PROBLEM 12A-4(CONTINUED)
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 441
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
2
GJ2
2
0
COST OF GOODS SOLD
ACCOUNT NO. 550
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
2
Adjusting
GJ2
1
3
3
GJ2
3
5
WAGES EXPENSE
ACCOUNT NO. 660
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
2
4
Adjusting
GJ2
1
2
2
6
GJ2
2
6
5
ADVERTISING EXPENSE
ACCOUNT NO. 661
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
4
RENT EXPENSE
ACCOUNT NO. 662
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
8
GJ2
8
0
PROBLEM 12A-4(CONTINUED)
DEPRECIATION EXPENSE, LUMBER EQUIPMENT
ACCOUNT NO. 663
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
LUMBER SUPPLIES EXPENSE
ACCOUNT NO. 664
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
INSURANCE EXPENSE
ACCOUNT NO. 665
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
PROBLEM 12A-4 (CONCLUDED)
(d)
MEYER LUMBER
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2019
Dr.
Cr.
Cash
1
6
8
0
00
Accounts Receivable
9
6
0
00
Merchandise Inventory
4
2
0
00
Lumber Supplies
1
1
0
00
Lumber Equipment
0
0
0
00
Acc. Depr., Lumber Equipment
7
9
0
00
Accounts Payable
1
1
6
0
00
Wages Payable
1
2
5
00
L. Meyer, Capital
8
1
9
3
00
2
6
8
00
2
6
8
00
(e)
Jan.
1
00
00
SOLUTIONS TO SET B PROBLEMS
PROBLEM 12B-1
EMERSON’S TRACTOR SUPPLIES
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 2018
Gross Sales
1
$
1
5
00
1
7
5
00
3
Cost of Goods Sold:
Cost of Goods Sold
1
7
Operating Expenses:
Salaries Expense
$
3
6
0
00
Insurance Expense
2
7
5
00
Advertising Expense
1
6
5
00
Rent Expense
2
2
5
00
Depreciation Exp., Store Equip.
1
1
5
00
Other Income:
Rental Income
2
PROBLEM 12B-2
MURRAY CO.
STATEMENT OF OWNER’S EQUITY
FOR YEAR ENDED DECEMBER 31, 2020
$10
0
0
PROBLEM 12B-2 (CONCLUDED)
MURRAY CO.
BALANCE SHEET
DECEMBER 31, 2020
Assets
Current Assets:
Cash
$2
5
0
0
00
Petty Cash
5
0
00
Accounts Receivable
1
3
0
0
00
Merchandise Inventory
4
2
5
0
00
Supplies
3
4
4
00
Prepaid Insurance
6
0
0
00
Plant and Equipment:
Store Equipment
$18
0
0
0
00
Less: Acc. Depr., Store Equip.
7
5
0
00
$17
2
5
0
00
Less: Acc. Depr., Auto
5
0
0
00
2
0
0
0
00
Liabilities
Current Liabilities:
Accounts Payable
$3
4
5
0
00
Salaries Payable
1
0
0
00
Taxes Payable
1
0
0
00
Unearned Rent
0
0
0
00
Mortgage Payable
3
0
0
0
00
Long-Term Liabilities
Mortgage Payable
5
0
0
0
00
3
6
4
4
PROBLEM 12B-3
(a)
Balance Sheet
Credit
Debit
3,000
3,000
Income Statement
Credit
400
Debit
Adjusted Trial Balance
Credit
400
JERRY’ S SUPPLIES
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 2019
Debit
3,000
3,000
Adjustments
Credit
(B) 400
Debit
Trial Balance
Credit
136,400
Debit
3,000
3,000
136,400
Account Titles
Cash
Accounts Receivable
Training Fees Earned
Acc. Dep., Equip.
PROBLEM 12B-3 (CONTINUED)
(b)
JERRY’S SUPPLIES
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 2019
Revenue:
Gross Sales
$100
8
0
0
00
Less: Sales Ret. & Allow.
