Solution Manual For Financial Accounting 9th Edition by Weygandt

Full file at https://testbanku.
eu/
Solution Manual for Financial Accounting 9th
Edition by Weygandt
Complete downloadable file at:
https://testbanku.eu/Solution-Manual-for-Financial-
Accounting-9th-Edition-by-Weygandt
EXERCISE 1-1B
R Summarizing economic events.

I Selecting economic activities relevant to the company.
C Reporting information in a standard format.
C Preparing accounting reports.
R Measuring events in dollars and cents.
R Keeping a systematic chronological diary of events.
C Explaining uses, meaning, and limitations of data.
R Classifying economic events.
C Analyzing and interpreting information.
EXERCISE 1-2B
(a) Internal users

Marketing manager
Production supervisor
Store manager
Vice-president of finance
External users
Customers
Internal Revenue Service
Labor unions
Securities and Exchange Commission
Suppliers
(b) E Will the company be able to pay its short-term debts?

I Which product should we emphasize?
I What does it cost us to manufacture each unit produced?
E How does the company’s profitability compare to other companies?
I Do we need to borrow in the near future?
E Did the company earn a satisfactory income?
I Can we afford to give our employees a pay raise?
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-1
1-2 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
Full file at https://testbanku.eu/
EXERCISE 1-3B
Bill Belachek, president of Belachek Company, instructed Tom Brady, the head
of the accounting department, to report the company’s land in their accounting
reports at its market value of $150,000 instead of its cost of $100,000, in an
effort to make the company appear to be a better investment. Although we
have an accounting system that permits various measurement approaches
cost should be used whenever there are questions regarding the reliability of
a market value. In this case, valuation of land is too subjective and therefore
the cost principle should be used.
The stakeholders include stockholders and creditors of Belachek Company,

potential stockholders and creditors, other users of Belacheck’s accounting
reports, Bill Belachek, and Tom Brady. All users of Belachek’s accounting
reports could be harmed by relying on information which violates accounting
principles. Bill Belachek could benefit if the company is able to attract more
investors, but would be harmed if the fraudulent reporting is discovered.
Similarly, Tom Brady could benefit by pleasing his boss, but would be harmed
if the fraudulent reporting is discovered.
Tom’s alternatives are to report the land at $100,000 or to report it at $150,000.

Reporting the land at $150,000 is not appropriate since it would mislead many
people who rely on Belachek’s accounting reports to make financial decisions.
Tom should report the land at its cost of $100,000. He should try to convince
Bill Belachek that this is the appropriate course of action, but be prepared to
resign his position if Belachek insists.
EXERCISE 1-4B
1. Incorrect. The cost principle requires that most assets be recorded and
reported at their cost due to reliability concerns about valuation. In this
case, the cost principle should be applied.
2. Correct. The monetary unit assumption requires that companies include in

the accounting records only transaction data that can be expressed in
terms of money.
3. Incorrect. The economic entity assumption requires that the activities of

the entity be kept separate and distinct from the activities of its owner and
all other economic entities.
EXERCISE 1-5B
Asset Liability Stockholders’ Equity

Cash Salaries and wages Common stock
Equipment payable Retained earnings
Supplies Income taxes payable
Accounts receivable
EXERCISE 1-6B
1. Increase in assets and increase in stockholders’ equity.

2. Decrease in assets and decrease in stockholders’ equity.
3. Increase in assets and increase in liabilities.
5. Decrease in assets and decrease in stockholders’ equity.
6. Increase in assets and decrease in assets.
7. Increase in liabilities and decrease in stockholders’ equity.
8. Increase in assets and decrease in assets.
EXERCISE 1-7B
1. (c) 5. (d)
2. (d) 6. (b)
3. (a) 7. (e)
4. (b) 8. (f)
EXERCISE 1-8B
(a) 1. Stockholders invested $25,000 cash in the business.

2. Purchased equipment for $6,000, paying $4,000 in cash and the
balance of $2,000 on account.
3. Paid $650 cash for supplies.
4. Earned $7,500 in revenue, receiving $5,000 cash and $2,500 on
account.
5. Paid $1,200 cash on accounts payable.
EXERCISE 1-8B (Continued)
6. Paid $1,500 cash dividends to stockholders.

