PROBLEM 4-5A (Continued)
(b) & (c) JARA’S CLEANING SERVICE
For the Month Ended July 31, 2015
Account Titles
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Dr.
Cr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Common Stock
Dividends
Service Revenue
Gasoline Expense
Salaries and Wages Expense
Totals
Depreciation Expense
Accum. Depr.—Equipment
Insurance Expense
Supplies Expense
Salaries and Wages Payable
Totals
Net Income
Totals
6,250
7,100
2,100
1,800
9,000
5,600
350
2,500
34,700
4,200
20,000
10,500
34,700
(d) 1,500
(c) 150
(a) 2,700
(b) 500
(e) 1,000
5,850
6,250
9,800
600
1,650
9,000
5,600
350
3,500
500
150
1,500
38,900
4,200
20,000
13,200
500
1,000
38,900
350
3,500
500
150
1,500
6,000
7,200
13,200
13,200
13,200
13,200
6,250
9,800
600
1,650
9,000
5,600
32,900
32,900
4,200
20,000
500
1,000
25,700
7,200
32,900
Key: (a) Service Revenue Accrued; (b) Depreciation Expense; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 4-51
PROBLEM 4-5A (Continued)
(a), (e) & (f)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
J1
20,000
20,000
1
J1
4,000
16,000
5
J1
1,800
14,200
18
J1
2,900
11,300
20
J1
2,500
8,800
21
J1
3,400
12,200
31
J1
350
11,850
31
J1
5,600
6,250
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
July 12
J1
4,500
4,500
21
J1
3,400
1,100
25
J1
6,000
7,100
31
Adjusting
J2
2,700
9,800
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
July 3
J1
2,100
2,100
31
Adjusting
J2
1,500
600
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Credit
Balance
July 5
J1
1,800
1,800
31
Adjusting
J2
150
1,650
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
J1
9,000
9,000
PROBLEM 4-5A (Continued)
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
500
500
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
J1
5,000
5,000
3
J1
2,100
7,100
18
J1
2,900
4,200
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
1,000
1,000
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
J1
20,000
20,000
Retained Earnings No. 320
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Closing
J3
7,200
7,200
31
Closing
J3
5,600
1,600
Dividends No. 332
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
J1
5,600
5,600
31
Closing
J3
5,600
0
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Closing
J3
13,200
13,200
31
Closing
J3
6,000
7,200
31
Closing
J3
7,200
0
PROBLEM 4-5A (Continued)
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
July 12
J1
4,500
4,500
25
J1
6,000
10,500
31
Adjusting
J2
2,700
13,200
31
Closing
J3
13,200
0
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
1,500
1,500
31
Closing
J3
1,500
0
Gasoline Expense No. 633
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
J1
350
350
31
Closing
J3
350
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
500
500
31
Closing
J3
500
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
150
150
31
Closing
J3
150
0
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
July 20
J1
2,500
2,500
31
Adjusting
J2
1,000
3,500
31
Closing
J3
3,500
0
PROBLEM 4-5A (Continued)
(d) JARA’S CLEANING SERVICE
Income Statement
For the Month Ended July 31, 2015
Revenues
Service revenue……………………………………….. $13,200
Expenses
Salaries and wages expense …………………….. $3,500
Supplies expense …………………………………….. 1,500
JARA’S CLEANING SERVICE
Retained Earnings Statement
For the Month Ended July 31, 2015
Retained Earnings, July 1 ……………………………….. $ 0
Less: Dividends …………………………………………….. 5,600
JARA’S CLEANING SERVICE
Balance Sheet
July 31, 2015
Assets
Current assets
Cash ………………………………………………………. $6,250
Accounts receivable …………………………..…… 9,800
Supplies …………………………………………………. 600
Prepaid insurance …………………………………… 1,650
Total current assets …………………………. $18,300
PROBLEM 4-5A (Continued)
JARA’S CLEANING SERVICE
Balance Sheet (Continued)
July 31, 2015
Assets (Continued)
Property, plant, and equipment
Equipment ………………………………………………. $9,000
Less: Accumulated depreciation—
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ……………………………………. $4,200
Salaries and wages payable …………………….. 1,000
(e)
General Journal J2
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 31
Accounts Receivable ……………………
112
2,700
Service Revenue ………………….
400
2,700
31
Depreciation Expense …………………..
