Professional Documents
Culture Documents
Intro to Accounting
P3-41B
1.)
Date
2.)
Beg.
Bal.
Bal.
Beg
.
Bal.
Bal.
Pos
t
Debit
Credit
Ref.
a.
1,800
1,800
b.
1,100
1,100
c.
400
400
d.
700
700
e.
400
400
f.
1,200
1,200
g.
1,530
1,530
T-accounts
Cash
7,200
7,200
Office Supplies
1,600 c.
400
1,200
Accounts Receivable
19,400
g. 11,530
Bal.
20,930Equipment
Beg
20,000
.
Beg.
Bal.
Bal.
Bal.
Beg.
Bal.
Bal.
Prepaid Rent
2,200 b. 1,100
1,100
Acc. Dpr. - Equipment
Beg
3,700
.
Bal.
20,000
d.
Bal.
Accounts Payable
Beg
3,400
.
Salaries Payable
f.
1,200
1,700
4,400
Unearned Revenue
a.
1,800
2,600
George Gorham
Intro to Accounting
Bal.
e.
Bal.
Bal
.
3,400
3,800
Canton, Capital
Beg
39,000
.
Bal.
Bal.
Beg
.
Bal.
Bal.
39,000
Bal
.
1,200
Canton, Withdrawals
9,600
Service Revenue
15,900
9,600
a.
g.
Bal
.
Beg
.
Bal.
f.
Bal.
Beg
.
Bal.
e.
Bal.
Salaries Expense
3,300
Bal
.
1,200
4,500
Advertising Expense
1,300
1,400
1,700
3.)
b.
Rent Expense
1,100
1,100
1,800
11,530
19,230
700
Supplies Expense
c.
400
Bal.
2,800
400
George Gorham
Intro to Accounting
Account Title
Cash
Accounts Receivable
Prepaid Rent
Offices Supplies
Equipment
Accumulated Depreciation Equipment
Accounts Payable
Salaries Payable
Unearned Revenue
Canton, Capital
Canton, Withdrawals
Service Revenue
Salaries Expense
Rent Expense
Depreciation Expense Equipment
Advertising Expense
Supplies Expense
Total
4.)
3
Debit
$ 7,200
20,930
1,100
1,200
20,000
Credit
4,400
3,800
1,200
800
39,000
9,600
19,230
4,500
1,100
700
1,700
400
$ 68,430
$ 68,430
How can Canton Air Purifi cation use the adjusted trial
balance?
The adjusted trial balance is used to create the financial statements. Revenue and expense
accounts are recorded from the trial balance to create the income statement. Assets,
liabilities, and equity accounts are recorded to create the balance sheet. Lastly, the
changes in the accounts from the previous period are used to create the statement of cash
flows.
P4-34B
1.)
Income Statement
BROWNIE IRRIGATION SYSTEM
Income Statement
Year Ended December 31, 2014
Revenue:
Service Revenue
Expenses:
Insurance Expense
Salaries Expense
Supplies Expense
Interest Expense
$
$
500
17,700
1,600
100
40,000
George Gorham
Intro to Accounting
2.)
5,000
20,000
$
$ 87,000
4,900
82,100
1115,000
$ 77,100
Brownie, Withdrawal
Owners equity, December 30, 2014
3.)
44,900
4,900
Assets
Current assets:
Cash
Accounts receivable
Office supplies
Prepaid Insurance
Total current assets
Long-term assets:
Equipment
Less: Accumulated depreciation equipment
Building
6,500
43,600
3,300
4,800
$ 58,200
$ 23,000
6,900
58,200
16,100
George Gorham
Intro to Accounting
5
24,200
34,000
50,100
$108,300
Liabilities
Current liabilities:
Accounts payable
Interest payable
Salaries payable
Unearned revenue
Total current liabilities
Long-term liabilities:
Notes payable
Total liabilities
$ 22,300
100
2,800
1,800
27,000
4,200
31,200
Stockholders Equity
Brownie, capital
Total liabilities and stockholders equity
4.)
77,100
$108,300
Closing Entries
Date
Accounts
Dec. 31 Service Revenue
Income Summary
Debit
Credit
40,000
40,000
George Gorham
Intro to Accounting
31 Income Summary
Insurance Expense
Salaries Expense
Supplies Expense
Interest Expense
Depreciation Expense Equipment
Depreciation Expense Building
31 Retained Loss
Income Summary
5.)
44,900
500
17,700
1,600
100
5,000
20,000
4,900
4,900
Current Ratio
Current
ratio
58,200
27,000
2.16
There was a 0.04 (2.20 2.16) decrease in the companys current ratio for the year
ended December 2014. This means that the companys ability to pay debt has
deteriorated.
E5-20
George Gorham
1.)
Intro to Accounting
Journal Entries
Date Accounts
Feb. 3 Merchandise Inventory
Accounts Payable
7 Accounts Payable
Merchandise Inventory
9 Merchandise Inventory
Cash
10 Accounts Receivable
Sales Revenue
10 Cost of Goods Sold
Merchandise Inventory
12 Accounts Payable
Cash
Sales Discounts
16 Sales Returns and Allowances
Accounts Receivable
23 Cash
Sales Discounts
Accounts Receivable
Debit
Credit
2,700
2,700
400
400
100
100
4,350
4,350
2,300
2,300
2,300
2,231
69
500
500
3,773
77
3,850
George Gorham
Intro to Accounting
P5-40B
1.)
Sales Revenue
Less: Sales Returns and Allowance
Sales Discounts
Net Sales Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses:
Selling Expense
Administrative Expense
Operating Income
Other Expenses:
Interest Expense
Net Income
$180,000
$6,500
1,500
19,200
14,000
8,000
$172,000
81,800
90,200
33,200
57,000
1,200
55,800