Student Name:
Class:
Date Account Debit Credit
Prepaid rent
Rent expense
Sales revenue
Unearned revenue
(1) 10,000
10,000 «- Correct!
(2) 1,500
1,500 «- Correct!
(3) 1,500
1,500 «- Correct!
(5) 3,750
3,750 «- Correct!
(6) 700
700 «- Correct!
Instructor
McGraw-Hill/Irwin
Problem 02-03
Insurance expense
Supplies expense
Supplies
General Journal
PASTINA COMPANY
Salaries and wages payable
Interest expense
Interest payable
Depreciation Expense
Prepaid insurance
Salaries and wages expense
Accumulated Depreciation
Interest receivable
Account Title Debits Credits
Insurance expense
Salaries and wages expense
Rent expense
Depreciation expense
Interest expense
Advertising expense
Supplies expense
Cost of goods sold
Sales revenue
Interest revenue
Common stock
Retained earnings
30,000
–
80,000
30,000
31,000
.
50,000
–
–
Principal due in
Rent paid for December & January
Rent per month
Cash lent 3/1 due 2/28/17
Interest on note
Insurance paid (2 years)
Supplies on hand at 12/31
Customer paid for spaghetti to be
delivered in January 2017
10,000$
1,500$
50,000$
12%
Annual interest on note
Additional information:
Salaries and wages earned 12/16-12/31
Cash borrowed 10/1
Depreciation on office equipment
Accounts payable
Prepaid insurance
Office equipment
Salaries and wages payable
Note payable
Interest payable
Unearned revenue
Accumulated depreciation-office equipment
Given Data P02-03:
Cash
Note receivable
Interest receivable
Prepaid rent
Accounts receivable
Supplies
Inventory
Student Name:
Class:
Debits Credits
Cost of goods sold
Salaries and wages expense
Rent expense
Depreciation expense
Interest expense
Supplies expense
Insurance expense
Advertising expense
Retained earnings
Sales revenue
Interest revenue
30,000
40,000
1,000
80,000
40,000
31,000
1,500
50,000
1,500
2,000
60,000
Requirement 3:
McGraw-Hill/Irwin
Instructor
Adjusted Trial Balance
PASTINA COMPANY
Account Title
Cash
Problem 02-04
December 31, 2016
Accounts receivable
Prepaid rent
Office equipment
Accumulated depreciation-office equipment
Accounts payable
Salaries and wages payable
Note payable
Interest payable
Unearned revenue
Common stock
Prepaid insurance
Supplies
Note receivable
Interest receivable
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-04
146,000$
70,000
76,000
20,400$
12,000
Total
Common Retained Shareholders’
Stock Earnings Equity
Net income for 2016
Less: Dividends
60,000$ 28,500$ 88,500$
– –
Balance at January 1, 2016
Issue of common stock
For the Year Ended December 31, 2016
Statement of Shareholders’ Equity
PASTINA COMPANY
Rent
Requirement 4:
Sales revenue
Cost of goods sold
Gross profit
Operating expenses:
Salaries and wages
For the Year Ended December 31, 2016
Income Statement
PASTINA COMPANY
Interest expense
Depreciation
Supplies
Insurance
Advertising
Total operating expenses
Operating Income
Other income (expense):
Interest revenue
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-04
Assets
30,000$
40,000
800
Shareholders’ equity:
Common stock
Retained earnings
Total shareholders’ equity
Interest payable
Unearned revenue
Total current liabilities
Correct!
31,000$
1,500
50,000
Current liabilities
Accounts payable
Salaries and wages payable
Note payable
Current assets:
Cash
At December 31, 2016
Balance Sheet
PASTINA COMPANY
Accounts receivable
Supplies
Liabilities and Shareholders’ Equity
Interest receivable
Prepaid rent
Prepaid insurance
Total current assets
Office Equipment
Less: Accumulated depreciation
Inventory
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-04
Debit Credit
146,000
1,333
Debits Credits
Salaries and wages payable
Note payable
Interest payable
Unearned revenue
Common stock
Retained earnings
Accounts payable
Prepaid insurance
Supplies
Inventory
Note receivable
30,000
40,000
1,000
1,333
80,000
40,000
Requirement 5:
Account
Requirement 6:
Account Title
Cash
Accounts receivable
Prepaid rent
Interest receivable
Office equipment
Accumulated depreciation-office equipment
Sales revenue
Interest revenue
Closing entries at December 31, 2016
General Journal
PASTINA COMPANY
For the Year Ended December 31, 2016
Post-Closing Trial Balance
PASTINA COMPANY
Interest expense
Supplies expense
Insurance expense
Advertising expense
Income summary
Retained earnings
Income summary
Income summary
Cost of goods sold
Salaries and wages expense
Rent expense
Depreciation expense
Debits Credits
Insurance expense
Advertising expense
Cost of goods sold
Salaries and wages expense
Rent expense
Depreciation expense
Interest expense
Supplies expense
Retained earnings
Sales revenue
Interest revenue
30,000
40,000
1,500
80,000
30,000
31,000
–
50,000
–
–
60,000
Rent paid for December & January
Rent per month
Cash lent 3/1 due 2/28/15
Interest on note
Insurance paid (2 years)
delivered in January 2015
Uncollectible
Wages earned 12/16-12/31
Cash borrowed 10/1
Supplies on hand at 12/31
Customer paid for spaghetti to be
Principal due in
Annual interest on note
10,000$
40,000$
Account Title
Additional information:
Accounts receivable outstanding
Depreciation on office equipment
Common stock
Accounts payable
Salaries and wages payable
Note payable
Interest payable
Unearned revenue
Office equipment
Accumulated depreciation-office equipment
Cash
Accounts receivable
Supplies
Given Data P02-04:
Interest receivable
Prepaid rent
Prepaid insurance
Inventory
Note receivable
Student Name:
Class:
Date Account Debit Credit
Equipment
Cash
Retained earnings
Cash
(a) 70,000
30,000
50,000 «- Correct!
