Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Problem 4-5B (Concluded)
Part 4
Current assets
Cash ………………………………………………………………… $ 7,400
Merchandise inventory …………………………………….. 21,300
Store supplies ………………………………………………….. 3,700
Prepaid insurance ……………………………………………. 3,800*
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Problem 4-6BD ONLINE APPENDIX (50 minutes)
FOSTER PRODUCTS COMPANY
Work Sheet
For Year Ended October 31
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
Balance Sheet
Account Title
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash …………………………………….
7,400
7,400
7,400
Merchandise inventory …………
24,000
(d)
2,700
21,300
21,300
Store supplies ………………………
9,700
(a)
6,000
3,700
3,700
Prepaid insurance ………………..
6,600
(b)
2,800
3,800
3,800
Store equipment …………………..
81,800
81,800
81,800
Accum. depreciation—Store eq …..
32,000
(c)
3,000
35,000
Accounts payable ………………..
18,000
18,000
Common stock …………………….
3,000
3,000
Dividends …………………………….
2,000
2,000
2,000
Sales ……………………………………
227,100
227,100
227,100
Sales discounts ……………………
1,000
1,000
1,000
Sales returns and allowances
5,000
5,000
5,000
Cost of goods sold ……………….
75,800
(d)
2,700
78,500
78,500
Depreciation expense—Store eq …
0
(c)
3,000
3,000
3,000
Sales salaries expense …………
Office salaries expense ………..
Insurance expense ……………….
0
(b)
2,800
2,800
2,800
Rent expense—Selling space ….
Store supplies expense ………..
0
(a)
6,000
6,000
6,000
Advertising expense …………….
______
______
______
______
______
Net income …………………………..
______
______
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
SERIAL PROBLEM — SP 4
Serial Problem — Business Solutions (120 minutes) Part 1
Journal entries
Jan. 4 Wages Expense ……………………………………….623 125
Wages Payable ………………………………………..210 500
Cash …………………………………………………101 625
Paid employee.
11 Accounts Receivable—Alex’s Eng. Co …………106.1 5,500
Unearned Computer Services Revenue ……….236 1,500
Computer Services Revenue ……………..403 7,000
Completed work on project.
13 Accounts Receivable—Liu Corp. ……………….106.5 5,200
Sales …………………………………………………413 5,200
Sold merchandise on credit.
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Jan. 17 Accounts Payable ……………………………………201 5,800
Merchandise Inventory ………………………119 58
22 Cash ………………………………………………………..101 4,653
Sales Discounts ……………………………………….415 47
Accounts Receivable—Liu Corp …………106.5 4,700
Collected accounts receivable.
January 13 sale ………………………………. $5,200
26 Accounts Receivable—KC, Inc ………………….106.8 5,800
Sales …………………………………………………413 5,800
Sold merchandise on credit.
26 Cost of Goods Sold ………………………………….502 4,640
Merchandise Inventory ………………………119 4,640
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Feb. 1 Prepaid Rent ……………………………………………131 2,475
Cash …………………………………………………101 2,475
Paid three months’ rent in advance.
3 Accounts Payable ……………………………………201 8,504
Merchandise Inventory ………………………119 90
11 Cash ………………………………………………………..101 5,500
Accounts Receivable—Alex’s Eng. Co. ……106.1 5,500
Collected accounts receivable.
15 Dividends …………………………………………………319 4,800
Cash …………………………………………………101 4,800
Paid cash dividends.
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Mar. 8 Computer Supplies ………………………………….126 2,730
Accounts Payable ……………………………..201 2,730
Purchased supplies on credit.
19 Accounts Payable ……………………………………201 3,830
Cash …………………………………………………101 3,830
Paid accounts payable ($1,100 + $2,730).
24 Accounts Receivable—Easy Leasing ………..106.3 9,047
Computer Services Revenue ……………..403 9,047
Billed customer for services.
25 Accounts Receivable—Wildcat Services ……….. 106.2 2,800
Sales …………………………………………………413 2,800
Sold merchandise on credit.
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Part 2
Ledger accounts as of March 31 BEFORE posting of March 31 adjusting entries
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 48,372
Jan. 4 625 47,747
5 25,000 72,747
9 2,668 75,415
15 600 74,815
Accounts Receivable—Alex’s Engineering Co. Acct. No. 106.1
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Accounts Receivable—Easy Leasing Acct. No. 106.3
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Mar. 24 9,047 9,047
Accounts Receivable—Gomez Co. Acct. No. 106.6
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 2,668
Jan. 9 2,668 0
Accounts Receivable—Delta Co. Acct. No. 106.7
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Accounts Receivable—Dream, Inc. Acct. No. 106.9
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Merchandise Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Jan. 7 5,800 5,800
13 3,560 2,240
Computer Supplies Acct. No. 126
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 580
Mar. 8 2,730 3,310
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,665
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Accumulated Depreciation—Office Equipment Acct. No. 164
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 400
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,100
Jan. 7 5,800 6,900
Wages Payable Acct. No. 210
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 500
Jan. 4 500 0
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Common Stock Acct. No. 307
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 73,000
Jan. 5 25,000 98,000
Computer Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Jan. 11 7,000 7,000
16 4,000 11,000
Mar. 16 5,260 16,260
24 9,047 25,307
Sales Returns and Allowances Acct. No. 414
Date Explanation PR Debit Credit Balance
Jan. 20 500 500
Wild and Shaw Financial and Managerial Accounting 9e Solutions Manual: Chapter 4
Serial Problem (Continued)
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Jan. 22 47 47
Depreciation Expense—Office Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Depreciation Expense—Computer Equipment Acct. No. 613
Date Explanation PR Debit Credit Balance