Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
*PROBLEM 11-8A
(a) Jan. 15 Cash Dividends (70,000 X $0.50) ...... 35,000
Dividends Payable ...................... 35,000
Feb. 15 Dividends Payable ............................. 35,000
Cash ............................................. 35,000
Dividends Payable ...................... 46,200
31 Income Summary ............................... 400,000
Retained Earnings ...................... 400,000
(b)
Common Stock
Retained Earnings
1/1 Bal. 700,000
12/31 98,000
1/1 Bal. 620,000
5/15 70,000
12/31 81,200
12/31 400,000
12/31 Bal. 770,000
12/31 Bal. 840,800
Paid-in Capital
in Excess of Par Value
Common Stock
Dividends Distributable
1/1 Bal. 500,000
5/15 70,000
4/15 70,000
4/15 28,000
12/31 Bal. –0–
(c) TACOMA CORPORATION
Partial Balance Sheet
December 31, 2017
Stockholders’ equity
Paid-in capital
Capital stock
*PROBLEM 11-8A (Continued)
(d)
$81,200
Payout ratio = = 20.3%
$400,000
ACR 11-1 ACCOUNTING CYCLE REVIEW
(a)
1.
Cash .................................................................
49,200
2.
Cash .................................................................
21,000
3.
Accounts Receivable ......................................
Service Revenue ......................................
320,000
320,000
5.
Cash .................................................................
Accounts Receivable ..............................
276,000
276,000
7.
Accounts Payable ...........................................
Cash ..........................................................
32,200
32,200
9.
Other Operating Expenses .............................
188,200
11.
Allowance for Doubtful Accounts ..................
1,700
ACR 11-1 (Continued)
3.
Bad Debts Expense [$3,500 – ($1,500 – $1,700)] ...
Allowance for Doubtful Accounts ............
3,700
3,700
4.
Depreciation Expense .......................................
4,400
5.
Income Tax Expense .........................................
Income Taxes Payable ..............................
35,130*
35,130
(b) HAWKEYE CORPORATION
Adjusted Trial Balance
12/31/17
Account
Debit
Credit
Cash ......................................................................
$175,200
Accounts Receivable ...........................................
87,800
Accumulated Depreciation—Buildings ..............
26,400
Accounts Payable ................................................
28,500
Income Taxes Payable .........................................
35,130
Unearned Service Revenue .................................
9,000
Dividends Payable ...............................................
13,560
Preferred Stock ....................................................
48,000
Paid-in Capital in Excess of Par Value—P.S. ....
1,200
ACR 11-1 (Continued)
(c) Optional T Accounts
Cash
Bal. 24,600
49,200
32,200
11,200
Accounts Receivable
Bal. 45,500
320,000
276,000
1,700
Bal. 87,800
35,100
Bal. 5,900
Land
Accum. Depreciation—Buildings
Bal. 22,000
4,400
Income Taxes Payable
35,130
Preferred Stock
48,000
ACR 11-1 (Continued)
(c) (Continued)
Common Stock
Bal. 89,000
Paid-in Capital in Excess
of Par Value—C.S.
12,000
Retained Earnings
Treasury Stock
11,200
Service Revenue
Bad Debt Expense
Depreciation Expense
4,400
Supplies Expense
33,600
Other Operating Expenses
ACR 11-1 (Continued)
(c) HAWKEYE CORPORATION
Income Statement
For the Year ending December 31, 2017
Service revenue .............................................
$347,000
Operating expenses
Other operating expenses .....................
$188,200
Supplies expense ................................
33,600
HAWKEYE CORPORATION
Statement of Retained Earnings
For the Year ending December 31, 2017
Retained earnings, 1/1/17 ............................................
$127,400
Add: Net income ........................................................
81,970
ACR 11-1 (Continued)
HAWKEYE CORPORATION
Balance Sheet
At December 31, 2017
Assets
Current assets
Cash ..............................................................
$175,200
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ........................................
$ 28,500
Income taxes payable ................................
35,130
Paid-in capital in excess of
par value—preferred stock ...........
1,200
Paid-in capital in excess of
par value—common stock ............
12,000
Total additional paid-in capital ...........