(e) 24,000
24,000 «- Correct!
Account Title Debits Credits
Accounts receivable
Equipment
Accumulated depreciation
Salaries payable
Common stock
Salaries expense
Miscellaneous expenses
45,800
7,000
100,000
Requirement 4:
Requirement 2:
KARLIN COMPANY
Cash
Retained earnings
Service revenue
Instructor
Unadjusted Trial Balance
KARLIN COMPANY
Accounts receivable
Cash
Cash
Cash
Problem 02-06
McGraw-Hill/Irwin
Miscellaneous expenses
General Journal
Service revenue
Cash
Cash
Salaries expense
Salaries payable
Accounts receivable
Student Name:
Class:
Instructor
Problem 02-06
McGraw-Hill/Irwin
Account Debit Credit
1,000
Account Title Debits Credits
Accumulated depreciation
Salaries payable
Common stock
Retained earnings
Service revenue
Salaries expense
Miscellaneous expenses
Depreciation expense
45,800
17,700
35,000
Requirement 5:
Equipment
Accounts receivable
Adjusted Trial Balance
General Journal
KARLIN COMPANY
KARLIN COMPANY
Requirement 6:
Cash
Salaries expense
Salaries payable
Depreciation expense
Accumulated depreciation
Student Name:
Class:
Instructor
Problem 02-06
McGraw-Hill/Irwin
100,000$
Assets
Total current assets
Property and equipment
Equipment
Less: Accumulated depreciation
45,800$
17,700
Correct!
Liabilities and Shareholders’ Equity
Shareholders’ equity
Common stock
Retained earnings
Total shareholders’ equity
1,000$
1,000
Requirement 7:
Salaries payable
Total current liabilities
Current liabilities
Current assets
Cash
Accounts receivable
At December 31, 2016
Balance Sheet
KARLIN COMPANY
Service revenue
For the Year Ended December 31, 2016
Income Statement
KARLIN COMPANY
Depreciation
Operating Expenses:
Salaries
Miscellaneous
Student Name:
Class:
Instructor
Problem 02-06
McGraw-Hill/Irwin
Account Debit Credit
100,000
100,000 «- Correct!
Account Title Debits Credits
Retained earnings
Common stock
Equipment
Accumulated depreciation
Salaries payable
45,800
17,700
Requirement 8:
Requirement 9:
Cash
Post-Closing Trial Balance
KARLIN COMPANY
Accounts receivable
Closing entries at December 31, 2016
Service revenue
Income summary
General Journal
KARLIN COMPANY
Income summary
Retained earnings
Income summary
Salaries expense
Depreciation expense
Debits Credits
30,000
15,000
20,000
(g) Cash dividends paid
(f) Purchased equipment
(e) Paid miscellaneous expenses
Amount for salaries payable
Year-end accrued salaries
Depreciation on equipment
(d) Salaries paid
(c) Shares issued for cash
100,000$
30,000$
27,300$
Additional information:
(a) Sales of services
Given Data P02-06:
Account Title
Equipment
Accounts receivable
Cash
(b) A/R collected
Sales of services on credit
Common stock
Retained earnings
Salaries payable
Accumulated depreciation
Student Name:
Class:
Date Account Debit Credit
(a) 1,000
1,000 «- Correct!
