Weygandt, Accounting Principles, 12e
Chapter Four
Solutions to Challenge Exercises
Challenge Exercise 4-1 – Solution
LENNY COMPANY
Worksheet
For the Month Ended June 30, 2017
Account Titles
Trial Balance
Adjustments
Adj. Trial Balance
Income Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
2,200
2,200
2,200
Accounts
Receivable
2,900
600
3,500
3,500
Supplies
2,050
1,610
440
440
Accounts Payable
1,300
1,300
1,300
Revenue
300
Note Payable
2,000
2,000
2,000
3,200
3,200
3,200
Service Revenue
2,100
2,775
2,775
600
Unearned Service
Salaries and
Wages Expense
1,200
1,200
1,200
Miscellaneous
Expense
550
550
550
Totals
8,900
8,900
Supplies Expense
1,610
1,610
1,610
Interest Expense
Interest Payable
Totals
2,305
2,305
9,520
9,520
3,380
2,775
6,140
6,745
Net Loss
605
605
Totals
3,380
3,380
6,745
6,745
Challenge Exercise 4-2 Solution
YUSUF COMPANY
Balance Sheet
December 31, 2017
(in thousands)
Assets
Current assets
Cash …………………………………………………………………….. $ 2,648
Short-term investments …………………………………………….. 3,490
Long-term investments ……………………………………………………… 464
Property, plant, and equipment
Equipment …………………………..…………………………………. 11,300
Liabilities and Owner’s Equity
Current liabilities
Notes payable (due in 2018) ……………………………………… $ 474
Total liabilities ………………………………………………………………….. 3,892
Owner’s equity