Solutions to Ch4 Exercises
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Transcript of Solutions to Ch4 Exercises
BRIEF EXERCISE 4-4
Dec. 31 Service Revenue............................................... 50,000Income Summary...................................... 50,000
31 Income Summary.............................................. 34,000Salaries and Wages Expense.................. 27,000Supplies Expense..................................... 7,000
31 Income Summary.............................................. 16,000Owner’s Capital......................................... 16,000
31 Owner’s Capital................................................. 2,000Owner’s Drawings..................................... 2,000
BRIEF EXERCISE 4-5
Salaries and Wages Expense Income Summary Service Revenue
Bal. 27,000 (2) 27,000 (2) 34,000 (1) 50,000 (1) 50,000 Bal. 50,000(3) 16,000
50,000 50,000
Supplies Expense Owner’s Capital Owner’s DrawingsBal. 7,000 (2) 7,000 (4) 2,000 Bal. 30,000 Bal. 2,000 (4) 2,000
(3) 16,000Bal. 44,000
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-1
SOLUTIONS TO EXERCISES
EXERCISE 4-1
TINOISAMOA COMPANYWorksheet
For the Month Ended June 30, 2012
Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,320 2,320 2,320
Accounts
Receivable 2,440 2,440 2,440
Supplies 1,880 (a) 1,380 500 500
Accounts Payable 1,120 1,120 1,120
Unearned Service
Revenue 240 (b) 140 100 100
Owner’s Capital 3,600 3,600 3,600
Service Revenue 2,400 (b) 140 2,540 2,540
Salaries and
Wages Expense 560 (c) 210 770 770
Miscellaneous
Expense 160 160 160
Totals 7,360 7,360
Supplies Expense
(a)
1,380 1,380 1,380
Salaries and
Wages Payable (c) 210 210 210
Totals 1,730 1,730 7,570 7,570 2,310 2,540 5,260 5,030
Net Income 230 230
Totals 2,540 2,540 5,260 5,260
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-2
EXERCISE 4-2
PISA COMPANY(Partial) Worksheet
For the Month Ended April 30, 2012
Adjusted Trial Balance
Income Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr.Cash 10,000 10,000Accounts Receivable 7,840 7,840Prepaid Rent 2,280 2,280Equipment 23,050 23,050Accum. Depreciation Equipment 4,921 4,921Notes Payable 5,700 5,700Accounts Payable 4,920 4,920Owner’s Capital 27,960 27,960Owner’s Drawings 3,650 3,650Service Revenue 15,590 15,590Salaries and Wages Expense 10,840 10,840Rent Expense 760 760Depreciation Expense 671 671Interest Expense 57 57Interest Payable 57 57
Totals 59,148 59,148 12,328 15,590 46,820 43,558Net Income 3,262 3,262
Totals 15,590 15,590 46,820 46,820
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-3
EXERCISE 4-3
PISA COMPANYIncome Statement
For the Month Ended April 30, 2012
RevenuesService revenue......................................................... $15,590
ExpensesSalaries and wages expense.................................... $10,840Rent expense............................................................. 760Depreciation expense............................................... 671Interest expense........................................................ 57
Total expenses.................................................. 12,328Net income........................................................................ $ 3,262
PISA COMPANYOwner’s Equity Statement
For the Month Ended April 30, 2012
Owner’s Capital, April 1............................................................. $27,960Add: Net income....................................................................... 3,262
31,222Less: Drawings.......................................................................... 3,650Owner’s Capital, April 30........................................................... $27,572
PISA COMPANYBalance SheetApril 30, 2012
AssetsCurrent assets
Cash........................................................................... $10,000Accounts receivable................................................. 7,840Prepaid rent............................................................... 2,280
Total current assets.......................................... $20,120Property, plant, and equipment
Equipment.................................................................. 23,050Less: Accumulated depreciation—equipment...... 4,921 18,129
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-4
Total assets........................................................ $38,249
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-5
EXERCISE 4-3 (Continued)PISA COMPANY
Balance Sheet (Continued)April 30, 2012
Liabilities and Owner’s EquityCurrent liabilities
Notes payable............................................................ $5,700Accounts payable..................................................... 4,920Interest payable......................................................... 57
Total current liabilities...................................... $10,677Owner’s equity
Owner’s capital.......................................................... 27,572Total liabilities and owner’s equity.................. $38,249
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-6
EXERCISE 4-7
(a) Service Revenue..................................................... 4,300Income Summary.............................................. 4,300
Income Summary.................................................... 3,500Salaries and Wages Expense.......................... 1,344Miscellaneous Expense................................... 256Supplies Expense............................................. 1,900
Income Summary.................................................... 800Owner’s Capital................................................. 800
Owner’s Capital....................................................... 628Owner’s Drawings............................................ 628
(b) WILLOW TURENNE COMPANYPost-Closing Trial Balance
For the Month Ended June 30, 2012
Account Titles Debit Credit Cash......................................................................... $3,712Accounts Receivable.............................................. 3,904Supplies................................................................... 480Accounts Payable................................................... $1,556Salaries and Wages Payable.................................. 448Unearned Service Revenue.................................... 160Owner’s Capital....................................................... 5,932
$8,096 $8,096
(a) OMER ASIK, P.I.Worksheet
For the Quarter Ended March 31, 2012
Account Titles Trial Balance AdjustmentsAdjusted
Trial BalanceIncome
Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
CashAccounts ReceivableSuppliesPrepaid InsuranceEquipmentNotes PayableAccounts PayableOwner’s CapitalOwner’s DrawingsService RevenueSalaries and Wages ExpenseTravel ExpenseRent ExpenseMiscellaneous Expense
TotalsSupplies ExpenseDepreciation ExpenseAccumulated Depreciation—EquipmentInterest ExpenseInterest PayableInsurance Expense
TotalsNet Income
Totals
11,400 5,620 1,050 2,40030,000
600
2,200 1,300 1,200 20055,970
10,00012,35020,000
13,620
55,970
(e) 1,030
(a) 570(b) 800
(c) 300
(d) 6003,300
(a) 570(d) 600
(e) 1,030
(b) 800
(c) 300 3,300
11,400 6,650 480 1,80030,000
600
2,200 1,300 1,200 200
570 800
300
60058,100
10,00012,35020,000
14,650
800
300 58,100
2,200 1,300 1,200 200
570 800
300
600 7,170 7,48014,650
14,650
14,650 14,650
11,400 6,650 480 1,80030,000
600
50,930 50,930
10,00012,35020,000
800
300 43,450 7,48050,930
Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue Earned but unbilled.
