PROBLEM 4-1C (Continued)
(b) RELIABLE ROOFING
Income Statement
For the Month Ended March 31, 2017
Revenues
Service revenue………………………………………….. $3,170
Expenses
RELIABLE ROOFING
Owner’s Equity Statement
For the Month Ended March 31, 2017
Owner’s Capital, March 1 …………………………………………………. $7,000
Add: Net income ……………………………………………………………. 860
RELIABLE ROOFING
Balance Sheet
March 31, 2017
Assets
Current assets
PROBLEM 4-1C (Continued)
RELIABLE ROOFING
Balance Sheet (Continued)
March 31, 2017
Liabilities and Owner’s Equity
Current liabilities
Accounts payable …………………………………………………. $1,400
(c) Mar. 31 Supplies Expense ………………………………….. 860
Supplies …………………………………………. 860
31 Depreciation Expense ……………………………. 200
Accumulated Depreciation—
Equipment …………………………………… 200
(d) Mar. 31 Service Revenue ……………………………………. 3,170
Income Summary ……………………………. 3,170
31 Income Summary …………………………………… 2,310
Salaries and Wages Expense …………… 1,050
Supplies Expense …………………………... 860
PROBLEM 4-2C
(a) ESPINOSA COMPANY
Partial Worksheet
For the Year Ended December 31, 2017
Account
Adjusted
Trial Balance
Income
Statement
Balance
Sheet
No.
Titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
101
Cash
11,600
11,600
112
Accounts Receivable
15,400
15,400
126
Supplies
2,000
2,000
130
Prepaid Insurance
2,800
2,800
Equipment
34,000
34,000
200
Notes Payable
20,000
20,000
201
Accounts Payable
9,000
9,000
212
Salaries and Wages
Payable
3,500
3,500
230
Interest Payable
800
800
301
25,000
306
10,000
10,000
400
Service Revenue
85,000
85,000
610
Advertising Expense
12,000
12,000
631
Supplies Expense
711
Depreciation Expense
8,000
8,000
722
Insurance Expense
5,000
5,000
726
Salaries and Wages
Expense
44,000
44,000
905
Interest Expense
800
Totals
75,500
85,000
75,800
66,300
Net Income
Totals
85,000
85,000
75,800
PROBLEM 4-2C (Continued)
(b) ESPINOSA COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Service revenue……………………………………… $85,000
Expenses
Salaries and wages expense …………………… $44,000
Advertising expense ………………………………. 12,000
ESPINOSA COMPANY
Owner’s Equity Statement
For the Year Ended December 31, 2017
Owner’s Capital, January 1 ……………………………………………. $25,000
PROBLEM 4-2C (Continued)
ESPINOSA COMPANY
Balance Sheet
December 31, 2017
Assets
Current assets
Cash ………………………………………………………. $11,600
Accounts receivable ……………………………….. 15,400
Liabilities and Owner’s Equity
Current liabilities
Notes payable …………………………………………. $10,000
Accounts payable …………………………………… 9,000
PROBLEM 4-2C (Continued)
(c)
General Journal J14
Date
Account Titles and Explanation
Ref.
Debit
Credit
Dec. 31
Service Revenue …………………………...
400
85,000
Income Summary …………………..
350
85,000
31
Income Summary …………………………..
350
75,500
Advertising Expense ………………
610
12,000
Supplies Expense ………………….
631
Depreciation Expense …………….
711
Insurance Expense ………………..
722
Salaries and Wages Expense ….
726
Interest Expense ……………………
905
31
Income Summary …………………………..
350
9,500
Owner’s Capital ……………………..
301
9,500
31
301
10,000
Owner’s Drawings ………………….
306
(d)
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 1
Balance
25,000
25,000
Dec. 31
Closing entry
34,500
Closing entry
Owner’s Drawing No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
Balance
10,000
Closing entry
PROBLEM 4-2C (Continued)
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Closing entry
J14
85,000
85,000
31
Closing entry
J14
75,500
9,500
31
Closing entry
J14
9,500
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
85,000
85,000
Closing entry
J14
85,000
Advertising Expense No. 610
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
12,000
12,000
31
Closing entry
J14
0
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
5,700
5,700
Closing entry
J14
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
8,000
8,000
31
Closing entry
J14
8,000
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
5,000
5,000
Closing entry
J14
PROBLEM 4-2C (Continued)
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
44,000
44,000
Closing entry
44,000
Interest Expense No. 905
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
800
800
31
Closing entry
(e) ESPINOSA COMPANY
Post-Closing Trial Balance
December 31, 2017
Debit
Credit
Cash …………………………………………………………… $11,600
Accounts Receivable …………………………………… 15,400
Supplies …………………………………………………….. 2,000
PROBLEM 4-3C
(a) NASH COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Service revenue……………………………………… $69,000
Expenses
Salaries and wages expense …………………… $37,000
NASH COMPANY
Owner’s Equity Statement
For the Year Ended December 31, 2017
Owner’s Capital, January 1 ………………………………………. $36,000
Add: Net income ……………………………………………………. 23,500
NASH COMPANY
Balance Sheet
December 31, 2017
Assets
Current assets
Cash ………………………………………………………. $22,400
Accounts receivable ……………………………….. 13,500
Prepaid insurance …………………………………… 3,500
Total current assets …………………………. $39,400
Property, plant, and equipment
PROBLEM 4-3C (Continued)
NASH COMPANY
Balance Sheet (Continued)
December 31, 2017
Liabilities and Owner’s Equity
Current liabilities
Accounts payable ……………………………………. $11,300
Salaries and wages payable ……………………… 3,000
(b) General Journal
Date
Account Titles and Explanation
Ref.
Debit
Credit
Dec. 31
Service Revenue …………………………...
400
69,000
Income Summary …………………..
350
69,000
31
Income Summary …………………………..
350
45,500
Maintenance and Repairs
Expense …………………………….
622
2,000
Depreciation Expense …………….
711
2,600
Insurance Expense …………………
722
Salaries and Wages Expense ….
726
37,000
Utilities Expense…………………….
732
1,700
31
Income Summary …………………………..
350
23,500
301
23,500
31
301
14,000
306
14,000
PROBLEM 4-3C (Continued)
(c)
Owner’s Capital No. 301
12/31 14,000
1/1 Bal. 36,000
12/31 23,500
12/31 Bal. 45,500
Owner’s Drawings No. 306
12/31 Bal. 14,000
12/31 14,000
Income Summary No. 350
12/31 45,500
12/31 69,000
12/31 23,500
69,000
69,000
Service Revenue No. 400
12/31 69,000
12/31 Bal. 69,000
Insurance Expense No. 722
12/31 Bal. 2,200
12/31 2,200
12/31 Bal. 37,000
12/31 37,000
Utilities Expense No. 732
12/31 Bal. 1,700
12/31 1,700
Maintenance and Repairs
Expense No. 622
12/31 Bal. 2,000
12/31 2,000
Depreciation Expense No. 711
12/31 Bal. 2,600
12/31 2,600
(d) NASH COMPANY
Post-Closing Trial Balance
December 31, 2017
Debit
Credit
Cash …………………………………………………………… $22,400
Accounts Receivable …………………………………… 13,500
PROBLEM 4-4C
Prepaid Insurance
Land
Buildings
Equipment
Interest Payable
Totals
Net Income
Totals
3,100
56,000
106,000
49,000
19,300
(a) 1,700
(d) 9,000
19,300
1,400
56,000
106,000
49,000
350,400
9,000
350,400
84,900
16,900
101,800
101,800
101,800
1,400
56,000
106,000
49,000
265,500
265,500
9,000
248,600
16,900
265,500