FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter 3, Problem 3PSB
1
To determine
Concept Introduction:
Income Statement:
The income statement shows the revenues and expenses during the period and the resulting
Statement of
Statement of retained earnings shows the opening balance to which resulting profits or losses are added/subtracted and dividends if any are deducted resulting in closing retained earnings balance.
Balance Sheet:
The balance Sheet shows the assets and liabilities and owner’s equity of the business as of the date of preparation. The sum of assets is equal to the sum of liabilities and owners equity.
To prepare:
The t-accounts from the given unadjusted
1
Expert Solution
Explanation of Solution
| Cash | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount $ |
| 31-Dec | balance c/d | 60,000 | |||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| Teaching supplies | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 70,000 | |||
| Prepaid Insurance | |||||
| Dr | Cr | ||||
| Date | Balance | Amount $ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 19,000 | |||
| Prepaid Rent | |||||
| Dr | Cr | ||||
| Date | Balance | Amount $ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 3,800 | |||
| Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 12,000 | |||
| Accumulated Depreciation-Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 2,500 | |||
| Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 40,000 | |||
| Accumulated Depreciation-Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount $ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 20000 | |||
| Accounts Payable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 11,200 | |||
| Salaries Payable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| Unearned training fees | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 28,600 | |||
| Common stock | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 11,000 | |||
| Retained Earnings | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 60,500 | |||
| Dividends | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 20,000 | |||
| Tuition fees earned | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 129,200 | |||
| Training fees earned | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 68,000 | |||
| Depreciation expenses-Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| Depreciation expenses-Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| Salaries expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 44,200 | |||
| Insurance expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| Rent expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 29,600 | |||
| Teaching supplies expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| Advertising expense | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 19,000 | |||
| Utilities expense | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 13,400 | |||
2
To determine
Concept Introduction:
Income Statement:
The income statement shows the revenues and expenses during the period and the resulting profits or losses arising after all the expenses are deducted from the revenues
Statement of retained earnings:
Statement of retained earnings shows the opening balance to which resulting profits or losses are added/subtracted and dividends if any are deducted resulting in closing retained earnings balance.
Balance Sheet:
The balance sheet shows the assets and liabilities and owner’s equity of the business as of the date of preparation. The sum of assets is equal to the sum of liabilities and owners equity
To prepare:
The
2
Expert Solution
Explanation of Solution
| Date | Accounts & explanation | Debit $ | Credit $ | |
| a | 31-Dec | Insurance expenses | 9,500 | |
| Prepaid Insurance | 9,500 | |||
| To record insurance expenses | ||||
| b | 31-Dec | Teaching supplies expenses | 50,000 | |
| Teaching supplies | 50,000 | |||
| To record teaching supplies expenses | ||||
| c | 31-Dec | Depreciation expenses-Equipment | 5,000 | |
| Accumulated depreciation-Equipment | 5,000 | |||
| To record depreciation expenses-equipment | ||||
| d | 31-Dec | Depreciation expenses-professional library | 2,400 | |
| Accumulated depreciation-professional library | 2,400 | |||
| To record depreciation expenses-professional library | ||||
| e | 31-Dec | Unearned Training fees | 28,600 | |
| Training fees earned | 28,600 | |||
| To record training fees earned | ||||
| f | 31-Dec | Account Receivable | 5,750 | |
| Tuition fees earned | 5,750 | |||
| To record tuition fees earned | ||||
| g | 31-Dec | Salaries expenses | 450 | |
| Salaries payable | 450 | |||
| To record salaries payable | ||||
| h | 31-Dec | Rent expenses | 3,800 | |
| Prepaid Rent | 3,800 | |||
| To record rent expenses accrued |
The adjustment entries have been posted to T-accounts as follows
| Cash | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 60,000 | |||
| Accounts Receivable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| 31-Dec | Tuition fees earned | 5,750 | |||
| Teaching supplies | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 70,000 | 31-Dec | Teaching supplies expenses | 50,000 |
| Prepaid Insurance | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 19,000 | 31-Dec | Insurance expenses | 9,500 |
| Prepaid Rent | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 3,800 | 31-Dec | Rent expenses | 3,800 |
| Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 12,000 | |||
| Accumulated Depreciation-Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 2,500 | |||
| 31-Dec | Depreciation expenses-Professional library | 2,400 | |||
| Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 40,000 | |||
| Accumulated Depreciation-Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 20,000 | |||
| 31-Dec | Depreciation expenses-Equipment | 5,000 | |||
| Accounts Payable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 11,200 | |||
| Salaries Payable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| 31-Dec | Salaries expenses | 450 | |||
| Unearned training fees | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | Training fees earned | 28,600 | 31-Dec | balance c/d | 28,600 |
| Common stock | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 11,000 | |||
| Retained Earnings | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 60,500 | |||
| Dividends | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 20,000 | |||
| Tuition fees earned | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 129,200 | |||
| 31-Dec | Accounts Receivable | 5,750 | |||
| Training fees earned | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 68,000 | |||
| 31-Dec | Unearned training fees | 28,600 | |||
| Depreciation expenses-Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| 31-Dec | Accumulated Depreciation-Professional library | 2,400 | |||
| Depreciation expenses-Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| 31-Dec | Accumulated Depreciation-Equipment | 5,000 | |||
| Salaries expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 44,200 | |||
| 31-Dec | Salaries Payable | 450 | |||
| Insurance expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| 31-Dec | Prepaid Insurance | 9,500 | |||
| Rent expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount $ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 29,600 | |||
| 31-Dec | Prepaid rent | 3,800 | |||
| Teaching supplies expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| 31-Dec | Teaching supplies | 50,000 | |||
| Advertising expense | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 19,000 | |||
| Utilities expense | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 13,400 | |||
3
To determine
Concept Introduction:
Income Statement:
The income statement shows the revenues and expenses during the period and the resulting profits or losses arising after all the expenses are deducted from the revenues
Statement of retained earnings:
Statement of retained earnings shows the opening balance to which resulting profits or losses are added/subtracted and dividends if any are deducted resulting in closing retained earnings balance.