PR
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© 2011 John Wiley &
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PROBLEM 4-1A (Continued)
(b) OMER ASIK, P.I.Income Statement
For the Quarter Ended March 31, 2012
RevenuesService revenue............................................... $14,650
ExpensesSalaries and wages expense.......................... $2,200Travel expense................................................. 1,300Rent expense.................................................... 1,200Depreciation expense...................................... 800Insurance expense........................................... 600Supplies expense............................................. 570Interest expense............................................... 300Miscellaneous expense................................... 200
Total expenses......................................... 7,170Net income............................................................... $ 7,480
OMER ASIK, P.I.Owner’s Equity Statement
For the Quarter Ended March 31, 2012
Owner’s Capital, January 1..................................... $ 0Add: Investment by owner.................................... $20,000
Net income.................................................... 7,480 27,48027,480
Less: Drawings....................................................... 600Owner’s Capital, March 31...................................... $26,880
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-10
PROBLEM 4-1A (Continued)
OMER ASIK, P.I.Balance SheetMarch 31, 2012
AssetsCurrent assets
Cash................................................................. $11,400Accounts receivable...................................... 6,650Supplies.......................................................... 480Prepaid insurance.......................................... 1,800
Total current assets................................ $20,330Property, plant, and equipment
Equipment....................................................... 30,000Less: Accumulated depreciation—
equipment............................................ 800 29,200Total assets............................................. $49,530
Liabilities and Owner’s EquityCurrent liabilities
Notes payable................................................. $10,000Accounts payable........................................... 12,350Interest payable.............................................. 300
Total current liabilities........................... $22,650Owner’s equity
Owner’s capital............................................... 26,880Total liabilities and owner’s equity................................................... $49,530
(c) Mar. 31 Supplies Expense................................. 570Supplies......................................... 570
31 Depreciation Expense........................... 800Accumulated Depreciation— Equipment................................... 800
31 Interest Expense................................... 300Interest Payable............................. 300
31 Insurance Expense............................... 600Prepaid Insurance......................... 600
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-11
PROBLEM 4-1A (Continued)
Mar. 31 Accounts Receivable................................. 1,030Service Revenue................................ 1,030
(d) Mar. 31 Service Revenue....................................... 14,650Income Summary............................... 14,650
31 Income Summary...................................... 7,170Travel Expense.................................. 1,300Salaries and Wages Expense........... 2,200Rent Expense..................................... 1,200Insurance Expense............................ 600Depreciation Expense....................... 800Supplies Expense.............................. 570Interest Expense................................ 300Miscellaneous Expense.................... 200
31 Income Summary...................................... 7,480Owner’s Capital................................. 7,480
31 Owner’s Capital......................................... 600Owner’s Drawings............................. 600
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-12
PROBLEM 4-2A
(a) BOOZER COMPANYPartial Worksheet
For the Year Ended December 31, 2012
AccountAdjusted
Trial BalanceIncome
StatementBalance
Sheet
No. Titles Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash 18,800 18,800112 Accounts Receivable 16,200 16,200126 Supplies 2,300 2,300130 Prepaid Insurance 4,400 4,400151 Equipment 46,000 46,000152 Acc. Depr.—Equip. 20,000 20,000200 Notes Payable 20,000 20,000201 Accounts Payable 8,000 8,000212 Salaries and Wages
Payable 2,600 2,600230 Interest Payable 1,000 1,000301 Owner’s Capital 26,000 26,000306 Owner’s Drawings 12,000 12,000400 Service Revenue 87,800 87,800610 Advertising Expense 10,000 10,000631 Supplies Expense 3,700 3,700711 Depreciation Expense 8,000 8,000722 Insurance Expense 4,000 4,000726 Salaries and Wages
Expense 39,000 39,000905 Interest Expense 1,000 1,000
Totals 165,400 165,400 65,700 87,800 99,700 77,600Net Income 22,100 22,100
Totals 87,800 87,800 99,700 99,700
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-13
PROBLEM 4-2A (Continued)
(b) BOOZER COMPANYIncome Statement
For the Year Ended December 31, 2012
RevenuesService revenue.............................................. $87,800
ExpensesSalaries and wages expense......................... $39,000Advertising expense...................................... 10,000Depreciation expense.................................... 8,000Insurance expense......................................... 4,000Supplies expense........................................... 3,700Interest expense............................................. 1,000
Total expenses........................................ 65,700Net income.............................................................. $22,100
BOOZER COMPANYOwner’s Equity Statement
For the Year Ended December 31, 2012
Owner’s Capital, January 1...................................................... $26,000Add: Net income..................................................................... 22,100
48,100Less: Drawings........................................................................ 12,000Owner’s Capital, December 31................................................ $36,100
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-14
PROBLEM 4-2A (Continued)
BOOZER COMPANYBalance Sheet
December 31, 2012
AssetsCurrent assets
Cash................................................................. $18,800Accounts receivable...................................... 16,200Supplies.......................................................... 2,300Prepaid insurance.......................................... 4,400
