
Jan. 1 Salaries and Wages Payable ……………… 4,800
Jan. 6 Salaries and Wages Expense ……………. 12,000
*EXERCISE 4-19
(a) Dec. 31 Service Revenue ………………………………. 92,500
31 Income Summary ……………………………… 8,300
(b) Jan. 1 Service Revenue ………………………………. 5,000
1 Interest Payable ……………………………….. 2,000
*EXERCISE 4-19 (Continued)
(c) & (e)
Accounts Receivable
Dec. 31 Balance *19,500
31 Adjusting 5,000
24,500
Jan. 1 Reversing 5,000
*($24,500 – $5,000)
Service Revenue
Dec. 31 Closing 92,500
Dec. 31 Balance 87,500*
31 Adjusting 5,000
92,500
92,500
Jan. 1 Reversing 5,000
Jan. 10 5,000
Interest Payable
Dec. 31 Adjusting 2,000
Jan. 1 Reversing 2,000
Interest Expense
Dec. 31 Balance *6,300
Dec. 31 Closing 8,300
31 Adjusting 2,000
.
8,300
8,300
Jan. 15 3,000
Jan. 1 Reversing 2,000
*($8,300 – $2,000)
(d) (1)
Jan. 10 Cash …………………………………………………….. 5,000
(2)
15 Interest Expense …………………………………… 3,000
(a) LAMPERT ROOFING
Worksheet
For the Month Ended March 31, 2015
Account Titles
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
Accounts Receivable
Supplies
Equipment
Accumulated
Depreciation—Equipment
Accounts Payable
Unearned Service Revenue
Common Stock
Retained Earnings
Dividends
Service Revenue
Salaries and Wages
Expense
Miscellaneous Expense
Totals
Supplies Expense
Depreciation Expense
Salaries and Wages
Payable
Totals
Net Income
Totals
4,500
3,200
2,000
11,000
1,100
1,300
400
23,500
1,250
2,500
550
10,000
2,900
6,300
23,500
(c) 340
(d) 700
(a) 1,450
(b) 250
2,740
(a) 1,450
(b) 250
(c) 340
(d) 700
2,740
4,500
3,200
550
11,000
1,100
2,000
400
1,450
250
24,450
1,500
2,500
210
10,000
2,900
6,640
700
24,450
2,000
400
1,450
250
4,100
2,540
6,640
6,640
6,640
6,640
4,500
3,200
550
11,000
1,100
20,350
20,350
1,500
2,500
210
10,000
2,900
700
17,810
2,540
20,350
Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Service Revenue Recognized; (d) Salaries Accrued.
4-34 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
PROBLEM 4-1A (Continued)
(b) LAMPERT ROOFING
Income Statement
For the Month Ended March 31, 2015
Revenues
Service revenue………………………………………….. $6,640
Expenses
Salaries and wages expense ……………………….. $2,000
Supplies expense ……………………………………….. 1,450
Miscellaneous expense ………………………………. 400
LAMPERT ROOFING
Retained Earnings Statement
For the Month Ended March 31, 2015
Retained Earnings, March 1 ……………………………………………… $2,900
Less: Dividends ……………………………………………………………… 1,100
LAMPERT ROOFING
Balance Sheet
March 31, 2015
Assets
Current assets
Cash ………………………………………………………….. $4,500
Accounts receivable …………………………………… 3,200
Supplies …………………………………………………….. 550
PROBLEM 4-1A (Continued)
LAMPERT ROOFING
Balance Sheet (Continued)
March 31, 2015
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable …………………………………………. $2,500
Salaries and wages payable ………………………….. 700
Unearned service revenue …………………………….. 210
(c) Mar. 31 Supplies Expense ………………………………… 1,450
Supplies ……………………………………….. 1,450
31 Depreciation Expense ………………………….. 250
31 Unearned Service Revenue …………………… 340
(d) Mar. 31 Service Revenue ………………………………….. 6,640
31 Income Summary …………………………………. 4,100
Salaries and Wages Expense …………. 2,000
31 Income Summary …………………………………. 2,540
31 Retained Earnings ……………………………….. 1,100
PROBLEM 4-2A
(a) ALSHWER COMPANY
Partial Worksheet
For the Year Ended December 31, 2015
Account
Adjusted
Trial Balance
Income
Statement
Balance
Sheet
No.
Titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
101
Cash
5,300
5,300
112
Accounts Receivable
10,800
10,800
126
Supplies
1,500
1,500
130
Prepaid Insurance
2,000
2,000
157
Equipment
27,000
27,000
158
Acc. Depr.—Equip.
5,600
5,600
200
Notes Payable
15,000
15,000
201
Accounts Payable
6,100
6,100
212
Salaries and Wages
Payable
2,400
2,400
230
Interest Payable
600
600
311
Common Stock
10,000
10,000
320
Retained Earnings
3,000
3,000
332
Dividends
7,000
7,000
400
Service Revenue
61,000
61,000
610
Advertising Expense
8,400
8,400
631
Supplies Expense
4,000
4,000
711
Depreciation Expense
5,600
5,600
722
Insurance Expense
3,500
3,500
726
Salaries and Wages
Expense
28,000
28,000
905
Interest Expense
600
600
Totals
103,700
103,700
50,100
61,000
53,600
42,700
Net Income
10,900
10,900
Totals
61,000
61,000
53,600
53,600
PROBLEM 4-2A (Continued)
(b) ALSHWER COMPANY
Income Statement
For the Year Ended December 31, 2015
Revenues
Service revenue ……………………………………… $61,000
Expenses
Salaries and wages expense …………………… $28,000
Advertising expense ………………………………. 8,400
Depreciation expense …………………………….. 5,600
ALSHWER COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2015
Retained Earnings, January 1 ………………………………………… $ 3,000
Less: Dividends …………………………..………………………………. 7,000
PROBLEM 4-2A (Continued)
ALSHWER COMPANY
Balance Sheet
December 31, 2015
Assets
Current assets
Cash ……………………………………………………… $ 5,300
Accounts receivable ………………………………. 10,800
Property, plant, and equipment
Equipment …………………………………………….. 27,000
Less: Accumulated depreciation—
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable ………………………………………… $5,000
Long-term liabilities
Notes payable ………………………………………… 10,000
Total liabilities…………………………………. 24,100
Stockholders’ equity
PROBLEM 4-2A (Continued)
(c)
General Journal J14
Date
Account Titles and Explanation
Ref.
Debit
Credit
Dec. 31
Service Revenue…………………………….
400
61,000
Income Summary …………………..
350
61,000
31
Income Summary …………………………..
350
50,100
Advertising Expense ………………
610
8,400
Supplies Expense ………………….
631
4,000
Depreciation Expense …………….
711
5,600
Insurance Expense ………………..
722
3,500
Salaries and Wages Expense ….
726
28,000
Interest Expense ……………………
905
600
31
Income Summary …………………………..
350
10,900
Retained Earnings ………………….
320
10,900
31
Retained Earnings ………………………….
320
7,000
Dividends ………………………………
332
7,000
(d)
Retained Earnings No. 320
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance

3,000
3,000
Dec. 31
Closing entry
J14
10,900
13,900
31
Closing entry
J14
7,000
6,900
Dividends No. 332
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance

7,000
7,000
31
Closing entry
J14
7,000
0