(15-25 min.) E 2-24A
Req. 1
Harper, Inc.
Trial Balance
September 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash ………………………………………
$15,000*
Accounts receivable ……………….
12,100*
Inventory ……………………………….
16,800
Supplies…………………………………
200
Land ………………………………………
50,000
Accounts payable …………………..
$14,940*
Common stock ……………………….
Sales revenue ………………………..
Insurance expense …………………
Salary expense ………………………
Utilities expense …………………….
Rent expense …………………………
900
_____
*Computations:
Cash: $14,500 + $500 = $15,000
Accounts Receivable: $12,600 − $500 = $12,100
Accounts Payable: $12,000 + $3,000 − $300 + $240 = $14,940
(10-15 min.) E 2-25A
Cash
Accounts Receivable
(a)
(b)
1,600
(d)
3,300
Bal.
(e)
850
(g)
2,300
Bal.
14,450
(c)
1,400
(a)
Bal.
1,400
Bal.
Accounts Payable
Common Stock
(e)
850
(c)
1,400
(a)
31,500
Bal.
550
Bal.
31,500
(g)
Bal.
2,300
Bal.
Salary Expense
Rent Expense
(d)
3,300
(b)
1,600
Bal.
3,300
Bal.
1,600
(15-20 min.) E 2-26A
Req. 1
Leigh Hampton, Attorney
Trial Balance
January 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash ……………………………………..
$14,450
Accounts receivable ………………
10,100
Office supplies ………………………
1,400
Office furniture ………………………
9,000
Accounts payable ………………….
$ 550
Common stock ………………………
Dividends ……………………………..
2,300
Service revenue …………………….
10,100
Salary expense ……………………..
3,300
Rent expense ………………………..
1,600
Total ……………………………………..
$42,150
$42,150
Req. 2
The business performed well during January. The result of operations
was net income of $5,200, as shown by the income statement
accounts:
Service revenue ………………………….. $ 10,100
Salary expense ………………. $3,300
(15-20 min.) E 2-27A
Req. 1
(amounts in millions)
Cash (X) + Other assets (21) = Accounts payable (7) + Other
liabilities (6) + S/E (5) + Revenues (37)
Req. 2
(amounts in millions)
New Towne Company
Trial Balance
September 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………..
$ 4
Other assets ………………………….
21
Accounts payable ………………….
$ 7
Other liabilities ………………………
Revenues ……………………………..
37
Expenses ………………………………
Net income is $7 ($37 – $30)
(10-15 min.) E 2-28B
TO: Home Office
FROM: Gary Breen, Store Manager
During the first week, I used the store’s beginning cash to purchase
equipment and supplies. I signed a note payable to buy land and a
building. After all these transactions, the store’s balance sheet appears
as follows:
Summertime Fashions
Orlando Store
Balance Sheet
Date
ASSETS
LIABILITIES
Cash
$ 60,300
Note payable*
$279,000
Supplies
5,700
Land
79,000
STOCKHOLDERS’ EQUITY
Building
Equipment
Total assets
_____
*($79,000 + $200,000) = $279,000
(10-15 min.) E 2-29B
a. No effect on total assets. Increase in notes receivable offsets the
decrease in land.
b. Increased assets. (Cash)
c. No effect on total assets. Increase in equipment offsets the
decrease in cash.
(10-20 min.) E 2-30B
Req. 1
Analysis of Transactions
ASSETS =
LIABILITIES + STOCKHOLDERS’
EQUITY
May 6
Issued stock
12
15
Not a transaction of the business.
Accounts
Medical
Accounts
Note
Common
Retained
Type of Stockholders’
15–31
4,500
4,500
9,000
Service revenue
15–31
(3,200)
(3,200)
Salary expense
(1,100)
(1,100)
Rent expense
(1,200)
(1,200)
Utilities expense
31
300
(300)
31
Bal.
4,500
3,500
(continued) E2–30B
Req. 2
a. $183,900
b. $4,500
c. $32,400 ($400 + $32,000)
(10-15 min.) E 2-31B
Req. 1
Journal
DATE
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
May
6
Cash………………………………………………
148,000
Common Stock ………………………
148,000
Issued stock to owner.
9
Land ……………………………………………..
Cash ………………………………………
12
Medical Supplies …………………………...