Balance Sheet:
The Balance Sheet shows the assets and liabilities and owner’s equity of the business as of the date of preparation. The sum of assets is equal to the sum of liabilities and owners equity
The closing balances of t-accounts and prepare the adjusted trial balance
3
Expert Solution
Explanation of Solution
The T-accounts with updated balances have been presented below
| Cash | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 60,000 | 31-Dec | balance c/d | 60,000 |
| 60,000 | 60,000 | ||||
| Accounts Receivable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 0 | 31-Dec | balance c/d | 5,750 |
| 31-Dec | Tuition fees earned | 5,750 | |||
| 5,750 | 5,750 | ||||
| Teaching supplies | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 70,000 | 31-Dec | Teaching supplies expenses | 50,000 |
| 31-Dec | balance c/d | 20,000 | |||
| 70,000 | 70,000 | ||||
| Prepaid Insurance | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 19000 | 31-Dec | Insurance expenses | 9500 |
| 31-Dec | balance c/d | 9500 | |||
| 19,000 | 19,000 | ||||
| Prepaid Rent | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 3800 | 31-Dec | Rent expenses | 3800 |
| 31-Dec | balance c/d | 0 | |||
| 3800 | 3800 | ||||
| Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 12,000 | |||
| 31-Dec | balance c/d | 12,000 | |||
| 12,000 | 12,000 | ||||
| Accumulated Depreciation-Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 2500 | |||
| 31-Dec | balance c/d | 4,900 | 31-Dec | Depreciation expenses-Professional library | 2400 |
| 4,900 | 4,900 | ||||
| Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 40000 | |||
| 31-Dec | balance c/d | 40000 | |||
| 40,000 | 40,000 | ||||
| Accumulated Depreciation-Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 20,000 | |||
| 31-Dec | balance c/d | 25,000 | 31-Dec | Depreciation expenses-Equipment | 5,000 |
| 25,000 | 25,000 | ||||
| Accounts Payable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 11,200 | |||
| 31-Dec | balance c/d | 11,200 | |||
| 11,200 | 11,200 | ||||
| Salaries Payable | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance c/d | 0 | |||
| 31-Dec | balance c/d | 450 | 31-Dec | Salaries expenses | 450 |
| 450 | 450 | ||||
| Unearned training fees | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | Training fees earned | 28,600 | 31-Dec | balance b/d | 28,600 |
| 31-Dec | balance c/d | 0 | |||
| 28,600 | 28,600 | ||||
| Common stock | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 11,000 | |||
| 31-Dec | balance c/d | 11,000 | |||
| 11,000 | 11,000 | ||||
| Retained Earnings | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 60,500 | |||
| 31-Dec | balance c/d | 60,500 | |||
| 60,500 | 60,500 | ||||
| Dividends | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 20,000 | |||
| 31-Dec | balance c/d | 20,000 | |||
| 20,000 | 20,000 | ||||
| Tuition fees earned | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 129200 | |||
| 31-Dec | balance c/d | 134,950 | 31-Dec | Accounts Receivable | 5750 |
| 134,950 | 134,950 | ||||
| Training fees earned | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 68,000 | |||
| 31-Dec | balance c/d | 96,600 | 31-Dec | Unearned training fees | 28,600 |
| 96,600 | 96,600 | ||||
| Depreciation expenses-Professional library | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 0 | |||
| 31-Dec | Accumulated Depreciation-Professional library | 2,400 | 31-Dec | balance c/d | 2,400 |
| 2,400 | 2,400 | ||||
| Depreciation expenses-Equipment | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 0 | |||
| 31-Dec | Accumulated Depreciation-Equipment | 5000 | 31-Dec | balance c/d | 5000 |
| 5000 | 5000 | ||||
| Salaries expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | 44,200 | ||||
| 31-Dec | Salaries Payable | 450 | 31-Dec | balance c/d | 44,650 |
| 44,650 | 44,650 | ||||
| Insurance expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 0 | |||
| 31-Dec | Prepaid Insurance | 9,500 | 31-Dec | balance c/d | 9,500 |
| 9,500 | 9,500 | ||||
| Rent expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 29,600 | |||
| 31-Dec | Prepaid rent | 3,800 | 31-Dec | balance c/d | 33,400 |
| 33,400 | 33,400 | ||||
| Teaching supplies expenses | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 0 | |||
