Problem 2-4A (Concluded)
Part 3
HV CONSULTING
Trial Balance
September 30
Debit Credit
Cash …………………………………………………… $ 12,665
Accounts receivable ……………………………. 2,250
Office supplies …………………………………….. 2,000
Office equipment …………………………………. 50,900
Automobiles ………………………………………… 16,500
Building ………………………………………………. 160,000
Problem 2-5A (90 minutes)
Part 1
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2018
Assets Liabilities
Cash …………………………. $ 64,300 Accounts payable ……………. $ 3,500
Accounts receivable …. 26,240
Office supplies ………….. 3,160
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2019
Assets Liabilities
Cash …………………………. $ 15,640 Accounts payable …………….. $ 33,500
Accounts receivable …. 19,100 Note payable …………………….. 40,000
Office supplies ………….. 1,960 Total liabilities ………………….. 73,500
Trucks ………………………. 157,000
Office equipment ………. 44,000
Building ……………………. 80,000 Equity
Land …………………………. 60,000 Total equity ………………………. 304,200
Total assets ………………. $377,700 Total liabilities and equity …. $377,700
Part 2
Computation of 2019 net income:
* Computation of 2019 equity increase:
Equity, December 31, 2018 ……………………………………………………………………………………………
$282,200
Equity, December 31, 2019 ……………………………………………………………………………………………
(304,200)
Increase in equity during 2019 ………………………………………………………………………………………
$ 22,000
Part 3
Debt Ratio = $73,500 / $377,700 = 19.5%
Problem 2-6A (35 minutes)
Part 1
MIN ENGINEERING
Trial Balance
May 31
Debit Credit
Cash ……………………………………………………. $37,600
Office supplies …………………………………….. 890
Prepaid insurance ……………………………….. 4,600
Office equipment …………………………………. 12,900
Part 2
Cash
(a)
18,000
(b)
(f)
36,000
(c)
(d)
(g)
Balance
37,600
Problem 2-7A (40 minutes)
Part 1
METRIX
Income Statement
For Month Ended March 31
Revenues
Consulting revenue …………………………. $12,000
Rental revenue ………………………………… 500
Total revenues ………………………………… $12,500
Expenses
Part 2
METRIX
Statement of Retained Earnings
For Month Ended March 31
Retained earnings, March 1 ………………….. $ 0
Add: Net income (from Income Statement) .. 6,900
Problem 2-7A (Concluded)
Part 3
METRIX
Balance Sheet
March 31
Assets Liabilities
Cash …………………………. $ 8,000 Accounts payable ……………. $ 1,300
Accounts receivable …. 3,500 Note payable …………………… 2,400
Prepaid insurance …….. 1,000 Unearned revenue …………… 300
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
PROBLEM SET B
Problem 2-1B (90 minutes)
Part 1
Sept. 1 Cash …………………………………………………. 101 38,000
Office Equipment ………………………………. 163 15,000
Common Stock…………………………... 307 53,000
Owner investment in exchange for stock.
8 Cash …………………………………………………. 101 3,280
Services Revenue ………………………. 401 3,280
Received cash for services.
12 Accounts Receivable ………………………… 106 15,400
Services Revenue ………………………. 401 15,400
Billed client for completed work.
24 Accounts Receivable ………………………… 106 2,100
Services Revenue ………………………. 401 2,100
Billed client for completed work.
28 Dividends …………………………………………. 319 5,300
Cash ………………………………………….. 101 5,300
Problem 2-1B (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Sept.
1
G1
38,000
38,000
2
G1
9,000
29,000
8
G1
3,280
32,280
13
G1
10,400
21,880
19
G1
19,980
22
G1
7,700
27,680
28
G1
5,300
22,380
30
G1
21,520
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Sept.
12
G1
15,400
15,400
22
G1
7,700
7,700
24
G1
2,100
9,800
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Sept.
4
G1
2,400
2,400
29
G1
2,950
Prepaid Insurance
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Sept.
19
G1
1,900
1,900
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Sept.
2
G1
9,000
9,000
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Sept.
1
G1
15,000
4
G1
8,000
Problem 2-1B (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Sept.
4
G1
10,400
10,400
13
G1
29
G1
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Sept.
1
G1
53,000
53,000
Dividends
Acct. No. 319
Date
Explanation
PR
Balance
Sept.
28
G1
5,300
Services Revenue
Acct. No. 401
Date
Explanation
PR
Debit
Credit
Balance
Sept.