Total current assets................................ $41,700Property, plant, and equipment
Equipment....................................................... 46,000Less: Accumulated depreciation—
equipment............................................ 20,000 26,000Total assets............................................. $67,700
Liabilities and Owner’s EquityCurrent liabilities
Notes payable................................................. $5,000Accounts payable........................................... 8,000Salaries and wages payable.......................... 2,600Interest payable.............................................. 1,000
Total current liabilities........................... $16,600Long-term liabilities
Notes payable................................................. 15,000Total liabilities......................................... 31,600
Owner’s equityOwner’s capital............................................... 36,100
Total liabilities and owner’s equity.................................................... $67,700
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-15
PROBLEM 4-2A (Continued)
(c)General Journal J14
Date Account Titles and Explanation Ref. Debit CreditDec. 31 Service Revenue.................................. 400 87,800
Income Summary........................ 350 87,800
31 Income Summary................................. 350 65,700Advertising Expense.................. 610 10,000Supplies Expense....................... 631 3,700Depreciation Expense................ 711 8,000Insurance Expense..................... 722 4,000Salaries and Wages Expense.... 726 39,000Interest Expense......................... 905 1,000
31 Income Summary................................ 350 22,100Owner’s Capital........................... 301 22,100
31 Owner’s Capital.................................... 301 12,000Owner’s Drawings...................... 306 12,000
(d)
Owner’s Capital No. 301Date Explanation Ref. Debit Credit BalanceJan. 31 Balance 26,000 26,000Dec. 31 Closing entry J14 22,100 48,100
31 Closing entry J14 12,000 36,100
Owner’s Drawings No. 306Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 12,000 12,000
31 Closing entry J14 12,000 0
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-16
PROBLEM 4-2A (Continued)
Income Summary No. 350Date Explanation Ref. Debit Credit BalanceDec. 31 Closing entry J14 87,800 87,800
31 Closing entry J14 65,700 22,10031 Closing entry J14 22,100 0
Service Revenue No. 400
Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 87,800 87,800
31 Closing entry J14 87,800 0
Advertising Expense No. 610
Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 10,000 10,000
31 Closing entry J14 10,000 0
Supplies Expense No. 631
Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 3,700 3,700
31 Closing entry J14 3,700 0
Depreciation Expense No. 711
Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 8,000 8,000
31 Closing entry J14 8,000 0
Insurance Expense No. 722
Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 4,000 4,000
31 Closing entry J14 4,000 0
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-17
PROBLEM 4-2A (Continued)
Salaries and Wages Expense No. 726
Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 39,000 39,000
31 Closing entry J14 39,000 0
Interest Expense No. 905
Date Explanation Ref. Debit Credit BalanceDec. 31 Balance 1,000 1,000
31 Closing entry J14 1,000 0
(e) BOOZER COMPANY Post-Closing Trial Balance
December 31, 2012
Debit CreditCash...................................................................... $18,800Accounts Receivable.......................................... 16,200Supplies................................................................ 2,300Prepaid Insurance............................................... 4,400Equipment............................................................ 46,000Accumulated Depreciation— Equipment........................................................ $20,000Notes Payable...................................................... 20,000Accounts Payable................................................ 8,000Salaries and Wages Payable.............................. 2,600Interest Payable................................................... 1,000Owner’s Capital................................................... 36,100
$87,700 $87,700
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-18
PROBLEM 4-3A
(a) CARLOS COMPANYIncome Statement
For the Year Ended December 31, 2012 Revenues
Service revenue........................................... $46,000Expenses
Salaries and wages expense...................... $35,200Maintenance and repairs expense............. 4,400Utilities expense.......................................... 4,000Depreciation expense.................................. 2,800Insurance expense...................................... 1,200
Total expenses..................................... 47,600Net loss................................................................. $ (1,600 )
CARLOS COMPANYOwner’s Equity Statement
For the Year Ended December 31, 2012 Owner’s Capital, January 1................................. $30,000Add: Additional investment by owner............. 4,000
34,000Less: Net loss..................................................... $1,600
Drawings................................................... 7,200 8,800Owner’s Capital, December 31........................... $25,200
CARLOS COMPANYBalance Sheet
December 31, 2012
AssetsCurrent assets
Cash.............................................................. $6,200Accounts receivable.................................... 7,500Prepaid insurance........................................ 1,800
Total current assets............................. $15,500Property, plant, and equipment
Equipment.................................................... 33,000Less: Accumulated depreciation—
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-19
equipment......................................... 8,600 24,400Total assets.......................................... $39,900
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-20
PROBLEM 4-3A (Continued)
CARLOS COMPANYBalance Sheet (Continued)
December 31, 2012
Liabilities and Owner’s EquityCurrent liabilities
Accounts payable........................................ $11,700Salaries and wages payable....................... 3,000
Total current liabilities......................... $14,700Owner’s equity
Owner’s capital............................................ 25,200Total liabilities and owner’s equity................................................. $39,900
(b)General Journal
Date Account Titles Ref. Debit Credit
Dec. 31
Service Revenue..................................Income Summary........................
