(a) MICHAEL PEVNICK, P.I.
Worksheet
For the Quarter Ended March 31, 2017
Account Titles
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Dr.
Cr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Net Income
Totals
Cash
Accounts Receivable
Owner’s Drawings
Service Revenue
Salaries and Wages
Expense
Travel Expense
Supplies Expense
Depreciation Expense
Accumulated
Depreciation—Equipment
11,400
5,620
600
2,200
1,300
13,620
(e) 1,030
(b) 800
11,400
6,650
600
2,200
1,300
570
800
14,650
800
2,200
1,300
570
800
14,650
11,400
6,650
600
800
SOLUTIONS TO PROBLEMS: SET B
PROBLEM 4-1B (Continued)
(b) MICHAEL PEVNICK, P.I.
Income Statement
For the Quarter Ended March 31, 2017
Revenues
Service revenue……………………………………….. $14,650
Expenses
Salaries and wages expense …………………….. $2,200
Travel expense ………………………………………… 1,300
Rent expense …………………………………………… 1,200
MICHAEL PEVNICK, P.I.
Owner’s Equity Statement
For the Quarter Ended March 31, 2017
Owner’s Capital, January 1 ……………………………… $ 0
Add: Investment by owner …………………………..… $20,000
PROBLEM 4-1B (Continued)
MICHAEL PEVNICK, P.I.
Balance Sheet
March 31, 2017
Assets
Current assets
Cash ……………………………………………………… $11,400
Accounts receivable ………………………………. 6,650
Liabilities and Owner’s Equity
Current liabilities
Notes payable ………………………………………… $10,000
Accounts payable ………………………………….. 12,350
(c) Mar. 31 Supplies Expense …………………………... 570
Supplies ………………………………….. 570
31 Depreciation Expense …………………….. 800
Accumulated Depreciation—
Equipment …………………………... 800
PROBLEM 4-1B (Continued)
Mar. 31 Accounts Receivable …………………………. 1,030
Service Revenue …………………………. 1,030
31 Income Summary ……………………………….. 7,170
Travel Expense……………………………. 1,300
Salaries and Wages Expense ……….. 2,200
Rent Expense ……………………………… 1,200
PROBLEM 4-2B
(a) GREENWOOD 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
18,800
18,800
112
Accounts Receivable
16,200
16,200
126
Supplies
2,300
2,300
130
Prepaid Insurance
4,400
4,400
Equipment
46,000
46,000
158
Acc. Depr.—Equip.
20,000
20,000
200
Notes Payable
20,000
20,000
201
Accounts Payable
8,000
8,000
212
Salaries and Wages
Payable
2,600
2,600
230
Interest Payable
1,000
1,000
301
Owner’s Capital
26,000
26,000
306
Owner’s Drawings
12,000
12,000
400
Service Revenue
87,800
87,800
610
Advertising Expense
10,000
631
Supplies Expense
3,700
Depreciation Expense
722
Insurance Expense
4,000
39,000
905
Interest Expense
99,700
77,600
Net Income
22,100
22,100
Totals
99,700
99,700
PROBLEM 4-2B (Continued)
(b) GREENWOOD COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Service revenue……………………………………… $87,800
Expenses
Salaries and wages expense …………………… $39,000
Advertising expense ………………………………. 10,000
GREENWOOD COMPANY
Owner’s Equity Statement
For the Year Ended December 31, 2017
Owner’s Capital, January 1 ……………………………………………. $26,000
Add: Net income …………………………………………………………. 22,100
PROBLEM 4-2B (Continued)
GREENWOOD COMPANY
Balance Sheet
December 31, 2017
Assets
Current assets
Cash ……………………………………………………… $18,800
Accounts receivable ………………………………. 16,200
Liabilities and Owner’s Equity
Current liabilities
Notes payable ………………………………………… $5,000
Accounts payable ………………………………….. 8,000
PROBLEM 4-2B (Continued)
(c)
General Journal J14
Date
Account Titles and Explanation
Ref.
