PROBLEM 3-2A (Continued)
MAC’S MOTEL
Balance Sheet
May 31, 2017
Assets
Cash ………………………………………………………….. $ 3,500
Supplies ……………………………………………………. 750
Prepaid insurance ………………………………………. 2,200
Liabilities and Owner’s Equity
Liabilities
Accounts payable ……………………………….. $ 4,800
Unearned rent revenue ………………………… 1,100
Salaries and wages payable …………………. 750
Interest payable …………………………………… 400
PROBLEM 3-3A
(a) Sept. 30 Accounts Receivable ………………………… 1,100
Service Revenue ………………………….. 1,100
30 Rent Expense …………………………………… 1,700
Prepaid Rent …………………………..…… 1,700
30 Salaries and Wages Expense …………….. 725
Salaries and Wages Payable …………. 725
(b) ALENA CO.
Income Statement
For the Quarter Ended September 30, 2017
Revenues
Service revenue ………………………………………….. $17,100
Rent revenue ……………………………………………… 2,860
Total revenues …………………………………….. $19,960
Expenses
Salaries and wages expense ……………………….. 8,725
Rent expense ……………………………………………… 3,600
PROBLEM 3-3A (Continued)
ALENA CO.
Owner’s Equity Statement
For the Quarter Ended September 30, 2017
Owner’s capital, July 1, 2017 …………………………. $ 0
Investment by owner …………………………………….. $22,000
Add: Net income …………………………………………. 4,475 26,475
ALENA CO.
Balance Sheet
September 30, 2017
Assets
Cash …………………………………………………………….. $ 8,700
Accounts receivable ……………………………………… 11,500
Supplies ………………………………………………………. 650
Liabilities and Owner’s Equity
Liabilities
Notes payable ………………………………………… $10,000
Accounts payable ………………………………….. 2,500
Salaries and wages payable ……………………. 725
Unearned rent revenue …………………………... 450
PROBLEM 3-4A
1. Dec. 31 Insurance Expense ………………………………… 4,890
Prepaid Insurance …………………………... 4,890
($7,920 ÷ 3) = $2,640
[($4,500 ÷ 2) = 2,250
$4,890
3. Dec. 31 Interest Expense ……………………………………. 1,800
Interest Payable
($120,000 X 9% X 2/12) …………………. 1,800
PROBLEM 3-5A
(a), (c) & (e)
Cash No. 101
Date
Explanation
Ref.
Credit
Balance
Nov. 1
8
10
Balance
J1
J1
1,700
2,400
700
4,320
Accounts Receivable No. 112
Date
Explanation
Ref.
Credit
Balance
Nov. 1
Balance
4,250
Supplies No. 126
Date
Explanation
Ref.
Credit
Balance
Nov. 1
Balance
1,800
Equipment No. 153
Date
Explanation
Ref.
Credit
Balance
Nov. 1
Balance
12,000
PROBLEM 3-5A (Continued)
Accumulated Depreciation—Equipment No. 154
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
Balance
2,000
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
Balance
2,600
Unearned Service Revenue No. 209
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
29
Balance
J1
600
1,200
1,800
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
8
Balance
J1
700
700
0
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 1
Balance
13,950
PROBLEM 3-5A (Continued)
Service Revenue No. 407
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 12
J1
3,100
3,100
Depreciation Expense No. 615
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 30
Adjusting
J1
200
200
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 30
J1
1,100
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 8
J1
1,000
1,000
Rent Expense No. 729
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 22
J1
400
400
PROBLEM 3-5A (Continued)
(b) General Journal
J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Nov. 8
Salaries and Wages Payable …………..
212
700
10
Cash ……………………………………………..
Accounts Receivable ………………
101
112
3,620
3,620
12
Cash ……………………………………………..
Service Revenue …………………….
101
407
3,100
3,100
15
Equipment …………………………………….
Accounts Payable …………………..
153
201
2,000
2,000
17
Supplies ………………………………………..
Accounts Payable …………………..
126
201
700
700
20
Accounts Payable ………………………….
Cash ………………………………………
201
101
2,700
2,700
22
Rent Expense ………………………………..
Cash ………………………………………
729
101
400
400
25
Salaries and Wages Expense ………….
Cash ………………………………………
726
101
1,700
1,700
27
Accounts Receivable ……………………..
Service Revenue …………………….
112
407
2,200
2,200
29
Cash ……………………………………………..
Unearned Service Revenue ……..
101
209
600
600
PROBLEM 3-5A (Continued)
(d) & (f) HAMM EQUIPMENT REPAIR
Trial Balances
November 30, 2017
Before
Adjustment
After
Adjustment
Dr.
Cr.