400350
46,00046,000
31 Income Summary............................... Maintenance and Repairs Expense....................................Depreciation Expense................Insurance Expense.....................Salaries and Wages Expense....Utilities Expense.........................
350
622711722726732
47,600
4,4002,8001,200
35,2004,000
31 Owner’s Capital...................................Income Summary.......................
301350
1,6001,600
31 Owner’s Capital...................................Owner’s Drawings......................
301306
7,2007,200
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-21
PROBLEM 4-3A (Continued)
(c)Owner’s Capital No. 301
12/31 1,600 12/31 Bal. 34,00012/31 7,200
12/31 Bal. 25,200
Owner’s Drawings No. 30612/31 Bal. 7,200 12/31 7,200
Income Summary No. 35012/31 47,600 12/31 46,000
12/31 1,60047,600 47,600
Service Revenue No. 40012/31 46,000 12/31 Bal. 46,000
Maintenance and Repairs Expense No. 622
12/31 Bal. 4,400 12/31 4,400
Depreciation Expense No. 71112/31 Bal. 2,800 12/31 2,800
Insurance Expense No. 72212/31 Bal. 1,200 12/31 1,200
Salaries and Wages Expense No. 72612/31 Bal. 35,200 12/31 35,200
Utilities Expense No. 73212/31 Bal. 4,000 12/31 4,000
(d) CARLOS COMPANYPost-Closing Trial Balance
December 31, 2012
Debit CreditCash...................................................................... $ 6,200Accounts Receivable.......................................... 7,500Prepaid Insurance............................................... 1,800Equipment............................................................ 33,000Accumulated Depreciation—Equipment........... $ 8,600Accounts Payable................................................ 11,700Salaries and Wages Payable.............................. 3,000Owner’s Capital................................................... 25,200
Totals............................................................ $48,500 $48,500
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-22
PR
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© 2011 John Wiley &
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4-47
(a) NOAH AMUSEMENT PARKWorksheet
For the Year Ended September 30, 2012
Account Titles Trial Balance AdjustmentsAdjusted
Trial BalanceIncome
Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
CashSuppliesPrepaid InsuranceLandEquipmentAccumulated Depreciation—EquipmentAccounts PayableUnearned Ticket RevenueMortgage PayableOwner’s CapitalOwner’s DrawingsTicket RevenueSalaries and Wages ExpenseMaintenance and Repairs ExpenseAdvertising ExpenseUtilities ExpenseProperty Tax ExpenseInterest Expense
TotalsInsurance ExpenseSupplies ExpenseInterest PayableDepreciation ExpenseProperty Taxes Payable
TotalsNet Income
Totals
41,400 18,600 31,900 80,000120,000
14,000
105,000
30,500 9,400 16,900 18,000 6,000491,700
36,200 14,600 3,700 50,000109,700
277,500
491,700
(d) 2,700
(e) 3,000(f) 4,000
(b) 21,000(a) 16,400
(c) 6,000 53,100
(a) 16,400(b) 21,000
(c) 6,000
(d) 2,700
(f) 4,000
(e) 3,00053,100
41,400 2,200 10,900 80,000120,000
14,000
105,000
30,500 9,400 16,900 21,000 10,000
21,000 16,400
6,000 504,700
42,200 14,600 1,000 50,000109,700
280,200
4,000
3,000504,700
105,000
30,500 9,400 16,900 21,000 10,000
21,000 16,400
6,000 236,200 44,000280,200
280,200
280,200 280,200
41,400 2,200 10,900 80,000120,000
14,000
268,500 268,500
42,200 14,600 1,00050,000
109,700
4,000
3,000224,500 44,000268,500
Key: (a) Supplies Used; (b) Expired Insurance; (c) Depreciation Expensed; (d) Admissions Revenue Earned; (e) Accrued Property Taxes;(f) Accrued Interest Payable.
