You are on page 1of 44

BRIEF EXERCISE 4-4

Dec. 31
31

31
31

Service Revenue ..............................................


Income Summary .....................................

50,000

Income Summary .............................................


Salaries and Wages Expense ..................
Supplies Expense.....................................

34,000

Income Summary .............................................


Owners Capital ........................................

16,000

Owners Capital ................................................


Owners Drawings ....................................

2,000

50,000
27,000
7,000
16,000
2,000

BRIEF EXERCISE 4-5


Salaries and Wages
Expense
Bal. 27,000 (2) 27,000

Supplies Expense
Bal. 7,000 (2) 7,000

Copyright 2011 John Wiley & Sons, Inc.

Income Summary
(2) 34,000 (1) 50,000
(3) 16,000
50,000
50,000

Service Revenue
(1) 50,000 Bal. 50,000

Owners Capital
(4)
2,000 Bal. 30,000
(3) 16,000
Bal. 44,000

Owners Drawings
Bal. 2,000 (4) 2,000

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

4-1

SOLUTIONS TO EXERCISES
EXERCISE 4-1
TINOISAMOA COMPANY
Worksheet
For the Month Ended June 30, 2012
Account Titles

Cash

Trial Balance

Adjustments

Dr.

Dr.

Cr.

Cr.

Adj. Trial Balance


Dr.

Cr.

Income Statement
Dr.

Cr.

Balance Sheet
Dr.

2,320

2,320

2,320

2,440

2,440

2,440

Cr.

Accounts
Receivable
Supplies

1,880

Accounts Payable

(a) 1,380

500

1,120

500
1,120

1,120

100

100

Unearned Service
Revenue

240 (b)

Owners Capital

3,600

Service Revenue

2,400

140

3,600
(b)

140

3,600

2,540

2,540

Salaries and
Wages Expense

560

(c)

210

770

770

160

160

1,380

1,380

Miscellaneous
Expense
Totals

160
7,360

7,360

Supplies Expense

(a) 1,380

Salaries and
Wages Payable
Totals
Net Income
Totals

Copyright 2011 John Wiley & Sons, Inc.

(c)
1,730

210
1,730

210
7,570

7,570

210
2,310

2,540

5,260

5,030

2,540

5,260

5,260

230
2,540

Weygandt, Accounting Principles, 10/e, Solutions Manual

230

(For Instructor Use Only)

4-2

EXERCISE 4-2
PISA COMPANY
(Partial) Worksheet
For the Month Ended April 30, 2012
Adjusted
Trial Balance
Cr.

Income
Statement

Account Titles
Cash
Accounts Receivable
Prepaid Rent
Equipment
Accum. Depreciation
Equipment
Notes Payable
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Salaries and Wages
Expense
Rent Expense
Depreciation Expense
Interest Expense
Interest Payable
Totals
Net Income
Totals

Dr.
10,000
7,840
2,280
23,050

Dr.

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Balance Sheet

Cr.

Dr.
10,000
7,840
2,280
23,050

4,921
5,700
4,920
27,960

4,921
5,700
4,920
27,960

3,650

3,650
15,590

10,840
760
671
57
59,148

Cr.

15,590
10,840
760
671
57

57
59,148

12,328
3,262
15,590

15,590

46,820

15,590

46,820

57
43,558
3,262
46,820

(For Instructor Use Only)

4-3

EXERCISE 4-3
PISA COMPANY
Income Statement
For the Month Ended April 30, 2012
Revenues
Service revenue .......................................................
Expenses
Salaries and wages expense ..................................
Rent expense ...........................................................
Depreciation expense ..............................................
Interest expense ......................................................
Total expenses .................................................
Net income .......................................................................

$15,590
$10,840
760
671
57
12,328
$ 3,262

PISA COMPANY
Owners Equity Statement
For the Month Ended April 30, 2012
Owners Capital, April 1 ...........................................................
Add: Net income .....................................................................
Less: Drawings ........................................................................
Owners Capital, April 30 .........................................................

