PROBLEM 3-1A (Continued)
(b) Service Revenue ………………………………………………. $12,000
Expenses
Salaries and Wages Expense ……………………… $1,800
OR
Revenues …………………………………………………………. $12,000
2
–600
–$600
Rent Expense
3
+$500
+$500
5
–150
–150
Advertising Expense
9
+1,400
+$1,400
Service Revenue
12
–200
–$200
Dividends
15
+4,200
+4,200
Service Revenue
PROBLEM 3-2A
+$15,000
PROBLEM 3-2A (Continued)
(b) CURRY CONSULTING INC.
Income Statement
For the Month Ended May 31, 2017
Revenues
Service revenue ($1,400 + $4,200) ……………. $5,600
Expenses
Salaries and wages expense ……………………. $2,500
(c) CURRY CONSULTING INC.
Balance Sheet
May 31, 2017
Assets
Current assets
Cash ………………………………………………………. $18,270
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable ………………………………………… $ 5,000
Accounts payable …………………………………… 1,800
Total current liabilities ……………………… $ 6,800
9
+3,600
+1,800
+$5,400
Service Revenue
+3,300
–700
Rent Expense
–350
Advertising Expense
Dividends
+5,000
+$5,000
+
+
+
=
+
+
+
+
PROBLEM 3-3A
Aug. 1
+1,100
4
PROBLEM 3-3A (Continued)
(b) BINDY CRAWFORD INC.
Income Statement
For the Month Ended August 31, 2017
Revenues
Service revenue…………………………………………. $5,400
Expenses
Salaries and wages expense ………………………. $1,400
Rent expense …………………………………………….. 700
BINDY CRAWFORD INC.
Retained Earnings Statement
For the Month Ended August 31, 2017
Retained earnings, August 1 …………………………………………….. $1,600
Add: Net income …………………………………………………………….. 2,570
PROBLEM 3-3A (Continued)
BINDY CRAWFORD INC.
Balance Sheet
August 31, 2017
Assets
Current assets
Cash ………………………………………………………… $7,150
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable ………………………………………….. $5,000
Accounts payable …………………………………….. 5,180
PROBLEM 3-4A
Date
Account Titles and Explanation
Debit
Credit
Mar. 1
Cash …………………………………………………………
Common Stock ………………………………….
(Issued stock for cash)
50,000
50,000
(Purchased Snead’s Golf Land)
5
Advertising Expense …………………………..…….
Cash ………………………………………………….
(Paid for advertising)
1,200
6
Prepaid Insurance …………………………………….
Cash ………………………………………………….
(Paid for one-year insurance policy)
2,400
2,400
10
Equipment ………………………………………………..
Accounts Payable ………………………………
(Purchased equipment on account)
5,500
5,500
18
Cash …………………………………………………………
Service Revenue ………………………………..
(Received cash for revenue earned)
1,600
sold)
25
Dividends …………………………………………………
Cash ………………………………………………….
(Payment of cash dividend)
500
500
PROBLEM 3-4A (Continued)
Date
Account Titles and Explanation
Debit
Credit
Mar. 30
Salaries and Wages Expense …………………….
Cash ………………………………………………….
(Paid salaries expense)
800
800
PROBLEM 3-5A
(a)
Date
Account Titles and Explanation
Debit
Credit
Apr. 1
Cash ………………………………………………………..
Common Stock ………………………………….
(Issued shares of stock for cash)
18,000
18,000
1
No entry—not a transaction.
2
Rent Expense ……………………………………………
Cash ………………………………………………….
(Paid monthly office rent)
900
900
3
Supplies …………………………………………………..
(Purchased supplies on account
from Burmingham Company)
1,300
10
Accounts Receivable ………………………………..
Service Revenue ………………………………..
(Billed clients for services rendered)
1,900
1,900
11
Cash ………………………………………………………..
Unearned Service Revenue ………………..
(Received cash advance for future
service)
700
700
20
Cash ………………………………………………………..
