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
Sep. 19 216,000 Sep. 29 72,000
Accounts Receivable
Sep. 30 bal. 1,110,000 Sep. 30 bal. 84,000
Sep. 12 600 Sep. 4 240,000
Sep. 30 bal. 600 Sep. 30 bal. 240,000
Sep. 4 840,000 Sep. 4 960,000
Sep. 30 bal. 840,000 Sep. 30 bal. 960,000
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
200
Issued capital stock for $800,000.
Paid the newspaper $500 for an advertisement to
be printed on February 18.
100,000
550,000
11 Office Supplies…………………………………. 800
800
Purchased offices supplies on account.
Accounts Receivable
Feb. 5 100,000 Feb. 14 500
Feb. 22 14,000 Feb. 25 12,000
Feb. 28 bal. 700,900 Feb. 28 bal. 16,000
c.
Elaine Consulting
Trial Balance
February 28, Current Year
Debit Credit
Cash……………………………………. 700,900$
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
Cash 1,200
Purchased office furnishings.
22 360
Cash 360
23 36
Computer Systems 36
27 4,800
Cash 4,800
28
36
Accounts Receivable 36
Refund due from PC World.
Made payment on an account payable.
Collected cash refunded by PC World.
Accounts Payable
Accounts Receivable
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
240,000
Cash 72,000
Notes Payable 288,000
Office Building
Purchased land and office building.
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
Feb. 16 + $14,400 (Computer Systems) $0 $0
Feb. 22 + $360 (Office Supplies) $0 $0
Feb. 23 + $36 (Accounts Receivable) $0 $0
Feb. 27 – $4,800 (Cash) $0
Feb. 28 + $36 (Cash) $0 $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)
(c)
(b)
(b)
(b)
(b)
(b)
The owners’ equity account Capital Stock was increased. Increases in owners’ equity are
recorded by credits. Credit Capital Stock, $20,000.
The asset Cash was increased. Increases in assets are recorded by debits. Debit Cash,
$600.
The asset Cash was decreased. Decreases in assets are recorded by credits. Credit Cash,
The asset Cash was decreased. Decreases in assets are recorded by credits. Credit Cash,
The asset Testing Supplies was decreased. Decreases in assets are recorded by credits.
Credit Testing Supplies, $100.
The asset Cash was decreased. Decreases in assets are recorded by credits. Credit Cash,
The asset Testing Supplies was increased. Increases in assets are recorded by debits.
The asset Cash was increased. Increases in assets are recorded by debits. Debit Cash,
$20,000.
The asset Accounts Receivable was decreased. Decreases in assets are recorded by
credits. Credit Accounts Receivable, $600.
The liability Accounts Payable was increased. Increases in liabilities are recorded by
credits. Credit Accounts Payable, $3,000.
The liability Accounts Payable was decreased. Decreases in liabilities are recorded by
debits. Debit Accounts Payable, $100.
b.
1 2,500
Testing Service Revenue 2,500
5 100
Testing Supplies 100
17 20,000
Capital Stock 20,000
Issued 2,500 shares of capital stock at $8 per share.
Returned portion of testing supplies purchased on
Cash
Aug. 3.
(4)
22 600
Accounts Receivable 600
29 2,900
Cash 2,900
30 6,800
Cash 6,800
Declared and paid a cash dividend.
Dividends
(7)
Accounts Payable
Paid outstanding balance owed for testing supplies
purchased on Aug. 3.
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.
Cash 800
Accounts Payable 3,000
Testing Supplies
Purchased testing supplies.
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
NE I D NE I D
Sept. 3
Sept. 9
b.
Sept.
1 4,400
Cash 4,400
25 5,620
Accounts Receivable 5,620
26 400
1,490
Surveying Revenue 1,890
29 165
Cash 165
30 7,600
Cash 7,600
Declared and paid a cash dividend.
Sept. 20.
Accounts Payable
Dividends
Paid newspaper for advertisement published on
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.
Surveying Revenue 5,620
9 2,830
Surveying Revenue 2,830
14 165
Accounts Payable 165
Advertising Expense
Billed Fine Line Homes for surveying services.
Sept. 20. Total amount due in 30 days.
Placed ad in the newspaper to be published on
Accounts Receivable
Collected cash from Sunset Ridge Development for
services provided.
Cash
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
June 4
b.
June 1 60,000
Capital Stock 60,000
15 8,320
Aerial Photography Revenue 8,320
15 5,880
Cash 5,880
18 1,890
Paid Hannigan’s Hangar for repair services.
Maintenance Expense
25 4,910
Accounts Receivable 4,910
30 16,450
Aerial Photography Revenue 16,450
30 Salaries Expense 6,000
Cash 6,000
30 Fuel Expense 2,510
Accounts Payable 2,510
30 Dividends 2,000
Dividends Payable 2,000
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
Cash 40,000
Notes Payable 180,000
4 2,500
Cash 2,500
Aircraft
Rent Expense
Purchased plane from Utility Aircraft.
c.
Debit Credit Balance
June 1 60,000 60,000
2 40,000 20,000
Debit Credit Balance
June 15 8,320 8,320
Current Yr.
Debit Credit Balance
June 2 220,000 220,000
Debit Credit Balance
June 2 180,000 180,000
Debit Credit Balance
June 30 2,510 2,510
Date
Explanation
Date
Explanation
Current Yr.
Current Yr.
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
Debit Credit Balance
June 15 8,320 8,320
Debit Credit Balance
June 18 1,890 1,890
Explanation
Explanation
Current Yr.
Date
Current Yr.
Date
Current Yr.
Explanation
Dividends
Date
PROBLEM 3.4A
Date
AERIAL VIEWS (continued)
Dividends Payable
Explanation
Current Yr.
Debit Credit Balance
June 1 60,000 60,000
Current Yr.
Date
Explanation
Debit Credit Balance
June 30 2,510 2,510
PROBLEM 3.4A
Date
AERIAL VIEWS (continued)
Fuel Expense
Explanation
Current Yr.
Debit Credit Balance
June 15 5,880 5,880
Debit Credit Balance
June 4 2,500 2,500
Explanation
Date
Current Yr.
Explanation
Date
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
Dividends
Aerial photography revenue
Maintenance expense
Fuel expense
Rent expense
Salaries expense
Dividends payable
Retained earnings
Capital stock
Accounts payable
Notes payable
Total Assets:
8,640$
19,860
220,000
prepared. The adjusting process is covered in Chapter 4.
accounting cycle includes adjustments that must be made
to the trial balance figures before financial statements are
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
180,000$
Dividends payable
Total Owners’ Equity:
Total assets
Total Liabilities:
Notes payable
Total assets – total liabilities ($248,500 – $184,510)
Total liabilities
Accounts payable
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
NE NE NE I I NE
NE NE NE I I NE
May 4
May 9