capital stock additional paid in capital 1 100000 shares 500000 300000 3-Jan 800000 office building cash -50000

Date 2-Jan

3-Jan

4-Jan 4-Jan 5-Jan 30-Jan 30-Jun 30-Jun 31-Dec 31-Dec 10-Nov 1-Dec

Journal for the Thomson Company Explaination Dr Cr cash 80000 capital stock add pd in capital building 800000 paid in cash notes payable acctounts payable supplies 2700 prepaid insurance 7000 cash unearned revenue cash 60000 cash 40000 service revenue service revenue accounts receivable 195000 government bond 40000 cash salaries 90000 cash utilities 21000 cash cash 110000 accounts receivable cash advertising 12000

500000 300000 50000 750000 2700

7000 60000

40000 195000

40000 90000 21000 110000 12000

note 750000

Journal for the Thomson Company 2010 Date Explanation Dr Cr 2-Jan cash 800000 capital stock 500000 add pd in capital 300000 3-Jan building 800000 cash 50000 notes payable 750000 4-Jan accounts payable 2700 supplies 2700 4-Jan prepaid insurance 7000 cash 7000 5-Jan unearned revenue 60000 cash 60000 30-Jan cash 40000 service revenue 40000 30-Jun service revenue 195000 accounts receivable 195000 30-Jun government bond 40000 cash 40000 10-Nov cash 110000 service revenue 110000 1-Dec cash 12000 advertising 12000 31-Dec salaries 90000 cash 90000 31-Dec utilities 21000 cash 21000 Totals 2177700 2177700

Ledger for Thomson Company 2010 cash Date 2-Jan 4-Jan 5-Jan 30-Jan 30-Jun 10-Nov 1-Dec 31-Dec 3-Jan 31-Dec Totals Balance Dr 800000 7000 60000 40000 40000 110000 12000 21000 50000 90000 220000 Balance notes payable Dr 3-Jan Balance accounts payable Dr 4-Jan Balance unearned revenue Dr 5-Jan Balance service revenue Dr 30-Jun 30-Jan
10-Nov

capital stock Cr Date 2-Jan Balance add pd. in capital Dr 2-Jan Dr

Date

Date

1010000 790000

prepaid insurance Date Dr Cr 4-Jan 7000 Balance 7000 supplies Date 4-Jan Balance Dr 2700 2700 Cr

Date

Date

government bond Date Dr Cr 30-Jun 40000 Balance 40000 accounts receivable Date Dr Cr 10-Nov 30-Jun 195000 Balance 195000 advertising

Date

Balance

Date 1-Dec

Dr 12000 salaries

Cr

Date 31-Dec

Dr 90000

Cr

utilities Date 31-Dec Balance Dr 21000 21000 Cr

Date

office building Dr Cr 3-Jan 800000

TRIAL BALANCE BEFORE ADJUSTMENTS Title Dr Cr CASH 790000 PREPAID INSURANCE 7000 SUPPLIES 2700 GOVT BOND 40000 A/R 195000 ADVERTISING 12000 SALARIES 90000 UTILITIES 21000 OFFICE BUILDING 800000 CAPITAL STOCK 500000 ADD. PD. IN REVENUE 300000 NOTES PAYABLE 750000 A/P 2700 UNEARNED REVENUE 60000 SERVICE REVENUE 345000 TOTALS 1957700 1957700

Date

ADJUSTMENT ENTRIES Title Dr Cr depreciation expense 37500 accumulated depreciation interest expense 45000 accumulated interest prepaid insurance insurance expense 3500 supplies used expense 1900 accumulated supplies cash 30000 service revenue earned interest on 1/2 year holding bond interest accumulated advertising expense accumulated advertising expense TOTALS

37500 45000 3500

1900 30000

1400 1400 1000

120300

1000 120300

Income Statement for Thomson Company

Year Ending 12/31/2010 REVENUE Service Revenue 12/31 30000 Service Revenue 6/30 195000 Service Revenue 110000 Service Revenue 1/30 40000 Bond Interest 1400 Total Revenue 376400 less EXPENSES Supplies Used 1900 Insurance 3500 Depreciation 37500 Utilities 21000 Loan Interest 45000 Salaries 90000 Advertising 1000 Total Expense 199900 Net Income 176500

Se

Cash Flow Statement for Thomson Company Year Ending 12/31/2010

CASH FROM OPERATING Cash In Service Contract 60000 Service Revenue 1/30 40000 Service Revenue 6/30 110000 210000 Cash Out Salaries Insurance Utilities Advertising -90000 -7000 -21000 -12000 -130000

TOTAL OPERATING

80000

CASH FROM INVESTING Cash Out Gov't Bond Purchase Building Down PMT TOTAL INVESTING FINANCING Cash In Capital Stock Ad. Pd. In Capital 500000 300000 40000 50000 90000

TOTAL FINANCING TOTAL

800000 790000

Balance Sheet for Thomson Company Year Ending 12/31/2010 Assets Liabilities Cash 790000 Accounts Payable Building 762500 Notes Payable Prepaid Insurance 3500 Services Owed Supplies 800 Interest Payable A/R 195000 Interest Receivable 1400 Capital Stock Prepaid Advertising 11000 Ad Pd. In Capital Gov't Bond 40000 Retained Earnings

2700 750000 30000 45000 500000 300000 176500

TOTAL

1804200 TOTAL

1804200

Retained Earnings Statement for Thomson Company Year Ending 12/31/2010 Net Income 176500 less Dividends 0 Retained Earnings 176500

capital stock Cr 500000 500000

d pd. in capital Cr 300000 300000

Cr 750000 750000

counts payable Cr 2700 2700

earned revenue Cr 60000 60000

vice revenue Cr 195000 40000

110000

345000