| 31-Dec | Teaching supplies | 50,000 | 31-Dec | balance c/d | 50,000 |
| 50,000 | 50,000 | ||||
| Advertising expense | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 19,000 | |||
| 31-Dec | balance c/d | 19000 | |||
| 19,000 | 19,000 | ||||
| Utilities expense | |||||
| Dr | Cr | ||||
| Date | Balance | Amount$ | Date | Balance | Amount$ |
| 31-Dec | balance b/d | 13,400 | |||
| 31-Dec | balance c/d | 13400 | |||
| 13,400 | 13,400 | ||||
The Adjusted Trial Balance has been prepared below
| A I | ||
| Adjusted Trial Balance | ||
| December 31 | ||
| Debit ($) | Credit ($) | |
| Cash | 60,000 | |
| Accounts Receivable | 5,750 | |
| Teaching supplies | 20,000 | |
| Prepaid Insurance | 9,500 | |
| Prepaid Rent | 0 | |
| Professional library | 12,000 | |
| Accumulated Depreciation-Professional library | 4,900 | |
| Equipment | 40,000 | |
| Accumulated Depreciation-Equipment | 25,000 | |
| Accounts Payable | 11,200 | |
| Salaries Payable | 450 | |
| Unearned training fees | 0 | |
| Common stock | 11,000 | |
| Retained Earnings | 60,500 | |
| Dividends | 20,000 | |
| Tuition fees earned | 134,950 | |
| Training fees earned | 96,600 | |
| Depreciation expenses-Professional library | 2,400 | |
| Depreciation expenses-Equipment | 5,000 | |
| Salaries expenses | 44,650 | |
| Insurance expenses | 9,500 | |
| Rent expenses | 33,400 | |
| Teaching supplies expenses | 50,000 | |
| Advertising expense | 19,000 | |
| Utilities expense | 13,400 | |
| Totals | 344,600 | 344,600 |
4
To determine
Concept Introduction:
Income Statement:
The income statement shows the revenues and expenses during the period and the resulting profits or losses arising after all the expenses are deducted from the revenues
Statement of retained earnings:
Statement of retained earnings shows the opening balance to which resulting profits or losses are added/subtracted and dividends if any are deducted resulting in closing retained earnings balance.
Balance Sheet:
The balance sheet shows the assets and liabilities and owner’s equity of the business as of the date of preparation. The sum of assets is equal to the sum of liabilities and owners equity
To prepare:
The income statement, statement of retained earnings and balance sheet
4
Expert Solution
Explanation of Solution
The income statement has been presented below
| A I | ||
| Income statement | ||
| for the year ended December 31 | ||
| Amount $ | Amount $ | |
| Tuition fees earned | 134,950 | |
| Training fees earned | 96,600 | |
| Total revenues | 231,550 | |
| less. Expenses | ||
| Depreciation expenses-Professional library | 2,400 | |
| Depreciation expenses-Equipment | 5,000 | |
| Salaries expenses | 44,650 | |
| Insurance expenses | 9,500 | |
| Rent expenses | 33,400 | |
| Teaching supplies expenses | 50,000 | |
| Advertising expense | 19,000 | |
| Utilities expense | 13,400 | |
| Total expenses | 177,350 | |
| Net profit | 54,200 | |
The statement of retained earnings has been presented below
| A I | ||
| Statement of retained earnings | ||
| for the year ended December 31 | ||
| Amount $ | ||
| Opening balance | 60,500 | |
| Add profits earned during the year | 54,200 | |
| less dividends paid | -20,000 | |
| Ending balance | 94,700 | |
The Balance Sheet has been prepared as follows
| A I | ||
| Balance Sheet | ||
| as ofDecember 31 | ||
| Amount $ | Amount $ | |
| Assets | ||
| Current Assets | ||
| Cash | 60,000 | |
| Accounts Receivable | 5,750 | |
| Current Assets | 20,000 | |
| Prepaid Insurance | 9,500 | |
| Total Current Assets | 95,250 | |
| Non-Current Assets | ||
| Professional library | 12,000 | |
| less:Accumulated Depreciation-Professional library | -4,900 | 7,100 |
| Equipment | 40,000 | |
| less:Accumulated Depreciation-Equipment | -25,000 | 15,000 |
| Total non-current Assets | 22,100 | |
| Total Assets | 117,350 | |
| Liability & owner's Equity | ||
| Liabilities | ||
| Accounts Payable | 11,200 | |
| Salaries Payable | 450 | |
| Total liabilities | 11,650 | |
| Owner's equity | ||
| Common stock | 11,000 | |
| Retained Earnings | 94,700 | |
| Total Equity | 105,700 | |
| Total Liability & owner's Equity | 117,350 | |
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Additional Activities
Directions: Do the task listed bélow using the transacions of Matapang Company
for Deccmber 2019. Writc your answers on a separate sheet of paper.