$27,960
3,262
31,222
3,650
$27,572

PISA COMPANY
Balance Sheet
April 30, 2012
Assets
Current assets
Cash..........................................................................
Accounts receivable ................................................
Prepaid rent..............................................................
Total current assets .........................................
Property, plant, and equipment
Equipment ................................................................
Less: Accumulated depreciationequipment .....
Total assets ......................................................
Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$10,000
7,840
2,280
$20,120
23,050
4,921

18,129
$38,249

(For Instructor Use Only)

4-4

EXERCISE 4-3 (Continued)


PISA COMPANY
Balance Sheet (Continued)
April 30, 2012
Liabilities and Owners Equity
Current liabilities
Notes payable ..........................................................
Accounts payable ....................................................
Interest payable .......................................................
Total current liabilities .....................................
Owners equity
Owners capital ........................................................
Total liabilities and owners equity .................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$5,700
4,920
57
$10,677
27,572
$38,249

(For Instructor Use Only)

4-5

EXERCISE 4-7
(a) Service Revenue ....................................................
Income Summary .............................................

4,300

Income Summary ...................................................


Salaries and Wages Expense ..........................
Miscellaneous Expense ...................................
Supplies Expense ............................................

3,500

Income Summary ...................................................


Owners Capital ................................................

800

Owners Capital ......................................................


Owners Drawings............................................

628

(b)

4,300
1,344
256
1,900
800
628

WILLOW TURENNE COMPANY


Post-Closing Trial Balance
For the Month Ended June 30, 2012
Account Titles
Cash ........................................................................
Accounts Receivable .............................................
Supplies ..................................................................
Accounts Payable ..................................................
Salaries and Wages Payable .................................
Unearned Service Revenue ...................................
Owners Capital ......................................................

Debit
$3,712
3,904
480

$8,096

Credit

$1,556
448
160
5,932
$8,096

4-2
OMER ASIK, P.I.
Worksheet
For the Quarter Ended March 31, 2012
Account Titles

Trial Balance
Dr.

Cr.

11,400
5,620
1,050
2,400
30,000

Dr.

Cr.

(e) 1,030
(a)
(d)

570
600

Dr.

Dr.

Cr.

11,400
6,650
480
1,800
30,000

10,000
12,350
20,000

Balance Sheet
Dr.

10,000
12,350
20,000

600
13,620

(e) 1,030

Cr.

11,400
6,650
480
1,800
30,000
10,000
12,350
20,000

600

2,200
1,300
1,200
200
55,970

Cr.

Income
Statement

600
14,650

14,650

2,200
1,300
1,200
200

2,200
1,300
1,200
200

570
800

570
800

55,970

(For Instructor Use Only)

(a)
(b)

570
800

(c)

300

(d)

600
3,300

(b)

800

800
300

(c)

300
3,300

800
300

300
600
58,100

58,100

300
600
7,170
7,480
14,650

14,650

50,930

14,650

50,930

43,450
7,480
50,930

Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue
Earned but unbilled.

PROBLEM 4-1A

Weygandt, Accounting Principles, 10/e, Solutions Manual

Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Notes Payable
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Salaries and Wages
Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Totals
Supplies Expense
Depreciation Expense
Accumulated
DepreciationEquipment
Interest Expense
Interest Payable
Insurance Expense
Totals
Net Income
Totals

Adjusted
Trial Balance

Adjustments

SOLUTIONS TO PROBLEMS

Copyright 2011 John Wiley & Sons, Inc.

(a)

PROBLEM 4-1A (Continued)


(b)

OMER ASIK, P.I.


Income Statement
For the Quarter Ended March 31, 2012
Revenues
Service revenue...............................................
Expenses
Salaries and wages expense ..........................
Travel expense ................................................
Rent expense ...................................................
Depreciation expense .....................................
Insurance expense ..........................................
Supplies expense ............................................
Interest expense ..............................................
Miscellaneous expense ..................................
Total expenses.........................................
Net income ..............................................................

$14,650
$2,200
1,300
1,200
800
600
570
300
200
7,170
$ 7,480

OMER ASIK, P.I.