1,700
Accounts Payable …………………..
1,700
Purchased supplies on account.
15
Not a transaction of the business.
15–31
Cash ………………………………………………
4,500
Accounts Receivable ………………………
4,500
Service Revenue …………………….
9,000
Performed service for cash and on account.
15–31
Salary Expense ………………………………
3,200
Rent Expense …………………………………
1,100
Utilities Expense …………………………….
1,200
Cash ………………………………………
5,500
Paid expenses.
31
Cash ……………………………………………..
Medical Supplies …………………….
Sold supplies.
31
Cash ……………………………………………..
Note Payable ………………………….
Borrowed money.
31
Accounts Payable …………………………..
1,300
Cash ………………………………………
1,300
(20-30 min.) E 2-32B
Req. 1
Cash
Accounts Receivable
May 6
148,000
May 9
59,000
May 15–31
4,500
4,500
Bal.
4,500
119,000
Medical Supplies
Land
May 12
1,700
May 31
300
May 9
59,000
Bal.
1,400
Bal.
59,000
May 31
1,300
May 12
May 31
32,000
Bal.
Bal.
32,000
Common Stock
Service Revenue
May 6
148,000
May 15–31
9,000
Bal.
148,000
Bal.
9,000
Salary Expense
May 15–31
3,200
May 15–31
1,100
Bal.
Bal.
1,100
Rent Expense
Utilities Expense
May 15–31
1,200
Bal.
1,200
(continued) E 2-32B
Req. 2
Dr. Sue Smith, P.C.
Trial Balance
May 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash ……………………………………..
$119,000
Accounts receivable ………………
4,500
Medical supplies ……………………
1,400
Land ……………………………………..
59,000
Accounts payable ………………….
$ 400
Note payable …………………………
32,000
Common stock ………………………
Service revenue …………………….
Salary expense ……………………..
Utilities expense ……………………
Rent expense ………………………..
Total ……………………………………..
Req. 3
Total assets ($119,000 + $4,500 + $1,400 + $59,000) ………….. $183,900
Total liabilities ($400 + $32,000) ………………………………………. (32,400)
(10-15 min.) E 2-33B
Req. 1
Journal
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
1.
Cash ……………………………………………………….
8,600
Common Stock …………………………..……
8,600
Issued common stock.
2.
Cash ……………………………………………………….
7,500
Note Payable ……………………………………
7,500
Borrowed money; signed note payable.
3.
Supplies ………………………………………………….
Accounts Payable …………………………….
Purchased supplies on account.
4.
Land …………………………..…………………………..
Cash ………………………………………………..
7,000
Note Payable ……………………………………
Purchased land by paying cash and signing
a note payable.
5.
Cash. ………………………………………………………
70
Supplies ………………………………………….
70
Sold supplies for cash.
6.
Accounts Payable …………………………………….
230
Cash ………………………………………………..
230
Paid cash on account.
7.
Equipment ……………………………………………….
3,500
Cash ………………………………………………..
3,500
Paid cash for equipment.
(10-20 min.) E 2-34B
Req. 1
Deluxe Deck Service, Inc.
Trial Balance
April 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash ………………………………………..
$18,500
Accounts receivable …………………
5,800
Equipment ……………………………….
30,000
Accounts payable …………………….
$ 4,900
Note payable …………………………...
22,500
Common stock …………………………
16,800
Retained earnings …………………….
Dividends …………………………………
3,900
Service revenue ……………………….
Salary expense …………………………
8,500
1,400
Delivery expense ……………………..
Total ………………………………………..
$68,850
$68,850
Req. 2
Deluxe Deck Service, Inc.
Income Statement
For the Month Ended April 30, 2016
Service revenue ……………………………….
$21,200
Salary expense ……………………….
$8,500
Utilities expense ……………………..
1,400
Delivery expense …………………….
Total expenses …………………………………
$10,550
Req. 1
Carver, Inc.
Trial Balance
September 30, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………
$ 14,300*
Accounts receivable …………….
12,400*
Inventory …………………………....
17,200
Supplies ……………………………..
800
Land ……………………………………
52,000
Accounts payable ………………..
$ 14,550*
Common stock …………………….
47,900*
Sales revenue ……………………..
