Documente Academic
Documente Profesional
Documente Cultură
Problem 3-1B
Part 1
Adjustment (a)
Oct. 31 Office Supplies Expense ........................ .............. 3,450
Office Supplies ............................................ .............. 3,450
To record cost of supplies used
($500 + $3,650 - $700).
Adjustment (b)
31 Insurance Expense .................................. .............. 2,675
Prepaid Insurance ....................................... .............. 2,675
To record annual insurance coverage expense.
Policy
A
B
C
Total
Months Active
in 2011
12
9
5
2011
Expense
$1,500
900
275
$2,675
Adjustment (c)
31 Salaries Expense ..................................... .............. 800
Salaries Payable .......................................... .............. 800
To record accrued but unpaid wages
(1 day x $800).
Adjustment (d)
31 Depreciation ExpenseBuilding ........... .............. 5,400
Accumulated DepreciationBuilding ....... .............. 5,400
To record annual depreciation
[($155,000-$20,000) / 25 years = $5,400].
Adjustment (f)
31 Unearned Rent ......................................... .............. 1,050
Rent Earned ................................................. .............. 1,050
To record rent earned for September and
October (2 x $525).
Part 2
Cash Payment for (c)
Nov. 7Salaries Payable .......................................... .............. 800
Salaries Expense* .................................................. .............. 3,200
Cash ........................................................... .............. 4,000
To record payment of accrued and current
salaries. *(4 days x $800)
Problem 3-2B
1.
5.
9. F
2.
6.
10. I
3.
7.
11. A
4.
8.
12. B
Problem 3-3B
Parts 1 and 2
Unadj. Bal.
Cash
50,000
Accounts Payable
Unadj. Bal.
Accounts Receivable
0
(f)
5,500
Adj. Bal.
5,500
Salaries Payable
Unadj. Bal.
Unadj. Bal.
Adj. Bal.
Unadj. Bal.
Adj. Bal.
Unadj. Bal.
Adj. Bal.
Teaching Supplies
60,000
(b)
2,500
Prepaid Insurance
18,000
(a)
11,600
Prepaid Rent
2,600
(h)
0
12,200
Unadj. Bal.
(g)
Adj. Bal.
0
540
540
(e)
Unadj. Bal.
27,600
Adj. Bal.
18,400
9,200
M. Alcorn, Capital
Unadj. Bal.
6,400
M. Alcorn, Withdrawals
20,000
Unadj. Bal.
2,600
Professional Library
10,000
Unadj. Bal.
Accumulated Depreciation
Professional Library
Unadj. Bal.
1,500
(d)
2,000
68,500
Adj. Bal.
Unadj. Bal.
3,500
Equipment
30,000
Accumulated Depreciation
Equipment
Unadj. Bal. 16,000
(c)
4,000
Adj. Bal.
20,000
(f)
Adj. Bal.
Advertising Expense
18,000
105,000
5,500
110,500
Unadj. Bal.
62,000
9,200
71,200
Unadj. Bal.
(e)
Adj. Bal.
Depreciation Expense
Professional Library
Unadj. Bal.
0
(d)
2,000
Adj. Bal.
2,000
Depreciation Expense
Equipment
Unadj. Bal.
0
(c)
4,000
Adj. Bal.
4,000
Salaries Expense
Unadj. Bal.
43,200
(g)
540
Adj. Bal.
43,740
Insurance Expense
Unadj. Bal.
0
(a)
6,400
Adj. Bal.
6,400
Unadj. Bal.
(h)
Adj. Bal.
Rent Expense
28,600
2,600
31,200
Utilities Expense
12,400
Adjustment (b)
31 Teaching Supplies Expense ................... ............. 57,500
Teaching Supplies....................................... ............. 57,500
To record the cost of supplies used
($60,000-$2,500).
Adjustment (c)
31 Depreciation ExpenseEquipment..................... 4,000
Accumulated DepreciationEquipment ... ............. 4,000
To record equipment depreciation.
Adjustment (d)
31Depreciation ExpenseProfessional Library ........ 2,000
Accumulated Depreciation
Professional Library .......................... ............. 2,000
To record professional library depreciation.
Adjustment (e)
31Unearned Training Fees ............................. ............. 9,200
Training Fees Earned .................................. ............. 9,200
To record training fees earned that were
collected in advance.
Adjustment (f)
31Accounts Receivable ................................... ............. 5,500
Tuition Fees Earned .................................... ............. 5,500
To record tuition earned ($2,200 x 2 1/2 mo).
Adjustment (g)
31Salaries Expense .......................................... ............. 540
Salaries Payable .......................................... ............. 540
To accrue salaries expense (3 days x $180).
