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Problem 3-9A (concluded)
Requirement 11
Zips Storage
Unadjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$103,800
Accounts Receivable
16,100
Prepaid Insurance
5,000
Chapter 3 - The Accounting Cycle: End of the Period
PROBLEMS: SET B
Problem 3-1B (LO 3-1, 3-2)
Accrual-Basis
Cash-Basis
Transaction
Revenue
Expense
Revenue
Expense
1. Receive cash from customers at the
time of service, $3,700
$3,700
$0
$3,700
$0
3. Receive cash from customers who
were previously billed, $1,700
$0
$0
$1,700
$0
5. Pay workers’ salaries for the current
month, $700.
$0
$700
$0
$700
7. Repay a long-term note to the bank,
$3,000.
$0
$0
$0
$0
9. Pay dividends to stockholders, $500.
$0
$0
$0
$0
$540.
$0
$0
$0
$540
Problem 3-2B (LO 3-1, 3-2)
Horned Frogs Fine Cooking
Income Statement
For the year ended December 31, 2018
Service revenue
$60,000a
Expenses:
Salaries
21,600b
Problem 3-3B (LO 3-3)
(a)
Debit
Credit
Depreciation Expense
7,000
Accumulated Depreciation
7,000
(Adjust accumulated depreciation)
(b)
Debit
Credit
Salaries Expense
4,000
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-4B (LO 3-3)
(a)
Debit
Credit
Depreciation Expense
10,000
Accumulated Depreciation
10,000
(Adjust accumulated depreciation)
(b)
Debit
Credit
Salaries Expense
4,000
Problem 3-5B (LO 3-5)
Orange Designs
Income Statement
For the year ended December 31, 2018
Service revenue
$111,900
Expenses:
Salaries
43,000
Problem 3-5B (concluded)
Orange Designs
Statement of Stockholders’ Equity
For the year ended December 31, 2018
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Balance at January 1
$49,000
$16,000
$65,000
Orange Designs
Balance Sheet
December 31, 2018
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 6,000
Accounts payable
$ 4,000
Accounts receivable
5,000
Salaries payable
5,000
Supplies
3,000
Utilities payable
1,100
Problem 3-6B (LO 3-6, 3-7)
December 31
Debit
Credit
Service Revenue
89,700
Retained Earnings
89,700
(Close revenue accounts)
Retained Earnings
73,300
Salaries Expense
50,000
Retained Earnings
7,000
Fighting Illini
Post-Closing Trial Balance
Accounts
Debit
Credit
Cash
$ 7,600
Accounts Receivable
10,200
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-7B (LO 3-4, 3-5, 3-6, 3-7)
Requirements 1 and 2 (adjusting entries posted in red)
Cash
Accounts Receivable
Supplies
22,000
15,000
27,000
Prepaid Insurance
Equipment
Accumulated Depr.
Accounts Payable
Salaries Payable
Utilities Payable
12,000
0
0
Interest Payable
Notes Payable
Common Stock
0
35,000
35,000
Retained Earnings
Dividends
Service Revenue
10,000
3,000
227,000
10,000
3,000
227,000
Salaries Expense
Depreciation Expense
Insurance Expense
© McGraw-Hill Education, 2016
Problem 3-7B (continued)
Requirement 3
Jaguar Auto Company
Adjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 22,000
Accounts Receivable
15,000
Supplies
5,000
Dividends
3,000
Service Revenue
227,000
Salaries Expense
162,000
Depreciation Expense
10,000
Problem 3-7B (continued)
Requirement 4
Jaguar Auto Company
Income Statement
For the year ended December 31, 2018
Service revenue
$227,000
Expenses:
Salaries
162,000
Depreciation
10,000
Jaguar Auto Company
Statement of Stockholders’ Equity
For the year ended December 31, 2018
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Balance at January 1
$35,000
$10,000
$45,000
Problem 3-7B (continued)
Jaguar Auto Company
Balance Sheet
December 31, 2018
Assets
Liabilities
Current assets
Current liabilities
Cash
$22,000
Accounts payable
$12,000
Accounts receivable
15,000
Salaries payable
4,000
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-7B (continued)
Requirement 5
December 31, 2018
Debit
Credit
Service Revenue
227,000
Retained Earnings
227,000
(Close revenue accounts)
Retained Earnings
229,250
Salaries Expense
162,000
Retained Earnings
3,000
© McGraw-Hill Education, 2016
Problem 3-7B (concluded)
Requirement 6 (closing entries posted in red)
Retained Earnings
Dividends
Service Revenue
10,000
3,000
227,000
Salaries Expense
Depreciation Expense
Insurance Expense
158,000
0
0
Supplies Expense
Utilities Expense
Interest Expense
0
12,000
0
Requirement 7
Jaguar Auto Company
Post-Closing Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 22,000
Salaries Payable
4,000
Utilities Payable
2,200
Interest Payable
1,050
Problem 3-8B (LO 3-3, 3-4, 3-5, 3-6, 3-7)
Requirement 1
Cash
Accounts Receivable
Supplies
4,500
9,500
3,500
4,500
9,500
3,500
Equipment
Accumulated Depr.
Accounts Payable
Utilities Payable
Deferred Revenue
Common Stock
7,000
0
23,000
7,000
0
23,000
Retained Earnings
Dividends
Service Revenue
Problem 3-8B (continued)
Requirement 2
(a) January 24
Debit
Credit
Accounts Receivable
65,000
Cash
20,000
(d) June 30
Debit
Credit
Salaries Expense
33,000
Cash
33,000
(Pay current salaries)
(e) September 15
Debit
Credit
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-8B (continued)
Requirement 3 (entries posted in red)
Cash
Accounts Receivable
Supplies
4,500
9,500
3,500
Equipment
Accumulated Depr.
Accounts Payable
36,000
8,000
6,000
36,000
8,000
6,000
Utilities Payable
Deferred Revenue
Common Stock
Retained Earnings
Dividends
Service Revenue
9,500
0
3,000
0
85,000
9,500
3,000
85,000
Salaries Expense
Utilities Expense
Supplies Expense
Problem 3-8B (continued)
Requirement 4
Pipers Plumbing
Unadjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 49,500
Deferred Revenue
10,000
Common Stock
34,000
Retained Earnings
9,500
Dividends
3,000
Requirement 5
December 31
Debit
Credit
Depreciation Expense
8,000
Accumulated Depreciation
8,000
Problem 3-8B (continued)
Requirement 6 (adjusted entries posted in red)
Cash
Accounts Receivable
Supplies
4,500
9,500
3,500
Equipment
Accumulated Depr.
Accounts Payable
36,000
8,000
6,000
Utilities Payable
Deferred Revenue
Common Stock
7,000
7,000
7,000
0
10,000
23,000
11,000
0
3,000
34,000
Retained Earnings
Dividends
Service Revenue
9,500
0
0
Salaries Expense
Utilities Expense
Supplies Expense
0
0
0
Problem 3-8B (continued)
Requirement 7
Pipers Plumbing
Adjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 49,500
Accounts Receivable
21,500
Supplies
1,100
