EXERCISE 3-8 (Continued)
Oct. 6 Debits increase assets: debit Accounts Receivable $10,800.
Credits increase revenues: credit Service Revenue $10,800.
10 Debits increase assets: debit Cash $140.
Credits increase revenues: credit Service Revenue $140.
EXERCISE 3-9
General Journal
Date
Account Titles
Debit
Credit
Oct. 1
Cash …………………………………………………………..
Common Stock ……………………………………
30,000
30,000
2
No entry.
3
Equipment ………………………………………………….
Accounts Payable ………………………………..
3,800
3,800
6
Accounts Receivable ………………………………….
Service Revenue ………………………………….
10,800
10,800
10
Cash …………………………………………………………..
Service Revenue ………………………………….
140
27
Accounts Payable ………………………………………
Cash ……………………………………………………
700
30
Salaries and Wages Expense ………………………
Cash ……………………………………………………
3,000
EXERCISE 3-10
General Journal
Date
Debit
Credit
May 4
700
700
7
6,800
6,800
8
850
850
9
1,000
1,000
17
530
22
900
EXERCISE 3-11
General Journal
Date
Account Titles
Debit
Credit
March 1
Rent Expense …………………………………………….
Cash …………………………………………………..
1,200
1,200
3
Accounts Receivable …………………………………
Service Revenue …………………………………
140
140
5
Cash ………………………………………………………….
Service Revenue …………………………………
75
75
8
Equipment …………………………………………………
Cash …………………………………………………..
Accounts Payable ……………………………….
600
80
520
EXERCISE 3-12
Trans.
Account Titles
Debit
Credit
1.
Cash …………………………………………………………..
Common Stock …………………………………….
24,000
24,000
2.
Cash …………………………………………………………..
3.
Equipment …………………………………………………..
Cash …………………………………………………….
11,000
11,000
4.
Rent Expense ……………………………………………..
Cash …………………………………………………….
1,200
1,200
5.
Supplies ……………………………………………………..
Cash …………………………………………………….
1,450
1,450
6.
Advertising Expense ……………………………………
Accounts Payable …………………………………
600
600
7.
Accounts Receivable …………………………………..
Service Revenue …………………………………..
16,000
18,000
Cash …………………………………………………………..
2,000
8.
Dividends ……………………………………………………
Cash …………………………………………………….
400
400
Utilities Expense …………………………………………
Cash …………………………………………………….
2,000
2,000
10.
Accounts Payable ……………………………………….
Cash …………………………………………………….
600
600
11.
Interest Expense …………………………………………
Cash …………………………………………………….
12.
Salaries and Wages Expense ……………………….
Cash …………………………………………………….
6,400
6,400
13.
Cash …………………………………………………………..
Accounts Receivable …………………………..
12,000
14.
Cash …………………………………………………….
1,500
Income Tax Expense ……………………………………
1,500
EXERCISE 3-13
(a)
Cash
Accounts Payable
Oct. 1
30,000
Oct. 27
700
Oct. 27
700
Oct. 3
3,800
10
140
Bal.
3,100
Bal.
26,440
Common Stock
Accounts Receivable
Oct. 1
30,000
Oct. 6
10,800
Bal.
30,000
Bal.
10,800
Service Revenue
Equipment
Oct. 6
10,800
Oct. 3
Bal.
Bal.
10,940
Salaries and Wages Expense
Oct. 30
Bal.
(b) MCCALL REAL ESTATE AGENCY
Trial Balance
October 31, 2017
Debit
Credit
$44,040
Cash ……………………………………………………….…..
Accounts Receivable ……………………………………
$26,440
10,800
EXERCISE 3-14
(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
8
+$18,000
+$18,000
Ser. Rev.
Salar. Exp.
–4,000
(b)
General Journal J1
Date
Account Titles
Debit
Credit
Sept. 1
Cash ………………………………………………………..
Common Stock ………………………………….
20,000
20,000
5
Equipment ……………………………………………….
Accounts Payable ……………………………..
Cash …………………………………………………
9,000
6,000
3,000
8
Accounts Receivable ……………………………….
Service Revenue ……………………………….
14
Salaries and Wages Expense ……………………
1,200
Cash …………………………………………………
1,200
Retained Earnings
EXERCISE 3-14 (Continued)
(c)
Cash
9/1 20,000
9/5 3,000
9/14 1,200
9/25 4,000
9/30 500
Bal. 11,300
Accounts Receivable
9/8 18,000
Bal. 18,000
9/5 9,000
Bal. 9,000
9/25 4,000
9/5 6,000
Bal. 2,000
9/8 18,000
Bal. 18,000
9/14 1,200
Bal. 1,200
Common Stock
9/1 20,000
Bal. 20,000
Dividends
9/30 500
Bal. 500
Service Revenue
EXERCISE 3-15
(a)
General Journal
Date
Debit
Credit
Apr. 1
15,000
15,000
4
5,200
5,200
15
800
800
25
3,500
3,500
EXERCISE 3-15 (Continued)
(b) SALVADOR’s GARDENING COMPANY, INC.
Trial Balance
April 30, 2017
Debit
Credit
Cash ……………………………………………………….…..
