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PROBLEM 3.1 (Continued)
(c) YASUNARI KAWABATA, D.D.S.
Income Statement
For the Month of September
Service revenue ................................................................
¥9,620
Expenses:
Salaries and wages expense ..............................
¥1,800
YASUNARI KAWABATA, D.D.S.
Statement of Owner’s Equity
For the Month of September
Kawabata, Capital September 1 .................................................
¥20,000
PROBLEM 3.1 (Continued)
YASUNARI KAWABATA, D.D.S.
Statement of Financial Position
As of September 30
Assets
Equity and Liabilities
Equipment. .........................
¥17,280
Yasunari Kawabata,
(e) YASUNARI KAWABATA, D.D.S.
Post-Closing Trial Balance
September 30
Debit
Credit
Cash ................................................................
¥12,133
Accounts Receivable .............................................
6,950
PROBLEM 3.2
(a)
Dec. 31
Accounts Receivable ................................................................
3,500
Service Revenue ................................................................
3,500
31
Unearned Service Revenue ................................
1,400
Service Revenue ................................................................
1,400
31
Supplies Expense ................................................................
5,400
Supplies ................................................................
5,400
PROBLEM 3.2 (Continued)
(b) MASON ADVERTISING AGENCY
Income Statement
For the Year Ended December 31, 2019
Revenues
Service revenue ......................................................
€63,500
Expenses
Salaries and wages expense ................................
€11,300
MASON ADVERTISING AGENCY
Retained Earnings Statement
For the Year Ended December 31, 2019
Retained earnings, January 1 ............................................................
€ 3,500
PROBLEM 3.2 (Continued)
MASON ADVERTISING AGENCY
Statement of Financial Position
December 31, 2019
Assets
Equipment .........................................................................
€60,000
Less: Accumulated depreciation—equipment ..............
33,000
€27,000
Equity and Liabilities
Equity
Share capital—ordinary ..........................................
€10,000
Retained earnings ...................................................
39,950
€49,950
Liabilities
Notes payable .........................................................
5,000
(c) 1. Interest is €50 per month or 1% of the note payable. 1% X 12 = 12%
interest per year.
PROBLEM 3.3
December 31
1.
Salaries and Wages Expense ................................
2,120
Salaries and Wages Payable ................................
2,120
3.
Advertising Expense ................................................................
4,900
Prepaid Advertising ................................
4,900
PROBLEM 3.4
November 30
(a)
Supplies Expense (€5,500 – €1,500) ................................
4,000
Supplies ................................................................
4,000
PROBLEM 3.4 (Continued)
(b) BELLEMY FASHION CENTER
Adjusted Trial Balance
November 30, 2019
Dr.
Cr.
Cash ................................................................
€ 28,700
Accounts Receivable..............................................
33,700
Allowances ...........................................................
4,200
Cost of Goods Sold ................................................
495,400
Salaries Expense ....................................................
140,000
Advertising Expense ..............................................
26,400
Utilities Expense .....................................................
14,000
Maintenance and Repairs Expense .......................
12,100
Delivery Expense ....................................................
16,700
PROBLEM 3.4 (Continued)
(c) BELLEMY FASHION CENTER
Income Statement
For the Year Ended November 30, 2019
Sales revenue
Sales revenue .........................................................
€757,200
Less: Sales returns and allowances....................
4,200
Net sales ................................................................
753,000
Administrative expenses
Salaries and wages expense
(€140,000 X 30%) ................................
42,000
Maintenance and repairs expense ...............
12,100
Rent expense (€24,000 X 20%) .....................
4,800
PROBLEM 3.4 (Continued)
BELLEMY FASHION CENTER
Retained Earnings Statement
For the Year Ended November 30, 2019
Retained earnings, December 1, 2018 ...............................................
€8,000
BELLEMY FASHION CENTER
Statement of Financial Position
November 30, 2019
Assets
Noncurrent assets
Property, plant, and equipment
Equipment ..............................................................
