Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (Continued)
Jan. 17 Accounts Payable ……………………………………201 5,800
Merchandise Inventory ………………………119 58
Cash …………………………………………………101 5,742
Paid account payable within discount period.
(Discount taken = $5,800 x 0.01 = $58)
20 Sales Returns and Allowances …………………414 500
Accounts Receivable—Liu Corp. ………..106.5 500
Gave customer a price reduction.
24 Accounts Payable ……………………………………201 496
Merchandise Inventory ……………………….119 496
Returned merchandise for credit.
26 Merchandise Inventory …………………………….119 9,000
Accounts Payable ……………………………..201 9,000
Purchased merchandise for resale.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (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
Cash …………………………………………………101 8,414
5 Advertising Expense ………………………………..655 600
Cash …………………………………………………101 600
Purchased Facebook Ad.
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.
26 Wages Expense ……………………………………….623 1,000
Cash …………………………………………………101 1,000
Paid employee.
27 Mileage Expense ……………………………………..676 192
Cash …………………………………………………101 192
Reimbursed Rey for business mileage.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (Continued)
Mar. 8 Computer Supplies ………………………………….126 2,730
Accounts Payable ……………………………..201 2,730
Purchased supplies on credit.
16 Cash ………………………………………………………..101 5,260
Computer Services Revenue ……………..403 5,260
Collected cash revenue from customer.
19 Accounts Payable ……………………………………201 3,830
Cash …………………………………………………101 3,830
Paid accounts payable ($1,100 + $2,730).
30 Accounts Receivable—IFM Co. …………………106.4 2,220
Sales …………………………………………………413 2,220
Sold merchandise on credit.
30 Cost of Goods Sold ………………………………….502 1,048
Merchandise Inventory ………………………119 1,048
Record cost of March 30 sale.
Reimbursed Rey for business mileage.
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
3 8,414 65,587
5 600 64,987
11 5,500 70,487
15 4,800 65,687
26 1,000 64,687
27 192 64,495
Accounts Receivable—Alex’s Engineering Co. Acct. No. 106.1
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Jan. 11 5,500 5,500
Feb. 11 5,500 0
Accounts Receivable—Wildcat Services Acct. No. 106.2
Date Explanation PR Debit Credit Balance
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (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—IFM Co. Acct. No. 106.4
Accounts Receivable—Liu Corporation Acct. No. 106.5
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Jan. 13 5,200 5,200
20 500 4,700
22 4,700 0
Accounts Receivable—Gomez Co. Acct. No. 106.6
Date Explanation PR Debit Credit Balance
Accounts Receivable—Delta Co. Acct. No. 106.7
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Feb. 23 3,220 3,220
Mar. 9 3,220 0
Accounts Receivable—KC, Inc. Acct. No. 106.8
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (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
15 600 2,840
17 58 2,782
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
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Office Equipment Acct. No. 163
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (Continued)
Accumulated Depreciation—Office Equipment Acct. No. 164
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 20,000
Accumulated Depreciation—Computer Equipment Acct. No. 168
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
Unearned Computer Services Revenue Acct. No. 236
Date Explanation PR Debit Credit Balance
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (Continued)
Common Stock Acct. No. 307
Retained Earnings Acct. No. 318
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 7,360
Dividends Acct. No. 319
Date Explanation PR Debit Credit Balance
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 Acct. No. 413
Date Explanation PR Debit Credit Balance
Jan. 13 5,200 5,200
26 5,800 11,000
Sales Returns and Allowances Acct. No. 414
Date Explanation PR Debit Credit Balance
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (Continued)
Sales Discounts Acct. No. 415
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Jan. 13 3,560 3,560
26 4,640 8,200
Feb. 23 2,660 10,860
Mar. 25 2,002 12,862
30 1,048 13,910
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
Wages Expense Acct. No. 623
Date Explanation PR Debit Credit Balance
Insurance Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (Continued)
Computer Supplies Expense Acct. No. 652
Date Explanation PR Debit Credit Balance
Advertising Expense Acct. No. 655
Date Explanation PR Debit Credit Balance
Mileage Expense Acct. No. 676
Miscellaneous Expenses Acct. No. 677
Date Explanation PR Debit Credit Balance
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
Serial Problem — SP 4 (Continued) Part 3
BUSINESS SOLUTIONS
Partial Work Sheet
March 31, 2020
Acct.
No.
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
101
68,057
68,057
106.1
0
0
106.2
2,800
2,800
106.3
9,047
9,047
IMF Co. …………………………..
106.5
Liu Corporation ………………….
0
0
106.6
Gomez Co. …………………………
0
0
106.7
Delta Co. …………………………..
0
0
106.8
5,800
5,800
106.9
0
0
119
846
(g)
142
704
126
3,310
(a)
1,305
2,005
128
1,665
(b)
555
1,110
131
Prepaid rent ……………………….
3,300
(d)
163
Office equipment………………..
8,000
164
Accumulated depreciation–
Office equipment ……………..
(f)
167
Computer equipment ………….
20,000
168
Accumulated depreciation–
201
0
0
210
0
(c)
875
875
236
0
0
307
98,000
98,000
318
Retained earnings ………………
Dividends ………………………….
403
25,307
25,307
413
Sales …………………………..
19,240
19,240
414
Sales returns and allow. …………
415
Sales discounts …………………
502
Cost of goods sold …………….
13,910
(g)
612
0
(f)
400
400
613
0
(e)
1,250
1,250
623
2,375
(c)
875
3,250
637
Insurance expense ……………..
0
(b)
640
Rent expense …………………….
0
(d)
652
0
(a)
655
Advertising expense …………..
676
Mileage expense ………………..
320
677
Miscellaneous expenses ……….
0
0
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