Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
b.
Cash
Sep. 2 1,170,000 Sep. 4 120,000 Sep. 19 216,000 Sep. 30 132,000
Sep. 30 132,000 Sep. 29 72,000
Accounts Payable Capital Stock
Sep. 12 600 Sep. 2 1,170,000
Sep. 30 bal. 600 Sep. 30 bal. 1,170,000
Accounts Receivable
c.
Georgia Corporation
Trial Balance
September 30, Current Year
Debit Credit
Cash……………………………………. 1,110,000$
Accounts receivable………………………
84,000
Ex. 3.12 a. Feb. 1 Cash……………………………………………. 800,000
Capital Stock…………………………….
800,000
14 Advertising Expense……………………………. 500
Cash …………………………………….
500
Issued capital stock for $800,000.
Paid the newspaper $500 for an advertisement to
be printed on February 18.
b.
Cash
Feb. 1 800,000 Feb. 8 200,000 Feb. 24 16,000
Office Supplies Land
Feb. 11 800 Feb. 20 200 Feb. 8 150,000
Feb. 28 bal. 600 Feb. 28 bal. 150,000
Accounts Receivable
c.
Elaine Consulting
Trial Balance
February 28, Current Year
Debit Credit
Cash……………………………………. 700,900$
Accounts receivable………………………
16,000
Ex. 3.13
Transaction
Ex. 3.14
Transaction
Ex. 3.15
a. The company's most recent balance sheet is dated January 31, 2016. Thus, it is apparent
30 Minutes, Medium
a.
1 600,000
Capital Stock 600,000
10
120,000
16 14,400
Cash 14,400
18 10,800
22 360
Cash 360
Issued 30,000 shares of Capital Stock.
Feb.
SOLUTIONS TO PROBLEMS SET A
HEARTLAND CONSTRUCTION
Current Yr.
PROBLEM 3.1A
General Journal
Cash
Land
Purchased computer system.
Office Furnishings
Office Supplies
Purchased office supplies.
Computer Systems
b.
Transaction Assets = Liabilities + Owners’ Equity
Feb. 1 + $600,000 (Capital
Feb. 10 + $120,000 (Land) $0
+ $288,000 (Notes
PROBLEM 3.1A
HEARTLAND CONSTRUCTION (concluded)
+ $600,000 (Cash)
$0
30 Minutes, Medium
a. (1) (a)
(b)
PROBLEM 3.2A
ENVIRONMENTAL SERVICES, INC.
The asset Accounts Receivable was increased. Increases in assets are recorded by debits.
Debit Accounts Receivable, $2,500.
Revenue has been earned. Revenue increases owners’ equity. Increases in owners’ equity
b.
1 2,500
Testing Service Revenue 2,500
5 100
Testing Supplies 100
22 600
Accounts Receivable 600
PROBLEM 3.2A
ENVIRONMENTAL SERVICES, INC. (continued)
Current Yr.
Accounts Receivable
Billed customers for services rendered.
General Journal
Aug.
Cash
Accounts Payable
(1)
(2)
(3)
(5)
(6)
Received partial payment for services billed on
Aug. 1.
c.
d.
The realization principle requires that revenue be recorded when it is earned , even if cash for the
The matching principle requires that expenses incurred in an accounting period be matched with
PROBLEM 3.2A
ENVIRONMENTAL SERVICES, INC. (concluded)
35 Minutes, Medium
Revenue -Expenses = Assets -Liabilities =
NE I D D NE D
Sept. 1
Transaction
Income Statement
Net
Income
a.
PROBLEM 3.3A
WEIDA SURVEYING, INC.
Balance Sheet
Owners'
Equity
b.
Sept.
1 4,400
Cash 4,400
25 5,620
Accounts Receivable 5,620
26 400
1,490
Surveying Revenue 1,890
c.
Cash
PROBLEM 3.3A
WEIDA SURVEYING, INC. (concluded)
Rent Expense
Paid September rent.
General Journal
Cash
Accounts Receivable
Received payment from Fine Line Homes for
service billed on Sept. 3.
Three situations in which a cash payment does not involve an expense include: (1) the payment
Collected partial payment from Thompson
and billed remainder.
50 Minutes, Strong
a.
Revenue -Expenses = Assets -Liabilities =
NE NE NE INE I
NE NE NE I I NE
June 1
PROBLEM 3.4A
AERIAL VIEWS
Balance Sheet
Owners'
Equity
Transaction
Income Statement
Net
Income
June 2
b.
June 1 60,000
Capital Stock 60,000
15 8,320
Aerial Photography Revenue 8,320
15 5,880
Cash 5,880
25 4,910
Accounts Receivable 4,910
30 16,450
Aerial Photography Revenue 16,450
PROBLEM 3.4A
AERIAL VIEWS (continued)
General Journal
Current Yr.
Cash
Issued stock to Wendy Winger.
month-end.
Billed customers for services rendered through
Accounts Receivable
Billed customers for first half of June.
Paid salaries for first half of June.
Accounts Receivable
Collected portion of amount billed to customers.
Cash
Salaries Expense
c.
Debit Credit Balance
June 1 60,000 60,000
2 40,000 20,000
Debit Credit Balance
Debit Credit Balance
PROBLEM 3.4A
Date
Current Yr.
AERIAL VIEWS (continued)
Cash
Explanation
Accounts Receivable
Aircraft
Date
Explanation
Explanation
Current Yr.
Date
Debit Credit Balance
June 30 2,000 2,000
Debit Credit Balance
June 30 2,000 2,000
Current Yr.
Explanation
Dividends
Date
PROBLEM 3.4A
Date
AERIAL VIEWS (continued)
Dividends Payable
Explanation
Current Yr.
Debit Credit Balance
June 30 2,510 2,510
PROBLEM 3.4A
Date
AERIAL VIEWS (continued)
Fuel Expense
Explanation
Current Yr.
d.
8,640$
19,860
220,000
Accounts receivable
Aircraft
PROBLEM 3.4A
AERIAL VIEWS
June 30, Current Year
Cash
AERIAL VIEWS (continued)
Trial Balance
Total Assets:
8,640$
19,860
220,000
reported in the balance sheet dated June 30. The
PROBLEM 3.4A
AERIAL VIEWS (concluded)
e.
Cash
Accounts receivable
Aircraft
The above figures are most likely not the amounts to be
60 Minutes, Strong
Revenue -Expenses = Assets -Liabilities =
NE NE NE INE I
May 1
PROBLEM 3.5A
DR. SCHEKTER, DVM
Balance Sheet
Owners'
Equity
Transaction
Income Statement
Net
Income
