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Student Name:
Class:
Entry Debit Credit
1. 3,000
3,000 <--Correct!
2. 25,000
25,000 <--Correct!
Instructor
Problem 03-04
McGraw-Hill
Adjusting Entries
Buzzard Bicycle
(Record salaries owed at December 31)
Salaries Payable
Salaries Expense
(Reduce prepaid insurance for six months used of 36 months paid in advance)
Prepaid Insurance
Insurance Expense
Account
1. 18,000$
2. 25,000$
Given Data P03-04:
BUZZARD BICYCLE
December 31
Debited Prepaid Insurance for the entire amount.
Purchased 3-year fire insurance policy on July 1.
Financial information:
Employee salaries for December, to be paid in January.
Student Name:
Class:
450,000$
280,000
730,000$
Correct!
Total
Common Retained Stockholders'
Stock Earnings Equity
170,000$ 31,000$ 201,000$
Current Assets
16,000$ 31,000$
For the year ended December 31, 2021
Income Statement
BOILERMAKER UNLIMITED
For the year ended December 31, 2021
Statement of Stockholders' Equity
BOILERMAKER UNLIMITED
Service revenues:
New Construction
Remodel
Balance at January 1
Assets
Cash
Current Liabilities
Total revenues
Expenses:
BOILERMAKER UNLIMITED
December 31, 2021
Balance Sheet
Problem 03-05
McGraw-Hill
Instructor
Liabilities
Accounts payable
200,000
91,000
Retained Earnings
Common Stock
Debits Credits
16,000$
25,000
200,000
31,000
26,000
450,000
280,000
30,000$
BOILERMAKER UNLIMITED
December 31, 2021
Adjusted Trial Balance
Given Data P03-05:
Accounts Receivable
Cash
Accounts
Retained Earnings
Service Revenue-remodeling
Dividends
Additional information:
Common stock issued during year
Common Stock
Service Revenue-new construction
Student Name:
Class:
10,300 9,500 2,000
1,300
10,300 9,500 700
Correct! Correct! Correct!
- 5,300 79,000
200 3,300
200 2,000 79,000
Correct! Correct! Correct!
Instructor
Problem 03-07
McGraw-Hill
Requirement 1 and 2:
Utilities Payable
Deferred Revenue
Common Stock
T-Accounts
CRIMSON TIDE MUSIC ACADEMY
Cash
Accounts Receivable
Supplies
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
2,100 200 5,400
26,600 2,600 5,400
Correct! Correct! Correct!
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
Debit Credit
10,300$
9,500
800
700
45,500$
800
46,300
December 31, 2021
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, 2021
Income Statement
Service
Interest
Interest Receivable
Revenues:
Total revenues
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
Total
Common Retained Stockholders'
Stock Earnings Equity
79,000$ 19,700$ 98,700$
10,300$ 7,700$
9,500 2,100
800 2,000
Entry Account Debit Credit
(a) 45,500
800
CRIMSON TIDE MUSIC ACADEMY
Closing Entries
Current assets:
For the year ended December 31, 2021
Statement of Stockholders' Equity
CRIMSON TIDE MUSIC ACADEMY
Balance at January 1
December 31, 2021
Balance Sheet
CRIMSON TIDE MUSIC ACADEMY
Current liabilities:
Cash
Accounts Receivable
Interest Receivable
Requirement 5:
December 31, 2021
Interest Revenue
Service Revenue
Assets
Liabilities
Accounts Payable
Salaries Payable
Deferred Revenue
Problem 03-07
Student Name:
Class:
Instructor
Problem 03-07
McGraw-Hill
19,700 42,200 800
35,900 46,300 45,500 3,300 800
30,100 - -
Correct! Correct! Correct!
Debit Credit
10,300$
9,500
800
December 31, 2021
CRIMSON TIDE MUSIC ACADEMY
Post-Closing Trial Balance
Retained Earnings
Service Revenue
Interest Revenue
Requirement 6:
Accounts Receivable
Cash
Account Title
Interest Receivable
Requirement 7:
Debits Credits
10,300$
9,500
-
2,000
7,200
78,000
20,000
-
2,400
153,900$ 153,900$
Year-end Adjusting Entries: Debit Credit
Salaries Expense 2,100
Interest Receivable
Supplies
Prepaid Rent
Land
Notes Receivable
Given Data P03-07:
Cash
Accounts
Accounts Receivable
CRIMSON TIDE MUSIC ACADEMY
Unadjusted Trial Balance
December 31, 2021
Totals
Utilities Expense
Supplies Expense
