Problem 4.1

Account TitleUnadjusted TB Adjustments

Adjusted TB Income Statement Balance Sheet

15-Apr-13 for April 15, 2013 As of April 15, 2013

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr

Cash 231500 231500 231500

Accounts Receivable 430000 430000 430000

Notes Receivable 120000 120000 120000

Allowance for Doubtful Accounts 14700 7810 22510 22510

Merchandise Inventory 326000 175300 150700 150700

Furniture and Fixtures 1080000 1080000 1080000

Accumulated Depreciation - FF 285000 9000 294000 294000

Unexpired Insurance 30000 5000 25000 25000

Unused Office Supplies 17700 3350 14350 14350

Accounts Payable 78000 78000 78000

Notes Payable 136000 136000 136000

Common Stock, P100 par value 1000000 1000000 1000000

Retained Earnings 180000 180000 180000

Sales 1580000 1580000 1580000

Sales Return and Allowance 18000 18000 18000

Purchases 820000 820000

Transportation In 20000 20000

Advertising 15000 15000 15000

Delivery Expenses 18000 18000 18000

Office Salaries 102000 5500 107500 107500

Rent Expense 40000 40000 40000

Interest Expense 15000 4500 19500 19500

Interest Income 9500 1750 7750 7750

Totals 3283200 3283200

Depreciation Expense - FF 9000 9000 9000

Doubtful Accounts Expense 7810 7810 7810

Insurance Expense 5000 5000 5000

Office Supplies 3350 3350 3350

Accrued Salaries 5500 5500 5500

Accrued Interest 4500 4500 4500

Unearned Interest Income 1750 1750 1750

Cost Of Goods Sold 1015300 1015300 1015300

Totals 1052210 1052210 3310010 3310010 1258460 1587750 2051550 1722260

Net Income 329290 329290

1587750 1587750 2051550 2051550

Problem 4.2

Account TitleAccount Balances Reversing Transactions Unadjusted TB Adjustments

Adjusted TB Income Statement Balance Sheet30-Sep-12 For Sept. 30, 2012 As of Sept. 30, 2012

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr CrCash 97300 60000

1320000811100211700

2500 457000 457000 457000Accounts Receivable 263000 1289600

1332100 220500 220500 220500Allowance for Doubtful Accounts 13160 13160 3193.75 16353.75 16353.75Accrued Revenue Receivable 2000 2000 0Merchandise Inventory 224000 827500

8859009200 156400 156400 156400

Prepaid Operating Expenses 18000 18000 0 8700 8700 8700Furniture and Equipment 243000 243000 243000 243000Accumulated Depreciation - FE 81000 81000 7290 88290 88290Accounts Payable 126500 827500

820300 133700 133700 133700Notes Payable 20000 20000 20000 20000Accrued Operating Expenses 1000 1000 0 3500 3500 3500Capital Stock, P100 par value 500000 100000 600000 600000 600000Subscribed Capital Stock 100000 100000 0Subscription Receivable 60000 60000 0Retained Earnings 55640 30000 25640 25640 25640Premium on Capital Stock 10000 10000 10000 10000Total 907300 907300Other Revenues 2000 2500 500 500 500Operating Expenses 18000 1000 211700 228700 3500 8700 223500 223500Total 21000 21000Dividends Payable 30000 30000 30000 30000Sales 1289600 1289600 1289600 1289600Sales Discount 12100 12100 12100 12100Cost of Sales 885900 885900 885900 885900Total 5559600 5559600 2203600 2203600Accrued Interest Expense 600 600 600Depreciation Expense 7290 7290 7290Doubtful Accounts Expense 3193.75 3193.75 3193.75Interest Expense 600 600 600Total 23283.75 23283.75 2218184 2218184 1132584 1290100 1085600 928083.8Net Income 157516.3 157516.3 157516.3Income Tax Payable 55130.69 1290100 1290100 1085600 1085600Income After Tax 102385.6

Problem 4.3

Account Title Account Balances Reversing Transactions Unadjusted TB Adjustments Adjusted TB Income Statement Balance Sheet30-Jun-12 For June 30, 2012 As of June 30, 2012

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr

Cash 126100231500

0 3875001500 80000

29250 21000126850

025001540 710810 710810 710810

Accounts Receivable 452000233480

0

2500231500

0 474300 474300 474300Allowance for Doubtful Accounts 22600 22600 1115 23715 23715Accrued Other Income 1300 1300 0

