PROBLEM 2A-5
(1, 2)
Cash 111
(A) 20,000
1,300 (C)
250 (D)
Accounts Receivable 112
(H) 1,500
100 (J)
1,400
Accounts Payable 211
6,000 (B)
700 (I)
Amy Alto, Capital 311
20,000 (A)
Advertising Expense 511
(D) 250
Gas Expense 512
(G) 1,600
Salaries Expense 513
PROBLEM 2A-5 (CONTINUED)
(3)
ALTO‘S DELIVERY SERVICE
TRIAL BALANCE
OCTOBER 31, 201X
Dr.
Cr.
Cash
18
2
0
0
Accounts Receivable
1
4
0
0
Office Equipment
1
3
0
0
Delivery Trucks
6
0
0
0
Accounts Payable
6
7
0
0
A. Alto, Capital
0
0
0
A. Alto, Withdrawals
7
0
0
Delivery Fees Earned
4
1
0
0
Gas Expense
1
6
0
0
Salaries Expense
6
5
0
Telephone Expense
7
0
0
(4a)
ALTO‘S DELIVERY SERVICE
INCOME STATEMENT
FOR MONTH ENDED OCTOBER 31, 201X
Revenue:
Delivery Fees Earned
$4
1
0
0
Operating Expenses:
Advertising Expense
2
5
0
6
0
0
PROBLEM 2A-5 (CONCLUDED)
(4b)
ALTO‘S DELIVERY SERVICE
STATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED OCTOBER 31, 201X
A. Alto, Capital, October 1, 201X
$
0
Investment in October
20
0
0
0
Total investment for October
20
0
0
0
(4c)
ALTO’S DELIVERY SERVICE
BALANCE SHEET
OCTOBER 31, 201X
ASSETS LIABILITIES AND OWNER’S EQUITY
Cash
$18
2
0
0
Liabilities
Accounts Receivable
_1
4
0
0
Accounts Payable
$ 6
7
0
0
Office Equipment
_1
3
0
0
A. Alto, Capital
2
0
0
SOLUTIONS TO SET B PROBLEMS
PROBLEM 2B-1
Accounts Affected
Category
Inc.
↑
Dec.
↓
Rules
T-Account update
A. Cash
Asset
↑
Dr.
Cash
B. Orwell, Capital
B. Orwell, Capital
Capital
↑
Cr.
(A) 50,000
50,000 (A)
B. Delivery Trucks
Asset
↑
Dr.
↑
Cr.
C. Rent Expense
Dr.
↑
Cr.
D. Cash
Asset
Dr.
E. Accounts Receivable
Asset
↑
Dr.
Delivery Fees Earned
F. B. Orwell, Withdrawals
Withdrawal
↑
Dr.
B. Orwell, Withdrawals
↓
Cr.
PROBLEM 2B-2
Cash 111
(A) 33,000
150 (D)
(G) 600
Brad Piascik, Withdrawals 312
(D) 150
PROBLEM 2B-3
(a)
Cash 111
Accounts Receivable 112
Accounts Payable 211
Brent Jane, Capital 311
7,000 (A)
Cleaning Fees Earned 411
Rent Expense 511
550 (F)
(b)
BRENT‘S CLEANING SERVICE
TRIAL BALANCE
JULY 31, 201X
Dr.
Cr.
Cash
6
6
8
0
Accounts Receivable
9
0
0
0
Office Equipment
2
6
5
0
Accounts Payable
1
7
0
0
Brent Jane, Capital
7
0
0
0
Brent Jane, Withdrawals
3
2
0
Cleaning Fees Earned
0
0
0
Rent Expense
5
5
0
PROBLEM 2B-4
(a)
GAIL LANTZ, ATTORNEY AT LAW
INCOME STATEMENT
FOR MONTH ENDED JULY 31, 201X
Revenue:
Revenue from Legal Fees
$1
6
0
0
Operating Expenses:
(b)
GAIL LANTZ, ATTORNEY AT LAW
STATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED JULY 31, 201X
G. Lantz, Capital, July 1, 201X
$4
7
0
0
0)
(c)
GAIL LANTZ, ATTORNEY AT LAW
BALANCE SHEET
JULY 31, 201X
ASSETS
LIABILITIES AND OWNER’S EQUITY
Cash
$5
0
0
0
Liabilities
Accounts Receivable
7
5
0
Accounts Payable
$3
0
0
0
PROBLEM 2B-5
(1, 2)
Cash 111
Accounts Receivable 112
Office Equipment 121
Delivery Trucks 122
Accounts Payable 211
13,000 (B)
Audrey Avery, Capital 311
Audrey Avery, Withdrawals 312
Advertising Expense 511
Gas Expense 512
Salaries Expense 513
(F) 750
Telephone Expense 514
(I) 50
PROBLEM 2B-5 (CONTINUED)
(3)
AVERY’S DELIVERY SERVICE
TRIAL BALANCE
OCTOBER 31, 201X
Dr.