7. Paid $850 cash for rent.
8. Collected $750 cash from customers on account.
9. Paid salaries of $4,500.
10. Incurred $300 of utilities expense on account.
(b) Investment ............................................................................... $25,000

Service revenue ....................................................................... 7,500
Dividends ................................................................................. (1,500)
Rent expense ........................................................................... (850)
Salaries and wages expense .................................................. (4,500)
Utilities expense ...................................................................... (300)
Increase in stockholders’ equity ............................................ $25,350
(c) Service revenue ....................................................................... $7,500

Rent expense ........................................................................... (850)
Salaries and wages expense .................................................. (4,500)
Utilities expense ...................................................................... (300)
Net income ............................................................................... $1,850
EXERCISE 1-9B
P. PATRON & CO.

Income Statement
For the Month Ended August 31, 2015
Revenues
Service revenue ......................................................... $7,500
Expenses
Salaries and wages expense .................................... $4,500
Rent expense ............................................................. 850
Utilities expense ........................................................ 300
Total expenses................................................... 5,650
Net income ........................................................................ $1,850
P. PATRON & CO.

Retained Earnings Statement
Retained earnings, August 1 .......................................... $ 0

Add: Net income............................................................ 1,850
1,850
Less: Dividends .............................................................. 1,500
Retained earnings, August 31 ............................. $ 350
P. PATRON & CO.

Balance Sheet
August 31, 2015
Assets
Cash ................................................................................. $ 18,050
Accounts receivable........................................................ 1,750
Supplies ........................................................................... 650
Office equipment ............................................................. 6,000
Total assets .............................................................. $26,450
Liabilities and Stockholders’ Equity

Liabilities
Accounts payable .................................................... $ 1,100
Stockholders’ equity
Common stock ......................................................... $25,000
Retained earnings ................................................... 350 25,350
Total liabilities and stockholders’ equity ......... $26,450
EXERCISE 1-10B
(a) Stockholders’ equity—12/31/14 ($400,000 – $220,000)........ $180,000

Stockholders’ equity—1/1/14 ................................................ 120,000
Increase in stockholders’ equity........................................... 60,000
Add: Dividends..................................................................... 13,000
Net income for 2014 ............................................................... $ 73,000
(b) Stockholders’ equity—12/31/15 ($510,000 – $300,000) ...... $210,000

Stockholders’ equity—1/1/15—see (a) ................................ 180,000
Increase in stockholders’ equity ......................................... 30,000
Less: Additional investment ............................................... 60,000
Net loss for 2015 .................................................................. $ 30,000
(c) Stockholders’ equity—12/31/16 ($590,000 – $400,000) ...... $190,000

Stockholders’ equity—1/1/16—see (b) ................................ 210,000
Decrease in stockholders’ equity........................................ (20,000)
Less: Additional investment ............................................... 15,000
(35,000)
Add: Dividends ................................................................... 45,000
Net income for 2016 ............................................................. $ 10,000
EXERCISE 1-11B
(a) Total assets (beginning of year).......................................... $ 95,000

Total liabilities (beginning of year) ..................................... 80,000
Total stockholders’ equity (beginning of year) .................. $ 15,000
(b) Total stockholders’ equity (end of year) ............................. $ 40,000

Total stockholders’ equity (beginning of year) .................. 15,000
Increase in stockholders’ equity ......................................... $ 25,000
Total revenues ...................................................................... $215,000

Total expenses ..................................................................... 185,000
Net income ............................................................................ $ 30,000
Increase in stockholders’ equity .................... $ 25,000

Less: Net income ........................................... $(30,000)
Add: Dividends .............................................. 20,000) (10,000)
Additional investment ..................................... $ 15,000
(c) Total assets (beginning of year).......................................... $129,000

Total liabilities (beginning of year) ..................................... $ 39,000
(d) Total stockholders’ equity (end of year) ............................ $130,000

Increase in stockholders’ equity......................................... $ 40,000
Total revenues ..................................................................... $120,000

Total expenses ..................................................................... 75,000
Net income ........................................................................... $ 45,000
Increase in stockholders’ equity.................... $ 40,000

Less: Net income ........................................... $(45,000)
Additional investment ......................... (3,000) (48,000)
Dividends ........................................................ $ 8,000
EXERCISE 1-12B
IGNATENKO CO.
Income Statement
For the Year Ended December 31, 2015
Revenues
Service revenue .................................................... $60,500
Expenses
Salaries and wages expense................................ $28,000
Rent expense ........................................................ 10,200
Utilities expense ................................................... 3,000
Advertising expense ............................................. 1,300
Total expenses .............................................. 42,500
Net income .................................................................... $18,000
IGNATENKO CO.
Retained earnings, January 1 ......................................................... $42,000

