Quiz
Q2–40
a
Q2–41
d
Q2–42
d
Q2–43
b
Q2–44
c
Q2-45
b
Q2-46
a
Q2-47
d
Q2-48
a
Q2-49
c
Q2–50
d
Q2–51
a
Q2–52
a
Q2–53
d
Q2–54
a
Q2-55
d
Q2-56
d
Q2-57
d
Q2-58
c
Q2–59
b
($51,000 + $30,000 + $22,000) = $103,000
Problems
(15-30 min.) P 2-60A
Req. 1
Dear Vicki,
This trial balance lists the accounts of the company, along with their
balances at December 31, 2016. The trial balance provides the data for
computing total assets, total liabilities, and net income or net loss.
Amusement Specialties reports:
a. Total assets = $393,500 ($14,000 + $40,000 + $4,500 + $96,000
+ $239,000)
(45-60 min.) P 2-61A
Req. 1
Analysis of Transactions
ASSETS
= LIABILITIES + STOCKHOLDERS’
EQUITY
Cash
Accounts
+ Receivable
+ Supplies
+
Equipment
Accounts
= Payable
Common
+ Stock
Retained
+ Earnings
Type of Stockholders’
Equity Transaction
Bal.
2,200
3,600
12,000
7,700
6,200
3,900
a)
3,800
3,800
Issued stock
b)
6,000
6,000
Service revenue
c)
(4,300)
(4,300)
d)
500
500
e)
2,000
(2,000)
f)
4,000
4,000
Service revenue
g)
(1,300)
(1,300)
Rent expense
(700)
(700)
Advertising expense
Dividends
(continued) P 2-61A
Req. 2
Rodriguez Computing, Inc.
Income Statement
Month Ended October 31, 2016
Revenues:
Service revenue ($6,000 + $4,000) …………..
$10,000
Expenses:
Rent expense …………………………………………
$1,300
Advertising expense ………………………………
Total expenses ………………………………………
Net income …………………………………………………….
Req. 3
Rodriguez Computing, Inc.
Statement of Retained Earnings
Month Ended October 31, 2016
Retained earnings, October 1, 2016 ………………………….
$ 3,900
Add: Net income ………………………………………………………
8,000
Less: Dividends declared …………………………………………
Retained earnings, October 31, 2016 ………………………..
$ 9,100
Req. 4
Rodriguez Computing, Inc.
Balance Sheet
October 31, 2016
ASSETS
LIABILITIES
Cash …………………………….
$ 4,900
Accounts payable …………….
$ 3,900
Accounts receivable ……..
5,600
STOCKHOLDERS’
Supplies ……………………….
500
EQUITY
Equipment ……………………
12,000
Common stock …………………
10,000
Retained earnings …………….
Total liabilities and
(30-40 min.) P 2-62A
Req. 1
Journal
ACCOUNT TITLES
DEBIT
CREDIT
a.
Cash ………………………………………………..
3,800
Common Stock …………………………
3,800
b.
Cash ………………………………………………..
6,000
Service Revenue……………………….
6,000
c.
Accounts Payable …………………………….
4,300
Cash ………………………………………..
4,300
d.
Supplies …………………………………………..
500
Accounts Payable …………………….
500
e.
Cash ………………………………………………..
2,000
Accounts Receivable ………………..
2,000
f.
Accounts Receivable ………………………..
4,000
Service Revenue……………………….
4,000
Rent Expense …………………………………..
Advertising Expense …………………………
700
Cash ………………………………………..
2,000
h.
Dividends …………………………………………
2,800
Cash ………………………………………..
2,800
(continued) P 2-62A
Reqs. 2 and 3
Cash
Accounts
Receivable
Supplies
Equipment
2,200
4,300
3,600
2,000
500
12,000
2,000
6,000
2,800
5,600
500
12,000
2,000
4,900
Accounts
Payable
Common Stock
Retained
Earnings
Dividends
4,300
7,700
6,200
3,900
2,800
500
3,800
3,900
10,000
3,900
2,800
Service
Revenue
Rent Expense
Advertising
Expense
1,300
1,300
The balances of all the accounts Cash through Common Stock agree with
the ending balances obtained in Problem 2-61A.
(50-60 min.) P 2-63A
Req. 1
Journal
DATE
ACCOUNT TITLES
DEBIT
CREDIT
May
2
Cash …………………………………………….
65,000
Common Stock ……………………..
65,000
3
Supplies ………………………………………..
600
Equipment ……………………………………
11,700
Accounts Payable ………………….
12,300
4
Cash …………………………………………….
Service Revenue ……………………
5,600
7
Land …………………………………………….
37,000
Cash ……………………………………..
37,000
11
Accounts Receivable ……………………..