8
G1
3,280
3,280
12
G1
15,400
18,680
24
G1
2,100
20,780
Utilities Expense
Acct. No. 690
Date
Explanation
PR
Debit
Credit
Balance
Sept.
30
G1
Problem 2-1B (Concluded)
Part 3
HUMBLE MANAGEMENT SERVICES
Trial Balance
September 30
Debit Credit
Cash ………………………………………………………… $21,520
Accounts receivable ………………………………… 9,800
Office supplies …………………………………………. 2,950
Prepaid insurance ……………………………………. 1,900
Prepaid rent …………………………………………….. 9,000
Problem 2-2B (90 minutes)
Part 1
a. Cash……………………………………………………. 101 65,000
Office Equipment …………………………………. 163 5,750
Computer Equipment …………………………... 164 30,000
Common Stock …………………………….. 307 100,750
Owner investment in exchange for stock.
d. Prepaid Insurance ……………………………….. 108 5,000
Cash …………………………………………….. 101 5,000
Purchased 24-month insurance policy.
e. Cash……………………………………………………. 101 4,600
Fees Earned …………………………………. 402 4,600
Collected cash for completed work.
Problem 2-2B (Part 1 Continued)
i. Accounts Receivable …………………………... 106 10,200
Fees Earned …………………………………. 402 10,200
Billed client for completed work.
j. Computer Rental Expense ……………………. 602 580
Accounts Payable …………………………. 201 580
Incurred computer rental expense.
m. Accounts Payable ……………………………….. 201 950
Cash …………………………………………….. 101 950
Paid amount due on account.
n. Repairs Expense …………………………..…….. 604 608
Cash …………………………………………….. 101 608
Paid for repair of equipment.
o. Dividends ……………………………………………. 319 6,230
Cash …………………………………………….. 101 6,230
Paid cash dividends.
Problem 2-2B (Continued)
Part 2
Cash No. 101
Accounts Payable No. 201
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
65,000
65,000
(h)
950
950
(b)
5,000
60,000
(j)
580
1,530
(c)
34,500
25,500
(m)
950
580
(d)
5,000
20,500
(e)
4,600
25,100
Notes Payable No. 250
24,300
Date
PR
Debit
Credit
Balance
(k)
5,100
29,400
(b)
17,000
17,000
(l)
1,800
27,600
3,700
20,700
950
26,650
(n)
608
26,042
(o)
6,230
19,812
Common Stock No. 307
(p)
1,800
18,012
Date
PR
Debit
Credit
Balance
(q)
750
17,262
(a)
100,750
100,750
Accounts Receivable No. 106
Dividends No. 319
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(g)
4,250
4,250
(o)
6,230
6,230
(i)
10,200
14,450
(k)
5,100
9,350
Fees Earned No. 402
Date
PR
Debit
Credit
Balance
Prepaid Insurance No. 108
(e)
4,600
4,600
Date
PR
Debit
Credit
Balance
(g)
4,250
8,850
(d)
5,000
5,000
(i)
10,200
19,050
Wages Expense No. 601
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
5,750
5,750
(l)
1,800
1,800
(h)
6,700
(p)
1,800
3,600
Computer Equipment No. 164
Computer Rental Expense No. 602
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
30,000
30,000
(j)
580
580
(f)
4,500
34,500
Building No. 170
Advertising Expense No. 603
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(c)
34,500
34,500
(q)
750
750
Repairs Expense No. 604
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
Problem 2-2B (Concluded)
Part 3
SOFTWORKS
Trial Balance
April 30
Debit Credit
Cash …………………………………………………….. $ 17,262
Accounts receivable ………………………………. 9,350
Prepaid insurance ………………………………….. 5,000
Office equipment……………………………………. 6,700
Computer equipment ……………………………… 34,500
Building …………………………………………………. 34,500
Land ……………………………………………………… 22,000
Problem 2-3B (90 minutes)
Part 1
Nov. 1 Cash…………………………..……………………….. 101 30,000
Office Equipment …………………………………. 163 15,000
Common Stock …………………………….. 307 45,000
Owner investment in exchange for stock.
2 Prepaid Rent ……………………………………….. 131 4,500
Cash …………………………………………….. 101 4,500
Prepaid six months’ rent.
12 Accounts Receivable …………………………... 106 10,200
Services Revenue …………………………. 403 10,200
Billed client for completed work.
