PROBLEM 0-14A (Continued)
(d) & (f) SOHO EQUIPMENT REPAIR
Trial Balances
November 30, 2017
Before
Adjustment
After
Adjustment
Dr.
Cr.
Dr.
Cr.
Cash ……………………………………………..
Accounts Receivable ……………………..
Supplies ………………………………………..
Equipment …………………………………….
$ 3,840
2,010
2,420
13,600
$ 3,840
2,010
1,100
13,600
PROBLEM 0-14A (Continued)
(e)
Nov. 30 Supplies Expense …………………………..………………….. 1,320
Supplies ($2,420 – $1,100) ………………………….. 1,320
(g) SOHO EQUIPMENT REPAIR
Income Statement
For the Month Ended November 30, 2017
Revenues
Service revenue ………………………………………………….. ( $5,100)
Expenses
SOHO EQUIPMENT REPAIR
Retained Earnings Statement
For the Month Ended November 30, 2017
Retained earnings, November 1 ………………………………….. $3,000
PROBLEM 0-14A (Continued)
SOHO EQUIPMENT REPAIR
Balance Sheet
November 30, 2017
Assets
Current assets
Cash ……………………………………………………………………… $ 3,840
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ………………………………………………….. $ 4,700
Unearned service revenue ……………………………………… 650
Salaries and wages payable ……………………………………. 480
(a) 1. May 31 Insurance Expense ……………………………………… 450
Prepaid Insurance ……………………………….. 450
4. 31 Interest Expense …………………………………………. 180
Interest Payable
[($36,000 X 6%) X 1/12] …………………….. 180
5. 31 Unearned Rent Revenue ……………………………… 2,500
Rent Revenue ……………………………………… 2,500
PROBLEM 0-15A (Continued)
Building
5/31 Bal. 70,000
Accumulated Depreciation—
Building
5/31 300
5/31 Bal. 300
5/31 Bal. 16,800
Accumulated Depreciation—
5/31 250
5/31 Bal. 250
5/31 Bal. 4,700
5/31 Bal. 11,500
5/31 Bal. 3,000
5/31 Bal. 3,900
Unearned Rent Revenue
5/31 2,500
5/31 Bal. 3,300
5/31 Bal. 800
5/31 900
5/31 Bal. 900
5/31 180
5/31 Bal. 180
5/31 180
5/31 Bal. 180
5/31 450
5/31 Bal. 450
Mortgage Payable
5/31 Bal. 36,000
Common Stock
5/31 Bal. 60,000
5/31 Bal. 800
Advertising Expense
5/31 Bal. 500
PROBLEM 0-15A (Continued)
Supplies Expense
5/31 1,550
5/31 Bal. 1,550
5/31 300
5/31 250
5/31 Bal. 550
(c) MOTO HOTEL
Adjusted Trial Balance
May 31, 2017
Debit
Credit
Cash ……………………………………………………………………….
Supplies ………………………………………………………………….
Rent Revenue ……………………………………………………….
Salaries and Wages Expense …………………………..……….
Utilities Expense ……………………………………………………..
Advertising Expense ………………………………………………..
Interest Expense ……………………………………………………..
$ 2,500
1,050
3,900
800
500
180
$114,630
11,500
$114,630
PROBLEM 0-15A (Continued)
(d) MOTO HOTEL
Income Statement
For the Month Ended May 31, 2017
Revenues
Rent revenue ………………………………………………………. $11,500
Expenses
Salaries and wages expense ……………………………….. $3,900
Supplies expense ……………………………………………….. 1,550
MOTO HOTEL
Retained Earnings Statement
For the Month Ended May 31, 2017
Retained earnings, May 1 ……………………………………………. $ 0
PROBLEM 0-15A (Continued)
MOTO HOTEL
Balance Sheet
May 31, 2017
Assets
Current Assets
Cash ……………………………………………………. $ 2,500
Less: Accumulated
deprec.—Building ……………………………… 300 69,700
Equipment ……………………………………………. 16,800
Less: Accumulated
deprec.—equipment …………………………... 250 16,550 101,250
Total assets …………………………………. $106,150
Liabilities and Stockholders’ Equity
Current Liabilities
Total liabilities …………………………………………….. 42,580
Stockholders’ equity
Common stock ……………………………………………………. 60,000
Retained earnings ……………………………………………….. 3,570
PROBLEM 0-15A (Continued)
(e) The following accounts would be closed:
Rent Revenue, Salaries and Wages Expense, Utilities Expense,
(a) Sept. 30 Accounts Receivable ………………………………………… 600
Service Revenue ……………………………………….. 600
30 Rent Expense……………………………………………………. 900
Prepaid Rent …………………………………………….. 900
(b) SALT CREEK GOLF INC.
Income Statement
For the Quarter Ended September 30, 2017
Revenues
Service revenue ………………………………………………….. $14,700
Rent revenue ………………………………………………………. 900
PROBLEM 0-16A (Continued)
SALT CREEK GOLF INC.
Retained Earnings Statement
For the Quarter Ended September 30, 2017
Retained earnings, July 1, 2017 ………………………………………………………… $ 0
Add: Net income…………………………………………………………………………….. 2,510
SALT CREEK GOLF INC.
Balance Sheet
September 30, 2017
Assets
Current Assets
Cash …………………………………………………………………. $ 6,700
Accounts receivable ………………………………………….. 1,000
Liabilities and Stockholders’ Equity
Current Liabilities
Notes payable ……………………………………………………. $ 5,000
Accounts payable ………………………………………………. 1,070
PROBLEM 0-16A (Continued)
(c) The following accounts would be closed: Service Revenue, Rent
Revenue, Salaries and Wages Expense, Rent Expense, Utilities Expense,