PROBLEM 4-4A (Continued)
(b) NOAH AMUSEMENT PARKBalance Sheet
September 30, 2012
AssetsCurrent assets
Cash.............................................. $41,400Supplies........................................ 2,200Prepaid insurance........................ 10,900
Total current assets............. $ 54,500Property, plant, and equipment
Land.............................................. 80,000Equipment.................................... $120,000Less: Accum. depreciation—
equipment......................... 42,200 77,800 157,800Total assets.......................... $212,300
Liabilities and Owner’s EquityCurrent liabilities
Mortgage payable (due in 2013)............... $15,000Accounts payable........................ 14,600Interest payable............................ 4,000Property taxes payable................ 3,000Unearned ticket revenue..................................... 1,000
Total current liabilities......... $ 37,600Long-term liabilities
Mortgage payable........................ 35,000Total liabilities...................... 72,600
Owner’s equityOwner’s capital ($109,700 + $44,000 – $14,000)....... 139,700
Total liabilities and owner’s equity.................. $212,300
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-24
PROBLEM 4-4A (Continued)
(c) Sept. 30 Supplies Expense................................. 16,400Supplies......................................... 16,400
30 Insurance Expense............................... 21,000Prepaid Insurance......................... 21,000
30 Depreciation Expense.......................... 6,000Accumulated Depreciation— Equipment.................................. 6,000
30 Unearned Ticket Revenue.................... 2,700Ticket Revenue.............................. 2,700
30 Property Tax Expense.......................... 3,000Property Taxes Payable............... 3,000
30 Interest Expense................................... 4,000Interest Payable............................ 4,000
(d) Sept. 30 Ticket Revenue..................................... 280,200Income Summary.......................... 280,200
30 Income Summary.................................. 236,200Salaries and Wages Expense...... 105,000Maintenance and Repairs Expense...................................... 30,500Insurance Expense....................... 21,000Property Tax Expense.................. 21,000Supplies Expense......................... 16,400Utilities Expense........................... 16,900Interest Expense........................... 10,000Advertising Expense.................... 9,400Depreciation Expense.................. 6,000
30 Income Summary.................................. 44,000Owner’s Capital............................. 44,000
30 Owner’s Capital.................................... 14,000Owner’s Drawings......................... 14,000
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-25
PROBLEM 4-4A (Continued)
(e) NOAH AMUSEMENT PARKPost-Closing Trial Balance
September 30, 2012
Debit CreditCash...................................................................... $ 41,400Supplies................................................................ 2,200Prepaid Insurance............................................... 10,900Land...................................................................... 80,000Equipment............................................................ 120,000Accumulated Depreciation—Equipment........... $ 42,200Accounts Payable................................................ 14,600Interest Payable................................................... 4,000Property Taxes Payable...................................... 3,000Unearned Ticket Revenue................................... 1,000Mortgage Payable................................................ 50,000Owner’s Capital................................................... 139,700
$254,500 $254,500
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-26
PROBLEM 4-5A
(a)General Journal J1
Date Account Titles and Explanation Ref. Debit CreditMar. 1 Cash..................................................... 101 10,000
Owner’s Capital.......................... 301 10,000
1 Equipment........................................... 157 6,000Cash............................................ 101 3,000Accounts Payable...................... 201 3,000
3 Supplies............................................... 128 1,200Accounts Payable...................... 201 1,200
5 Prepaid Insurance....................................................................................
130 1,200
Cash............................................ 101 1,200
14 Accounts Receivable.......................... 112 4,800Service Revenue........................ 400 4,800
18 Accounts Payable............................... 201 2,000Cash............................................ 101 2,000
20 Salaries and Wages Expense............ 726 1,800Cash............................................ 101 1,800
21 Cash..................................................... 101 1,400Accounts Receivable................. 112 1,400
28 Accounts Receivable.......................... 112 2,500Service Revenue........................ 400 2,500
31 Gasoline Expense............................... 633 200Cash............................................ 101 200
31 Owner’s Drawings............................... 306 700Cash............................................ 101 700
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-27
PR
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(b)&(c) DEVINE’S CARPET CLEANERSWorksheet
For the Month Ended March 31, 2012
Account Titles Trial Balance AdjustmentsAdjusted
Trial BalanceIncome
Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
CashAccounts ReceivableSuppliesPrepaid InsuranceEquipmentAccounts PayableOwner’s CapitalOwner’s DrawingsService RevenueGasoline ExpenseSalaries and Wages Expense
TotalsDepreciation ExpenseAccum. Depr.—EquipmentInsurance ExpenseSupplies ExpenseSalaries and Wages Payable
TotalsNet Income
Totals
2,500 5,900 1,200 1,200 6,000
700
200 1,80019,500
2,20010,000
7,300
19,500
(a) 500
(e) 550
(b) 300
(c) 100(d) 950
2,400
(d) 950(c) 100
(a) 500
(b) 300
(e) 5502,400
2,500 6,400 250 1,100 6,000
700
200 2,350
300
100 950 20,850
2,20010,000
7,800
300
55020,850
2002,350
300
100 950 3,9003,9007,800
7,800
7,800 7,800
2,500 6,400 250 1,100 6,000
700
16,950 16,950
2,20010,000
300
55013,050 3,90016,950
Key: (a) Service Revenue Earned; (b) Depreciation Expensed; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.