13 Accounts Payable ……………………………….. 201 3,100
Cash …………………………………………….. 101 3,100
Paid balance due on account.
19 Prepaid Insurance ……………………………….. 128 1,800
Cash …………………………………………….. 101 1,800
Paid premium for 24 months of insurance.
Problem 2-3B (Continued)
Part 2
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
30,000
30,000
2
G1
4,500
25,500
8
G1
3,400
28,900
13
G1
3,100
25,800
19
G1
1,800
24,000
22
G1
5,200
29,200
28
G1
5,300
23,900
30
G1
23,069
Accounts Receivable
Acct. No. 106
Date
Explanation
PR
Debit
Credit
Balance
Nov.
12
G1
10,200
10,200
22
G1
5,200
5,000
24
G1
1,750
6,750
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Nov.
4
G1
29
G1
Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Nov.
19
G1
1,800
1,800
Prepaid Rent
Acct. No. 131
Date
Explanation
PR
Debit
Credit
Balance
Nov.
2
G1
4,500
4,500
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
15,000
15,000
4
G1
2,500
17,500
Acct. No. 201
Date
Explanation
PR
Debit
Balance
Nov.
4
G1
3,100
3,100
13
G1
3,100
Problem 2-3B (Continued)
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
45,000
45,000
Dividends
Acct. No. 319
Date
Explanation
PR
Debit
Credit
Balance
Nov.
28
G1
5,300
5,300
Acct. No. 403
Date
Explanation
PR
Debit
Credit
Balance
Nov.
8
G1
3,400
3,400
12
G1
10,200
13,600
24
G1
1,750
15,350
Acct. No. 690
Date
Explanation
PR
Debit
Credit
Balance
Nov.
30
G1
Part 3
ZUCKER MANAGEMENT SERVICES
Trial Balance
November 30
Debit Credit
Cash ………………………………………………………… $23,069
Accounts receivable ………………………………… 6,750
Office supplies …………………………………………. 849
Prepaid insurance ……………………………………. 1,800
Prepaid rent …………………………………………….. 4,500
Problem 2-4B (90 minutes)
Part 1
a. Cash …………………………………………………. 101 35,000
Office Equipment ………………………………. 163 11,000
Common Stock …………………………... 307 46,000
Owner investment in exchange for stock.
d. Automobiles ……………………………………… 164 8,000
Common Stock…………………………... 307 8,000
Owner investment in exchange for stock.
e. Office Equipment ………………………………. 163 1,200
Accounts Payable ………………………. 201 1,200
Purchased office equipment on account.
Problem 2-4B
Part 1—Concluded
i. Accounts Payable …………………………….. 201 500
Cash ………………………………………….. 101 500
Paid cash on account.
l. Salaries Expense ………………………………. 601 1,000
Cash ………………………………………….. 101 1,000
Paid assistant’s salary.
m. Cash …………………………………………………. 101 2,200
Accounts Receivable ………………….. 106 2,200
Received cash due on account.
Problem 2-4B (Continued) Part 2
Cash No. 101
Land No. 172
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(a)
35,000
35,000
(b)
7,500
7,500
(b)
15,000
20,000
(f)
1,000
19,000
Accounts Payable No. 201
3,200
22,200
Date
PR
Debit
Credit
Balance
(h)
21,660
(c)
(i)
21,160
(e)
1,200
1,700
(j)
3,400
17,760
(i)
1,200
(l)
1,000
16,760
(m)
2,200
18,960
Notes Payable No. 250
(n)
1,100
17,860
Date
PR
Debit
Credit
Balance
(b)
32,500
32,500
Accounts Receivable No. 106
Date
PR
Debit
Credit
Balance
(k)
4,200
Common Stock No. 307
Date
PR
Debit
Credit
Balance
(a)
46,000
46,000
(d)
Date
PR
Debit
Credit
Balance
(c)
Dividends No. 319
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(n)
1,100
1,100
(a)
11,000
11,000
(e)
1,200
12,200
Fees Earned No. 402
(j)
3,400
15,600
Date
PR
Debit
Credit
Balance
(g)
3,200
3,200
(k)
4,200
7,400
Automobiles No. 164
Salaries Expense No. 601
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(d)
1,000
1,000
(l)
1,000
2,000
Building No. 170
Date
PR
Debit
Credit
Balance
(b)
40,000
Date
PR
Debit
Credit
Balance
(h)