Merchandise Inventory 280000145690

0173690

0144520

0 291700 291700Prepaid Operating Expenses 6700 6700 0 24000 24000 24000Land 200000 200000 200000 200000

Building100000

0100000

0100000

0100000

0Accumulated Depreciation - B 250000 250000 25000 275000 275000Furniture & Equipment 360000 80000 440000 440000 440000Accumulated Depreciation - F&E 120000 120000 20000 140000 140000

Accounts Payable 405600145690

0124000126850

0 470000 470000 470000Unearned Other Income 1200 1200 0Accrued Operating Expense 12700 12700 0

Capital Stock140000

0140000

0140000

0140000

0Retained Earnings 214000 214000 214000 214000

Total242610

0242610

0Operating Expenses 6700 12700 387500 381500 24000 357500 357500Other Income 1300 1200 1500 1400 1400 1400Total 21900 21900N otes Payable 124000

30000 154000 154000 154000

Sales233480

0233480

0233480

0233480

0Sales Returns 21000 21000 21000 21000

Interest Expense 750 750 1200 625 1325 1325Bank Service Charge 1540 1540 1540 1540

Total802324

0802324

0496680

0496680

0Prepaid Interest Expense 625 625 625Accrued Interest Expense 1200 1200 1200Depreciation Expense 45000 45000 45000Doubtful Accounts Expense 1115 1115 1115

Cost Of Goods Sold144520

0144520

0144520

0

Total151714

0151714

0501411

5501411

5187268

0233620

0314143

5267791

5Net Income 463520 463520 463520

Income Tax Payable 162232233620

0233620

0314143

5314143

5Income After Tax 301288

Problem 4.5

Account TitleAccount Balance Transactions Unadjusted TB Adjustments

Adjusted TB Income Statement Balance Sheet15-Apr-13 for April 15, 2013 As of April 15, 2013

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr CrCash 47300 65400

5460074250

539009500

2970020500

554026700 86910 86910 86910

Accounts Receivable 138500 7310075000 136600 136600 136600

Allowance for Doubtful Accounts 3600 3600 498 4098 4098Note Receivable 20000 20000Merchandise Inventory 94600 94600 32100 126700 126700Store Furniture and Equipment 150000 150000 150000 150000Accumulated Depreciation - SFE 40000 40000 5250 45250 45250Office Furniture and Equipment 110000 12000

13200 111200 111200 111200Accumulated Depreciation - OFE 35000 300

8300 27000 3496 30496 30496Accounts Payable 132800 45100

55000 122900 122900 122900Estimated Income Tax Payable 26700 26700Capital Stock, P100 par value 250000 250000 250000 250000

Retained Earnings 36250 36250 36250 36250Sales 437800 65400

73100 576300 576300 576300Sales Returns and Allowances 2100 2100 2100 2100Sales Discounts 2900 750 3650 3650 3650Purchases 312300 54600

45100 412000 412000 0Purchase Returns and Allowamces 1500 1500 1500 0Purchase Discounts 2500 1100 3600 3600 0Freight In 1600 320 1920 1920 0Sales Salaries 18000 2220 20220 20220 20220Office Salaries 15000 1400 16400 16400 16400Rent - Store 10000 1250 11250 11250 11250Rent - Office 8000 8000 1000 9000 9000Store Supplies 7100 7100 1300 5800 5800Office Supplies 3900 350 4250 850 3400 3400Utility Expenses 6400 6400 1750

8150 0 0Advertising 6000 6000 4000 2000 2000Insurance 4800 4800 3600

1200 0 0Miscellaneous Marketing Expense 4100 4100 5610 9710 9710Miscellaneous Admin Expense 3700 3700 3740 7440 7440Interest Income 150 500 650 650 650Total 966300 966300Depreciation Expense - OFE 300 300 3496 3796 3796Prepaid Interest Expense 300 300 100 200 200Loans Payable 30000 30000 30000 30000Total 472740 472740 1091800 1091800Cost Of Goods Sold 376720 376720 376720Doubtful Accounts Expense 498 498 498Depreciation Expense - SFE 5250 5250 5250Accrued Rent - Office 1000 1000 1000Accrued Utility Expense 1750 1750 1750Prepaid Insurance 3600 3600 3600Prepaid Advertising 4000 4000 4000Prepaid Store Supplies 1300 1300 1300Prepaid Office Supplies 850 850 850Interest Expense 100 100 100Total 445114 445114 1098694 1098694 477334 576950 621360 521744Net Income 99616 99616 99616Income Tax Payable 34865.6 576950 576950 621360 621360Net Income After Tax 64750.4