Student Name:
Class:
Entry Debit Credit
(a) 6,000
Supplies
Supplies Expense
(Adjust interest payable)
Interest Expense
(Adjust salaries payable)
Salaries Payable
Salaries Expense
6,000 <–Correct!
(e) 5,400
5,400 <–Correct!
(f) 200
Instructor
Problem 03-04
McGraw-Hill
Adjusting Entries
CRIMSON TIDE MUSIC ACADEMY
Utilities Expense
(Adjust prepaid rent)
Prepaid Rent
Rent Expense
(Adjust supplies)
(Adjust accumulated depreciation)
Accumulated Depreciation
Depreciation Expense
Account
(Adjust utilities payable)
Utilities Payable
Debits Credits
10,300$
Rent Expense
Supplies Expense
Utilities Expense
Depreciation Expense
9,500
24,500
–
6,000$
Monthly rent amount
Unpaid utilities for December
Accrued salaries at year-end
Principal amount borrowed 9/1/2018
Term of loan
Interest rate of loan
Unused supplies at year-end
Paid 1 year’s rent on new studio on 4/1/2018
CRIMSON TIDE MUSIC ACADEMY
December 31, 2018
Unadjusted Trial Balance
Cash
Accounts
Accounts Receivable
Salaries Expense
Interest Expense
Depreciation of equipment for year
Additional information:
Supplies
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Interest Payable
Utilities Payable
Notes Payable
Retained Earnings
Service Revenue
Service fee
Salaries
Supplies
Depreciation
Insurance
Utilities
Total revenues
Total expenses
Accounts receivable
Supplies
Prepaid insurance
Total Liabilities
Notes payable
Total current assets
Total current liabilities
Utilities payable
Salaries payable
Student Name:
Class:
450,000$
280,000
Total
Common Retained Stockholders’
Stock Earnings Equity
170,000$ 31,000$ 201,000$
30,000 30,000
16,000$ 31,000$
(200,000)
200,000
Total liabilities and
Total stockholders’ equity
91,000
For the year ended December 31, 2018
Income Statement
BOILERMAKER UNLIMITED
For the year ended December 31, 2018
Statement of Stockholders’ Equity
BOILERMAKER UNLIMITED
Service revenues:
New Construction
Remodel
Balance at January 1
Issuance of common stock
Assets
Cash
BOILERMAKER UNLIMITED
December 31, 2018
Balance Sheet
Retained Earnings
Common Stock
Problem 03-05
McGraw-Hill
Instructor
Stockholders’ Equity
Liabilities
Accumulated Depreciation
Accounts payable
Less: Dividends
Add: Net income for 2018
Debits Credits
16,000$
Accounts Receivable
Supplies
Prepaid Insurance
625,000
200,000$
31,000
28,000
5,000
150,000
200,000
BOILERMAKER UNLIMITED
December 31, 2018
Adjusted Trial Balance
Cash
Accounts
Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Utilities Payable
Notes Payable (due in 5 years)
Common Stock
Service Revenue-remodeling
Depreciation Expense
Insurance Expense
Dividends
Salaries Expense
Common stock issued during year
Service Revenue-new construction
Utilities Expense
Interest Expense
Service Fee Expense
Supplies Expense
Student Name:
Class:
10,300 9,500 2,000
1,300
7,200 90,000 12,000
7,700 – –
2,100 800
7,700 2,100 800
Correct! Correct! Correct!
Supplies Expense
Instructor
Problem 03-07
McGraw-Hill
Requirement 1 and 2:
Prepaid Rent
Equipment
Accumulated Depr.
Accounts Payable
Salaries Payable
Interest Payable
Utilities Payable
Notes Payable
Common Stock
T-Accounts
CRIMSON TIDE MUSIC ACADEMY
Cash
Accounts Receivable
Supplies
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
2,400 –
200 6,000
Utilities Expense
Depr. Expense
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
Debit Credit
10,300$
9,500
700
Interest
Rent
Supplies
Utilities
Depreciation
Total Expenses
Correct! Correct!
42,200$
26,600
December 31, 2018
CRIMSON TIDE MUSIC ACADEMY
Requirement 3:
Requirement 4:
CRIMSON TIDE MUSIC ACADEMY
Adjusted Trial Balance
Accounts Receivable
Cash
Account Title
Supplies
For the year ended December 31, 2018
Income Statement
Service Revenue
Expenses:
Salaries
Interest Expense
Rent Expense
Retained Earnings
Service Revenue
Interest Payable
Utilities Expense
Depreciation Expense
Accumulated Depreciation
Accounts Payable
Equipment
Utilities Payable
Notes Payable
Common Stock
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
Total
Common Retained Stockholders’
Stock Earnings Equity
45,000$ 19,000$ 64,000$
– –
Total current assets
Prepaid Rent
Supplies
Equipment
Accumulated Depreciation
Interest Payable
Utilities Payable
Total current liabilities
Notes Payable
Total liabilities
Common Stock
Retained Earnings
Total Stockholders’ equity
Total liabilities and
10,300$ 7,700$
9,500 2,100$
Requirement 5:
Entry Account Debit Credit
(a) Service Revenue 42,200
Retained Earnings 42,200 <–Correct!
(Close Revenue accounts)
CRIMSON TIDE MUSIC ACADEMY
Closing Entries
Assets
For the year ended December 31, 2018
Statement of Stockholders’ Equity
CRIMSON TIDE MUSIC ACADEMY
Liabilities
Cash
Accounts Receivable
Balance at January 1
Issuance of common Stock
December 31, 2018
Balance Sheet
CRIMSON TIDE MUSIC ACADEMY
Accounts Payable
Salaries Payable
Add: Net income for 2018
Less: Dividends
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
19,000 42,200 24,500
– – –
– – –
2,400 –
200 6,000
2,600 6,000
– –
Correct! Correct!
Debit Credit
Retained Earnings
Notes Payable
Common Stock
Supplies
Prepaid Rent
Equipment
10,300$
9,500
18,000$
7,700
2,100
800
200
December 31, 2018
CRIMSON TIDE MUSIC ACADEMY
Post-Closing Trial Balance
Interest Expense
Rent Expense
Utilities Expense
Retained Earnings
Service Revenue
Salaries Expense
Requirement 6:
Supplies Expense
Cash
Account Title
Requirement 7:
Depr. Expense
Accumulated Depreciation
Accounts Payable
Salaries Payable
Interest Payable
Utilities Payable
Accounts Receivable
Debits Credits
10,300$
Utilities Expense
Supplies Expense
Accrued salaries at year-end
Depreciation of equipment for year
Principal amount borrowed 9/1/2018
Paid 1 year’s rent on new studio on 4/1/2018
Monthly rent amount
Unpaid utilities for December
Term of loan
Depreciation Expense
Interest rate of loan
Unused supplies at year-end
9,500
42,200
24,500
–
–
Salaries Expense
Interest Expense
Rent Expense
Cash
Accounts
Accounts Receivable
CRIMSON TIDE MUSIC ACADEMY
Unadjusted Trial Balance
December 31, 2018
Service Revenue
Supplies
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Interest Payable
Utilities Payable
Notes Payable
Retained Earnings