Add: Net income ............................................................................ 18,000
60,000
Less: Dividends .............................................................................. 4,000
Retained earnings, December 31 ................................................... $56,000
EXERCISE 1-13B
PENEZ COMPANY
Balance Sheet
December 31, 2015
Assets
Cash .................................................................................. $17,000
Accounts receivable ........................................................ 9,500
Supplies............................................................................ 7,000
Equipment ........................................................................ 45,000
Total assets .............................................................. $78,500

Liabilities
Accounts payable .................................................... $19,000
Common stock ......................................................... $49,000
Retained earnings ($15,500 – $5,000) ..................... 10,500 59,500
Total liabilities and stockholders’ equity ........ $78,500
EXERCISE 1-14B
(a) Camping fee revenues .......................................................... $160,000

General store revenues ........................................................ 50,000
Total revenue ................................................................. 210,000
Expenses ............................................................................... 160,000
Net income ............................................................................. $ 50,000
(b) DEER PARK

Balance Sheet
December 31, 2015
Assets
Cash ....................................................................................... $ 27,000
Supplies ................................................................................. 3,500
Equipment ............................................................................. 116,500
Total assets .................................................................... $147,000
DEER PARK
Balance Sheet (Continued)
December 31, 2015
Liabilities
Notes payable .................................................... $ 65,000
Accounts payable.............................................. 12,000
Total liabilities ............................................ 77,000
Common stock .................................................. $20,000
Retained earnings ............................................. 50,000 70,000
Total liabilities and stockholders’ equity ... $147,000
EXERCISE 1-15B
MIKE GREGORY COMPANY

Income Statement
Revenues
Ticket revenue .................................................. $340,000
Expenses
Salaries and wages expense........................... $160,000
Maintenance and repairs expense .................. 98,000
Utilities expense .............................................. 7,000
Advertising expense ........................................ 3,800
Total expenses ......................................... 268,800
Net income ............................................................... $ 71,200
EXERCISE 1-16B
KING AND JAMES, ATTORNEYS AT LAW

Retained earnings, January 1 ................................................ $ 26,000
Add: Net income ................................................................... 120,000*
146,000
Less: Dividends ..................................................................... 74,000
Retained earnings, December 31 ........................................... $ 72,000
*Service revenue ..................................................................... $330,000

Total expenses ...................................................................... 210,000
Net income ............................................................................. $120,000
EXERCISE 1-17B
MIDVALE COMPANY
Statement of Cash Flows
Cash flows from operating activities
Cash receipts from revenues .......................... $500,000
Cash payments for expenses .......................... (340,000)
Net cash provided by operating activities 160,000
Cash flows from investing activities
Purchase of equipment .................................... (90,000)
Cash flows from financing activities ......................
Sale of common stock ..................................... $250,000
Payment of cash dividends ............................. (10,000) 240,000
Net increase in cash ................................................ 310,000
Cash at the beginning of the period ....................... 40,000
Cash at the end of the period .................................. $350,000
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
(a) DIVERSE TRAVEL AGENCY

Stockholders’ Equity
Accounts Accounts Common Retained Earnings
Cash + Receivable + Supplies + Equipment = Payable + Stock + Revenues – Expenses – Dividends
1. +$13,000 +$13,000
+ 13,000 = 13,000
2. + –500 – $ 500 (a)
12,500 = 13,000 – 500
3. + –2,700 +$2,700 +
+ 9,800 + + 2,700 = 13,000 – 500
4. +00 +00,000 +$400 – 400 (b)
9,800 + + 2,700 = + 400 + – 900
PROBLEM 1-1C
5. + –600 +$600 +00,000 +0000 +000,000
+ 9,200 + + 600 + + 2,700 = + 400 + 13,000 – 900
6. – +4,000 +$4,500 +0000 +00,000 +0000 + –$8,500 (c)
+ 13,200 + + 4,500 + + 600 + + 2,700 = + 400 + 13,000 + + 8,500 – 900
7. + –260 + 0,000 +0000 +00,000 +0000 – $260 (d)
+ 12,940 + + 4,500 + + 600 + + 2,700 = + 400 + 13,000 + + 8,500 – 900 – 260
8. + –400 + 0,000 +0000 +00,000 +–400 +000,000
+ 12,540 + + 4,500 + + 600 + + 2,700 = + 0 + 13,000 + + 8,500 – 900 – 260
9. + –2,500 + 0,000 +0000 +00,000 +0000 – 2,500 (e)
+ 10,040 + + 4,500 + + 600 + + 2,700 = 13,000 + + 8,500 – 3,400 – 260
10. – +3,000 +–3,000 + + +
+$13,040 + +$1,500 + +$600 + +$2,700 = +$ 0 + $13,000 + +$8,500 – $3,400 – $260
$17,840 $17,840
1-11
PROBLEM 1-1C (Continued)
Key to Retained Earnings Column
(a) Rent Expense (d) Dividends