Owners Equity Statement
For the Quarter Ended March 31, 2012
Owners Capital, January 1 ....................................
Add: Investment by owner ...................................
Net income ...................................................
Less: Drawings ......................................................
Owners Capital, March 31 .....................................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$
$20,000
7,480

27,480
27,480
600
$26,880

(For Instructor Use Only)

4-9

PROBLEM 4-1A (Continued)


OMER ASIK, P.I.
Balance Sheet
March 31, 2012
Assets
Current assets
Cash ...............................................................
Accounts receivable .....................................
Supplies .........................................................
Prepaid insurance .........................................
Total current assets ..............................
Property, plant, and equipment
Equipment .....................................................
Less: Accumulated depreciation
equipment ..........................................
Total assets............................................

$11,400
6,650
480
1,800
$20,330
30,000
800

29,200
$49,530

Liabilities and Owners Equity


Current liabilities
Notes payable ................................................
Accounts payable .........................................
Interest payable .............................................
Total current liabilities ..........................
Owners equity
Owners capital..............................................
Total liabilities and owners
equity ..................................................
(c) Mar. 31
31

31
31

$10,000
12,350
300
$22,650
26,880
$49,530

Supplies Expense .................................


Supplies .........................................

570

Depreciation Expense ..........................


Accumulated Depreciation
Equipment .................................

800

Interest Expense ...................................


Interest Payable ............................

300

Insurance Expense ...............................


Prepaid Insurance .........................

600

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

570

800
300
600
(For Instructor Use Only)

4-10

PROBLEM 4-1A (Continued)


Mar. 31

(d) Mar. 31
31

31
31

Accounts Receivable ...............................


Service Revenue ...............................

1,030

Service Revenue .......................................


Income Summary ..............................

14,650

Income Summary......................................
Travel Expense..................................
Salaries and Wages Expense ...........
Rent Expense ....................................
Insurance Expense ...........................
Depreciation Expense.......................
Supplies Expense .............................
Interest Expense ...............................
Miscellaneous Expense ....................

7,170

Income Summary......................................
Owners Capital .................................

7,480

Owners Capital ........................................


Owners Drawings.............................

600

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

1,030

14,650
1,300
2,200
1,200
600
800
570
300
200
7,480
600

(For Instructor Use Only)

4-11

PROBLEM 4-2A

(a)

BOOZER COMPANY
Partial Worksheet
For the Year Ended December 31, 2012

Account
No. Titles
101
112
126
130
151
152
200
201
212
230
301
306
400
610
631
711
722
726
905

Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Acc. Depr.Equip.
Notes Payable
Accounts Payable
Salaries and Wages
Payable
Interest Payable
Owners Capital
Owners Drawings
Service Revenue
Advertising Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Salaries and Wages
Expense
Interest Expense
Totals
Net Income
Totals

Copyright 2011 John Wiley & Sons, Inc.

Adjusted
Trial Balance
Dr.
Cr.

Income
Statement
Dr.
Cr.

Balance
Sheet
Dr.
Cr.

18,800
16,200
2,300
4,400
46,000

18,800
16,200
2,300
4,400
46,000
20,000
20,000
8,000

20,000
20,000
8,000

2,600
1,000
26,000

2,600
1,000
26,000

12,000

12,000
87,800

10,000
3,700
8,000
4,000
39,000
1,000
165,400 165,400

87,800
10,000
3,700
8,000
4,000
39,000
1,000
65,700
22,100
87,800

87,800

99,700

87,800

99,700

Weygandt, Accounting Principles, 10/e, Solutions Manual

77,600
22,100
99,700

(For Instructor Use Only)

4-12

PROBLEM 4-2A (Continued)


(b)

BOOZER COMPANY
Income Statement
For the Year Ended December 31, 2012
Revenues
Service revenue.............................................
Expenses
Salaries and wages expense ........................
Advertising expense .....................................
Depreciation expense ...................................
Insurance expense ........................................
Supplies expense ..........................................
Interest expense ............................................
Total expenses.......................................
Net income ............................................................