Service Revenue ………………………………..
(Received cash for service performed)
2,800
PROBLEM 3-5A (Continued)
(b)
Cash
4/20 2,800
4/30 300
Bal. 18,800
4/10 1,900
Bal. 1,900
4/2 900
Bal. 900
4/1 18,000
4/11 700
4/2 900
4/30 1,500
Supplies
4/3 1,300
Bal. 1,300
Accounts Payable
4/30 300
4/3 1,300
Bal. 1,000
4/11 700
Bal. 700
4/1 18,000
Bal. 18,000
Bal. 4,700
Salaries and Wages Expense
4/30 1,500
Bal. 1,500
PROBLEM 3-5A (Continued)
(c) AYALA ARCHITECTS INC.
Trial Balance
April 30, 2017
Debit
Credit
Cash ……………………………………………………………
Accounts Receivable …………………………..……….
$18,800
1,900
PROBLEM 3-6A
(a) & (c)
Cash
10/31 400
Bal. 17,300
Bal. 6,400
10/1 Bal. 11,000
Bal. 11,000
10/29 300
10/1 Bal. 19,200
10/5 1,300
10/15 1,200
10/20 1,900
Supplies
10/1 Bal. 2,100
Bal. 2,100
Equipment
10/1 Bal. 8,000
Bal. 8,000
10/20 1,900
10/1 Bal. 4,800
Bal. 2,900
10/1 Bal. 1,100
Bal. 1,100
10/15 1,200
Bal. 1,200
Utilities Expense
10/31 400
Bal. 400
Common Stock
10/1 Bal. 15,000
Bal. 15,000
Bal. 300
Service Revenue
10/10 5,100
10/17 600
Bal. 5,700
PROBLEM 3-6A (Continued)
(b)
Date
Account Titles and Explanation
Debit
Credit
Oct. 5
performed)
Cash …………………………………………………………
Accounts Receivable ………………………….
1,300
1,300
15
Salaries and Wages Expense …………………….
Cash ………………………………………………….
(Paid employee salaries)
1,200
1,200
17
Cash …………………………………………………………
Service Revenue ………………………………..
(Performed services for customers)
600
600
29
Dividends …………………………………………………
Cash ………………………………………………….
300
300
31
Utilities Expense ……………………………………….
(Paid utilities)
400
PROBLEM 3-6A (Continued)
(d) LACEY COMPANY
Trial Balance
October 31, 2017
Debit
Credit
Cash …………………………………………………………….
Accounts Receivable ……………………………………
Supplies ………………………………………………………
$ 17,300
6,400
2,100
PROBLEM 3-7A
WASHBURN CO.
Trial Balance
June 30, 2017
Debit
Credit
Cash ($3,090 – $780 + $870) ………………………….
Accounts Receivable* ………………………………….
Supplies ($800 – $340) ………………………………….
Common Stock …………………………………………….
Dividends ($800 + $600) ……………………………….
Service Revenue ………………………………………….
$ 3,180
3,910
460
1,400
9,000
3,480
PROBLEM 3-8A
(a) & (c)
Cash
3/31 750
3/31 20,000
3/20 5,000
3/31 3,800
Bal. 32,750
3/1 Bal. 16,000
3/9 9,900
3/2 2,000
3/10 10,900
Accounts Receivable
3/31 750
Bal. 750
Land
3/1 Bal. 38,000
Bal. 38,000
3/1 Bal. 22,000
Bal. 22,000
3/12 500
Bal. 500
Equipment
3/1 Bal. 16,000
Bal. 16,000
3/10 10,900
3/1 Bal. 12,000
3/2 8,000
Bal. 9,100
3/31 3,800
Bal. 3,800
Common Stock
3/1 Bal. 80,000
Bal. 80,000
3/20 8,300
3/31 20,000
Bal. 38,200
Sales Revenue
3/31 1,500
Bal. 1,500
Rent Expense
3/2 10,000
3/20 5,000
Bal. 15,000
PROBLEM 3-8A (Continued)
(b)
Date
Account Titles and Explanation
Debit
Credit
Mar. 2
Rent Expense …………………………………………..
