EXERCISE 3-12B
(a)
General Journal
Date
Account Titles and Explanation
Debit
Credit
Apr. 1
Cash ………………………………………………………….
Common Stock ……………………………………
(Issued stock for cash)
25,000
25,000
7
Accounts Receivable ………………………………….
Service Revenue …………………………………
(Billed clients for services
rendered)
3,400
3,400
12
Cash ………………………………………………………….
Service Revenue …………………………………
700
700
15
Salaries and Wages Expense ……………………..
Cash …………………………………………………..
(Paid salaries)
800
800
25
29
Cash ………………………………………………………….
account)
800
30
Cash ………………………………………………………….
services)
1,900
Accounts Payable ………………………………………
3,500
4
Supplies …………………………………………………….
5,200
EXERCISE 3-12B (Continued)
(b) MAX’S LANDSCAPING COMPANY, INC.
Trial Balance
April 30, 2014
Debit
Credit
Cash ……………………………………………………………
Accounts Receivable ……………………………………
Supplies ………………………………………………………
$24,100
2,600
5,200
EXERCISE 3-13B
(a)
Cash
Aug. 1 10,000
10 1,700
31 600
Aug. 12 1,200
Bal. 11,100
Accounts Receivable
Aug. 12 6,200
Bal. 6,200
Bal. 5,100
Notes Payable
Aug. 12 5,000
Bal. 5,000
Common Stock
Aug. 1 10,000
Service Revenue
Aug. 10 1,700
(b) TAU INC.
Trial Balance
August 31, 2014
Debit
Credit
Cash …………………………………………………………….
Accounts Receivable ……………………………………
$11,100
2,800
Aug. 25 3,400
Aug. 31 600
Bal. 2,800
Bal. 10,000
EXERCISE 3-14B
(a) Oct. 1 Cash ……………………………………………………….. 15,000
Common Stock ………………………………… 15,000
(Issued stock for cash)
10 Cash ……………………………………………………….. 980
Service Revenue ………………………………. 980
(Received cash for services provided)
EXERCISE 3-14B (Continued)
(b) CAMPHOR CO.
Trial Balance
October 31, 2014
Debit
Credit
Cash …………………………………………………………….
Accounts Receivable ……………………………………
Supplies ………………………………………………………
$23,730
1,020
220
EXERCISE 3-15B
Error
(a)
In Balance
(b)
Difference
(c)
Larger Column
2.
4.
6.
Yes
No
No
—
300
540
—
Credit
Debit
EXERCISE 3-16B
(a) FOOTE DELIVERY SERVICE
Trial Balance
July 31, 2014
Debit
Credit
Cash ($89,370 – Debit total without Cash
$76,946) ……………………………………………………….
Accounts Receivable …………………………………………..
Prepaid Insurance ……………………………………………….
$12,424
13,400
2,200
EXERCISE 3-16B (Continued)
(b) FOOTE DELIVERY SERVICE
Income Statement
For the Month Ended July 31, 2014
Revenues
Service revenue …………………………………………. $18,500
Expenses
Salaries and wages expense ………………………. $7,428
FOOTE DELIVERY SERVICE
Retained Earnings Statement
For the Month Ended July 31, 2014
Retained earnings, July 1 ………………………………. $5,200
EXERCISE 3-16B (Continued)
FOOTE DELIVERY SERVICE
Balance Sheet
July 31, 2014
Assets
Current Assets
Cash ………………………………………………………….. $12,424
Accounts receivable …………………………………… 13,400
Prepaid insurance ………………………………………. 2,200
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable ………………………………………. $ 8,400
Salaries and wages payable ……………………….. 820
EXERCISE 3-17B
(a)
(b)
Account
Normal Balance
Debit or Credit
Balance Sheet or
Income Statement
Accounts payable
Accounts receivable
Common stock
Credit
Debit
Credit
Balance sheet
Balance sheet
Balance sheet
EXERCISE 3-18B
1. Financing activity
3. Operating activity
5. Operating activity
7. Operating activity
9. Non-cash event
EXERCISE 3-19B
1. Financing activity
3. Investing activity
5. Non-cash event
7. Non-cash event
9. Financing activity