Account Title Debits Credits
Accumulated depreciation-equipment
Accounts payable
Salaries payable
Unearned rent revenue
Prepaid insurance
Buildings
Accumulated depreciation-buildings
Equipment
Accounts receivable
Depreciation expense
Insurance expense
Utility expense
Maintenance expense
8,000
200,000
56,450
90,000
3,000
6,300
Retained earnings
Sales revenue
Interest revenue
Rent revenue
Common stock
Cash
Depreciation expense
Accumulated depreciation-buildings
Instructor
Problem 02-09
McGraw-Hill/Irwin
Adjusted Trial Balance
BAGLEY CONSULTING COMPANY
General Journal
BAGLEY CONSULTING COMPANY
Requirement 2:
Requirement 3:
Prepaid insurance
Salaries payable
Rent revenue
Unearned rent revenue
Depreciation expense
Accumulated depreciation-equipment
Insurance expense
Student Name:
Class:
Instructor
Problem 02-09
McGraw-Hill/Irwin
Account Debit Credit
90,000
3,000
Account Title Debits Credits
Unearned rent revenue
Retained earnings
Salaries payable
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Accounts payable
8,000
9,000
1,500
Cash
Accounts receivable
Prepaid insurance
Closing entries at December 31, 2016
Sales revenue
Interest revenue
Post-Closing Trial Balance
BAGLEY CONSULTING COMPANY
General Journal
BAGLEY CONSULTING COMPANY
Requirement 4:
Requirement 5:
Income summary
Retained earnings
Depreciation expense
Insurance expense
Utility expense
Maintenance expense
Rent revenue
Income summary
Salaries expense
Account Title Debits Credits
8,000
9,000
3,000
200,000
Accrued salaries at year-end
Unearned rent revenue at year-end
Annual equipment depreciation as a
percentage of original cost
Prepaid insurance expired during the year
50 years
–$
Additional information:
Estimated useful life of buildings
Salvage value of buildings
Cash
Accounts receivable
Prepaid insurance
Land
Given Data P02-09:
Rent revenue
Salaries expense
Depreciation expense
Insurance expense
Utility expense
Maintenance expense
Unearned rent revenue
Common stock
Retained earnings
Sales revenue
Interest revenue
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Salaries payable
Buildings
Student Name:
Class:
Cost of goods sold
Interest expense
Salaries and wages expenses
Rent expense
Supplies expense
Utility expense
Depreciation expense
Net Income
Unadjusted Adjusted
Account title Trial Balance Adjusting Entries Trial Balance Income Statement Balance Sheet
Debt Credit Debit Credit Debit Credit Debit Credit Debit Credit
23,300 23,300 23,300
32,500 32,500 32,500
– 500 500 500
3,000 1,500 4,500 4,500
30,000 30,000 30,000
– 1,000 1,000 1,000
80,000 80,000 80,000
16,050 16,050 16,050
180,000 180,000 180,000
Accounts receivable
Supplies
Salaries and wages payable
Note payable
Interest payable
Common stock
Retained earnings
Sales revenue
McGraw-Hill/Irwin
Instructor
December 31, 2016
Worksheet
EXCALIBUR CORPORATION
Problem 02-13
Cash
Prepaid rent
Inventory
Office equipment
Accumulated depreciation – office equip.
Accounts payable
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-13
Issue of Common stock
Net income for 2016
Less: Dividends
180,000$
95,000
85,000
Total
Share-
Common Retained holders’
Stock Earnings Equity
80,000$ 22,050$ 102,050$
Balance at January 1, 2016
For the Year Ended December 31, 2016
Statement of Shareholders’ Equity
EXCALIBUR CORPORATION
Sales revenue
Cost of goods sold
Gross profit
For the Year Ended December 31, 2016
Income Statement
EXCALIBUR CORPORATION
Supplies
Utility
Depreciation
Total operating expenses
Operating income
Other Expense:
Interest
Salaries and wages
Rent
Operating expenses:
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-13
Retained earnings
Total shareholders’ equity
Total current liabilities
Shareholders’ equity:
Common stock
Interest payable
Salaries and wages payable
Note payable
Correct!
Liabilities and Shareholders’ Equity
26,100$
At December 31, 2016
Balance Sheet
EXCALIBUR CORPORATION
Current liabilities:
Accounts payable
Total current assets
Office equipment
Less: Accumulated depreciation
Current assets:
Cash
Accounts receivable
Supplies
Inventory
Prepaid rent
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 02-13
Account Debit Credit
180,000
180,000 «- Correct!
Sales revenue
General Journal
EXCALIBUR CORPORATION
Income summary
Closing entries at December 31, 2016
Income summary
Retained earnings
Rent expense
Supplies expense
Utility expense
Depreciation expense
Income summary
Cost of goods sold
Interest expense
Salaries and wages expense
Account Title Debits Credits
Office equipment
Accumulated depreciation – office equipment
Accounts payable
Supplies
Prepaid rent
Inventory
23,300
32,500
3,000
30,000
80,000
16,050
180,000
Cash dividends paid during the year
Prepaid rent, year-end
4,500$
30,000$
10 years
10%
500$
Accrued salaries and wages, year-end
Cash borrowed, 9/1
Principal due in
Annual interest rate
Supplies on hand at year-end
Common stock
Retained earnings
Sales revenue
Salaries and wages payable
Note payable
Cash
Accounts receivable
December 31, 2016
Unadjusted Trial Balance
EXCALIBUR CORPORATION
Given Data P02-13:
Salvage value of equipment
Useful life of office equipment purchased in 2014
Salaries and wages expense
Rent expense
Supplies expense
Utility expense
Cost of goods sold
Interest expense