PROBLEM 4-5B (Continued)
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Balance
Mar. 14
J1
4,800
28
J1
9,300
31
Adjusting
J2
9,800
31
Closing
J3
9,800
0
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Balance
Mar. 31
Adjusting
J2
950
950
31
Closing
J3
950
0
Gasoline Expense No. 633
Date
Explanation
Ref.
Debit
Balance
Mar. 31
J1
500
500
31
Closing
J3
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Balance
Mar. 31
Adjusting
J2
300
300
31
Closing
J3
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
Adjusting
J2
100
100
31
Closing
J3
0
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Balance
Mar. 20
J1
1,800
1,800
31
Adjusting
J2
550
2,350
31
Closing
J3
0
PROBLEM 4-5B (Continued)
(d) SHAW’S CARPET CLEANERS
Income Statement
For the Month Ended March 31, 2015
Revenues
Service revenue ……………………………………… $9,800
Expenses
Salaries and wages expense …………………… $2,350
Supplies expense …………………………………… 950
SHAW’S CARPET CLEANERS
Retained Earnings Statement
For the Month Ended March 31, 2015
Retained Earnings, March 1 …………………………... $ 0
SHAW’S CARPET CLEANERS
Balance Sheet
March 31, 2015
Assets
Current assets
Cash ……………………………………………………… $2,200
Accounts receivable ………………………………. 8,400
PROBLEM 4-5B (Continued)
SHAW’S CARPET CLEANERS
Balance Sheet (Continued)
March 31, 2015
Assets (Continued)
Property, plant, and equipment
Equipment ………………………………………………. $6,000
Less: Accumulated depreciation—
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ……………………………………. $2,200
Salaries and wages payable ……………………… 550
Total current liabilities ………………………. $ 2,750
Stockholders’ equity
(e)
General Journal J2
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 31
Accounts Receivable …………………….
112
500
Service Revenue …………………..
400
500
31
Depreciation Expense …………………..
711
300
Accumulated Depreciation—
Equipment ………………………..
158
300
31
Insurance Expense ……………………….
722
100
Prepaid Insurance …………………
130
100
31
Supplies Expense …………………………
631
950
Supplies ……………………………….
126
950
31
Salaries and Wages Expense …………
726
550
Salaries and Wages Payable ….
212
550
PROBLEM 4-5B (Continued)
(f)
General Journal J3
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 31
Service Revenue …………………………...
400
9,800
Income Summary …………………..
350
9,800
31
Income Summary ………………………….
350
4,200
Salaries and Wages Expense …
726
2,350
Depreciation Expense ……………
711
300
Insurance Expense ………………..
722
100
Supplies Expense ………………….
631
950
Gasoline Expense ………………….
633
500
31
Income Summary ………………………….
350
5,600
Retained Earnings …………………
320
5,600
31
Retained Earnings …………………………
320
700
Dividends ……………………………..
332
700
(g) SHAW’S CARPET CLEANERS
Post-Closing Trial Balance
March 31, 2015
Debit
Credit
Cash ………………………………………………………….. $ 2,200
Accounts Receivable ………………………………….. 8,400
Supplies …………………………………………………….. 250
Prepaid Insurance ………………………………………. 1,100
COMPREHENSIVE PROBLEM: CHAPTERS 2 TO 4
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 1
Cash ……………………………………………..
101
14,000
Common Stock ……………………..
311
14,000
1
Equipment …………………………………….
157
10,000
Cash …………………………………….
101
3,000
Accounts Payable …………………
201
7,000
3
Supplies ………………………………………..
126
800
Accounts Payable …………………
201
800
5
Prepaid Insurance ………………………….
130
1,800
Cash …………………………………….
101
1,800
12
Accounts Receivable ……………………..
112
3,800
Service Revenue …………………..
400
3,800
18
Accounts Payable ………………………….
201
1,400
Cash …………………………………….
101
1,400
20
Salaries and Wages Expense ………….
726
1,600
Cash …………………………………….
101
1,600
21
Cash ……………………………………………..
101
1,400
Accounts Receivable …………….
112
1,400
25
Accounts Receivable ……………………..
112
1,500
Service Revenue …………………..
400
1,500
31
Gasoline Expense ………………………….