Adjustment (h)
31Rent Expense ............................................... ............. 2,600
Prepaid Rent ..................................... ............. 2,600
To record expiration of prepaid rent.
Credit
$ 3,500
20,000
12,200
540
18,400
68,500
110,500
71,200
_______
$304,840
$181,700
175,240
$ 6,460
ALCORN INSTITUTE
Statement of Owners Equity
For Year Ended December 31, 2011
M. Alcorn, Capital, December 31, 2010 ..............
Plus: Net income ..................................................
Less: Owner withdrawals ....................................
M. Alcorn, Capital, December 31, 2011 ..............
$68,500
6,460
74,960
20,000
$54,960
$50,000
5,500
2,500
11,600
6,500
10,000
$86,100
$12,200
540
18,400
31,140
54,960
$86,100
Account
Accounts payable.......................
Interest payable............................
Salaries payable ..........................
Unearned consulting fees........
Long-term notes payable.........
D. Chen, Capital ...........................
D. Chen, Withdrawals ................ 10,000
Consulting fees earned............
(a)
6,660
(b)
(c)
$ 30,000
(d)
36,000
30,000 (h)
80,000
70,200
23,000
4,600
$ 48,000
76,660
7,000
8,600
150,000
10,000
$ 40,000
(e)
(f)
(g)
6,000
1,600
11,200
42,000
1,600
11,200
17,800
80,000
70,200
(a)
(h)
6,660
12,200
12,200
10,000
264,000
Depreciation expense
Office equipment......................
Salaries expense.........................115,600
Interest expense .......................... 6,400
Insurance expense....................
Rent expense ............................... 24,000
Office supplies expense ...........
Advertising expense.................. 43,000 _______
Totals...............................................
$510,200 $510,200
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Adjusted
Trial Balance
Adjustments
282,860
(d)
10,000
10,000
(g)
(f)
(c)
11,200
1,600
4,600
(b)
(e)
23,000
6 ,000
$75,260
126,800
8,000
4,600
24,000
23,000
______
49,000 _______
$75,260 $545,660 $545,660
Adjustment Descriptions:
Earned but uncollected revenues.
Cost of consumed office supplies.
Cost of expired insurance coverage.
Depreciation expense on office equipment.
Incurred but unpaid advertising expense.
Incurred but unpaid interest expense.
Incurred but unpaid salaries expense.
Earned revenues previously received in advance.
Problem 3-4B
Part 2
DAXU CONSULTING COMPANY
Income Statement
For Year Ended December 31, 2011
Revenues
Consulting fees earned .....................................
Expenses
Depreciation expenseOffice equipment ....... $ 10,000
Salaries expense ............................................... 126,800
Interest expense ................................................
8,000
Insurance expense ............................................
4,600
Rent expense ..................................................... 24,000
Office supplies expense ................................... 23,000
Advertising expense ......................................... 49,000
Total expenses ...................................................
Net income ............................................................
$282,860
245,400
$ 37,460
$ 70,200
37,460
107,660
10,000
$ 97,660
$ 42,000
1,600
11,200
17,800
80,000
152,600
Equity
D. Chen, Capital .............................................................
Total liabilities and equity ............................................
97,660
$250,260
Problem 3-5B
Part 1
LIGHTNING COURIER
Income Statement
For Year Ended December 31, 2011
Revenues
Delivery fees earned ..................................... $580,000
Interest earned ............................................... 24,000
Total revenues ...............................................
Expenses
Depreciation expenseTrucks .................... 24,000
Depreciation expenseEquipment ............. 46,000
Salaries expense ........................................... 64,000
Wages expense ............................................. 290,000
Interest expense ............................................ 25,000
Office supplies expense ............................... 33,000
Advertising expense ..................................... 26,400
Repairs expenseTrucks ............................ 34,600
Total expenses ..............................................
Net income .......................................................
$604,000
543,000
$ 61,000
LIGHTNING COURIER
Statement of Owner's Equity
For Year Ended December 31, 2011
J. Hallam, Capital, December 31, 2010 ..........
Plus : Net income ...........................................
Less: Withdrawals by owner .........................
J. Hallam, Capital, December 31, 2011 ..........
$115,000
61,000
176,000
40,000
$136,000
$124,000
22,000
30,000
110,000
190,000
476,000
Equity
J. Hallam, Capital .................................................
Total liabilities and equity ...................................
136,000
$612,000
Part 2
Profit margin = $61,000 / $604,000 = 10.1%
Problem 3-6BA
Part 1
Method that records prepaid expenses and unearned revenues in balance sheet accounts:
23
4,500
Method that records prepaid expenses and unearned revenues in income statement accounts: