PROBLEM 4-4B
(a) AVALON AMUSEMENT PARK
Worksheet
For the Year Ended September 30, 2017
Account Titles
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Equipment
Accumulated Depreciation—
Equipment
Accounts Payable
Unearned Ticket Revenue
Mortgage Payable
Owner’s Capital
Utilities Expense
Property Tax Expense
Interest Expense
Totals
Insurance Expense
Supplies Expense
Interest Payable
120,000
16,900
18,000
6,000
491,700
36,200
14,600
3,700
50,000
109,700
491,700
(d) 2,700
(e) 3,000
(f) 4,000
(b) 21,000
(a) 16,400
(c) 6,000
(f) 4,000
120,000
16,900
21,000
10,000
21,000
16,400
42,200
14,600
1,000
50,000
109,700
4,000
16,900
21,000
10,000
21,000
16,400
120,000
42,200
14,600
1,000
50,000
109,700
4,000
268,500
Key: (a) Supplies Used; (b) Expired Insurance; (c) Depreciation Expensed; (d) Ticket Revenue Recognized; (e) Accrued Property Taxes;
PROBLEM 4-4B (Continued)
(b) AVALON AMUSEMENT PARK
Balance Sheet
September 30, 2017
Assets
Current assets
Cash ……………………………………… $41,400
Land ……………………………………… 80,000
Equipment …………………………….. $120,000
Liabilities and Owner’s Equity
Current liabilities
Mortgage
payable (due in 2015) ………….. $15,000
Accounts payable ………………….. 14,600
Unearned ticket
revenue ……………………………… 1,000
Total current liabilities …….. $ 37,600
Long-term liabilities
Mortgage payable …………………… 35,000
Total liabilities…………………. 72,600
Owner’s equity
Owner’s capital
PROBLEM 4-4B (Continued)
(c) Sept. 30 Supplies Expense ………………………….. 16,400
Supplies …………………………………. 16,400
30 Depreciation Expense …………………….. 6,000
Accumulated Depreciation—
Equipment ……………………………. 6,000
30 Property Tax Expense ……………………. 3,000
Property Taxes Payable …………… 3,000
(d) Sept. 30 Ticket Revenue ………………………………. 280,200
Income Summary ……………………. 280,200
30 Income Summary …………………………... 236,200
Salaries and Wages Expense …… 105,000
Maintenance and Repairs
Expense ………………………………. 30,500
Interest Expense ……………………… 10,000
Advertising Expense ……………….. 9,400
Depreciation Expense ……………… 6,000
PROBLEM 4-4B (Continued)
(e) AVALON AMUSEMENT PARK
Post-Closing Trial Balance
September 30, 2017
Debit
Credit
Cash …………………………………………………………… $ 41,400
Supplies …………………………………………………….. 2,200
Accumulated Depreciation—Equipment ……….. $ 42,200
Accounts Payable ……………………………………….. 14,600
Interest Payable ………………………………………….. 4,000
PROBLEM 4-5B
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 1
Cash …………………………………………….
101
10,000
Owner’s Capital …………………….
301
10,000
1
Equipment ……………………………………
157
6,000
Cash …………………………………….
101
3,000
Accounts Payable …………………
201
3,000
3
Supplies ……………………………………….
126
1,200
Accounts Payable …………………
201
1,200
5
Prepaid Insurance …………………………
130
1,200
Cash …………………………………….
101
1,200
14
Accounts Receivable …………………….
112
4,800
Service Revenue …………………..
400
4,800
18
Accounts Payable …………………………
201
2,000
Cash …………………………………….
101
2,000
20
Salaries and Wages Expense …………
726
1,800
Cash …………………………………….
101
1,800
21
Cash ……………………………………………
101
1,400
Accounts Receivable …………….
112
1,400
28
Accounts Receivable …………………….
112
2,500
Service Revenue …………………..
400
2,500
31
Gasoline Expense …………………………
633
200
Cash …………………………………….
101
200
31
Owner’s Drawings …………………………
306
700
Cash …………………………………….