Service Revenue ……………………
2,900
16
Accounts Payable ………………………….
11,700
Cash ……………………………………..
11,700
17
Advertising Expense ………………………
610
Cash ……………………………………..
610
18
Cash ……………………………………………..
800
Accounts Receivable ……………..
800
22
Utilities Expenses …………………………
440
29
Cash …………………………………………….
2,500
Service Revenue ……………………
2,500
31
Salary Expense ……………………………..
Cash ……………………………………..
2,400
31
Dividends………………………………………
2,000
Cash ……………………………………..
2,000
Req. 2
Cash
Accounts Receivable
May 2
65,000
May 7
37,000
May 11
2,900
May 18
800
4
5,600
16
11,700
Bal.
2,100
800
17
2,500
22
31
2,400
2,000
May 3
600
Bal.
19,750
Bal.
600
May 3
11,700
May 7
37,000
Bal.
11,700
Bal.
Accounts Payable
Common Stock
May 16
11,700
May 3
12,300
May 2
65,000
Bal.
600
Bal.
65,000
Dividends
Service Revenue
May 31
2,000
May 4
5,600
Bal.
2,000
11
2,900
29
2,500
Salary Expense
Bal.
11,000
May 31
2,400
Bal.
2,400
May 17
Bal.
May 22
Bal.
(continued) P 2-63A
Req. 3
Martinson Services, Inc.
Trial Balance
May 31, 20XX
ACCOUNT
DEBIT
CREDIT
Cash ……………………………………..
$19,750
Accounts receivable ………………
2,100
Supplies………………………………..
600
Land ……………………………………..
37,000
Equipment …………………………….
11,700
Accounts payable ………………….
$ 600
Common stock ………………………
Dividends ……………………………..
Service revenue …………………….
Salary expense ……………………..
Advertising expense ………………
Utilities expense ……………………
440
Total ……………………………………..
Req. 4
Total resources (assets) = $71,150 ($19,750 + $2,100 + $600 +
$37,000 + $11,700)
Amount owed (total liabilities) = $600
(40-50 min.) P 2-64A
Req. 1
Cash
Accounts Receivable
(a)
44,000
(c)
49,000
(g)
13,300
(j)
1,200
(b)
63,000
(e)
6,000
Bal.
12,100
(h)
(j)
1,200
(k)
Supplies
Music Equipment
(d)
230
(c)
49,000
Bal.
230
Bal.
49,000
Building
Accounts Payable
(a)
(h)
(d)
Bal.
(i)
Bal.
930
Note Payable
(b)
63,000
Common Stock
Bal.
63,000
(a)
150,000
Bal.
150,000
(g)
(e)
Bal.
Rent Expense
Advertising Expense
(k)
1,100
(k)
700
Bal.
1,100
Bal.
700
(i)
Bal.
(continued) P 2-64A
Req. 2
Stein Music Services Corporation
Trial Balance
April 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash …………………………………….
$ 55,010
Accounts receivable ……………..
12,100
Supplies……………………………….
230
Building ……………………………….
106,000
Music equipment ………………….
49,000
Accounts payable …………………
$ 930
Note payable… ……………………..
63,000
Common stock ……………………..
Service revenue ……………………
Salary expense …………………….
Rent expense… …………………….
Utilities expense …………………..
Advertising expense ……………..
700
Total …………………………………….
$230,940
$230,940
(15-30 min.) P 2-65B
Req. 1
Dear Amy,
This trial balance lists the accounts of the company, along with their
balances at December 31, 2016. The trial balance provides the data for
computing total assets, total liabilities, and net income or net loss.
Larrabee Design reports:
a. Total assets = $392,500 ($13,000 + $47,000 + $5,500 + $103,000
+ $224,000)
(45-60 min.) P 2-66B
Req. 1
Analysis of Transactions
ASSETS
= LIABILITIES + STOCKHOLDERS’ EQUITY
Cash +
Accounts
Receivable +
Supplies +
Equipment =
Accounts
Payable +
Common
Stock +
Retained
Earnings
Type of Stockholders’
Equity Transaction
Bal.
2,100
3,400
12,400
7,500
5,600
4,800
a)
3,900
3,900
Issued stock
6,000
6,000
Service revenue
c)
d)
900
900
e)
1,100
(1,100)
f)
4,500
4,500
Service revenue
g)
(1,700)
(1,700)
Rent expense
(1,300)
Advertising expense
h)
(2,300)
Dividends
Bal.
3,000
6,800
900
12,400
3,600
9,500
(continued) P 2-66B
Req. 2
Willis Computing, Inc.
Income Statement
Month Ended November 30, 2016
Revenues:
Service revenue ($6,000 + $4,500) ………..