4-52C
opyright
© 2011 John Wiley &
Sons, Inc. W
eygandt, Accounting P
rinciples, 10/e, Solutions M
anual (For Instructor U
se Only)
PROBLEM 4-5A (Continued)
(a), (e) & (f)
Cash No. 101
Date Explanation Ref. Debit Credit BalanceMar. 1 J1 10,000 10,000
1 J1 3,000 7,0005 J1 1,200 5,800
18 J1 2,000 3,80020 J1 1,800 2,00021 J1 1,400 3,40031 J1 200 3,20031 J1 700 2,500
Accounts Receivable No. 112
Date Explanation Ref. Debit Credit BalanceMar. 14 J1 4,800 4,800
21 J1 1,400 3,40028 J1 2,500 5,90031 Adjusting J2 500 6,400
Supplies No. 128
Date Explanation Ref. Debit Credit BalanceMar. 3 J1 1,200 1,200
31 Adjusting J2 950 250
Prepaid Insurance No. 130
Date Explanation Ref. Debit Credit BalanceMar. 5 J1 1,200 1,200
31 Adjusting J2 100 1,100
Equipment No. 157
Date Explanation Ref. Debit Credit BalanceMar. 1 J1 6,000 6,000
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-29
PROBLEM 4-5A (Continued)
Accumulated Depreciation—Equipment No. 158
Date Explanation Ref. Debit Credit BalanceMar.
31Adjusting J2 300 300
Accounts Payable No. 201
Date Explanation Ref. Debit Credit BalanceMar. 1 J1 3,000 3,000
3 J1 1,200 4,20018 J1 2,000 2,200
Salaries and Wages Payable No. 212
Date Explanation Ref. Debit Credit BalanceMar.
31Adjusting J2 550 550
Owner’s Capital No. 301
Date Explanation Ref. Debit Credit BalanceMar. 1 J1 10,000 10,000
31 Closing J3 3,900 13,90031 Closing J3 700 13,200
Owner’s Drawings No. 306
Date Explanation Ref. Debit Credit BalanceMar.
31J1 700 700
31 Closing J3 700 0
Income Summary No. 350
Date Explanation Ref. Debit Credit BalanceMar. 31 Closing J3 7,800 7,800
31 Closing J3 3,900 3,900
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-30
31 Closing J3 3,900 0
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-31
PROBLEM 4-5A (Continued)
Service Revenue No. 400
Date Explanation Ref. Debit Credit BalanceMar. 14 J1 4,800 4,800
28 J1 2,500 7,30031 Adjusting J2 500 7,80031 Closing J3 7,800 0
Gasoline Expense No. 633
Date Explanation Ref. Debit Credit BalanceMar. 31 J1 200 200
31 Closing J3 200 0
Supplies Expense No. 634
Date Explanation Ref. Debit Credit BalanceMar. 31 Adjusting J2 950 950
31 Closing J3 950 0
Depreciation Expense No. 711
Date Explanation Ref. Debit Credit BalanceMar. 31 Adjusting J2 300 300
31 Closing J3 300 0
Insurance Expense No. 722
Date Explanation Ref. Debit Credit BalanceMar. 31 Adjusting J2 100 100
31 Closing J3 100 0
Salaries and Wages Expense No. 726
Date Explanation Ref. Debit Credit BalanceMar. 20 J1 1,800 1,800
31 Adjusting J2 550 2,35031 Closing J3 2,350 0
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-32
PROBLEM 4-5A (Continued)
(d) DEVINE’S CARPET CLEANERSIncome Statement
For the Month Ended March 31, 2012
RevenuesService revenue.............................................. $7,800
ExpensesSalaries and wages expense......................... $2,350Supplies expense........................................... 950Depreciation expense.................................... 300Gasoline expense........................................... 200Insurance expense......................................... 100
Total expenses........................................ 3,900Net income.............................................................. $3,900
DEVINE’S CARPET CLEANERSOwner’s Equity Statement
For the Month Ended March 31, 2012
Owner’s Capital, March 1...................................... $ 0Add: Investments................................................. $10,000
Net income.................................................. 3,900 13,90013,900
Less: Drawings...................................................... 700Owner’s Capital, March 31.................................... $13,200
DEVINE’S CARPET CLEANERSBalance SheetMarch 31, 2012
AssetsCurrent assets
Cash................................................................. $2,500Accounts receivable...................................... 6,400Supplies.......................................................... 250Prepaid insurance.......................................... 1,100
Total current assets................................ $10,250 Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-33
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-34
PROBLEM 4-5A (Continued)
DEVINE’S CARPET CLEANERSBalance Sheet (Continued)
March 31, 2012
Assets (Continued)Property, plant, and equipment
Equipment........................................................ $6,000Less: Accumulated depreciation—
equipment............................................. 300 5,700Total assets.............................................. $15,950
Liabilities and Owner’s EquityCurrent liabilities
Accounts payable............................................ $2,200Salaries and wages payable........................... 550
Total current liabilities............................. $ 2,750Owner’s equity
