Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
101
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
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
102
Problem 2-5A (90 minutes)
Part 1
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2018
Assets Liabilities
Cash …………………………. $ 64,300 Accounts payable ……………. $ 3,500
NETTLE DISTRIBUTION
Balance Sheet
December 31, 2019
Assets Liabilities
Cash …………………………. $ 15,640 Accounts payable …………….. $ 33,500
Accounts receivable …. 19,100 Note payable …………………….. 40,000
Part 2
Computation of 2019 net income:
Owner investment ………………………………………………………………..
35,000
Part 3
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
103
Problem 2-6A (35 minutes)
Part 1
MIN ENGINEERING
Trial Balance
May 31
Debit Credit
Cash ……………………………………………………. $37,600
Office supplies …………………………………….. 890
Part 2
Cash
(a)
18,000
(b)
36,000
Balance
37,600
Transactions a through g coded in T-account:
(a) Yi Min invested $18,000 cash in the business in exchange for stock.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
104
Problem 2-7A (40 minutes)
Part 1
METRIX
Income Statement
For Month Ended March 31
Revenues
Consulting revenue …………………………. $12,000
Rental revenue ………………………………… 500
Part 2
METRIX
Statement of Retained Earnings
For Month Ended March 31
Retained earnings, March 1 ………………….. $ 0
Retained earnings, March 31 ………………… $ 4,900
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
105
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
106
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.
12 Accounts Receivable ………………………… 106 15,400
Services Revenue ………………………. 401 15,400
Billed client for completed work.
13 Accounts Payable …………………………….. 201 10,400
Cash ………………………………………….. 101 10,400
Paid balance due on account.
19 Prepaid Insurance …………………………….. 128 1,900
Cash ………………………………………….. 101 1,900
Paid premium for insurance.
107
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
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
9,800
Office Supplies
Acct. No. 124
Date
Explanation
PR
Debit
Credit
Balance
Sept.
4
G1
2,400
2,400
29
G1
550
2,950
Date
Explanation
PR
Sept.
19
G1
1,900
Date
Explanation
PR
Date
Explanation
PR
Sept.
1
G1
15,000
4
G1
8,000
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
108
Problem 2-1B (Continued)
Accounts Payable
Acct. No. 201
Date
Explanation
PR
Debit
Credit
Balance
Sept.
4
G1
10,400
10,400
13
G1
10,400
0
29
G1
550
550
Date
Explanation
PR
Debit
Balance
Sept.
1
G1
53,000
Acct. No. 319
Date
Explanation
PR
Balance
Sept.
28
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
860
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
109
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
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
110
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.
e. Cash……………………………………………………. 101 4,600
Fees Earned …………………………………. 402 4,600
Collected cash for completed work.
f. Computer Equipment …………………………... 164 4,500
Cash …………………………………………….. 101 800
Notes Payable ………………………………. 250 3,700
Purchased equipment with cash and note
payable.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
111
Problem 2-2B (Part 1 Continued)
i. Accounts Receivable …………………………... 106 10,200
Fees Earned …………………………………. 402 10,200
Billed client for completed work.
l. Wages Expense …………………………………… 601 1,800
Cash …………………………………………….. 101 1,800
Paid assistant’s wages.
m. Accounts Payable ……………………………….. 201 950
Cash …………………………………………….. 101 950
Paid amount due on account.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
112
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)
Notes Payable No. 250
Date
PR
Debit
Credit
Balance
(k)
5,100
29,400
(b)
17,000
17,000
(l)
1,800
27,600
3,700
20,700
(n)
26,042
(o)
6,230
Common Stock No. 307
Date
PR
Debit
Credit
Balance
(q)
17,262
(a)
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
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
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
113
Problem 2-2B (Concluded)
Part 3
SOFTWORKS
Trial Balance
April 30
Debit Credit
Cash …………………………………………………….. $ 17,262
Accounts receivable ………………………………. 9,350
Prepaid insurance ………………………………….. 5,000
Common stock ………………………………………. 100,750
Dividends ………………………………………………. 6,230
Fees earned …………………………………………… 19,050
Wages expense ……………………………………… 3,600
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
114
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.
8 Cash…………………………..……………………….. 101 3,400
Services Revenue …………………………. 403 3,400
Received cash for services.
12 Accounts Receivable …………………………... 106 10,200
Services Revenue …………………………. 403 10,200
Billed client for completed work.
13 Accounts Payable ……………………………….. 201 3,100
24 Accounts Receivable …………………………... 106 1,750
Services Revenue …………………………. 403 1,750
Billed client for completed work.
28 Dividends ……………………………………………. 319 5,300
Cash …………………………………………….. 101 5,300
Paid cash dividends.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
115
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
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
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
116
Problem 2-3B (Continued)
Common Stock
Acct. No. 307
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
G1
45,000
45,000
Acct. No. 319
Date
Explanation
PR
Debit
Credit
Balance
Nov.
G1
Acct. No. 403
Date
Explanation
PR
Debit
Credit
Balance
Nov.
8
G1
G1
10,200
13,600
G1
15,350
Acct. No. 690
Date
Explanation
PR
Debit
Credit
Balance
Nov.
G1
Part 3
ZUCKER MANAGEMENT SERVICES
Trial Balance
November 30
Debit Credit
Cash ………………………………………………………… $23,069
Accounts receivable ………………………………… 6,750
Office supplies …………………………………………. 849
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
117
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.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
118
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.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 2
119
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)
20,000
Accounts Payable No. 201
Date
PR
Debit
Credit
Balance
(h)
21,660
(c)
500
500
(e)
1,700
(j)
17,760
(i)
500
1,200
(l)
16,760
(m)
Notes Payable No. 250
(n)
17,860
Date
PR
Debit
Credit
Balance
(b)
32,500
32,500
Accounts Receivable No. 106
Date
PR
Debit
Credit
Balance
(k)
4,200
4,200
Common Stock No. 307
(m)
2,200
2,000
Date
PR
Debit
Credit
Balance
(a)
46,000
46,000
Office Supplies No. 108
(d)
8,000
54,000
Date
PR
Debit
Credit
Balance
(c)
500
500
Dividends No. 319
Office Equipment No. 163
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(n)
1,100
1,100
(e)
1,200
Fees Earned No. 402
Date
PR
Debit
Credit
Balance
(g)
3,200
(k)
7,400
Automobiles No. 164
Salaries Expense No. 601
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(l)
1,000
2,000
Building No. 170
Date
PR
Debit
Credit
Balance
Utilities Expense No. 602
(b)
40,000
40,000
Date
PR
Debit
Credit
Balance
(h)
540
540