711
500
Accumulated Depreciation—
Equipment ………………………..
158
500
31
Insurance Expense ………………………
722
150
Prepaid Insurance ………………..
130
150
31
Supplies Expense ………………………..
631
1,500
Supplies ………………………………
126
1,500
31
Salaries and Wages Expense ………..
726
1,000
Salaries and Wages Payable …
212
1,000
PROBLEM 4-5A (Continued)
(f) General Journal
J3
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 31
Service Revenue …………………………...
400
13,200
Income Summary ………………….
350
13,200
31
Income Summary ………………………….
350
6,000
Salaries and Wages Expense …
726
3,500
Depreciation Expense ……………
711
500
Insurance Expense ………………..
722
150
Supplies Expense ………………….
631
1,500
Gasoline Expense …………………
633
350
31
Income Summary ………………………….
350
7,200
Retained Earnings …………………
320
7,200
31
Retained Earnings …………………………
320
5,600
Dividends ……………………………..
332
5,600
(g) JARA’S CLEANING SERVICE
Post-Closing Trial Balance
July 31, 2015
Debit
Credit
Cash …………………………………………………………… $ 6,250
Accounts Receivable …………………………………… 9,800
Supplies …………………………………………………….. 600
Prepaid Insurance ……………………………………….. 1,650
Retained Earnings ………………………………………. 1,600
$27,300 $27,300
PROBLEM 4-6A
(a)
(1) INCORRECT ENTRY
(2) CORRECT ENTRY
(3) CORRECTING ENTRY
1.
Cash ……………………………..
Accts. Receivable ……..
950
950
Cash ……………………………..
Accts. Receivable ……..
590
590
Accounts Receivable ………
Cash ………………………….
360
360
2.
Misc. Expense ……………….
Cash …………………………
75
75
Advertising Expense ……..
Cash …………………………
75
75
Advertising Expense ………
Misc. Expense ……………
75
75
3.
Salaries and Wages
Expense ……………………..
Cash …………………………
1,900
1,900
Salaries and Wages
Expense ……………………..
Salaries and Wages
Payable ………………………
Cash …………………………
1,200
700
1,900
Salaries and Wages
Payable ……………………….
Salaries and Wages
Expense ………………….
700
700
4.
Supplies ………………………..
Accounts Payable …….
310
310
Equipment …………………….
Accounts Payable ……..
310
310
Equipment ……………………..
Supplies …………………….
310
310
5.
Equipment …………………….
Cash …………………………
69
69
Maintenance and Repairs
Expense ……………………..
Cash …………………………
96
96
Maintenance and Repairs
Expense ………………………
Cash ………………………….
Equipment …………………
96
27
69
4-58 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
PROBLEM 4-6A (Continued)
(b) UNIVERSAL CABLE
Trial Balance
April 30, 2015
Debit
Credit
Cash ($4,100 – $360 – $27) …………………………….. $ 3,713
Accounts Receivable ($3,200 + $360) ……………… 3,560
Supplies ($800 – $310) ………………………………….. 490
Equipment ($10,600 + $310 – $69) ………………….. 10,841
Accumulated Depreciation …………………………….. $ 1,350
Accounts Payable …………………………………………. 2,100
(a) PEVNICK INC.
Worksheet
Account Titles
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Dr.
Cr.
Dr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Notes Payable
Accounts Payable
Common Stock
Dividends
Service Revenue
Salaries and Wages
Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Totals
Supplies Expense
Depreciation Expense
Accumulated
Depreciation—Equipment
Interest Expense
Interest Payable
Insurance Expense
Totals
Net Income
Totals
11,400
5,620
1,050
2,400
30,000
600
2,200
1,300
1,200
200
55,970
10,000
12,350
20,000
13,620
55,970
(e) 2,030
(a) 770
(b) 800
(c) 300
(d) 600
4,500
11,400
7,650
280
1,800
30,000
600
2,200
1,300
1,200
200
770
800
300
600
59,100
10,000
12,350
20,000
15,650
800
300
59,100
2,200
1,300
1,200
200
770
800
300
600
7,370
8,280
15,650
15,650
15,650
15,650
11,400
7,650
280
1,800
30,000
600
51,730
51,730
10,000
12,350
20,000
800
300
43,450
8,280
51,730
Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue
Accrued.
PROBLEM 4-1B
4-60 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
SOLUTIONS TO PROBLEMS