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Accounting Chapter 3 Homework Accounting Cycle End The Period Problem 32a

Page Count
14 pages
Word Count
1651 words
Book Title
Financial Accounting Connect Access Code 4th Edition
Authors
David Spiceland, Don Herrmann, Wayne Thomas
Exercise 3-20 (continued)
Requirement 4 (continued)
Red Flash Photography
Balance Sheet
December 31, 2018
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 30,000
Accounts payable
Exercise 3-20 (concluded)
Requirement 5
December 31, 2018
Debit
Credit
Service Revenue
70,000
Retained Earnings
70,000
(Close revenue accounts)
Chapter 3 - The Accounting Cycle: End of the Period
Exercise 3-21
Requirement 1
January 2
Debit
Credit
Prepaid Rent
6,000
Cash
6,000
(Pay for one year of rent in advance)
Exercise 3-21 (continued)
Requirement 2
(a) January 31
Debit
Credit
Rent Expense
500
(b) January 31
Debit
Credit
Supplies Expense
3,800
(c) January 31
Debit
Credit
Deferred Revenue
3,200
(d) January 31
Debit
Credit
Salaries Expense
5,800
Exercise 3-21 (continued)
Requirement 3
Dynamite Fireworks
Adjusted Trial Balance
January 31, 2018
Accounts
Debit
Credit
Cash
$ 30,100
Accounts Receivable
6,600
Chapter 3 - The Accounting Cycle: End of the Period
Exercise 3-21 (continued)
Requirement 3 (continued)
Accounts
Ending
Balance
Beginning balance in bold, entries during
January in blue, and adjusting entries in red.
Cash
30,100
=
23,800−6,000+3,700−11,500+24,100−4,000
Accounts Receivable
6,600
=
5,200+25,500−24,100
Chapter 3 - The Accounting Cycle: End of the Period
Exercise 3-21 (continued)
Requirement 4
Dynamite Fireworks
Income Statement
For the year ended January 31, 2018
Revenues:
Service revenue
$28,700
Expenses:
Requirement 5
Dynamite Fireworks
Balance Sheet
January 31, 2018
Assets
Liabilities
Current assets:
Current liabilities
Cash
$30,100
Accounts payable
$ 2,700
Stockholders’ Equity
Common stock
65,000
Exercise 3-21 (concluded)
Requirement 6
January 31, 2018
Debit
Credit
Service Revenue
28,700
Requirement 7
(a) Profit is the amount of net income reported in the income statement = $7,100.
Chapter 3 - The Accounting Cycle: End of the Period
PROBLEMS: SET A
Problem 3-1A (LO 3-1, 3-2)
Accrual-Basis
Cash-Basis
Transaction
Expense
Revenue
Expense
1. Receive cash from customers in
advance, $600
$0
$0
$600
$0
Problem 3-2A (LO 3-1, 3-2)
Minutemen Law Services
Income Statement
For the year ended December 31, 2018
Service revenue
$73,000a
Expenses:
Salaries
37,700b
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-3A (LO 3-3)
(a)
Debit
Credit
Deferred Revenue
3,600
Service Revenue
3,600
(Adjust deferred revenue)
Problem 3-4A (LO 3-3)
(a)
Debit
Credit
Depreciation Expense
6,000
Accumulated Depreciation
6,000
(Adjust accumulated depreciation)
Problem 3-5A (LO 3-5)
Boilermaker Unlimited
Income Statement
For the year ended December 31, 2018
Service revenues:
New construction
$450,000
Remodel
280,000
Problem 3-5A (concluded)
Boilermaker Unlimited
Statement of Stockholders’ Equity
For the year ended December 31, 2018
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Boilermaker Unlimited
Balance Sheet
December 31, 2018
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 16,000
Accounts payable
$ 31,000
Accounts receivable
25,000
Salaries payable
28,000
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-6A (LO 3-6, 3-7)
Requirement 1
December 31
Debit
Credit
Service Revenue
77,500
Retained Earnings
77,500
(Close revenue accounts)
Requirement 2
Rattlers Tax Services
Post-Closing Trial Balance
Accounts
Debit
Credit
Cash
$ 4,700
Accounts Receivable
7,200
Problem 3-7A (LO 3-4, 3-5, 3-6, 3-7)
Requirements 1 and 2 (adjusting entries posted in red)
Cash
Accounts Receivable
Supplies
10,300
9,500
2,000
1,300
Utilities Payable
Notes Payable
Common Stock
0
200
20,000
45,000
200
20,000
45,000
Retained Earnings
Service Revenue
Problem 3-7A (continued)
Requirement 3
Crimson Tide Music Academy
Adjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 10,300
Accounts Receivable
9,500
Supplies
700
Prepaid Rent
1,800
Problem 3-7A (continued)
Requirement 4
Crimson Tide Music Academy
Income Statement
For the year ended December 31, 2018
Service revenue
$42,200
Expenses:
Crimson Tide Music Academy
Statement of Stockholders’ Equity
For the year ended December 31, 2018
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Balance at January 1
$45,000
$19,000
$64,000
Issuance of common stock
0
0
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-7A (continued)
Crimson Tide Music Academy
Balance Sheet
December 31, 2018
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 10,300
Accounts payable
$ 7,700
Accounts receivable
9,500
Salaries payable
2,100
Problem 3-7A (continued)
Requirement 5
December 31, 2018
Debit
Credit
Service Revenue
42,200
Retained Earnings
42,200
(Close revenue accounts)

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