13,200
ACR 11-2 ACCOUNTING CYCLE REVIEW
(a)
2017
Feb. 1
Cash ....................................................................
13,000
Common Stock ..............................................
7,500
Paid in Capital in Excess of Par ..................
5,500
Cash ................................................................
2,460
5
Cash .....................................................................
3,950
Loss on Disposal of Plant Assets ....................
250
Equipment ......................................................
4,200
16
Accounts Receivable .........................................
3,900
Cash ................................................................
3,840
25
Cash .....................................................................
2,500
Accounts Receivable ....................................
2,500
27
Prepaid Expenses ..............................................
220
Cash ................................................................
220
ACR 11-2 (Continued)
(d)
Debit
Credit
Feb. 28
1.
Accounts Receivable .............................................
3,800
Service Revenue ................................................
3,800
3.
Bad Debt Expense .................................................
479
Allowance for Doubtful Accounts ....................
479
5.
Insurance Expense ................................................
820
Prepaid Insurance ..............................................
820
7.
Unearned Service Revenue...................................
135
Service Revenue ................................................
135
9.
Interest Expense ....................................................
40
Interest Payable .................................................
40
ACR 11-2 (Continued)
(c) and (f)
Accounts
Trial Balance
Adjusted Trial Balance
Debit
Credit
Debit
Credit
Cash
$10,090
$10,090
Unearned Service Revenue
540
405
Salaries and Wages Payable
1,920
Interest Payable
40
Note Payable
8,000
8,000
Common Stock
7,500
7,500
Depreciation Expense
90
Insurance Expense
820
Supplies Expense
580
Interest Expense
40
Income Tax Expense
779
ACR 11-2 (Continued)
(h)
Debit
Credit
Feb. 28
Service Revenue .....................................
12,135
Income Summary ................................
12,135
Income Summary ....................................
9,018
Bad Debt Expense ..............................
479
Depreciation Expense ........................
90
ACR 11-2 (Continued)
(b), (e), and (h)
Cash
2/1 13,000
2/1 9,020
2/28 940
2/28 Bal. 10,090
Accounts Receivable
2/16 3,900
2/23 4,300
2/25 2,500
2/28 200
Prepaid Insurance
2/5 2,460
2/28 820
2/28 Bal. 1,640
Prepaid Expenses
2/27 220
2/28 Bal. 220
Allowance for Doubtful Accounts
Accounts Payable
Salaries and Wages Payable
2/28 1,920
2/28 Bal. 1,920
Income Taxes Payable
2/28 779
2/28 Bal. 779
Unearned Service Revenue
2/28 135
2/17 540
2/28 Bal. 405
ACR 11-2 (Continued)
Common Stock
2/1 7,500
Dividends
2/28 940
2/28 940
2/28 Bal. 0
Treasury Stock
2/20 900
2/28 Bal. 900
Retained Earnings
Service Revenue
2/28 12,135
2/16 3,900
2/23 4,300
ACR 11-2 (Continued)
Utilities Expense
2/1 220
2/28 220
2/28 Bal. 0
Salaries and Wages Expense
Depreciation Expense
2/28 90
2/28 90
2/28 Bal. 0
Bad Debt Expense
2/28 479
2/28 479
2/28 Bal. 0
Supplies Expense
2/28 580
2/28 580
ACR 11-2 (Continued)
(g)
Clean Sweep
Income Statement
For the Month Ending February 28, 2017
Service revenue.....................................
$12,135
Operating expenses:
Salaries and wages expense ............
$5,760
Utilities expense ................................
220
Bad debt expense ..............................
479
Clean Sweep
Retained Earnings Statement
For the Month Ending February 28, 2017
Retained earnings, 2/1/17 .....................
–
ACR 11-2 (Continued)
Clean Sweep
Balance Sheet
February 28, 2017
Assets
Current assets
Cash ...........................................................
$10,090
Accounts receivable ...................................
$9,300
Property, plant and equipment
Equipment ..................................................
4,820
Liabilities and Stockholders Equity
Current liabilities ..............................................
Accounts payable ........................................
$680
Unearned service revenue ..........................
405
Salaries and wages payable .......................
1,920
Stockholders' Equity
Common stock, $1.50 par ..........................
$7,500