(b) Advertising Expense (e) Salaries and Wages Expense
(c) Service Revenue
(b) Service revenue ........................................................................ $8,500

Expenses
Salaries and wages......................................... $2,500
Rent ................................................................. 500
Advertising ...................................................... 400 3,400
Net income............................................... $5,100
Copyright © 2010 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 7/e, Solutions Manual (For Instructor Use Only) 1-13
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
(a) WILL TROUT, ATTORNEY AT LAW
Accounts Notes Accounts Common Retained

Cash + Receivable + Supplies + Equipment = Payable + Payable + Stock + Earnings + Revenues – Expenses – Dividends
Bal. $5,000 + $1,600 + $400 + $6,000 = $5,100 + $7,000 + $ 900

1. +1,300 –1,300 0000 00,000 00,000 000,000
6,300 + 300 + 400 + 6,000 = 5,100 + 7,000 + 900
2. –2,800 00,000 0000 00,000 –2,800 000,000
3,500 + 300 + 400 + 6,000 = 2,300 + 7,000 + 900
3. +3,000 +5,000 0000 00,000 00,000 +$8,000 (a)
6,500 + 5,300 + 400 + 6,000 = 2,300 + 7,000 + 900 + 8,000
PROBLEM 1-2C
4. –600 00,000 0000 +1,500 +900 000,000
5,900 + 5,300 + 400 + 7,500 = 3,200 + 7,000 + 900 + 8,000
5. –4,750 –$3,500 (b)
–800 (c)
00,000 0000 00,000 00,000 –450 (d)
1,150 + 5,300 + 400 + 7,500 = 3,200 + 7,000 + 900 + 8,000 – 4,750
6. –650 00,000 0000 00,000 00,000 –$650 (e)
500 + 5,300 + 400 + 7,500 = 3,200 + 7,000 + 900 + 8,000 – 4,750 – 650
7. +2,400 00,000 0000 00,000 +$2,400 00,000 000,000
2,900 + 5,300 + 400 + 7,500 = + 2,400 + 3,200 + 7,000 + 900 + 8,000 – 4,750 – 650
8. +350 + –350 (f)
$2,900 + $5,300 + $400 + $7,500 = +$2,400 + $3,550 $7,000 + $ 900 + $8,000 – $5,100 – $650
$16,100 $16,100
(a) Service revenue (d) Advertising expense

(b) Salaries and wages expense (e) Dividends
(c) Rent expense (f) Utilities expense
1-13
(b) WILL TROUT, ATTORNEY AT LAW

Income Statement
Revenues
Service revenue ............................................. $8,000
Expenses
Salaries and wages expense ........................ $3,500
Rent expense ................................................. 800
Advertising expense ...................................... 450
Utilities expense ............................................ 350
Total expenses ....................................... 5,100
Net income ............................................................. $2,900
WILL TROUT, ATTORNEY AT LAW

Retained earnings, August 1 ................................ $ 900

Add: Net income ................................................. 2,900
3,800
Less: Dividends .................................................... 650
Retained earnings, August 31 .............................. $3,150
WILL TROUT, ATTORNEY AT LAW

Balance Sheet
August 31, 2015
Assets
Cash ........................................................................... $ 2,900
Accounts receivable ................................................. 5,300
Supplies ..................................................................... 400
Equipment ................................................................. 7,500
Total assets ....................................................... $16,100

Liabilities
Notes payable .................................................... $ 2,400
Accounts payable.............................................. 3,550
Total liabilities ............................................ 5,950
Common stock .................................................. $7,000
Retained earnings ............................................. 3,150 10,150
PROBLEM 1-3C
(a) KLUM COSMETICS CO.

