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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
Accounts Payable .............................................
3,500
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
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
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
