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)
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.
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.
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
303
Serial Problem — SP 4 (Continued)
Mar. 8 Computer Supplies ………………………………….126 2,730
Accounts Payable ……………………………..201 2,730
Purchased supplies on credit.
19 Accounts Payable ……………………………………201 3,830
Cash …………………………………………………101 3,830
Paid accounts payable ($1,100 + $2,730).
24 Accounts Receivable—Easy Leasing ………..106.3 9,047
Computer Services Revenue ……………..403 9,047
Billed customer for services.
25 Accounts Receivable—Wildcat Services ……….. 106.2 2,800
Sales …………………………………………………413 2,800
Sold merchandise on credit.
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
304
Serial Problem — SP 4 (Continued)
Part 2
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
11 5,500 70,487
15 4,800 65,687
26 1,000 64,687
27 192 64,495
Mar. 9 3,220 67,715
Accounts Receivable—Wildcat Services Acct. No. 106.2
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Mar. 25 2,800 2,800
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
305
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—Gomez Co. Acct. No. 106.6
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 2,668
Jan. 9 2,668 0
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
306
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
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
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
307
Serial Problem — SP 4 (Continued)
Accumulated Depreciation—Office Equipment Acct. No. 164
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 400
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,100
Jan. 7 5,800 6,900
17 5,800 1,100
Wages Payable Acct. No. 210
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 500
Jan. 4 500 0
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
308
Serial Problem — SP 4 (Continued)
Common Stock Acct. No. 307
Date Explanation PR Debit Credit Balance
Dividends Acct. No. 319
Date Explanation PR Debit Credit Balance
Feb. 15 4,800 4,800
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
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
309
Serial Problem — SP 4 (Continued)
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Jan. 22 47 47
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
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
310
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
Feb. 5 600 600
Mileage Expense Acct. No. 676
Wild, Shaw, Financial & Managerial Accounting, 8e Solutions Manual: Chapter 4
311
Serial Problem — SP 4 (Continued) Part 3
BUSINESS SOLUTIONS
Partial Work Sheet
March 31, 2020
Acct.
No.
Account Title
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
101
Cash …………………………..
68,057
68,057
106.1
Alex’s Engineering Co. ………..
0
0
106.2
Wildcat Services ………………..
2,800
2,800
106.3
Easy Leasing ……………………..
9,047
9,047
106.4
IMF Co. …………………………..
5,220
5,220
106.5
Liu Corporation ………………….
0
0
106.6
Gomez Co. …………………………
0
0
106.7
Delta Co. …………………………..
0
0
106.8
KC, Inc. …………………………..
5,800
5,800
106.9
Dream, Inc. ………………………..
0
0
119
Merchandise inventory …………
(g)
126
Computer supplies …………….
3,310
2,005
128
Prepaid insurance ………………
1,665
1,110
131
Prepaid rent ……………………….
3,300
163
Office equipment………………..
8,000
8,000
164
Accumulated depreciation–
Office equipment ……………..
167
Computer equipment ………….
20,000
20,000
168
Accumulated depreciation–
Computer equip. ……………..
1,250
(e)
1,250
2,500
201
Accounts payable ………………
0
0
210
Wages payable …………………..
0
(c)
875
875
236
Unearned computer
services revenue ……………..
0
0
307
Common stock …………………..
98,000
98,000
318
Retained earnings ………………
7,360
7,360
319
Dividends ………………………….
4,800
4,800
403
Computer services revenue ……….
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
14,052
612
Depreciation expense–
Office equipment ……………..
613
Computer equipment ………..
623
Wages expense ………………….
(c)
637
Insurance expense ……………..
0
640
Rent expense …………………….
0
2,475
652
Computer supplies expense …………
0
1,305
655
Advertising expense …………..
676
Mileage expense ………………..
677
Miscellaneous expenses ……….
0
0
______