101
700
PROBLEM 4-5B (Continued)
(b)&(c) SHAW’S CARPET CLEANERS
Worksheet
For the Month Ended March 31, 2017
Account Titles
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Accounts Payable
Owner’s Capital
Owner’s Drawings
Service Revenue
Gasoline Expense
Salaries and Wages Expense
Totals
700
200
1,800
19,500
2,200
10,000
7,300
19,500
(e) 550
(a) 500
700
200
2,350
2,200
10,000
7,800
200
2,350
7,800
700
2,200
10,000
Key: (a) Service Revenue Earned; (b) Depreciation Expensed; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.
PROBLEM 4-5B (Continued)
(a), (e) & (f)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
J1
10,000
10,000
1
J1
3,000
7,000
5
J1
1,200
5,800
J1
2,000
3,800
20
J1
1,800
2,000
21
J1
1,400
3,400
31
J1
3,200
31
J1
2,500
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 14
J1
4,800
4,800
J1
1,400
3,400
28
J1
2,500
5,900
Adjusting
J2
6,400
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 3
J1
1,200
1,200
31
Adjusting
J2
950
250
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Credit
Balance
31
Adjusting
J2
1,100
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
J1
6,000
6,000
PROBLEM 4-5B (Continued)
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
Adjusting
J2
300
300
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
J1
3,000
3,000
3
J1
1,200
4,200
J1
2,200
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
Adjusting
J2
550
550
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 1
J1
10,000
10,000
Closing
J3
3,900
Closing
J3
Owner’s Drawings No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
J1
700
700
Closing
J3
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
Closing
J3
7,800
7,800
Closing
J3
3,900
Closing
J3
PROBLEM 4-5B (Continued)
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 14
J1
4,800
4,800
28
J1
2,500
7,300
31
Adjusting
J2
500
7,800
Closing
J3
7,800
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
Adjusting
J2
950
950
31
Closing
J3
950
0
Gasoline Expense No. 633
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
J1
200
31
Closing
J3
200
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
Adjusting
J2
300
300
31
Closing
J3
300
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 31
Adjusting
J2
100
100
31
Closing
J3
0
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Mar. 20
J1
1,800
Adjusting
J2
550
2,350
PROBLEM 4-5B (Continued)
(d) SHAW’S CARPET CLEANERS
Income Statement
For the Month Ended March 31, 2017
Revenues
Service revenue……………………………………… $7,800
Expenses
Salaries and wages expense …………………… $2,350
Supplies expense …………………………………… 950
SHAW’S CARPET CLEANERS
Owner’s Equity Statement
For the Month Ended March 31, 2017
Owner’s Capital, March 1 ………………………………. $ 0
Add: Investments ………………………………………… $10,000
SHAW’S CARPET CLEANERS
Balance Sheet
March 31, 2017
Assets
Current assets
Cash ……………………………………………………… $2,500
PROBLEM 4-5B (Continued)
SHAW’S CARPET CLEANERS
Balance Sheet (Continued)
March 31, 2017
Assets (Continued)
Property, plant, and equipment
Equipment ………………………………………………. $6,000
Liabilities and Owner’s Equity
Current liabilities
Accounts payable …………………………..……….. $2,200
(e)
General Journal J2
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 31
Accounts Receivable …………………….
112
500
Service Revenue …………………..
400
500
31
Depreciation Expense …………………..
711
300
Accumulated Depreciation—
Equipment ………………………..
158
Insurance Expense ……………………….
722
Prepaid Insurance …………………
130
100
Supplies Expense …………………………
631
Supplies ……………………………….
126
950
Salaries and Wages Expense …………
726
Salaries and Wages Payable ….
212
550
PROBLEM 4-5B (Continued)
(f)
General Journal J3
Date
Account Titles and Explanation
Ref.
Debit
Credit
Mar. 31
Service Revenue …………………………..
400
7,800
Income Summary ………………….
350
7,800
31
Income Summary ………………………….
350
3,900
Salaries and Wages Expense …
726
2,350
Depreciation Expense ……………
711
Insurance Expense ………………..
722
Gasoline Expense …………………
633
31
Income Summary ………………………….
350
3,900
Owner’s Capital …………………….
301
3,900
31
301
Owner’s Drawings …………………
306
(g) SHAW’S CARPET CLEANERS
Post-Closing Trial Balance
March 31, 2017
Debit
Credit
Cash …………………………………………………………… $ 2,500
Accounts Receivable …………………………………… 6,400