1. Prepare the journal entries.
2. Post each transaction to its ledger account.
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Ralph Matapang cstablishcd Happy Repair Busincss. The following are the
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Dec.
He invested P150,000 in the firm.
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He purchascd office equipment amounting to P75,000. paid
P37,000 and the balance on account.
2.
2.
3.
He paid accounts payable for supplies purchased worth P7,200.
He paid P6,000 for the salary of an employec.
He received P20,000 for services rendered.
He billed clients P48,000 for services on account.
8.
14.
20.
28.
31.
Matapang withdrew P12,000 for his personal use.
302 Matapang, Drawings
401 Service Revenue
101 Cash
102 Accounts…
Journal entries and trial balanceElite Realty acts as an agent in buying, selling, renting, and managingreal estate. The unadjusted trial balance on March 31, 2019, follows: (attached)
The attached business transactions were completed by Elite Realtyduring April 2019:
Instructions1. Record the April 1, 2019, balance of each account in the appropriatebalance column of a four-column account, write Balance in the itemsection, and place a check mark () in the Posting Reference column.
2. Journalize the transactions for April in a two-column journalbeginning on Page 18. Journal entry explanations may be omitted.3. Post to the ledger, extending the account balance to the appropriatebalance column after each posting.4. Prepare an unadjusted trial balance of the ledger as of April 30, 2019.
5. Assume that the April 30 transaction for salaries and commissionsshould have been $19,100. (a) Why did the unadjusted trial balance in (4)balance? (b) Journalize the correcting entry. (c) Is this error…
Chapter 3 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 3 - A company forgot to record accrued and unpaid...Ch. 3 - Prior to recording adjusting entries, the Supplies...Ch. 3 - Prob. 3MCQCh. 3 - On November 1, Stockton Co. receives $3,600 cash...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQ
Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 1QSCh. 3 - Prob. 2QSCh. 3 - Prob. 3QSCh. 3 - Prob. 4QSCh. 3 - Prob. 5QSCh. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Prob. 12QSCh. 3 - Prob. 13QSCh. 3 - Prob. 14QSCh. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Preparing a classified balance sheet C3 Use the...Ch. 3 - Prob. 24QSCh. 3 - Prob. 25QSCh. 3 - Prob. 26QSCh. 3 - Prob. 27QSCh. 3 - Prob. 28QSCh. 3 - Prob. 1ECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Preparing unadjusted and adjusted trial balances,...Ch. 3 - Prob. 17ECh. 3 - Prob. 1PSACh. 3 - Prob. 2PSACh. 3 - Prob. 6PSACh. 3 - Prob. 7PSACh. 3 - Prob. 1PSBCh. 3 - Prob. 2PSBCh. 3 - Prob. 3PSBCh. 3 - Preparing financial statements from adjusted trial...Ch. 3 - Prob. 5PSBCh. 3 - Preparing closing entries and financial statements...Ch. 3 - Determining balance sheet classifications C3 In...Ch. 3 - After the success of the company’s first two...Ch. 3 - Prob. 1GLPCh. 3 - Prob. 2GLPCh. 3 - Prob. 3GLPCh. 3 - Prob. 4GLPCh. 3 - Prob. 5GLPCh. 3 - Prob. 1AACh. 3 - Prob. 2AACh. 3 - Prob. 3AACh. 3 - Prob. 1BTNCh. 3 - Prob. 2BTNCh. 3 - Prob. 3BTNCh. 3 - Prob. 4BTNCh. 3 - Prob. 5BTNCh. 3 - Prob. 6BTN
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