Wild and Shaw, Financial and Managerial Accounting 9e 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)
15,000
20,000
Accounts Payable No. 201
Date
PR
Debit
Credit
Balance
(h)
21,660
(c)
(e)
1,700
17,760
(i)
500
1,200
16,760
(m)
Notes Payable No. 250
1,100
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
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(n)
1,100
1,100
(e)
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
(d)
8,000
8,000
(f)
1,000
1,000
(l)
1,000
2,000
Building No. 170
Date
PR
Debit
Credit
Balance
Date
PR
Debit
Credit
Balance
(h)
540
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
120
Problem 2-4B (Concluded)
Part 3
NUNCIO CONSULTING
Trial Balance
June 30
Debit Credit
Cash …………………………………………………… $17,860
Accounts receivable ……………………………. 2,000
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
121
Problem 2-5B (60 minutes)
Part 1
TAMA CO.
Balance Sheet
December 31, Year 1
Assets
Liabilities
Cash ……………………………..
$ 30,000
Accounts payable …………………………..
$ 4,000
Accounts receivable ………
Total liabilities …………………………..
Machinery ……………………..
Total equity …………………………..
TAMA CO.
Balance Sheet
December 31, Year 2
Assets
Liabilities
Cash ……………………………..
$ 5,000
Accounts payable …………………………..
$ 12,000
Accounts receivable ………
25,000
Note payable …………………………..
250,000
13,500
Total liabilities …………………………..
40,000
Machinery ……………………..
28,500
Total equity …………………………..
150,000
Part 2
Computation of Year 2 net income:
Owner investment ………………………………………………………………..
5,000
Part 3
122
Problem 2-6B (35 minutes)
Part 1
GOULD SOLUTIONS
Trial Balance
April 30
Debit Credit
Cash …………………………………………………………….. $20,000
Office supplies ……………………………………………… 750
Part 2
Cash
(a)
15,000
(b)
1,800
5,200
Balance
Transactions a through g coded in T-account:
(a) R. Gould, the owner, invested $15,000 cash in the business in exchange for stock.
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
123
Problem 2-7B (40 minutes)
Part 1
PRISEK
Income Statement
For Month Ended July 31
Revenues
Consulting revenue …………………………. $36,000
Rental revenue ………………………………… 1,500
Part 2
PRISEK
Statement of Retained Earnings
For Month Ended July 31
Retained earnings, July 1 …………………….. $ 0
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
124
Problem 2-7B (Concluded)
Part 3
PRISEK
Balance Sheet
July 31
Assets Liabilities
Cash …………………………. $24,000 Accounts payable ……………. $ 3,900
Accounts receivable …. 10,500 Note payable …………………… 7,200
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
125
Serial Problem — SP 2
Part 1 (120 minutes) Serial Problem, Business Solutions
2021
Oct. 1 Cash …………………………………………………. 101 45,000
Office Equipment ………………………………. 163 8,000
Computer Equipment ………………………… 167 20,000
Common Stock…………………………... 307 73,000
Owner investment in exchange for stock.
6 Accounts Receivable ……………………….. 106 4,800
Computer Services Revenue ………. 403 4,800
Billed customer for services.
8 Accounts Payable ……………………………. 201 1,420
Cash ………………………………………….. 101 1,420
Paid balance due on account payable.
22 Cash …………………………………………………. 101 1,400
Accounts Receivable …………………. 106 1,400
Collected accounts receivable.
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
126
Serial Problem, Business Solutions (Continued)
28 Accounts Receivable ……………………….. 106 5,208
Computer Services Revenue ……… 403 5,208
Nov. 1 Mileage Expense ………………………………. 676 320
Cash …………………………………………. 101 320
Paid for mileage expenses.
2 Cash …………………………………………………. 101 4,633
Computer Services Revenue ………. 403 4,633
Collected cash revenue from client.
18 Cash …………………………………………………. 101 2,208
Accounts Receivable ………………….. 106 2,208
Collected accounts receivable.
22 Miscellaneous Expenses …………………… 677 250
Cash ………………………………………….. 101 250
Record miscellaneous expenses.
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
Serial Problem, Business Solutions (Continued)
Part 2
General Ledger accounts
Cash Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Oct. 1 45,000 45,000
2 3,300 41,700
5 2,220 39,480
Nov. 1 320 36,932
2 4,633 41,565
Accounts Receivable Acct. No.106
Date
Explanation
PR
Debit
Credit
Balance
Oct. 6 4,800 4,800
12 1,400 6,200
24 3,950 12,618
Computer Supplies Acct. No. 126
Date
Explanation
PR
Debit
Credit
Balance
Oct. 3 1,420 1,420
Nov. 5 1,125 2,545
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
128
Serial Problem, Business Solutions (Continued)
Prepaid Insurance Acct. No. 128
Date
Explanation
PR
Debit
Credit
Balance
Oct. 5 2,220 2,220
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Computer Equipment Acct. No. 167
Date
Explanation
PR
Debit
Credit
Balance
Oct. 1 20,000 20,000
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Dividends Acct. No. 319
Date
Explanation
PR
Debit
Credit
Balance
Oct. 31 3,600 3,600
Nov. 30 2,000 5,600
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 2
129
Serial Problem, Business Solutions (Concluded)
Computer Services Revenue Acct. No. 403
Date
Explanation
PR
Debit
Credit
Balance
Oct. 6 4,800 4,800
Wages Expense Acct. No. 623
Date
Explanation
PR
Debit
Credit
Balance
Oct. 31 875 875
Nov. 30 1,750 2,625
Date
Explanation
PR
Debit
Credit
Balance
Date
Explanation
PR
Debit
Credit
Balance
Miscellaneous Expenses Acct. No. 677
Date
Explanation
PR
Debit
Credit
Balance
Nov. 22 250 250
Date
Explanation
PR
Debit
Credit
Balance