PROBLEM 0-8A (Continued)
(d) PAMPER ME SALON INC.
Trial Balance
May 31, 2017
Debit
Credit
Cash ……………………………………………………………………….
Supplies ………………………………………………………………….
Equipment ……………………………………………………………….
Accounts payable ……………………………………………………
Notes payable ………………………………………………………….
$ 5,100
500
24,000
$ 1,200
10,000
PROBLEM 0-9A
Error
(a) In Balance
(c) Larger Column
1.
No
Debit
2.
Yes
N/A
3.
4.
5.
7.
No
Debit
8.
Yes
N/A
PROBLEM 0-10A
(a)
1. Cash ……………………………………………………………………….. 19,000
Accounts Receivable …………………………………………. 19,000
(b) Cash received with respect to fees and dues
1. Collection of 2016 dues $ 19,000
3. Sale of tickets 44,000
5. Collection of 2017 dues 136,000
$199,000
Cash
1. 19,000
3. 44,000
Unearned Sales Revenue
2016 Bal. 23,000
LO 5 BT: AP Difficulty: Medium TOT: 30 min. AACSB Analytic AICPA FC: Reporting
PROBLEM 0-11A
1. Dec. 31 Insurance Expense ……………………………………………. 8,000
Prepaid Insurance ……………………………………… 8,000
2. Dec. 31 Unearned Rent Revenue ……………………………………. 84,000
Rent Revenue ……………………………………………. 84,000
[[Nov. 5 X $5,000 X 2 = 50,000
[Dec. 4 X $8,500 X 1 = 34,000
$84,000]
PROBLEM 0-12A
(a)
Date
Account Titles
Debit
Credit
1.
2017
June 30
Supplies Expense ………………………………………….
Supplies ($2,000 – $720) …………………………
1,280
1,280
Prepaid Insurance
($2,880 ÷ 12 months) …………………………..
240
4.
30
Unearned Service Revenue…………………………….
Service Revenue ……………………………………
4,100
4,100
5.
30
Salaries and Wages Expense …………………………
Salaries and Wages Payable …………………..
1,250
1,250
(b)
Cash
6/30 Bal. 6,850
Accounts Receivable
6/30 Bal. 10,900
6/30 Bal. 2,880
6/30 240
6/30 Bal. 2,640
Supplies
6/30 Bal. 2,000
6/30 1,280
6/30 Bal. 720
Prepaid Insurance
PROBLEM 0-12A (Continued)
Equipment
6/30 Bal. 15,000
6/30 250
6/30 Bal. 250
Accounts Payable
6/30 Bal. 4,230
6/30 180
6/30 4,410
6/30 250
6/30 Bal. 250
6/30 240
6/30 Bal. 240
Accumulated Depreciation—
Salaries and Wages Payable
6/30 1,250
6/30 Bal. 1,250
6/30 4,100
6/30 Bal. 5,200
6/30 Bal. 1,100
6/30 Bal. 22,000
6/30 Bal. 1,280
Service Revenue
6/30 Bal. 8,300
6/30 4,100
6/30 3,900
6/30 Bal. 16,300
Rent Expense
6/30 Bal. 2,000
Depreciation Expense
Utilities Expense
6/30 180
6/30 Bal. 180
Supplies Expense
6/30 1,280
PROBLEM 0-12A (Continued)
(c) KUMAR CONSULTING
Adjusted Trial Balance
June 30, 2017
Debit
Credit
Cash ……………………………………………………………………….
Accounts Receivable ……………………………………………….
Supplies ………………………………………………………………….
Prepaid Insurance ……………………………………………………
Equipment ……………………………………………………………….
$ 6,850
10,900
720
2,640
15,000
PROBLEM 0-13A
(a) 1. June 30 Rent Revenue ……………………………………… 57,000
Unearned Rent Revenue ……………. 57,000
4. 30 Maintenance and
Repairs Expense ………………………………. 4,450
Utilities Expense …………………………………. 215
Advertising Expense ……………………………. 110
Accounts Payable ……………………… 4,775
PROBLEM 0-13A (Continued)
(b) ROADSIDE TRAVEL COURT
Income Statement
For the Quarter Ended June 30, 2017
Revenues
Rent revenue ($212,000 – $57,000) ………………………………. $155,000
Expenses
Salaries and wages expense
($80,500 + $1,200) …………………………..……………………….. $ 81,700
PROBLEM 0-13A (Continued)
(c) The generally accepted accounting principles pertaining to the income statement
not recognized by Betty were the revenue recognition principle and the expense
recognition principle.
The revenue recognition principle states that revenue is recognized when the
performance obligation is satisfied. The cash payments of $57,000 for summer
PROBLEM 0-14A
(a), (c) & (e)
Cash
11/29 750
11/25 1,000
11/30 Bal. 3,840
11/1 Bal. 2,910
11/10 1,800
11/30 Bal. 2,010
11/30 Bal. 4,700
11/30 500
11/1 Bal. 400
11/30 Bal. 650
11/1 Bal. 2,790
11/10 1,800
11/8 1,220
11/20 2,500
Supplies
11/1 Bal. 1,120
11/17 1,300
11/30 1,320
11/30 Bal. 1,100
Equipment
11/30 Bal. 13,600
11/1 Bal. 500
11/30 Bal. 750
11/30 Bal. 10,000
11/1 Bal. 3,000
11/30 Bal. 3,000
11/1 Bal. 10,000
Accounts Payable
11/20 2,500
11/1 Bal. 2,300
11/15 3,600
Salaries and Wages Payable
11/8 620
11/1 Bal. 620
11/30 480
11/30 Bal. 480
Common Stock
11/1 Bal. 10,000
PROBLEM 0-14A (Continued)
Service Revenue
11/12 3,700
11/27 900
11/30 500
Salaries and Wages Expense
11/8 600
11/25 1,000
11/30 480
PROBLEM 0-14A (Continued)
(b)
General Journal
Date
Account Titles
Debit
Credit
Nov. 8
Salaries and Wages Payable …………………………………
Salaries and Wages Expense ………………………………..
Cash …………………………………………………………….
620
600
1,220
10
Cash
Accounts Receivable ……………………………………
1,800
1,800
12
Cash
Service Revenue …………………………………………..
3,700
3,700
15
Equipment ……………………………………………………………
Accounts Payable …………………………………………
3,600
3,600
17
Supplies ………………………………………………………………
Accounts Payable …………………………………………
1,300
1,300
20
Accounts Payable …………………………………………………
Cash …………………………………………………………….
2,500
2,500
22
Rent Expense ……………………………………………………….
480
25
Salaries and Wages Expense ………………………………..
1,000
27
Accounts Receivable ……………………………………………
900
29
Cash
Unearned Service Revenue …………………………..
750
750