Debit
Credit
Dec. 31
Service Revenue …………………………...
400
87,800
Income Summary …………………..
350
87,800
31
Income Summary …………………………..
350
65,700
Advertising Expense ………………
610
10,000
Supplies Expense ………………….
631
Depreciation Expense …………….
711
Insurance Expense ………………..
722
Salaries and Wages Expense ….
726
39,000
Interest Expense ……………………
905
31
Income Summary …………………………..
350
22,100
Owner’s Capital ……………………..
301
22,100
31
301
12,000
Owner’s Drawings ………………….
306
12,000
(d)
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
Jan. 31
Balance
Dec. 31
Closing entry
Closing entry
Owner’s Drawings No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
Closing entry
PROBLEM 4-2B (Continued)
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Closing entry
J14
87,800
87,800
Closing entry
22,100
Closing entry
0
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
Closing entry
J14
Advertising Expense No. 610
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
10,000
Closing entry
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
3,700
3,700
31
Closing entry
J14
3,700
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
8,000
8,000
Closing entry
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
4,000
4,000
Closing entry
J14
0
PROBLEM 4-2B (Continued)
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Balance
39,000
Interest Expense No. 905
Date
Explanation
Ref.
Debit
Credit
Balance
(e) GREENWOOD COMPANY
Post-Closing Trial Balance
December 31, 2017
Debit
Credit
Cash …………………………………………………………… $18,800
Accounts Receivable …………………………………… 16,200
Supplies …………………………………………………….. 2,300
PROBLEM 4-3B
(a) S. NIHO COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
Service revenue……………………………………. $46,000
Expenses
Salaries and wages expense …………………. $35,200
Maintenance and repairs expense …………. 4,400
S. NIHO COMPANY
Owner’s Equity Statement
For the Year Ended December 31, 2017
Owner’s Capital, January 1 ………………………….. $30,000
Add: Additional investment by owner …………. 4,000
S. NIHO COMPANY
Balance Sheet
December 31, 2017
Assets
Current assets
Cash ……………………………………………………. $6,200
Accounts receivable …………………………….. 7,500
PROBLEM 4-3B (Continued)
S. NIHO COMPANY
Balance Sheet (Continued)
December 31, 2017
Liabilities and Owner’s Equity
Current liabilities
Accounts payable ………………………………… $11,700
Salaries and wages payable ………………….. 3,000
Total current liabilities …………………… $14,700
(b)
General Journal
Date
Account Titles
Ref.
Debit
Credit
Dec. 31
Service Revenue …………………………...
Income Summary …………………..
400
350
46,000
46,000
31
Salaries and Wages Expense …
Utilities Expense……………………
726
732
Income Summary ………………………….
350
47,600
31
Owner’s Capital …………………………….
Income Summary ………………….
301
350
1,600
1,600
31
Owner’s Capital …………………………….
301
PROBLEM 4-3B (Continued)
(c)
Owner’s Capital No. 301
12/31 1,600
12/31 Bal. 34,000
12/31 7,200
12/31 Bal. 25,200
12/31 Bal. 7,200
12/31 7,200
Depreciation Expense No. 711
12/31 Bal. 2,800
12/31 2,800
Income Summary No. 350
12/31 47,600
12/31 46,000
12/31 1,600
47,600
47,600
Service Revenue No. 400
12/31 46,000
12/31 Bal. 46,000
Salaries and Wages Expense No. 726
12/31 Bal. 35,200
12/31 35,200
Utilities Expense No. 732
12/31 Bal. 4,000
12/31 4,000
Maintenance and Repairs
Expense No. 622
12/31 Bal. 4,400
12/31 4,400
Insurance Expense No. 722
12/31 Bal. 1,200
12/31 1,200
(d) S. NIHO COMPANY
Post-Closing Trial Balance
December 31, 2017
Debit
Credit
Cash …………………………………………………………… $ 6,200
Accounts Receivable …………………………………… 7,500