Owner’s capital................................................ 13,200Total liabilities and owner’s equity......... $15,950
(e)General Journal J2
Date Account Titles and Explanation Ref. Debit CreditMar. 31 Accounts Receivable......................... 112 500
Service Revenue........................ 400 500
31 Depreciation Expense........................ 711 300Accumulated Depreciation— Equipment.............................. 158 300
31 Insurance Expense............................. 722 100Prepaid Insurance..................... 130 100
31 Supplies Expense............................... 634 950Supplies...................................... 128 950
31 Salaries and Wages Expense............ 726 550Salaries and Wages Payable.... 212 550
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-35
PROBLEM 4-5A (Continued)
(f)General Journal J3
Date Account Titles and Explanation Ref. Debit CreditMar. 31 Service Revenue................................. 400 7,800
Income Summary....................... 350 7,800
31 Income Summary................................ 350 3,900Salaries and Wages Expense.... 726 2,350Depreciation Expense................ 711 300Insurance Expense.................... 722 100Supplies Expense...................... 634 950Gasoline Expense...................... 633 200
31 Income Summary................................ 350 3,900Owner’s Capital.......................... 301 3,900
31 Owner’s Capital................................... 301 700Owner’s Drawings...................... 306 700
(g) DEVINE’S CARPET CLEANERSPost-Closing Trial Balance
March 31, 2012
Debit CreditCash...................................................................... $ 2,500Accounts Receivable.......................................... 6,400Supplies................................................................ 250Prepaid Insurance............................................... 1,100Equipment............................................................ 6,000Accumulated Depreciation—Equipment........... $ 300Accounts Payable................................................ 2,200Salaries and Wages Payable.............................. 550Owner’s Capital................................................... 13,200
000,000 $16,250 $16,250
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-36
COMPREHENSIVE PROBLEM: CHAPTERS 2 TO 4
(a)General Journal J1
Date Account Titles and Explanation Ref. Debit CreditJuly 1 Cash...................................................... 101 14,000
Owner’s Capital......................... 301 14,000
1 Equipment............................................ 157 10,000Cash............................................ 101 3,000Accounts Payable...................... 201 7,000
3 Supplies................................................ 128 800Accounts Payable...................... 201 800
5 Prepaid Insurance................................ 130 1,800Cash............................................ 101 1,800
12 Accounts Receivable........................... 112 3,800Service Revenue........................ 400 3,800
18 Accounts Payable................................ 201 1,400Cash............................................ 101 1,400
20 Salaries and Wages Expense............. 726 1,600Cash............................................ 101 1,600
21 Cash.....................................................................................................................
101 1,400
Accounts Receivable................ 112 1,400
25 Accounts Receivable........................... 112 1,500Service Revenue........................ 400 1,500
31 Gasoline Expense................................ 633 400Cash............................................ 101 400
31 Owner’s Drawings............................... 306 600Cash............................................ 101 600
Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use Only) 4-37
CO
MP
RE
HE
NS
IVE
PR
OB
LE
M (C
on
tinu
ed)
(b) & (c) JULIE’S MAIDS CLEANING SERVICEWorksheet
For the Month Ended July 31, 2012
Account Titles Trial Balance AdjustmentsAdjusted
Trial BalanceIncome
Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
CashAccounts ReceivableSuppliesPrepaid InsuranceEquipmentAccounts PayableOwner’s CapitalOwner’s DrawingsService RevenueGasoline ExpenseSalaries and Wages Expense
TotalDepreciation ExpenseAccum. Depr.—EquipmentInsurance ExpenseSupplies ExpenseSalaries and Wages Payable
TotalsNet Income
Totals
6,600 3,900 800 1,80010,000
600
400 1,60025,700
6,40014,000
5,300
25,700
(a) 1,300
(e) 500
(b) 200
(c) 150(d) 700
2,850
(d) 700(c) 150
(a) 1,300
(b) 200
(e) 5002,850
6,600 5,200 100 1,65010,000
600
400 2,100
200
150 700
27,700
6,40014,000
6,600
200
50027,700
4002,100
200
150 700 3,5503,0506,600
6,600
6,600
6,600
6,600 5,200 100
1,65010,000
600
24,150 24,150
6,40014,000
200
50021,100 3,05024,150
Key: (a) Service Revenue; (b) Depreciation Expense; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.