1
0
0
Cost of Goods Sold
Cost of Goods Sold
5
0
0
00
Operating Expenses:
Advertising Expense
0
0
0
Rent Expense
5
0
0
Salaries Expense
0
0
0
Insurance Expense
3
5
0
Other Income:
Training Fees Earned
4
0
0
00
PROBLEM 12B-3 (CONTINUED)
JERRY’S SUPPLIES
STATEMENT OF OWNER’S EQUITY
FOR YEAR ENDED DECEMBER 31, 2019
Net Loss
Less: Withdrawals
PROBLEM 12B-3 (CONTINUED)
JERRY’S SUPPLIES
BALANCE SHEET
DECEMBER 31, 2019
Assets
Current Assets
Cash
$3
0
0
0
00
Accounts Receivable
3
0
0
0
00
Merchandise Inventory
11
5
0
0
00
Prepaid Insurance
6
5
0
00
Plant and Equipment:
Equipment
$5
0
0
0
00
2
4
0
0
00
6
0
0
Liabilities
Current Liabilities
Accounts Payable
$2
1
0
0
00
Unearned Training Fees
1
0
5
0
00
Mortgage Payable
1
6
0
0
00
J. Vanwyk, Capital
2
0
0
PROBLEM 12B-3 (CONCLUDED)
(c)
GENERAL JOURNAL
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
201X
Adjusting Entries
Dec.
31
Cost of Merchandise Sold
2
0
0
00
Merchandise Inventory
2
0
0
00
31
Unearned Training Fees
4
0
0
00
Training Fees Earned
4
0
0
00
31
Depreciation Expense, Equipment
5
0
0
00
Accumulated Depreciation, Equipment
5
0
0
00
31
Insurance Expense
3
5
0
00
Prepaid Insurance
3
5
0
00
31
Sales
100
8
0
0
00
Training Fees Earned
4
0
0
00
Income Summary
101
2
0
0
00
31
Income Summary
109
7
5
0
00
Sales Returns and Allowances
4
1
0
0
00
Sales Discount
2
8
0
0
00
Cost of Goods Sold
5
0
0
00
Advertising Expense
8
0
0
0
00
Rent Expense
8
5
0
0
00
Salaries Expense
0
0
0
00
Depreciation Expense, Equipment
5
0
0
00
Insurance Expense
3
5
0
00
31
J. Vanwyk, Capital
8
5
5
0
00
Income Summary
8
5
5
0
00
31
P. Vanwyk, Capital
4
0
0
0
00
P. Vanwyk, Withdrawals
4
0
0
0
00
PROBLEM 12B-4
(a)
Balance Sheet
Credit
Debit
1,140
1,270
Income Statement
Credit
Debit
180
70
CALLAHAN LUMBER
WORKSHEET
FOR THE YEAR ENDED DECEMBER 31, 2019
Adjusted Trial Balance
Credit
Debit
1,140
1,270
180
70
Adjustments
Credit
Debit
(B) 180
(C) 70
Trial Balance
Credit
Debit
1,140
1,270
Account Titles.
Cash
Accounts Receivable
Lumber Supplies Exp,
PROBLEM 12B-4 (CONTINUED)
(b)
CALLAHAN LUMBER
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 2019
Revenue:
Gross Sales
$23
0
0
0
00
Less: Sales Ret. and Allow.
4
0
0
00
Cost of Goods Sold
0
7
5
Operating Expenses:
Wages Expense
5
5
5
00
Advertising Expense
9
4
0
00
Rent Expense
8
4
0
00
Lumber Supplies Expense
1
8
0
00
Insurance Expense
7
0
00
Depreciation Expense, Equip
4
6
0
00
PROBLEM 12B-4 (CONTINUED)
CALLAHAN LUMBER
STATEMENT OF OWNER’S EQUITY
FOR YEAR ENDED DECEMBER 31, 2019
6
2
Net Income
8
0
00
Less: Withdrawals
0
0
PROBLEM 12B-4 (CONTINUED)
CALLAHAN LUMBER
BALANCE SHEET
DECEMBER 31, 2019
Assets
Current Assets:
Cash
$1
1
4
0
00
Accounts Receivable
2
7
0
00
Merchandise Inventory
7
0
0
00
Lumber Supplies
8
0
00
Prepaid Insurance
4
7
00
Plant and Equipment:
Lumber Equipment
$2
6
0
0
00
Less: Acc. Depr., Lumber Equip.
8
0
0
00
8
0
0
Liabilities
Current Liabilities
Accounts Payable
$1
3
3
0
00
Wages Payable
1
6
5
00
5
4
2
PROBLEM 12B-4 (CONTINUED)
(c)
GENERAL JOURNAL
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
201X
Adjusting Entries
Dec.