Income Statement
For the Month Ended June 30, 2015
Revenues
Service revenue ........................................... $6,000
Expenses
Rent expense ............................................... $1,400
Gasoline expense ........................................ 900
Advertising expense .................................... 600
Utilities expense .......................................... 400
Total expenses ..................................... 3,300
Net income ........................................................... $2,700
KLUM COSMETICS CO.

Retained Earnings, June 1.................................. $ 0

Add: Net income ............................................... 2,700
2,700
Less: Dividends .................................................. 1,400
Retained Earnings, June 30................................ $1,300
KLUM COSMETICS CO.

Balance Sheet
June 30, 2015
Assets
Cash ......................................................................................... $11,900
Accounts receivable ............................................................... 4,000
Supplies ................................................................................... 2,000
Equipment ............................................................................... 25,000
Total assets ...................................................................... $42,900
KLUM COSMETICS CO.

Balance Sheet (Continued)
June 30, 2015

Liabilities
Notes payable ...................................................... $15,000
Accounts payable................................................ 1,400
Total liabilities .............................................. 16,400
Common stock .................................................... $25,200
Retained earnings ............................................... 1,300 26,500
(b) KLUM COSMETICS CO.

Income Statement
Revenues
Service revenue ($6,000 + $900) ................. $6,900
Expenses
Rent expense ............................................... $1,400
Gasoline expense ($900 + $150) ................. 1,050
Advertising expense ................................... 600
Utilities expense .......................................... 400
Total expenses ..................................... 3,450
Net income .......................................................... $3,450
KLUM COSMETICS CO.

Retained earnings, June 1.................................. $ 0

Add: Net income ............................................... 3,450
3,450
Less: Dividends ................................................. 1,400
Retained earnings, June 30 ................................ $2,050
(a) ANDERSEN CONSULTING

Assets Liabilities Stockholders’ Equity
Accounts Notes Accounts Common Retained Earnings
Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Stock + Revenues – Expenses – Dividends
May 1 +$ 9,000 +$9,000

9,000 = 9,000
May 2 –700 –$ 700 (a)
8,300 = 9,000 + – 700
May 3 +$600 +$ 600
8,300 + 600 = 600 + 9,000 + 700
May 5 –80 + –80 (b)
PROBLEM 1-4C
+ 8,220 + 600 = 600 + 9,000 – 780
May 9 +3,500 +050 + +$3,500 (c)
11,720 + 600 = 600 + 9,000 + 3,500 – 780
May 12 –750 –$750 (d)
10,970 + 600 = 600 + 9,000 + 3,500 – 780 – 750
May 15 +$5,400 +5,400 (e)
10,970 + 5,400 + 600 = 600 + 9,000 + 8,900 – 780 – 750
May 17 –3,800 – –3,800 (f)
7,170 + 5,400 + 600 = 600 + 9,000 + 8,900 – 4,580 – 750
May 20 –600 + –600
6,570 + 5,400 + 600 = –0– + 9,000 + 8,900 – 4, 580 – 750
May 23 +3,400 –3,400 +
+ 9,970 + 2,000 + 600 = + –0– + 9,000 + 8,900 – 4, 580 – 750
May 26 +4,000 +$4,000
13,970 + 2,000 + 600 = 4,000 –0– + 9,000 + 8,900 – 4, 580 – 750
May 29 +$3,800 +3,800
13,970 + 2,000 + 600 + 3,800 = 4,000 3,800 + 9,000 + 8,900 – 4,580 – 750
May 30 –250 –250 (g)
$13,720 + $ 2,000 + $600 + $3,800 = $4,000 + $3,800 + $9,000 + $8,900 – $4,830 – $750
$20,120 $20,120
Key to Retained Earnings Column
(a) Rent Expense (e) Service Revenue
(b) Advertising Expense (f) Salaries and Wages Expense
(c) Service Revenue (g) Utilities Expense
(d) Dividends
(b) ANDERSEN CONSULTING

Income Statement
For the Month Ended May 31, 2015
Revenues
Service revenue ($3,500 + $5,400) ................ $8,900
Expenses
Salaries and wages expense ........................ $3,800
Rent expense ................................................. 700
Utilities expense ............................................ 250
Advertising expense ..................................... 80
Total expenses ....................................... 4,830
Net income ............................................................ $4,070
(c) ANDERSEN CONSULTING

Balance Sheet
May 31, 2015
Assets
Cash ................................................................................ $13,720
Accounts receivable ...................................................... 2,000
Supplies .......................................................................... 600
Equipment ...................................................................... 3,800
Total assets ............................................................ $20,120