Dr.
Cr.
Cash …………………………………….
Accounts Receivable …………….
Accounts Payable …………………
Unearned Service Revenue ……
Salaries and Wages Payable ….
Owner’s Capital …………………….
$ 3,220
2,830
2,600
1,800
–0–
13,950
$ 3,220
2,830
2,600
580
350
13,950
(e) 1. Nov. 30 Supplies Expense …………………… 631 1,100
Supplies ($2,500 – $1,400) ….. 126 1,100
3. 30 Depreciation Expense ……………… 615 200
Accumulated Depreciation—
Equipment …………………….. 154 200
PROBLEM 3-5A (Continued)
(g) HAMM EQUIPMENT REPAIR
Income Statement
For the Month Ended November 30, 2017
Revenues
Service revenue ………………………………………. $6,520
Expenses
Salaries and wages expense ……………………. $3,050
HAMM EQUIPMENT REPAIR
Owner’s Equity Statement
For the Month Ended November 30, 2017
Owner’s capital, November 1 ………………………………………….. $13,950
PROBLEM 3-5A (Continued)
HAMM EQUIPMENT REPAIR
Balance Sheet
November 30, 2017
Assets
Cash …………………………………………………………….. $ 3,220
Accounts receivable ……………………………………… 2,830
Supplies ………………………………………………………. 1,400
Liabilities and Owner’s Equity
Liabilities
Accounts payable …………………………………………………… $ 2,600
Unearned service revenue ……………………………………….. 580
*PROBLEM 3-6A
(a) 1. June 30 Supplies ………………………………………… 1,500
Supplies Expense ……………………. 1,500
3. 30 Prepaid Insurance
[($2,700 ÷ 12) X 8] ………………………… 1,800
Insurance Expense ………………….. 1,800
4. 30 Service Revenue …………………………….. 1,300
Unearned Service Revenue ………… 1,300
6. 30 Depreciation Expense
*PROBLEM 3-6A (Continued)
(b) JOHNSON GRAPHICS COMPANY
Adjusted Trial Balance
June 30, 2017
Debit
Credit
Cash …………………………………………………………..
Accounts Receivable ($14,000 + $2,000) ……….
Supplies ……………………………………………………..
Interest Payable …………………………………………..
Unearned Service Revenue ………………………….
Owner’s Capital …………………………………………..
Sales Revenue …………………………………………….
Service Revenue ($6,000 – $1,300 + $2,000) …..
Salaries and Wages Expense ……………………….
$ 8,600
16,000
1,500
30,000
750
1,300
22,000
52,100
6,700
*PROBLEM 3-6A (Continued)
(c) JOHNSON GRAPHICS COMPANY
Income Statement
For the Six Months Ended June 30, 2017
Revenues
Sales revenue ………………………………………… $52,100
Service revenue ……………………………………… 6,700
Total revenues ………………………………… $58,800
Expenses
Salaries and wages expense …………………… 30,000
Supplies expense …………………………………… 2,200
Advertising expense ………………………………. 1,900
JOHNSON GRAPHICS COMPANY
Owner’s Equity Statement
For the Six Months Ended June 30, 2017
Owner’s capital, January 1 ……………………………………………… $ 0
Investment by owner ……………………………………………………… 22,000
*PROBLEM 3-6A (Continued)
JOHNSON GRAPHICS COMPANY
Balance Sheet
June 30, 2017
Assets
Cash …………………………………………………………….. $ 8,600
Accounts receivable ……………………………………… 16,000
Supplies ………………………………………………………. 1,500
Liabilities and Owner’s Equity
Liabilities
Notes payable ………………………………………… $20,000
Accounts payable ………………………………….. 9,000
Unearned service revenue ………………………. 1,300
CCC3 CONTINUING COOKIE CHRONICLE
(a)
GENERAL JOURNAL
J2
Date
Account Titles and Explanation
Debit
Credit
Nov. 30 Supplies Expense …………………………………….. 35
Supplies ………………………………………………. 35
30 Interest Expense ………………………………………. 5
Interest Payable
($2,000 X .06 X 1/12 X .5) …………………….. 5
CCC3 (Continued)
(a) (Continued)
Cash
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 30 Balance ✓ 245
Accounts Receivable
Date
Explanation
Ref.
Debit
Credit
Balance
Supplies
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 30 Balance ✓ 125
30 J2 35 90
Prepaid Insurance
Date
Explanation
Ref.
Debit
Credit
Balance
Equipment
Date
Explanation
Ref.
Debit
Credit
Balance
Nov. 30 Balance ✓ 1,200
Accumulated Depreciation—Equipment
Date
Explanation
Ref.
Debit
Credit
Balance