41,000
Insurance expense ………………
Salary expense ……………………
Utilities expense ………………….
Rent expense ………………………
500
Total ……………………………………
$103,450
_____
*Computations:
Cash: $14,100 + $200 = $14,300
Accounts Receivable: $12,600 − $200 = $12,400
Accounts Payable: $12,100 + $2,000 − $200 + $650 = $14,550
(10-15 min.) E 2-36B
Cash
Accounts Receivable
(a)
23,000
(b)
1,000
(f)
10,900
(d)
2,500
Bal.
10,900
(e)
150
(g)
Bal.
17,350
(c)
(a)
Bal.
700
Bal.
Accounts Payable
Common Stock
(e)
150
(c)
700
(a)
32,400
Bal.
550
Bal.
32,400
(g)
Bal.
Bal.
Salary Expense
Rent Expense
(d)
2,500
(b)
1,000
Bal.
2,500
Bal.
1,000
(15-20 min.) E 2-37B
Req. 1
Eric Newton, Attorney
Trial Balance
December 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………..
$ 17,350
Accounts receivable ………………
10,900
Office supplies ………………………
700
Office furniture ………………………
9,400
Accounts payable ………………….
$ 550
Dividends ……………………………..
Service revenue …………………….
Salary expense ……………………..
2,500
Rent expense ………………………..
1,000
Total ……………………………………..
$43,850
$43,850
Req. 2
The business performed well during December. The result of
operations was net income of $7,400, as shown by the income
statement accounts:
Service revenue ……………………………… $10,900
Salary expense …………………….. $2,500
(15-20 min.) E 2-38B
Req. 1
(amounts in millions)
Cash (X) + Other assets (20) = Accounts payable (7) + Other
liabilities (3) + S/E (6) + Revenues (38)
Req. 2
(amounts in millions)
Wolf Products Company
Trial Balance
May 31, 2016
ACCOUNT
DEBIT
CREDIT
Cash ……………………………………..
$ 9
Other assets ………………………….
20
Accounts payable ………………….
$ 7
Other liabilities ………………………
3
Revenues ………………………………
38
Expenses ………………………………
Net income is $13 ($38 – $25)
Serial Exercise
(20-30 min.) E 2-39
Req. 1
Journal
DATE
ACCOUNT TITLES AND EXPLANATION
DEBIT
CREDIT
Aug.
2
Cash …………………………………………………
10,000
Common Stock ………………………….
10,000
2
Rent Expense ……………………………………
600
Cash …………………………………………
600
3
Equipment ………………………………………..
2,700
Cash …………………………………………
4
Furniture …………………………..………………
Accounts Payable ……………………..
5
Supplies …………………………..……………….
800
Accounts Payable ……………………..
800
9
Cash …………………………………………………
1,400
Service Revenue ……………………….
1,400
Utilities Expense ……………………………….
300
Cash …………………………………………
300
Accounts Receivable …………………………
1,900
Service Revenue ……………………….
(continued) E 2-39
Req. 2
Cash
Accounts Receivable
Aug. 2
10,000
Aug. 2
600
Aug. 18
1,900
9
1,400
3
2,700
Bal.
1,900
300
Bal.
Supplies
Equipment
Aug. 5
800
Aug. 3
2,700
Bal.
800
Bal.
2,700
Furniture
Accounts Payable
Aug. 4
4,500
Aug. 4
4,500
Bal.
4,500
5
800
Bal.
5,300
Common Stock
Service Revenue
Aug. 2
10,000
Aug. 9
1,400
Bal.
10,000
18
1,900
Bal.
3,300
Rent Expense
Utilities Expense
Aug. 2
600
Aug. 12
Bal.
600
Bal.
(continued) E 2-39
Req. 3
Barbara Miracle, Certified Public Accountant, P.C.
Trial Balance
August 18, 2016
ACCOUNT
DEBIT
CREDIT
Cash……………………………………..
$ 7,800
Accounts receivable ………………
1,900
Equipment …………………………....
2,700
Furniture ……………………………….
4,500
Accounts payable ………………….
$ 5,300
Common stock ………………………
10,000
Dividends ……………………………..
—
Service revenue …………………….
3,300
Rent expense ………………………..
600
Utilities expense ……………………
300
Salary expense ……………………..
Total ……………………………………..