$87,800
$39,000
10,000
8,000
4,000
3,700
1,000
65,700
$22,100

BOOZER COMPANY
Owners Equity Statement
For the Year Ended December 31, 2012
Owners Capital, January 1 ....................................................
Add: Net income ...................................................................
Less: Drawings ......................................................................
Owners Capital, December 31...............................................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$26,000
22,100
48,100
12,000
$36,100

(For Instructor Use Only)

4-13

PROBLEM 4-2A (Continued)


BOOZER COMPANY
Balance Sheet
December 31, 2012
Assets
Current assets
Cash ...............................................................
Accounts receivable .....................................
Supplies .........................................................
Prepaid insurance .........................................
Total current assets ..............................
Property, plant, and equipment
Equipment .....................................................
Less: Accumulated depreciation
equipment ..........................................
Total assets............................................

$18,800
16,200
2,300
4,400
$41,700
46,000
20,000

26,000
$67,700

Liabilities and Owners Equity


Current liabilities
Notes payable ................................................
Accounts payable .........................................
Salaries and wages payable .........................
Interest payable .............................................
Total current liabilities ..........................
Long-term liabilities
Notes payable ................................................
Total liabilities........................................
Owners equity
Owners capital..............................................
Total liabilities and owners
equity ...................................................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$5,000
8,000
2,600
1,000
$16,600
15,000
31,600
36,100
$67,700

(For Instructor Use Only)

4-14

PROBLEM 4-2A (Continued)


(c)
General Journal
Date
Account Titles and Explanation
Dec. 31 Service Revenue .................................
Income Summary .......................

Ref.
400
350

Debit
87,800

31 Income Summary ................................


Advertising Expense..................
Supplies Expense ......................
Depreciation Expense ................
Insurance Expense ....................
Salaries and Wages Expense ....
Interest Expense ........................

350
610
631
711
722
726
905

65,700

31 Income Summary ................................


Owners Capital ..........................

350
301

22,100

31 Owners Capital ...................................


Owners Drawings ......................

301
306

12,000

J14
Credit
87,800
10,000
3,700
8,000
4,000
39,000
1,000
22,100
12,000

(d)
Date
Explanation
Jan. 31 Balance
Dec. 31 Closing entry
31 Closing entry

Owners Capital
Ref.
Debit

J14
J14
12,000

Date
Explanation
Dec. 31 Balance
31 Closing entry

Owners Drawings
Ref.
Debit

12,000
J14

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit
26,000
22,100

No. 301
Balance
26,000
48,100
36,100

Credit

No. 306
Balance
12,000
0

12,000

(For Instructor Use Only)

4-15

PROBLEM 4-2A (Continued)

Explanation
Closing entry
Closing entry
Closing entry

Income Summary
Ref.
Debit
J14
J14
65,700
J14
22,100

Date
Explanation
Dec. 31 Balance
31 Closing entry

Service Revenue
Ref.
Debit

J14
87,800

Date
Explanation
Dec. 31 Balance
31
Closing entry

Advertising Expense
Ref.
Debit

10,000
J14

Date
Dec. 31
31
31

Explanation
Balance
Closing entry

Supplies Expense
Ref.
Debit

3,700
J14

Date
Explanation
Dec. 31 Balance
31 Closing entry

Depreciation Expense
Ref.
Debit

8,000
J14

Date
Dec. 31
31

Date
Dec. 31
31

Explanation
Balance
Closing entry

Copyright 2011 John Wiley & Sons, Inc.

Insurance Expense
Ref.
Debit

4,000
J14

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit
87,800

No. 350
Balance
87,800
22,100
0

Credit
87,800

No. 400
Balance
87,800
0

Credit
10,000

Credit
3,700

Credit
8,000

Credit
4,000

No. 610
Balance
10,000
0
No. 631
Balance
3,700
0
No. 711
Balance
8,000
0
No. 722
Balance
4,000
0

(For Instructor Use Only)

4-16

PROBLEM 4-2A (Continued)


Salaries and Wages Expense
Date
Explanation
Ref.
Debit
Dec. 31 Balance

39,000
31 Closing entry
J14

Date
Explanation
Dec. 31 Balance
31 Closing entry

(e)

Credit
39,000

Interest Expense
Ref.
Debit

1,000
J14

Credit
1,000

No. 726
Balance
39,000
0
No. 905
Balance
1,000
0

BOOZER COMPANY
Post-Closing Trial Balance
December 31, 2012
Cash.....................................................................
Accounts Receivable ..........................................
Supplies ..............................................................
Prepaid Insurance...............................................
Equipment ...........................................................
Accumulated Depreciation
Equipment .......................................................
Notes Payable .....................................................
Accounts Payable ...............................................
Salaries and Wages Payable ..............................
Interest Payable ..................................................
Owners Capital ..................................................