Cr.
Cash
32
8
0
0
Accounts Receivable
7
0
0
Office Equipment
1
1
0
0
Delivery Trucks
0
0
0
Audrey Avery, Withdrawals
7
0
0
Delivery Fees Earned
3
0
0
Advertising Expense
2
5
0
Gas Expense
1
0
0
0
Salaries Expense
7
5
0
Telephone Expense
5
0
(4a)
AVERY’S DELIVERY SERVICE
INCOME STATEMENT
FOR MONTH ENDED OCTOBER 31, 201X
Revenue:
Delivery Fees Earned
$4
3
0
0
Operating Expenses:
Advertising Expense
2
5
0
0
0
5
0
5
0
PROBLEM 2B-5 (CONCLUDED)
(4b)
AVERY’S DELIVERY SERVICE
STATEMENT OF OWNER’S EQUITY
FOR MONTH ENDED OCTOBER 31, 201X
Audrey Avery, Capital, October 1, 201X
$
0
Investment in October
33
0
0
0
Total investment for October
33
0
0
0
Net Income for October
2
5
0
Less: Withdrawals for October
0
0)
(4c)
AVERY’S DELIVERY SERVICE
BALANCE SHEET
OCTOBER 31, 201X
ASSETS LIABILITIES AND OWNER’S EQUITY
Cash
$32
8
0
0
Liabilities
Accounts Receivable
7
0
0
Accounts Payable
$13
0
5
0
Office Equipment
1
0
0
FINANCIAL REPORT PROBLEM SOLUTION—2016 Amazon.com’s Annual Report
Year
Accounts Payable
2-24
KEEPING IT REAL—Suarez Computer Center Solution
Assignments 1-3
Computer Shop Equipment 1080
Falco, Capital 3000
300 (l)
Supplies 1030
Accounts Payable 2000
500 (bal)
0
Accounts Receivable 1020
Office Equipment 1090
1,100 (o)
200(k)
Cash 1000
300 (l)
Utilities Expense 5030
10,540 (bal)
10,970 bal
100 bal
Service Revenue 4000
Assignment 4
SUAREZ COMPUTER CENTER
TRIAL BALANCE
AUGUST 31, 201X
Dr.
Cr.
Cash
10
9
7
0
00
Accounts Receivable
_1
1
0
0
00
Supplies
_1
0
0
0
00
Computer Shop Equipment
_1
2
6
0
00
Office Equipment
_1
5
0
0
00
Accounts Payable
_1
1
5
0
00
Falco, Capital
12
5
0
0
00
_1
5
0
0
00
Service Revenue
_5
6
0
0
00
Advertising Expense
5
0
0
00
Rent Expense
8
0
0
00
Utilities Expense
1
0
0
00
Phone Expense
2
0
0
00
Insurance Expense
3
0
0
00
Postage Expense
2
0
00
19
2
5
0
00
2
0
00
Assignment 5
SUAREZ COMPUTER CENTER
INCOME STATEMENT
FOR THE TWO MONTHS ENDED AUGUST 31, 201X
Revenue:
Service Revenue
$ 5
6
0
0
00
Operating Expenses:
Advertising Expense
$
5
0
0
00
Rent Expense
8
0
0
00
Utilities Expense
1
0
0
00
Phone Expense
2
0
0
00
Insurance Expense
3
0
0
00
9
2
0
00
Net Income
$ 3
6
8
0
00
Assignment 5 (Concluded)
SUAREZ COMPUTER CENTER
STATEMENT OF OWNER’S EQUITY
FOR THE TWO MONTHS ENDED AUGUST 31, 201X
Falco, Capital, July 1, 201X
$
0
00
Net Income
$ 3
6
8
0
00
Less: Falco Withdrawals
(1
5
0
0
00)
1
00
00
SUAREZ COMPUTER CENTER
BALANCE SHEET
AUGUST 31, 201X
ASSETS
LIABILITIES AND OWNER’S EQUITY
Cash
$10
9
7
0
00
Liabilities: