(15-25 min.) E 2-24A
Req. 1
Harper, Inc.
Trial Balance
September 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash ………………………………………
$15,000*
Accounts receivable ……………….
12,100*
Inventory ……………………………….
16,800
Supplies…………………………………
200
Land ………………………………………
50,000
Accounts payable …………………..
$14,940*
Common stock ……………………….
Sales revenue ………………………..
Insurance expense …………………
Salary expense ………………………
Utilities expense …………………….
Rent expense …………………………
900
_____
*Computations:
Cash: $14,500 + $500 = $15,000
Accounts Receivable: $12,600 − $500 = $12,100
(10-15 min.) E 2-25A
Cash
Accounts Receivable
(a)
22,500
(b)
1,600
(f)
10,100
(d)
3,300
Bal.
10,100
(g)
2,300
Bal.
Office Supplies
Office Furniture
(c)
1,400
(a)
9,000
Bal.
1,400
Bal.
9,000
Accounts Payable
Common Stock
(e)
850
(c)
1,400
(a)
31,500
Bal.
2,300
Bal.
Salary Expense
Rent Expense
(d)
3,300
(b)
1,600
Bal.
3,300
Bal.
1,600
(15-20 min.) E 2-26A
Req. 1
Leigh Hampton, Attorney
Trial Balance
January 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash ……………………………………..
$14,450
Accounts receivable ………………
10,100
Office supplies ………………………
Office furniture ………………………
$ 550
Common stock ………………………
Dividends ……………………………..
Service revenue …………………….
10,100
Salary expense ……………………..
Rent expense ………………………..
1,600
Total ……………………………………..
$42,150
$42,150
Req. 2
The business performed well during January. The result of operations
was net income of $5,200, as shown by the income statement
accounts:
Service revenue ………………………….. $ 10,100
Salary expense ………………. $3,300
(15-20 min.) E 2-27A
Req. 1
(amounts in millions)
Cash (X) + Other assets (21) = Accounts payable (7) + Other
liabilities (6) + S/E (5) + Revenues (37)
Req. 2
(amounts in millions)
New Towne Company
Trial Balance
September 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………..
$ 4
Other assets ………………………….
21
Accounts payable ………………….
$ 7
Other liabilities ………………………
Revenues ……………………………..
37
Expenses ………………………………
(10-15 min.) E 2-28B
TO: Home Office
FROM: Gary Breen, Store Manager
During the first week, I used the store’s beginning cash to purchase
equipment and supplies. I signed a note payable to buy land and a
building. After all these transactions, the store’s balance sheet appears
as follows:
Summertime Fashions
Orlando Store
Balance Sheet
Date
ASSETS
LIABILITIES
Cash
$ 60,300
Note payable*
$279,000
Supplies
5,700
Land
79,000
STOCKHOLDERS’ EQUITY
Building
Equipment
Total assets
(10-15 min.) E 2-29B
a. No effect on total assets. Increase in notes receivable offsets the
decrease in land.
b. Increased assets. (Cash)
(10-20 min.) E 2-30B
Req. 1
Analysis of Transactions
ASSETS =
LIABILITIES + STOCKHOLDERS’
EQUITY
Date
Cash +
Accounts
Receivable +
Medical
Supplies +
Land =
Accounts
Payable +
Note
Payable +
Common
Stock +
Retained
Earnings
Type of Stockholders’
Equity Transaction
May 6
148,000
148,000
Issued stock
9
(59,000)
59,000
Not a transaction of the business.
Service revenue
Salary expense
Rent expense
Utilities expense
Bal.
59,000
(continued) E2–30B
Req. 2
a. $183,900
b. $4,500
(10-15 min.) E 2-31B
Req. 1
Journal
DATE
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
May
6
Cash………………………………………………
148,000
Common Stock ………………………
148,000
Issued stock to owner.
9
Land ……………………………………………..
59,000
Cash ………………………………………
59,000
Purchased land.
12
Medical Supplies …………………………...
1,700
Accounts Payable …………………..
1,700
Purchased supplies on account.
15
Not a transaction of the business.
15–31
Cash ………………………………………………
4,500
Accounts Receivable ………………………
Service Revenue …………………….
Performed service for cash and on account.
15–31
Salary Expense ………………………………
3,200
Rent Expense …………………………………
1,100
Utilities Expense …………………………….
1,200
Cash ………………………………………
5,500
Paid expenses.
31
Cash ……………………………………………..
Medical Supplies …………………….
Sold supplies.
31
Cash ……………………………………………..
32,000
Note Payable ………………………….
32,000
Borrowed money.
31
Accounts Payable …………………………..
1,300
Cash ………………………………………
(20-30 min.) E 2-32B
Req. 1
Cash
Accounts Receivable
May 6
148,000
May 9
59,000
May 15–31
4,500
15–31
4,500
15–31
5,500
31
1,300
119,000
Bal.
4,500
Medical Supplies
Land
May 12
1,700
May 31
300
May 9
59,000
Bal.
1,400
Bal.
59,000
Accounts Payable
Note Payable
May 31
1,300
May 12
1,700
Bal.
Bal.
32,000
May 6
May 15–31
9,000
Bal.
9,000
May 15–31
3,200
May 15–31
1,100
Bal.
Bal.
1,100
May 15–31
Bal.
May 31
32,000
(continued) E 2-32B
Req. 2
Dr. Sue Smith, P.C.
Trial Balance
May 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash ……………………………………..
$119,000
Accounts receivable ………………
4,500
Medical supplies ……………………
Land ……………………………………..
Note payable …………………………
Common stock ………………………
Service revenue …………………….
Salary expense ……………………..
Utilities expense ……………………
Rent expense ………………………..