Liabilities
Notes payable ......................................................... $ 4,000
Accounts payable................................................... 3,800
Total liabilities ................................................. 7,800
Common stock ....................................................... $9,000
Retained earnings .................................................. 3,320 12,320
Total liabilities and stockholders’ equity ..... $20,120
PROBLEM 1-5C
(a) Nick Joe Kevin Frank

Company Company Company Company
(a) $40,000 (d) $40,000 (g) $125,000 (j) $ 60,000
(b) 111,000 (e) 47,000 (h) 70,000 (k) 205,000
(c) 10,000 (f) 22,000 (i) 403,000 (l) 469,000
(b) NICK COMPANY

Retained earnings, January 1 ............................ $ 0

Add: Net income ............................................... 25,000
25,000
Less: Dividends ................................................. 20,000
Retained earnings December 31 ........................ $ 5,000
(c) The sequence of preparing financial statements is income statement,

retained earnings statement, and balance sheet. The interrelationship of
the retained earnings statement to the other financial statements results
from the fact that net income from the income statement is reported in the
retained earnings statement and ending retained earnings reported in
the retained earnings statement is the amount reported for retained
earnings on the balance sheet.

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R Summarizing economic events.

(a) Internal users

(b) E Will the company be able to pay its short-term debts?

The stakeholders include stockholders and creditors of Belachek Company,

Tom’s alternatives are to report the land at $100,000 or to report it at $150,000.

2. Correct. The monetary unit assumption requires that companies include in

3. Incorrect. The economic entity assumption requires that the activities of

Asset Liability Stockholders’ Equity

1. Increase in assets and increase in stockholders’ equity.

(a) 1. Stockholders invested $25,000 cash in the business.

EXERCISE 1-8B (Continued)

6. Paid $1,500 cash dividends to stockholders.

(b) Investment ............................................................................... $25,000

(c) Service revenue ....................................................................... $7,500

P. PATRON & CO.

P. PATRON & CO.

Retained earnings, August 1 .......................................... $ 0

P. PATRON & CO.

Liabilities and Stockholders’ Equity

(a) Stockholders’ equity—12/31/14 ($400,000 – $220,000)........ $180,000

(b) Stockholders’ equity—12/31/15 ($510,000 – $300,000) ...... $210,000

(c) Stockholders’ equity—12/31/16 ($590,000 – $400,000) ...... $190,000

(a) Total assets (beginning of year).......................................... $ 95,000

(b) Total stockholders’ equity (end of year) ............................. $ 40,000

Total revenues ...................................................................... $215,000

Increase in stockholders’ equity .................... $ 25,000

(c) Total assets (beginning of year).......................................... $129,000

(d) Total stockholders’ equity (end of year) ............................ $130,000

Total revenues ..................................................................... $120,000

Increase in stockholders’ equity.................... $ 40,000

Retained earnings, January 1 ......................................................... $42,000

Liabilities and Stockholders’ Equity

(a) Camping fee revenues .......................................................... $160,000

(b) DEER PARK

MIKE GREGORY COMPANY

KING AND JAMES, ATTORNEYS AT LAW

*Service revenue ..................................................................... $330,000

(a) DIVERSE TRAVEL AGENCY

Key to Retained Earnings Column

(a) Rent Expense (d) Dividends

(b) Service revenue ........................................................................ $8,500

(a) WILL TROUT, ATTORNEY AT LAW

Accounts Notes Accounts Common Retained

Bal. $5,000 + $1,600 + $400 + $6,000 = $5,100 + $7,000 + $ 900

(a) Service revenue (d) Advertising expense

(b) WILL TROUT, ATTORNEY AT LAW

WILL TROUT, ATTORNEY AT LAW

Retained earnings, August 1 ................................ $ 900

WILL TROUT, ATTORNEY AT LAW

Liabilities and Stockholders’ Equity

(a) KLUM COSMETICS CO.

KLUM COSMETICS CO.

Retained Earnings, June 1.................................. $ 0

KLUM COSMETICS CO.

KLUM COSMETICS CO.

Liabilities and Stockholders’ Equity

(b) KLUM COSMETICS CO.

KLUM COSMETICS CO.

Retained earnings, June 1.................................. $ 0

(a) ANDERSEN CONSULTING

May 1 +$ 9,000 +$9,000

(b) ANDERSEN CONSULTING