Accounts Receivable ……………………………………
$13,100
2,600
EXERCISE 3-16
(a)
Cash
Aug. 1 8,000
10 1,700
31 600
Aug. 12 1,200
Bal. 9,100
Aug. 25 3,400
Aug. 31 600
Bal. 2,800
Aug. 12 6,200
Bal. 6,200
Aug. 1 8,000
Bal. 8,000
Bal. 5,100
Notes Payable
Aug. 12 5,000
Bal. 5,000
Common Stock
(b) BAYLEE INC.
Trial Balance
August 31, 2017
Debit
Credit
Cash …………………………………………………………….
Accounts Receivable ……………………………………
$ 9,100
2,800
EXERCISE 3-17
(a) Oct. 1 Cash ………………………………………………………. 7,000
Common Stock ………………………………… 7,000
(Issued stock for cash)
10 Cash …………………………..………………………….. 980
Service Revenue ……………………………… 980
(Received cash for services
provided)
EXERCISE 3-17 (Continued)
(b) KRISCOE CO.
Trial Balance
October 31, 2017
Debit
Credit
Cash …………………………………………………………….
Accounts Receivable ……………………………………
Supplies ………………………………………………………
Equipment ……………………………………………………
$15,730
1,020
220
3,000
EXERCISE 3-18
(a)
Date
Account Titles
Debit
Credit
Oct. 1
Cash ………………………………………………………….
Common Stock …………………………………..
66,000
66,000
2
No entry
4
Rent Expense …………………………………………….
Cash …………………………………………………..
Accounts Payable ……………………………….
14,000
8
Advertising Expense ………………………………….
Cash …………………………………………………..
500
500
10
Maintenance and Repairs Expense …………….
Accounts Payable ……………………………….
390
390
12
Accounts Receivable …………………………………
Service Revenue …………………………………
3,200
3,200
16
Supplies…………………………………………………….
Accounts Payable ……………………………….
410
410
21
Accounts Payable ………………………………………
Cash …………………………………………………..
14,000
14,000
24
Utilities Expense ………………………………………..
Cash …………………………………………………..
148
148
27
Cash ………………………………………………………….
Accounts Receivable …………………………..
3,200
31
Salaries and Wages Expense ……………………..
Cash …………………………………………………..
5,100
EXERCISE 3-18 (Continued)
(b)
Cash
10/1 66,000
10/27 3,200
10/31 5,100
Bal. 43,452
10/12 3,200
10/27 3,200
10/8 500
Bal. 500
10/31 5,100
Bal. 5,100
10/4 2,000
10/7 4,000
10/8 500
Supplies
10/16 410
Bal. 410
10/7 18,000
Bal. 18,000
10/4 2,000
Bal. 2,000
Accounts Payable
10/21 14,000
Bal. 800
10/1 66,000
Bal. 66,000
10/7 14,000
10/10 390
Service Revenue
10/12 3,200
Bal. 3,200
Maintenance & Repairs Expense
10/10 390
Bal. 390
Rent Expense
Utilities Expense
10/24 148
Bal. 148
EXERCISE 3-18 (Continued)
(c) BEYERS CORPORATION
Trial Balance
October 31, 2017
Debit
Credit
Cash ……………………………………………………….…..
Supplies ………………………………………………………
Equipment …………………………………………………..
Accounts Payable ………………………………………..
$43,452
410
18,000
$ 800
LO 3-5 BT: AP Difficulty: Hard TOT: 20 min. AACSB: Analytic AICPA FC: Reporting
EXERCISE 3-19
Error
(a)
In Balance
(b)
Difference
(c)
Larger Column
1.
3.
5.
No
Yes
Yes
$400
—
—
Debit
—
—
EXERCISE 3-20
(a) RAPID DELIVERY SERVICE
Trial Balance
July 31, 2017
Debit
Credit
Cash ($98,370 – Debit total without Cash
$85,946) ……………………………………………………….
Accounts Receivable …………………………………………..
Prepaid Insurance ……………………………………………….
Equipment ……………………………………………………….
$12,424
13,400
2,200
59,360
EXERCISE 3-20 (Continued)
(b) RAPID DELIVERY SERVICE
Income Statement
For the Month Ended July 31, 2017
Revenues
Service revenue ………………………………………….. $15,500
Expenses
RAPID DELIVERY SERVICE
Retained Earnings Statement
For the Month Ended July 31, 2017
Retained earnings, July 1 ……………………………….. $ 5,200
Add: Net income …………………………..……………… 5,214
EXERCISE 3-20 (Continued)
RAPID DELIVERY SERVICE
Balance Sheet
July 31, 2017
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 3-21
2. Operating activity
4. Non-cash event
6. Non-cash event
8. Investing activity
9. Non-cash event
LO 5 BT: AP Difficulty: Medium TOT: 10 min. AACSB: Analytic AICPA FC: Reporting
EXERCISE 3-22
2. Financing activity
4. Operating activity
6. Operating activity
8. Operating activity
9. Financing activity
Cash
+
Receivable
+
Supplies
+
Equipment
=
Payable
+
Stock
+
Revenues
–
Expenses
–
Dividends
1.
+$30,000
+$30,000
2.
–900
Rent Expense
3.
+$3,400
4.
Advertising Expense
5.
–500
+$500
6.
+$9,000
7.
–400
–$400
Dividends
8.
–200
9.
–1,800
–1,800
Salaries and Wages
Expense
+
+
+
PROBLEM 3-1A