Debit
$18,800
16,200
2,300
4,400
46,000

$87,700

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit

$20,000
20,000
8,000
2,600
1,000
36,100
$87,700

(For Instructor Use Only)

4-17

PROBLEM 4-3A
(a)

CARLOS COMPANY
Income Statement
For the Year Ended December 31, 2012
Revenues
Service revenue...........................................
Expenses
Salaries and wages expense ......................
Maintenance and repairs expense .............
Utilities expense ..........................................
Depreciation expense .................................
Insurance expense ......................................
Total expenses.....................................
Net loss ...............................................................

$46,000
$35,200
4,400
4,000
2,800
1,200
47,600
$ (1,600)

CARLOS COMPANY
Owners Equity Statement
For the Year Ended December 31, 2012
Owners Capital, January 1 ................................
Add: Additional investment by owner .............
Less: Net loss ....................................................
Drawings ..................................................
Owners Capital, December 31...........................

$30,000
4,000
34,000
$1,600
7,200

8,800
$25,200

CARLOS COMPANY
Balance Sheet
December 31, 2012
Assets
Current assets
Cash .............................................................
Accounts receivable ...................................
Prepaid insurance .......................................
Total current assets ............................
Property, plant, and equipment
Equipment ...................................................
Less: Accumulated depreciation
equipment ........................................
Total assets..........................................
Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$6,200
7,500
1,800
$15,500
33,000
8,600

24,400
$39,900

(For Instructor Use Only)

4-18

PROBLEM 4-3A (Continued)


CARLOS COMPANY
Balance Sheet (Continued)
December 31, 2012
Liabilities and Owners Equity
Current liabilities
Accounts payable .......................................
Salaries and wages payable .......................
Total current liabilities ........................
Owners equity
Owners capital............................................
Total liabilities and owners
equity ................................................

$11,700
3,000
$14,700
25,200
$39,900

(b)
General Journal
Date
Account Titles
Dec. 31 Service Revenue .................................
Income Summary .......................

Ref.
400
350

Debit
46,000

Income Summary ...............................


Maintenance and Repairs
Expense ..................................
Depreciation Expense ...............
Insurance Expense....................
Salaries and Wages Expense ...
Utilities Expense........................

350

47,600

Owners Capital ..................................


Income Summary ......................

301
350

1,600

Owners Capital ..................................


Owners Drawings .....................

301
306

7,200

31

31

31

Copyright 2011 John Wiley & Sons, Inc.

46,000

622
711
722
726
732

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit

4,400
2,800
1,200
35,200
4,000

1,600

7,200

(For Instructor Use Only)

4-19

PROBLEM 4-3A (Continued)


(c)
12/31
12/31

Owners Capital
No. 301
1,600 12/31 Bal. 34,000
7,200
12/31 Bal. 25,200

Owners Drawings
12/31 Bal.
7,200 12/31

12/31

12/31

Income Summary
47,600 12/31
12/31
47,600

No. 306
7,200

No. 350
46,000
1,600
47,600

Service Revenue
No. 400
46,000 12/31 Bal. 46,000

(d)

Maintenance and Repairs


Expense
12/31 Bal.
4,400 12/31

No. 622
4,400

Depreciation Expense No. 711


12/31 Bal.
2,800 12/31
2,800

Insurance Expense
12/31 Bal.
1,200 12/31

No. 722
1,200

Salaries and Wages Expense


12/31 Bal. 35,200 12/31

No. 726
35,200

Utilities Expense
12/31 Bal.
4,000 12/31

No. 732
4,000

CARLOS COMPANY
Post-Closing Trial Balance
December 31, 2012
Cash.....................................................................
Accounts Receivable ..........................................
Prepaid Insurance...............................................
Equipment ...........................................................
Accumulated DepreciationEquipment ...........
Accounts Payable ...............................................
Salaries and Wages Payable ..............................
Owners Capital ..................................................
Totals ...........................................................