€133,000
Equity and Liabilities
Equity
Share capital—ordinary ................................
€90,000
Retained earnings ................................
2,400
€ 92,400
Noncurrent Liabilities
PROBLEM 3.4 (Continued)
Nov. 30
(d)
Sales Revenue ................................................................
757,200
Income Summary ................................................................
757,200
30
Income Summary ................................................................
762,800
Sales Returns and Allowances ................................
4,200
Cost of Goods Sold ................................
495,400
30
Retained Earnings (757,200 – 762,800) ................................
5,600
Income Summary ................................................................
5,600
PROBLEM 3.4 (Continued)
(e) BELLEMY FASHION CENTER
Post-Closing Trial Balance
November 30, 2019
Debit
Credit
Cash ...................................................................................
€ 28,700
Accounts Receivable ........................................................
33,700
Merchandise Inventory .....................................................
45,000
PROBLEM 3.5
(a)
-1-
Depreciation Expense ..............................................
10,500
Accumulated Depreciation—Equipment
(1/16 X [€192,000 – €24,000]) ........................
10,500
-2-
-3-
-4-
Prepaid Advertising ...................................................
1,100
Advertising Expense ..........................................
1,100
-5-
Salaries and Wages Expense ................................
4,700
Salaries and Wages Payable .............................
4,700
(b) 1. Interest expense, €2,840 (€1,400 + €1,440).
PROBLEM 3.6
(a)
-1-
Service Revenue ................................................................
6,000
Unearned Service Revenue .......................................................
6,000
-2-
-3-
-4-
Insurance Expense ................................................................
480
Prepaid Insurance ................................................................
480
-5-
-6-
-7-
Prepaid Rent ................................................................
750
Rent Expense ................................................................
750
-8-
PROBLEM 3.6 (Continued)
(b) YORKIS PEREZ, CONSULTING ENGINEER
Income Statement
For the Year Ended December 31, 2019
Service revenue (R$100,000 – R$6,000 + R$4,900) ............
R$98,900
Expenses
Salaries and wages expense
PROBLEM 3.6 (Continued)
YORKIS PEREZ, CONSULTING ENGINEER
Statement of Changes in Equity
For the Year Ended December 31, 2019
Yorkis Perez, Capital, January 1 ......................................................
R$ 52,010a
Add: Net income ................................................................................
50,620
PROBLEM 3.6 (Continued)
YORKIS PEREZ, CONSULTING ENGINEER
Statement of Financial Position
December 31, 2019
Assets
Noncurrent assets
Equipment ................................................................
R$25,000
Less: Accum. depreciation—
equipment ...........................................................
8,750**
R$ 16,250
Current assets
Equity and Liabilities
Equity
Yorkis Perez, Capital
(R$35,010 + R$50,620) ................................
R$ 85,630
Liabilities
Current liabilities
PROBLEM 3.7
(a)
Dec. 31
Account Receivable ................................
1,000
Service Revenue ................................
1,000
31
Interest Expense ................................................................
150
Interest Payable ................................
150
31
Insurance Expense ................................
750
Prepaid Insurance ................................
750
PROBLEM 3.7 (Continued)
(b) SORENSTAM ADVERTISING AG
Income Statement
For the Year Ended December 31, 2019
Revenues
Service revenue ......................................................
€61,000
Expenses
Salaries and wages expense ................................
€11,500
SORENSTAM ADVERTISING AG
Retained Earnings Statement
For the Year Ended December 31, 2019
Retained earnings, January 1 ..............................................................
€ 4,500
PROBLEM 3.7 (Continued)
SORENSTAM ADVERTISING AG
Statement of Financial Position
December 31, 2019
Assets
Equipment ................................................................
€60,000
Less: Accum. depr.—equipment ................................
35,750
€24,250
Equity and Liabilities
Equity
Share capital—ordinary ................................
€10,000
Retained earnings...................................................
30,000
Total equity ....................................................
€40,000
Liabilities
Notes payable ...........................................................
5,000
