EXERCISE 3-11
(a)
Assets = Liabilities + Stockholders’ Equity
Cash
+
Accounts
Receivable
+
Equipment
=
Accounts
Payable
+
Common
Stock
+
Revenues
–
Exp.
–
Div.
Sept. 1 +$20,000 +$20,000 Issued stock
5 –3,000 +$9,000 +$ 6,000
(b)
General Journal J1
Date Account Titles Debit Credit
Sept. 1 Cash ………………………………………………………
.
Common Stock ………………………………..
.
20,000
20,000
5 Equipment ………………………………………………
.
Accounts Payable …………………………….
.
9,000
6,000
Retained Earnings
EXERCISE 3-11 (Continued)
(c)
Cash
9/1 20,000 9/5 3,000
9/14 1,200
Accounts Receivable
9/8 18,000
Equipment
9/5 9,000
Accounts Payable
Common Stock
9/1 20,000
Bal. 20,000
9/30 500
Bal. 500
Bal. 18,000
Salaries and Wages Expense
EXERCISE 3-12
(a)
General Journal
Date Account Titles and Explanation Debit Credit
Apr. 1 Cash ………………………………………………………..
.
15,000
4 Supplies ………………………………………………….
.
Accounts Payable ……………………………..
.
(Purchased supplies on account)
5,200
5,200
7 Accounts Receivable ……………………………….
.
.
3,400
12 Cash ………………………………………………………..
.
.
700
15 Salaries and Wages Expense ……………………
.
Cash …………………………………………………
.
(Paid salaries)
800
800
.
.
.
EXERCISE 3-12 (Continued)
(b) WHEELING GARDENING COMPANY, INC.
Trial Balance
April 30, 2014
Debit Credit
Cash …………………………………………………………….
Accounts Receivable ……………………………………
$13,100
2,600
EXERCISE 3-13
(a)
Cash
Aug. 1 8,000
10 1,700
Aug. 12 1,200
Equipment
Notes Payable
Aug. 12 5,000
Bal. 5,000
Service Revenue
Aug. 10 1,700
25 3,400
(b) EBERLE INC.
Trial Balance
August 31, 2014
Debit Credit
Cash ……………………………………………………………
Accounts Receivable ……………………………………
$ 9,100
2,800
EXERCISE 3-14
(a) Oct. 1 Cash ……………………………………………………….. 7,000
Common Stock ………………………………… 7,000
(Issued stock for cash)
20 Cash ……………………………………………………….. 700
Accounts Receivable ………………………… 700
EXERCISE 3-14 (Continued)
(b) KEISLER CO.
Trial Balance
October 31, 2014
Debit Credit
Cash ……………………………………………………………
Accounts Receivable ……………………………………
Supplies ………………………………………………………
Equipment …………………………………………………..
Notes Payable ……………………………………………..
$15,730
1,020
220
3,000
$ 8,000
EXERCISE 3-15
Error
(a)
In Balance
(b)
Difference
(c)
Larger Column
1.
2.
No
Yes
$400
—
Debit
—
EXERCISE 3-16
(a) BASTIN DELIVERY SERVICE
Trial Balance
July 31, 2014
Debit Credit
Cash ($98,370
–
Debit total without Cash
$85,946) ……………………………………………………
.
Accounts Receivable ……………………………………
.
.
.
.
Retained Earnings ………………………………………..
.
Dividends …………………………………………………….
.
.
$12,424
13,400
700
5,200
EXERCISE 3-16 (Continued)
(b) BASTIN DELIVERY SERVICE
Income Statement
For the Month Ended July 31, 2014
Revenues
Service revenue ………………………………………….. $15,500
Expenses
BASTIN DELIVERY SERVICE
Retained Earnings Statement
For the Month Ended July 31, 2014
Retained earnings, July 1 ……………………………….. $ 5,200
EXERCISE 3-16 (Continued)
BASTIN DELIVERY SERVICE
Balance Sheet
July 31, 2014
Assets
Current assets
Cash ………………………………………………………….. $12,424
Accounts receivable …………………………………… 13,400
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ………………………………………. $ 8,400
Salaries and wages payable ……………………….. 820
Total current liabilities …………………………….. $ 9,220
EXERCISE 3-17
(a) (b)
Account
Normal Balance
Debit or Credit
Balance Sheet or
Income Statement
Accounts payable
Accounts receivable
Credit
Debit
Balance sheet
Balance sheet
EXERCISE 3-18
1. Financing activity
2. Operating activity
EXERCISE 3-19
1. Financing activity
2. Financing activity
(a) DEDONDER TRAVEL AGENCY INC.
3-32 Copyright © 2013 John Wiley & Sons, Inc. Kimmel, Financial Accounting, 7/e, Solutions Manual (For Instructor Use Only)
PROBLEM 3-1A (Continued)
(b) Service Revenue ………………………………………………. $12,000
Expenses
Salaries and Wages Expense ……………………… $1,800
PROBLEM 3-2A
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PROBLEM 3-2A (Continued)
(b) FINZELBERG CONSULTING INC.
Income Statement
For the Month Ended May 31, 2014
Revenues
Service revenue ($1,400 + $4,200) ……………. $5,600
Expenses
(c) FINZELBERG CONSULTING INC.
Balance Sheet
May 31, 2014
Assets
Current assets
Cash ………………………………………………………. $18,270
Accounts receivable ……………………………….. 3,000
Supplies …………………………………………………. 500
(a) CINDY BRAUN INC.
15 –700 +4,000 +3,300
3-36 Copyright © 2013 John Wiley & Sons, Inc. Kimmel, Financial Accounting, 7/e, Solutions Manual (For Instructor Use Only)
PROBLEM 3-3A (Continued)
(b) CINDY BRAUN INC.
Income Statement
For the Month Ended August 31, 2014
Revenues
Service revenue…………………………………………. $5,400
Expenses
Salaries and wages expense ………………………. $1,400
CINDY BRAUN INC.
Retained Earnings Statement
For the Month Ended August 31, 2014
Retained earnings, August 1 …………………………………………….. $1,600
PROBLEM 3-3A (Continued)
CINDY BRAUN INC.
Balance Sheet
August 31, 2014
Assets
Current assets
Cash ………………………………………………………… $7,150
Accounts receivable …………………………………. 3,200
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable ………………………………………….. $5,000
PROBLEM 3-4A
Date Account Titles and Explanation Debit Credit
Mar. 1 Cash ………………………………………………………..
.
Common Stock …………………………………
.
(Issued stock for cash)
50,000
50,000
3 Land ………………………………………………………..
.
.
23,000
5 Advertising Expense………………………………..
.
1,200
6 Prepaid Insurance ……………………………………
.
2,400
10 Equipment ……………………………………………….
.
5,500
18 Cash ………………………………………………………..
.
Service Revenue ……………………………….
.
1,600
1,600
19 Cash (100 X $25)………………………………………
.
2,500
25 Dividends ………………………………………………..
.
500
PROBLEM 3-4A (Continued)
Date Account Titles and Explanation Debit Credit
Mar. 30
Salaries and Wages Expense ……………………
800
30 Accounts Payable …………………………………….
5,500