$10,500
Expenses:
Rent expense ………………………………
Advertising expense ……………………
Total expenses …………………………...
3,000
Net income …………………………………………
Req. 3
Willis Computing, Inc.
Statement of Retained Earnings
For the Month Ended November 30, 2016
Retained earnings, October 31, 2016………………….
$ 4,800
Add: Net income ………………………………………………
7,500
Subtotal
12,300
Less: Dividends declared ………………………………….
Retained earnings, November 30, 2016 ………………
(continued) P 2-66B
Req. 4
Willis Computing, Inc.
Balance Sheet
November 30, 2016
ASSETS
LIABILITIES
Cash …………………………
$ 3,000
Accounts payable ……………..
$ 3,600
Accounts receivable …..
6,800
STOCKHOLDERS’
Supplies ……………………
Equipment …………………
Common stock ………………….
Retained earnings ……………..
Total liabilities and
Total assets ……………….
stockholders’ equity …..
Req. 1
Journal
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
a.
Cash ……………………………………………….
3,900
Common Stock ………………………..
3,900
b.
Cash ……………………………………………….
6,000
Service Revenue ……………………..
6,000
c.
Accounts Payable …………………………..
Cash ……………………………………….
d.
Supplies …………………………………………
900
Accounts Payable ……………………
900
e.
Cash ……………………………………………….
1,100
Accounts Receivable… …………….
1,100
f.
Accounts Receivable ……………………….
4,500
Service Revenue ……………………..
4,500
g.
Rent Expense ………………………………….
1,700
Advertising Expense ………………………..
1,300
Cash ……………………………………….
3,000
h.
Dividends ………………………………………..
Cash ……………………………………….
(continued) P 2-67B
Reqs. 2 and 3
Cash
Accounts
Receivable
Supplies
Equipment
2,100
4,800
3,400
1,100
900
12,400
3,900
3,000
4,500
6,000
2,300
1,100
3,000
Accounts
Payable
Common Stock
Retained
Earnings
Dividends
4,800
7,500
5,600
4,800
2,300
900
3,900
3,600
9,500
4,800
2,300
Service
1,700
1,300
1,700
1,300
Advertising
The balances of all the accounts Cash through Common Stock agree with
the ending balances obtained in Problem 2-66B.
(50-60 min.) P 2-68B
Req. 1
Journal
DATE
ACCOUNT TITLES
DEBIT
CREDIT
July
2
Cash …………………………………………………
62,000
Common Stock …………………………..
62,000
3
Supplies …………………………..……………….
Equipment ………………………………………..
12,100
Accounts Payable ………………………
12,900
4
Cash …………………………………………………
Service Revenue ………………………..
7
Land …………………………………………………
39,000
Cash ………………………………………….
39,000
11
Accounts Receivable …………………………
2,900
Service Revenue ………………………..
2,900
16
Accounts Payable ……………………………..
12,100
Cash ………………………………………….
12,100
17
Utilities Expense ……………………………….
590
Cash ………………………………………….
590
18
Cash …………………………………………………
800
Accounts Receivable ………………….
800
22
Utilities Expense ………………………………..
Cash …………………………………………..
29
Cash ………………………………………………….
Service Revenue …………………………
30
Salary Expense ………………………………….
Cash …………………………………………..
30
Dividends ………………………………………….
2,000
Cash …………………………………………..
(continued) P 2-68B
Req. 2
Cash
Accounts Receivable
July 2
62,000
July 7
39,000
July 11
2,900
July 18
800
4
5,600
16
12,100
Bal.
2,100
18
800
17
590
29
2,300
22
420
30
July 3
Equipment
Land
July 3
12,100
July 7
39,000
Bal.
12,100
Bal.
39,000
July 16
12,100
July 3
12,900
July 2
Bal.
Bal.
Dividends
Service Revenue
July 30
2,000
July 4
5,600
Bal.
2,000
11
2,900
29
2,300
Bal.
10,800
Salary Expense
Utilities Expense
July 30
2,500
July 17
Bal.
2,500
Bal.
1,010
(continued) P 2-68B
Req. 3
Gagne Services, Inc.
Trial Balance
July 31, 20XX
ACCOUNT
DEBIT
CREDIT
Cash…………………………………….
$14,090
Accounts receivable ……………..
2,100
Supplies ………………………………
800
Land …………………………………….
39,000
Equipment …………………………...
12,100
Accounts payable …………………
$ 800
Common stock ……………………..
62,000
Dividends …………………………….
Service revenue ……………………
10,800
Salary expense …………………….
Utilities expense …………………..
1,010
Total …………………………………….
Req. 4
Total resources (assets) = $68,090 ($14,090 + $2,100 + $800 +
$39,000 + $12,100)
Amount owed (total liabilities) = $800