Copyright 2011 John Wiley & Sons, Inc.

Debit
$ 6,200
7,500
1,800
33,000

$48,500

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit

$ 8,600
11,700
3,000
25,200
$48,500

(For Instructor Use Only)

4-20

Copyright 2011 John Wiley & Sons, Inc.

(a)

NOAH AMUSEMENT PARK


Worksheet
For the Year Ended September 30, 2012
Account Titles

Trial Balance
Dr.

Adjustments

Cr.

Cr.
(a) 16,400
(b) 21,000

(d)

(c)

6,000

(d)

2,700

Dr.

Cr.

Income
Statement
Dr.

Cr.

41,400
2,200
10,900
80,000
120,000
42,200
14,600
1,000
50,000
109,700

2,700

14,000
280,200

280,200
105,000

3,000
4,000

30,500
9,400
16,900
21,000
10,000

30,500
9,400
16,900
21,000
10,000

(b) 21,000
(a) 16,400

21,000
16,400

21,000
16,400

(f)

4,000

6,000

4,000
6,000

(For Instructor Use Only)

(e)
53,100

3,000
53,100

Cr.

42,200
14,600
1,000
50,000
109,700

105,000

(c)

Dr.
41,400
2,200
10,900
80,000
120,000

14,000

(e)
(f)

Balance Sheet

3,000
504,700 504,700

4,000
6,000
236,200 280,200
44,000
280,200 280,200

268,500
268,500

3,000
224,500
44,000
268,500

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

Weygandt, Accounting Principles, 10/e, Solutions Manual

Cash
41,400
Supplies
18,600
Prepaid Insurance
31,900
Land
80,000
Equipment
120,000
Accumulated
Depreciation
Equipment
36,200
Accounts Payable
14,600
Unearned Ticket Revenue
3,700
Mortgage Payable
50,000
Owners Capital
109,700
Owners Drawings
14,000
Ticket Revenue
277,500
Salaries and Wages Expense
105,000
Maintenance and Repairs
Expense
30,500
Advertising Expense
9,400
Utilities Expense
16,900
Property Tax Expense
18,000
Interest Expense
6,000
Totals
491,700 491,700
Insurance Expense
Supplies Expense
Interest Payable
Depreciation Expense
Property Taxes Payable
Totals
Net Income
Totals

Dr.

Adjusted
Trial Balance

4-47

PROBLEM 4-4A (Continued)


(b)

NOAH AMUSEMENT PARK


Balance Sheet
September 30, 2012
Assets
Current assets
Cash .............................................
Supplies .......................................
Prepaid insurance .......................
Total current assets ............
Property, plant, and equipment
Land .............................................
Equipment ...................................
Less: Accum. depreciation
equipment ........................
Total assets..........................

$41,400
2,200
10,900
$ 54,500
80,000
$120,000
42,200

77,800

157,800
$212,300

Liabilities and Owners Equity


Current liabilities
Mortgage
payable (due in 2013) ..............
Accounts payable .......................
Interest payable ...........................
Property taxes payable ...............
Unearned ticket
revenue ....................................
Total current liabilities ........
Long-term liabilities
Mortgage payable........................
Total liabilities......................
Owners equity
Owners capital
($109,700 + $44,000 $14,000) ......
Total liabilities and
owners equity .................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$15,000
14,600
4,000
3,000
1,000
$ 37,600
35,000
72,600
139,700
$212,300

(For Instructor Use Only)

4-22

PROBLEM 4-4A (Continued)


(c) Sept. 30
30
30

30
30
30

(d) Sept. 30
30

30
30

Supplies Expense ................................


Supplies ........................................

16,400

Insurance Expense ..............................


Prepaid Insurance ........................

21,000

Depreciation Expense..........................
Accumulated Depreciation
Equipment ..................................

6,000

Unearned Ticket Revenue ...................


Ticket Revenue .............................

2,700

Property Tax Expense .........................


Property Taxes Payable ...............

3,000

Interest Expense ..................................


Interest Payable ............................

4,000

Ticket Revenue.....................................
Income Summary .........................

280,200

Income Summary .................................