4-86C
opyright
© 2011 John Wiley &
Sons, Inc. W
eygandt, Accounting P
rinciples, 10/e, Solutions M
anual (For Instructor U
se Only)
COMPREHENSIVE PROBLEM (Continued)
(a), (e) & (f)
Cash No. 101
Date Explanation Ref. Debit Credit BalanceJuly 1 J1 14,000 14,000
1 J1 3,000 11,0005 J1 1,800 9,200
18 J1 1,400 7,80020 J1 1,600 6,20021 J1 1,400 7,60031 J1 400 7,20031 J1 600 6,600
Accounts Receivable No. 112
Date Explanation Ref. Debit Credit BalanceJuly 12 J1 3,800 3,800
21 J1 1,400 2,40025 J1 1,500 3,90031 Adjusting J2 1,300 5,200
Supplies No. 128
Date Explanation Ref. Debit Credit BalanceJuly 3 J1 800 800
31 Adjusting J2 700 100
Prepaid Insurance No. 130
Date Explanation Ref. Debit Credit BalanceJuly 5 J1 1,800 1,800
31 Adjusting J2 150 1,650
Equipment No. 157
Date Explanation Ref. Debit Credit Balance
July 1 J1 10,000 10,000
COMPREHENSIVE PROBLEM (Continued)
Accumulated Depreciation—Equipment No. 158
Date Explanation Ref. Debit Credit BalanceJuly
31Adjusting J2 200 200
Accounts Payable No. 201
Date Explanation Ref. Debit Credit BalanceJuly 1 J1 7,000 7,000
3 J1 800 7,80018 J1 1,400 6,400
Salaries and Wages Payable No. 212
Date Explanation Ref. Debit Credit BalanceJuly 31 Adjusting J2 500 500
Owner’s Capital No. 301
Date Explanation Ref. Debit Credit BalanceJuly 1 J1 14,000 14,000
31 Closing J3 3,050 17,05031 Closing J3 600 16,450
Owner’s Drawings No. 306
Date Explanation Ref. Debit Credit BalanceJuly
31J1 600 600
31 Closing J3 600 0
Income Summary No. 350
Date Explanation Ref. Debit Credit Balance
July31
Closing J3 6,600 6,600
31 Closing J3 3,550 3,05031 Closing J3 3,050 0
COMPREHENSIVE PROBLEM (Continued)
Service Revenue No. 400
Date Explanation Ref. Debit Credit BalanceJuly 12 J1 3,800 3,800
25 J1 1,500 5,30031 Adjusting J2 1,300 6,60031 Closing J3 6,600 0
Gasoline Expense No. 633
Date Explanation Ref. Debit Credit BalanceJuly 31 J1 400 400
31 Closing J3 400 0
Supplies Expense No. 634
Date Explanation Ref. Debit Credit BalanceJuly 31 Adjusting J2 700 700
31 Closing J3 700 0
Depreciation Expense No. 711
Date Explanation Ref. Debit Credit BalanceJuly 31 Adjusting J2 200 200
31 Closing J3 200 0
Insurance Expense No. 722
Date Explanation Ref. Debit Credit BalanceJuly 31 Adjusting J2 150 150
31 Closing J3 150 0
Salaries and Wages Expense No. 726
Date Explanation Ref. Debit Credit BalanceJuly 20 J1 1,600 1,600
31 Adjusting J2 500 2,100
31 Closing J3 2,100 0
COMPREHENSIVE PROBLEM (Continued)
(d) JULIE’S MAIDS CLEANING SERVICEIncome Statement
For the Month Ended July 31, 2012
RevenuesService revenue...............................................
$6,600Expenses
Salaries and wages expense.......................... $2,100Supplies expense............................................. 700Gasoline expense............................................ 400Depreciation expense...................................... 200Insurance expense........................................... 150
Total expenses......................................... 3,550
Net income...............................................................$3,050
JULIE’S MAIDS CLEANING SERVICEOwner’s Equity Statement
For the Month Ended July 31, 2012
Owner’s Capital, July 1........................................... $ 0
Add: Investments.................................................. $14,000Net income.................................................... 3,050
17,050
17,050Less: Drawings.......................................................
600Owner’s Capital, July 31.........................................$16,450
COMPREHENSIVE PROBLEM (Continued)
JULIE’S MAIDS CLEANING SERVICEBalance SheetJuly 31, 2012
AssetsCurrent assets
Cash.................................................................. $6,600Accounts receivable........................................ 5,200Supplies............................................................ 100Prepaid insurance............................................ 1,650
Total current assets.................................$13,550Property, plant, and equipment
Equipment........................................................ 10,000Less: Accumulated depreciation— equipment............................................. 200
9,800Total assets..............................................
$23,350
Liabilities and Owner’s EquityCurrent liabilities
Accounts payable............................................ $6,400Salaries and wages payable........................... 500
Total current liabilities............................. $ 6,900
Owner’s equityOwner’s capital................................................
16,450Total liabilities and owner’s equity.........
$23,350
COMPREHENSIVE PROBLEM (Continued)
(e)General Journal J2
Date Account Titles and Explanation Ref. Debit CreditJuly 31 Accounts Receivable......................... 112 1,300
Service Revenue........................ 400 1,300
31 Depreciation Expense........................ 711 200Accumulated Depreciation— Equipment.............................. 158 200
31 Insurance Expense............................. 722 150Prepaid Insurance..................... 130 150
31 Supplies Expense............................... 634 700Supplies...................................... 128 700
31 Salaries and Wages Expense............ 726 500Salaries and Wages Payable.... 212 500
(f)General Journal J3
Date Account Titles and Explanation Ref. Debit CreditJuly 31 Service Revenue................................. 400 6,600
Income Summary....................... 350 6,600
31 Income Summary................................ 350 3,550Salaries and Wages Expense... 726 2,100Depreciation Expense............... 711 200Insurance Expense.................... 722 150Supplies Expense...................... 634 700Gasoline Expense...................... 633 400
31 Income Summary................................ 350 3,050Owner’s Capital......................... 301 3,050
31 Owner’s Capital.................................. 301 600Owner’s Drawings..................... 306 600
COMPREHENSIVE PROBLEM (Continued)
(g) JULIE’S MAIDS CLEANING SERVICEPost-Closing Trial Balance
July 31, 2012
Debit CreditCash...................................................................... $ 6,600Accounts Receivable.......................................... 5,200Supplies................................................................ 100Prepaid Insurance............................................... 1,650Equipment............................................................ 10,000Accumulated Depreciation—Equipment........... $ 200Accounts Payable................................................ 6,400Salaries and Wages Payable.............................. 500Owner’s Capital................................................... 16,450
$23,550 $23,550