Accounts Payable ……………………………..
Cash ………………………………………………….
(Rented films for cash and on
account)
10,000
8,000
2,000
3
No entry—not a transaction.
9
Cash ………………………………………………………..
Service Revenue ………………………………..
(Received cash for admissions)
9,900
10
Accounts Payable ($8,000 + $2,900) …………..
Cash ………………………………………………….
(Paid creditors on account)
10,900
11
No entry—not a transaction.
12
Advertising Expense …………………………………
Cash ………………………………………………….
(Paid advertising expenses)
500
500
20
Cash ………………………………………………………..
Service Revenue ………………………………..
(Received cash for admissions)
8,300
8,300
20
Rent Expense …………………………………………..
5,000
31
Salaries and Wages Expense …………………….
Cash ………………………………………………….
(Paid salaries expense)
3,800
PROBLEM 3-8A (Continued)
Date
Account Titles and Explanation
Debit
Credit
Mar. 31
Cash ………………………………………………………….
750
(d) TRIQUEL THEATER INC.
Trial Balance
March 31, 2017
Debit
Credit
Cash …………………………………………………………….
Accounts Receivable ……………………………………
Service Revenue …………………………………………..
Sales Revenue ……………………………………………..
Advertising Expense …………………………………….
Rent Expense ……………………………………………….
$ 32,750
750
500
15,000
38,200
1,500
(Assets and Expenses have debit balances)
PROBLEM 3-9A
(a) & (c)
Cash
Bal. 6,225
8/20 500
Bal. 500
7/31 4,000
8/3 1,200
8/6 2,700
8/12 400
Accounts Receivable
Bal. 1,300
Bal. 7,500
7/31 1,500
8/7 3,500
8/3 1,200
8/18 3,500
Supplies
7/31 500
Bal. 500
Equipment
Bal. 6,200
8/14 900
Bal. 900
7/31 5,000
Accounts Payable
8/6 2,700
Bal. 2,475
Bal. 275
7/31 4,100
8/12 800
Notes Payable
8/26 2,000
Bal. 2,000
Common Stock
7/31 3,500
Retained Earnings
7/31 3,400
Bal. 3,400
Service Revenue
8/7 6,500
Salaries and Wages Expense
8/14 3,500
Bal. 3,500
Rent Expense
Advertising Expense
8/14 275
Utilities Expense
8/28 275
Bal. 275
Income Tax Expense
8/31 500
PROBLEM 3-9A (Continued)
(b)
Date
Account Titles
Debit
Credit
Aug. 3
Cash …………………………………………………………..
Accounts Receivable …………………………..
1,200
1,200
5
Cash …………………………………………………………..
Common Stock …………………………………….
1,300
1,300
6
Accounts Payable ……………………………………….
Cash …………………………………………………….
2,700
2,700
7
Cash …………………………………………………………..
Accounts Receivable …………………………………..
Service Revenue …………………………………..
3,500
6,500
Equipment …………………………………………………..
Cash …………………………………………………….
Accounts Payable …………………………..…….
400
14
Salaries and Wages Expense ……………………….
Rent Expense ……………………………………………..
Advertising Expense ……………………………………
Cash …………………………………………………….
3,500
900
275
4,675
18
Cash …………………………………………………………..
Accounts Receivable …………………………..
3,500
3,500
20
Dividends ……………………………………………………
Cash …………………………………………………….
500
24
Accounts Receivable …………………………………..
Service Revenue …………………………………..
1,000
1,000
26
Cash …………………………………………………………..
Notes Payable ………………………………………
2,000
No entry
28
Utilities Expense …………………………………………
Accounts Payable …………………………..…….
275
31
Income Tax Expense ……………………………………
Cash …………………………………………………….
500