Salaries and Wages Expense ......
Maintenance and Repairs
Expense .....................................
Insurance Expense .......................
Property Tax Expense ..................
Supplies Expense .........................
Utilities Expense...........................
Interest Expense...........................
Advertising Expense ....................
Depreciation Expense ..................

236,200

Income Summary .................................


Owners Capital ............................

44,000

Owners Capital ....................................


Owners Drawings ........................

14,000

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

16,400
21,000

6,000
2,700
3,000
4,000

280,200
105,000
30,500
21,000
21,000
16,400
16,900
10,000
9,400
6,000
44,000
14,000
(For Instructor Use Only)

4-23

PROBLEM 4-4A (Continued)


(e)

NOAH AMUSEMENT PARK


Post-Closing Trial Balance
September 30, 2012
Cash.....................................................................
Supplies ..............................................................
Prepaid Insurance...............................................
Land .....................................................................
Equipment ...........................................................
Accumulated DepreciationEquipment ...........
Accounts Payable ...............................................
Interest Payable ..................................................
Property Taxes Payable .....................................
Unearned Ticket Revenue ..................................
Mortgage Payable ...............................................
Owners Capital ..................................................

Debit
$ 41,400
2,200
10,900
80,000
120,000

$254,500

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit

$ 42,200
14,600
4,000
3,000
1,000
50,000
139,700
$254,500

(For Instructor Use Only)

4-24

PROBLEM 4-5A

(a)
Date
Mar. 1
1

3
5
14
18
20
21
28
31
31

General Journal
Account Titles and Explanation
Cash ....................................................
Owners Capital .........................

Ref.
101
301

Debit
10,000

Equipment ..........................................
Cash ...........................................
Accounts Payable .....................

157
101
201

6,000

Supplies ..............................................
Accounts Payable .....................

128
201

1,200

Prepaid Insurance ..............................


Cash ...........................................

130
101

1,200

Accounts Receivable .........................


Service Revenue .......................

112
400

4,800

Accounts Payable ..............................


Cash ...........................................

201
101

2,000

Salaries and Wages Expense ............


Cash ...........................................

726
101

1,800

Cash ...................................................
Accounts Receivable ................

101
112

1,400

Accounts Receivable .........................


Service Revenue .......................

112
400

2,500

Gasoline Expense ..............................


Cash ...........................................

633
101

200

Owners Drawings ..............................


Cash ...........................................

306
101

700

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

J1
Credit
10,000
3,000
3,000
1,200
1,200
4,800
2,000
1,800
1,400
2,500
200
700

(For Instructor Use Only)

4-25

Copyright 2011 John Wiley & Sons, Inc.

Account Titles

Trial Balance
Dr.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Gasoline Expense
Salaries and Wages Expense
Totals
Depreciation Expense
Accum. Depr.Equipment
Insurance Expense
Supplies Expense
Salaries and Wages Payable
Totals
Net Income
Totals

Cr.

2,500
5,900
1,200
1,200
6,000

Adjusted
Trial Balance

Adjustments
Dr.
(a)

Cr.

500
(d)
(c)

950
100

Dr.

Dr.

Cr.

2,500
6,400
250
1,100
6,000

2,200
10,000

Balance Sheet
Dr.

2,200
10,000

700
7,300

(a)
(e)

550

(b)

300

500

Cr.

2,500
6,400
250
1,100
6,000
2,200
10,000

700
200
1,800
19,500

Cr.

Income
Statement

700
7,800

200
2,350

7,800
200
2,350

19,500
300
(b)
(c)
(d)

300
100
950

100
950
(e)
2,400

300
300

550
2,400

20,850

300
100
950

550
20,850

3,900
3,900
7,800

7,800

16,950

7,800

16,950

550
13,050
3,900
16,950

(For Instructor Use Only)

Key: (a) Service Revenue Earned; (b) Depreciation Expensed; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.

PROBLEM 4-5A (Continued)

4-52
DEVINES CARPET CLEANERS
Worksheet
For the Month Ended March 31, 2012

(b)&(c)

PROBLEM 4-5A (Continued)


(a), (e) & (f)

Date
Mar. 1
1
5
18
20
21
31
31

Date
Mar. 14
21
28
31

Date
Mar. 3
31

Date
Mar. 5
31

Date
Mar. 1

Explanation

Explanation

Adjusting

Explanation
Adjusting

Explanation
Adjusting

Explanation

Copyright 2011 John Wiley & Sons, Inc.