633
400
Cash …………………………………….
101
400
31
Dividends………………………………………
332
600
Cash …………………………………….
101
600
COMPREHENSIVE PROBLEM (Continued)
(b) & (c) KRISTIN’S MAIDS CLEANING SERVICE
Worksheet
For the Month Ended July 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
Prepaid Insurance
Equipment
Accounts Payable
Common Stock
Dividends
Service Revenue
Gasoline Expense
Salaries and Wages Expense
Total
Depreciation Expense
Accum. Depr.—Equipment
Insurance Expense
Supplies Expense
Salaries and Wages Payable
Totals
Net Income
Totals
6,600
3,900
800
1,800
10,000
600
400
1,600
25,700
6,400
14,000
5,300
25,700
(a) 1,300
(e) 500
(b) 200
(c) 150
(d) 700
2,850
(d) 700
(c) 150
(a) 1,300
(b) 200
(e) 500
2,850
6,600
5,200
100
1,650
10,000
600
400
2,100
200
150
700
27,700
6,400
14,000
6,600
200
500
27,700
400
2,100
200
150
700
3,550
3,050
6,600
6,600
6,600
6,600
6,600
5,200
100
1,650
10,000
600
24,150
24,150
6,400
14,000
200
500
21,100
3,050
24,150
Key: (a) Service Revenue; (b) Depreciation Expense; (c) Insurance Expired; (d) Supplies Used; (e) Unpaid Salaries.
4-86 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
COMPREHENSIVE PROBLEM (Continued)
(a), (e) & (f)
Cash No. 101
Date
Explanation
Ref.
Debit
Balance
July 1
J1
14,000
14,000
1
J1
11,000
5
J1
9,200
18
J1
7,800
20
J1
6,200
21
J1
1,400
7,600
31
J1
7,200
31
J1
6,600
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Balance
July 12
J1
3,800
3,800
21
J1
2,400
25
J1
1,500
3,900
31
Adjusting
J2
1,300
5,200
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
July 3
J1
800
800
31
Adjusting
J2
700
100
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
Balance
July 1
J1
10,000
10,000
COMPREHENSIVE PROBLEM (Continued)
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Balance
July 31
Adjusting
J2
200
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Balance
July 1
J1
7,000
3
J1
7,800
18
J1
1,400
6,400
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
500
500
Common Stock No. 311
Date
Explanation
Ref.
Debit
Balance
July 1
J1
14,000
Retained Earnings No. 320
Date
Explanation
Ref.
Debit
Balance
July 31
Closing
J3
3,050
31
Closing
J3
600
2,450
Dividends No. 332
Date
Explanation
Ref.
Debit
Balance
July 31
J1
600
600
31
Closing
J3
0
Income Summary No. 350
Date
Explanation
Ref.
Debit
Balance
July 31
Closing
J3
6,600
31
Closing
J3
3,550
3,050
31
Closing
J3
3,050
0
COMPREHENSIVE PROBLEM (Continued)
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Balance
July 12
J1
3,800
25
J1
5,300
31
Adjusting
J2
6,600
31
Closing
J3
6,600
0
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Balance
July 31
Adjusting
J2
700
700
31
Closing
J3
700
0
Gasoline Expense No. 633
Date
Explanation
Ref.
Debit
Balance
July 31
J1
400
400
31
Closing
J3
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Balance
July 31
Adjusting
J2
200
200
31
Closing
J3
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
150
150
31
Closing
J3
0
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Balance
July 20
J1
1,600
1,600
31
Adjusting
J2
500
2,100
31
Closing
J3
0
COMPREHENSIVE PROBLEM (Continued)
(d) KRISTIN’S MAIDS CLEANING SERVICE
Income Statement
For the Month Ended July 31, 2015
Revenues
Service revenue ………………………………………. $6,600
Expenses
Salaries and wages expense ……………………. $2,100
Supplies expense ……………………………………. 700
Gasoline expense ……………………………………. 400
KRISTIN’S MAIDS CLEANING SERVICE
Retained Earnings Statement
For the Month Ended July 31, 2015
Retained Earnings, July 1 …………………………..….. $ 0
3,050
Less: Dividends ……………………………………………. 600