Accounting Chapter 3 Homework Pay salaries for work in the current period

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subject Authors David Spiceland, Don Herrmann, Wayne Thomas

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Problem 3-8B (continued)
Requirement 8
Pipers Plumbing
Income Statement
For the year ended December 31, 2018
Service revenue
$92,000
Expenses:
Salaries
33,000
Pipers Plumbing
Balance Sheet
December 31, 2018
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$49,500
Accounts payable
$ 6,000
Stockholders’ Equity
Long-term assets:
Common stock
34,000
Equipment
36,000
Retained earnings
49,100
*
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Problem 3-8B (continued)
Requirement 9
December 31
Debit
Credit
Service Revenue
92,000
Retained Earnings
92,000
(Close revenue accounts)
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Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-8B (continued)
Requirement 10 (closing entries posted in red)
Cash
Accounts Receivable
Supplies
4,500
9,500
3,500
Equipment
Accumulated Depr.
Accounts Payable
36,000
8,000
6,000
Utilities Payable
Deferred Revenue
Common Stock
Retained Earnings
Dividends
Service Revenue
9,500
0
0
Salaries Expense
Utilities Expense
Supplies Expense
0
0
0
Depr. Expense
0
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© McGraw-Hill Education, 2016
Problem 3-8B (concluded)
Requirement 11
Pipers Plumbing
Post-Closing Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 49,500
Accounts Receivable
21,500
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Problem 3-9B (LO 3-3, 3-4, 3-5, 3-6, 3-7)
Requirement 1
Cash
Accounts Receivable
Supplies
41,500
25,700
0
41,500
25,700
0
Land
Accounts Payable
Salaries Payable
110,800
15,300
0
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Problem 3-9B (continued)
Requirement 2
(a) January 12
Debit
Credit
Accounts Receivable
62,400
Service Revenue
62,400
Cash
30,000
Common Stock
30,000
(Issue common stock)
(e) June 16
Debit
Credit
Supplies
12,100
(h) November 22
Debit
Credit
Advertising Expense
22,500
Cash
22,500
(Pay advertising for the current period)
(h) December 30
Debit
Credit
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Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (continued)
Requirement 3 (entries posted in red)
Cash
Accounts Receivable
Supplies
41,500
11,300
25,700
0
Land
Accounts Payable
Salaries Payable
110,800
15,300
0
Interest Payable
Notes Payable
Common Stock
0
30,000
100,000
Retained Earnings
Dividends
Service Revenue
32,700
0
0
Salaries Expense
Advertising Expense
Interest Expense
0
0
0
Supplies Expense
0
0
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Problem 3-9B (continued)
Requirement 4
Jackrabbit Rentals
Unadjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 91,600
Interest Payable
0
Notes Payable
30,000
Common Stock
130,000
Retained Earnings
32,700
Requirement 5
December 31
Debit
Credit
Interest Expense
2,500
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Problem 3-9B (continued)
Requirement 6 (adjusted entries posted in red)
Cash
Accounts Receivable
Supplies
Land
Accounts Payable
Salaries Payable
110,800
15,300
0
Interest Payable
Notes Payable
Common Stock
0
30,000
100,000
Retained Earnings
Dividends
Service Revenue
32,700
0
2,900
0
62,400
Salaries Expense
Advertising Expense
Interest Expense
0
0
0
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3-110 Financial Accounting, 4e
Problem 3-9B (continued)
Requirement 7
Jackrabbit Rentals
Adjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 91,600
Accounts Receivable
42,400
Supplies
2,300
Land
110,800
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Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (continued)
Requirement 8
Jackrabbit Rentals
Income Statement
For the year ended December 31, 2018
Service revenue
$137,700
Expenses:
Salaries
65,700
Jackrabbit Rentals
Balance Sheet
December 31, 2018
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 91,600
Accounts Payable
$ 16,100
Accounts Receivable
42,400
Salaries Payable
1,500
Long-term assets:
Stockholders’ Equity
Land
110,800
Common stock
130,000
Retained earnings
67,000
*
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Problem 3-9B (continued)
Requirement 9
December 31
Debit
Credit
Service Revenue
137,700
Retained Earnings
137,700
(Close revenue accounts)
page-pfd
Problem 3-9B (continued)
Requirement 10 (closing entries posted in red)
Cash
Accounts Receivable
Supplies
41,500
11,300
25,700
0
Land
Accounts Payable
Salaries Payable
110,800
15,300
0
Interest Payable
Notes Payable
Common Stock
0
30,000
100,000
Retained Earnings
Dividends
Service Revenue
32,700
0
0
Salaries Expense
Advertising Expense
Interest Expense
0
0
0
Supplies Expense
page-pfe
Problem 3-9B (concluded)
Requirement 11
Jackrabbit Rentals
Unadjusted Trial Balance
December 31, 2018
Accounts
Debit
Credit
Cash
$ 91,600
Accounts Receivable
42,400
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Chapter 3 - The Accounting Cycle: End of the Period
ADDITIONAL PERSPECTIVES
Additional Perspective 3-1
Requirement 1
July 1, 2018
Debit
Credit
Cash
10,000
Common Stock
10,000
(Issue common stock to Tony)
July 1, 2018
Prepaid Insurance
4,800
Cash
4,800
(Purchase one-year insurance policy)
July 2, 2018
Legal Fees Expense
1,500
(Pay cash for mountain bikes)
July 15, 2018
Cash
2,000
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Chapter 3 - The Accounting Cycle: End of the Period
Additional Perspective 3-1 (continued)
Requirement 1 (continued)
July 22, 2018
July 24, 2018
Advertising Expense
700
Cash
700
(Pay cash for advertising)
July 30, 2018
Cash
4,000
Aug. 10, 2018
Cash
3,000
Deferred Revenue
4,000
Service Revenue (Clinic)
7,000
(Receive cash and hold kayak clinic)

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