31
Cost of Goods Sold
550
9
0
0
00
Merchandise Inventory
112
9
0
0
00
31
Lumber Supplies Expense
664
1
8
0
00
Lumber Supplies
113
1
8
0
00
31
Insurance Expense
665
7
0
00
Prepaid Insurance
114
7
0
00
31
Depreciation Expense, Lumber Equipment
663
4
6
0
00
Acc. Depreciation, Lumber Equipment
122
4
6
0
00
31
Wages Expense
660
1
6
5
00
Wages Payable
221
1
6
5
00
Closing Entries
31
Sales
440
23
0
0
0
00
Income Summary
332
22
9
1
5
00
31
Income Summary
332
19
5
2
0
00
Sales Returns and Allowances
441
4
0
0
00
Cost of Goods Sold
550
14
0
7
5
00
Wages Expense
660
2
5
5
5
00
Advertising Expense
661
9
4
0
00
Rent Expense
662
8
4
0
00
Lumber Supplies Expense
664
1
8
0
00
Insurance Expense
665
7
0
00
Dep. Exp., Lumber Equipment
663
4
6
0
00
31
Income Summary
332
4
8
0
00
330
3
4
8
0
00
31
330
5
0
0
00
331
3
5
0
0
00
PROBLEM 12B-4 (CONTINUED)
CALLAHAN LUMBER
GENERAL LEDGER
CASH
ACCOUNT NO. 110
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
1
1
ACCOUNT NO. 111
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
1
2
MERCHANDISE INVENTORY
ACCOUNT NO. 112
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
5
6
0
GJ2
9
0
4
7
LUMBER SUPPLIES
ACCOUNT NO. 113
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
2
PROBLEM 12B-4 (CONTINUED)
PREPAID INSURANCE
ACCOUNT NO. 114
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
1
ACCOUNT NO. 121
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
2
6
ACCUMULATED DEPRECIATION, LUMBER EQUIPMENT
ACCOUNT NO. 122
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
3
Adjusting
GJ2
4
8
ACCOUNT NO. 220
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Balance
1
3
WAGES PAYABLE
ACCOUNT NO. 221
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
GJ2
1
5
1
5
PROBLEM 12B-4 (CONTINUED)
J. CALLAHAN, CAPITAL
ACCOUNT NO. 330
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
J. CALLAHAN, WITHDRAWALS
ACCOUNT NO. 331
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
INCOME SUMMARY
ACCOUNT NO. 332
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
SALES
ACCOUNT NO. 440
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
ACCOUNT NO. 441
Debit
Credit
PROBLEM 12B-4 (CONTINUED)
COST OF GOODS SOLD
ACCOUNT NO. 550
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
WAGES EXPENSE
ACCOUNT NO. 660
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
ADVERTISING EXPENSE
ACCOUNT NO. 661
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
RENT EXPENSE
ACCOUNT NO. 662
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
PROBLEM 12B-4(CONTINUED)
DEPRECIATION EXPENSE, LUMBER EQUIPMENT
ACCOUNT NO. 663
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Dec.
LUMBER SUPPLIES EXPENSE
ACCOUNT NO. 664
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Dec.
INSURANCE EXPENSE
ACCOUNT NO. 665
Date
201X
Explanation
Post
Ref.
Debit
Credit
Debit
Credit
Dec.
(d)
CALLAHAN LUMBER
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 2019
Dr.
Cr.
Cash
1
1
4
0
00
Accounts Receivable
1
2
7
0
00
Merchandise Inventory
4
7
0
0
00
Lumber Supplies
8
0
00
Prepaid Insurance
4
7
00
2
1
7
PROBLEM 12B-4 (CONCLUDED)
(e)
GENERAL JOURNAL
Jan.
1
6
Wages Expense
1
6
FINANCIAL REPORT PROBLEM SOLUTION—Amazon’s Annual Report
Expense Category
2015
2016
Increase
CONTINUING PROBLEM: SUAREZ COMPUTER CENTER SOLUTION
GENERAL JOURNAL
PAGE 12
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Adjusting Entries
Mar.
31
Supplies Expense
5050
2
7
5
00
Supplies
1030
2
7
5
00
31
Cost of Goods Sold
5000
3
5
5
00
1021
3
5
5
00
31
Depreciation Expense, Office Equipment
5090
2
1
0
00
1091
2
1
0
00
31
Depreciation Expense, C.S. Equipment
5080
5
7
0
00
1081
5
7
0
00
31
Rent Expense
5020
0
0
0
00
Prepaid Rent
1025
0
0
0
00