Req. 3
Total assets ($119,000 + $4,500 + $1,400 + $59,000) ………….. $183,900
(10-15 min.) E 2-33B
Req. 1
Journal
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
1.
Cash ……………………………………………………….
8,600
Common Stock …………………………..……
8,600
Issued common stock.
2.
Cash ……………………………………………………….
7,500
Note Payable ……………………………………
Borrowed money; signed note payable.
3.
Supplies ………………………………………………….
Accounts Payable …………………………….
Purchased supplies on account.
4.
Land …………………………..…………………………..
36,000
Cash ………………………………………………..
7,000
Note Payable ……………………………………
29,000
Purchased land by paying cash and signing
a note payable.
Cash. ………………………………………………………
Supplies ………………………………………….
Sold supplies for cash.
6.
Accounts Payable …………………………………….
Cash ………………………………………………..
Paid cash on account.
7.
Equipment ……………………………………………….
Cash ………………………………………………..
3,500
Paid cash for equipment.
Cash balance = $5,440 ($8,600 + $7,500 − $7,000 + $70 − $230 − $3,500)
Company owes $37,070 ($7,500 + $800 + $29,000 − $230)
(10-20 min.) E 2-34B
Req. 1
Deluxe Deck Service, Inc.
Trial Balance
April 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash ………………………………………..
$18,500
Accounts receivable …………………
5,800
Equipment ……………………………….
Accounts payable …………………….
$ 4,900
Note payable …………………………...
Common stock …………………………
16,800
Retained earnings …………………….
Dividends …………………………………
3,900
Service revenue ……………………….
21,200
Salary expense …………………………
8,500
Utilities expense ………………………
1,400
Delivery expense ……………………..
750
Total ………………………………………..
$68,850
$68,850
Req. 2
Deluxe Deck Service, Inc.
Income Statement
For the Month Ended April 30, 2016
Service revenue ……………………………….
$21,200
Salary expense ……………………….
Delivery expense …………………….
Total expenses …………………………………
$10,550
(15-25 min.) E 2-35B
Req. 1
Carver, Inc.
Trial Balance
September 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………
$ 14,300*
Accounts receivable …………….
12,400*
Inventory …………………………....
17,200
Supplies ……………………………..
Land ……………………………………
Common stock …………………….
47,900*
Sales revenue ……………………..
41,000
Insurance expense ………………
Salary expense ……………………
Utilities expense ………………….
Rent expense ………………………
500
(10-15 min.) E 2-36B
Cash
Accounts Receivable
(a)
23,000
(b)
1,000
(f)
10,900
(d)
2,500
Bal.
10,900
(e)
(g)
Bal.
Office Supplies
Office Furniture
(c)
700
(a)
9,400
Bal.
700
Bal.
9,400
Accounts Payable
Common Stock
(e)
(c)
700
(a)
Bal.
Bal.
(g)
Bal.
Bal.
Salary Expense
Rent Expense
(d)
2,500
(b)
1,000
Bal.
2,500
Bal.
1,000
(15-20 min.) E 2-37B
Req. 1
Eric Newton, Attorney
Trial Balance
December 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………..
$ 17,350
Accounts receivable ………………
10,900
Office furniture ………………………
9,400
Accounts payable ………………….
$ 550
Dividends ……………………………..
2,000
Service revenue …………………….
10,900
Salary expense ……………………..
2,500
Rent expense ………………………..
1,000
Total ……………………………………..
$43,850
$43,850
Req. 2
The business performed well during December. The result of
operations was net income of $7,400, as shown by the income
statement accounts:
Service revenue ……………………………… $10,900
Salary expense …………………….. $2,500
(15-20 min.) E 2-38B
Req. 1
(amounts in millions)
Cash (X) + Other assets (20) = Accounts payable (7) + Other
Req. 2
(amounts in millions)
Wolf Products Company
Trial Balance
May 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash ……………………………………..
$ 9
Other assets ………………………….
20
Accounts payable ………………….
$ 7
Revenues ………………………………
38
Expenses ………………………………
Serial Exercise
(20-30 min.) E 2-39
Req. 1
Journal
DATE
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
Aug.
2
Cash …………………………………………………
10,000
Common Stock ………………………….
10,000
2
Rent Expense ……………………………………
600
Cash …………………………………………
600
3
Equipment ………………………………………..
Cash …………………………………………
4
Furniture …………………………..………………
Accounts Payable ……………………..
5
Supplies …………………………..……………….
Accounts Payable ……………………..
800
9
Cash …………………………………………………
Service Revenue ……………………….
Utilities Expense ……………………………….
Cash …………………………………………
300
Accounts Receivable …………………………
Service Revenue ……………………….
(continued) E 2-39
Req. 2
Cash
Accounts Receivable
Aug. 2
10,000
Aug. 2
600
Aug. 18
1,900
9
1,400
3
2,700
Bal.
1,900
12
300
Bal.
7,800
Bal.
800
Bal.
Furniture
Accounts Payable
Aug. 4
4,500
Aug. 4
4,500
Bal.
4,500
5
800
Bal.
5,300
Aug. 2
10,000
Aug. 9
1,400
Bal.
10,000
18
1,900
Bal.
3,300
Rent Expense
Utilities Expense
Aug. 2
600
Aug. 12
300
Bal.
600
Bal.
300
(continued) E 2-39
Req. 3
Barbara Miracle, Certified Public Accountant, P.C.
Trial Balance
August 18, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………..
$ 7,800
Accounts receivable ………………
1,900
Supplies ……………………………….
800
Equipment …………………………....
2,700
Furniture ……………………………….
4,500
Common stock ………………………
Dividends ……………………………..
Service revenue …………………….
3,300
Rent expense ………………………..
Utilities expense ……………………
Salary expense ……………………..