Cash
Ref.
J1
J1
J1
J1
J1
J1
J1
J1

Debit
10,000

3,000
1,200
2,000
1,800
1,400
200
700

Accounts Receivable
Ref.
Debit
J1
4,800
J1
J1
2,500
J2
500
Supplies
Ref.
J1
J2

Debit
1,200

Credit
1,400

Credit
950

Prepaid Insurance
Ref.
Debit
J1
1,200
J2
Equipment
Ref.
J1

Credit

Debit
6,000

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit
100

Credit

No. 101
Balance
10,000
7,000
5,800
3,800
2,000
3,400
3,200
2,500
No. 112
Balance
4,800
3,400
5,900
6,400
No. 128
Balance
1,200
250
No. 130
Balance
1,200
1,100
No. 157
Balance
6,000

(For Instructor Use Only)

4-27

PROBLEM 4-5A (Continued)

Date
Mar. 31

Date
Mar. 1
3
18

Date
Mar. 31

Date
Mar. 1
31
31

Date
Mar. 31
31

Date
Mar. 31
31
31

Accumulated DepreciationEquipment
Explanation
Ref.
Debit
Credit
Adjusting
J2
300

Explanation

Accounts Payable
Ref.
Debit
J1
J1
J1
2,000

Salaries and Wages Payable


Explanation
Ref.
Debit
Adjusting
J2

Explanation
Closing
Closing

Owners Capital
Ref.
Debit
J1
J3
J3
700

Closing

Owners Drawings
Ref.
Debit
J1
700
J3

Explanation
Closing
Closing
Closing

Income Summary
Ref.
Debit
J3
J3
3,900
J3
3,900

Explanation

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit
3,000
1,200

Credit
550

Credit
10,000
3,900

Credit
700

Credit
7,800

No. 158
Balance
300
No. 201
Balance
3,000
4,200
2,200
No. 212
Balance
550
No. 301
Balance
10,000
13,900
13,200
No. 306
Balance
700
0
No. 350
Balance
7,800
3,900
0

(For Instructor Use Only)

4-28

PROBLEM 4-5A (Continued)

Date
Mar. 14
28
31
31

Explanation

Adjusting
Closing

Service Revenue
Ref.
Debit
J1
J1
J2
J3
7,800

Closing

Gasoline Expense
Ref.
Debit
J1
200
J3

Explanation
Adjusting
Closing

Supplies Expense
Ref.
Debit
J2
950
J3

Explanation
Adjusting
Closing

Depreciation Expense
Ref.
Debit
J2
300
J3

Date
Mar. 31
31

Explanation
Adjusting
Closing

Insurance Expense
Ref.
Debit
J2
100
J3

Date
Mar. 20
31
31

Salaries and Wages Expense


Explanation
Ref.
Debit
J1
1,800
Adjusting
J2
550
Closing
J3

Date
Mar. 31
31

Date
Mar. 31
31

Date
Mar. 31
31

Explanation

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Credit
4,800
2,500
500

Credit
200

Credit
950

Credit
300

Credit
100

Credit

2,350

No. 400
Balance
4,800
7,300
7,800
0
No. 633
Balance
200
0
No. 634
Balance
950
0
No. 711
Balance
300
0
No. 722
Balance
100
0
No. 726
Balance
1,800
2,350
0

(For Instructor Use Only)

4-29

PROBLEM 4-5A (Continued)


(d)

DEVINES CARPET CLEANERS


Income Statement
For the Month Ended March 31, 2012
Revenues
Service revenue.............................................
Expenses
Salaries and wages expense ........................
Supplies expense ..........................................
Depreciation expense ...................................
Gasoline expense..........................................
Insurance expense ........................................
Total expenses.......................................
Net income ............................................................

$7,800
$2,350
950
300
200
100
3,900
$3,900

DEVINES CARPET CLEANERS


Owners Equity Statement
For the Month Ended March 31, 2012
Owners Capital, March 1 .....................................
Add: Investments................................................
Net income .................................................

$
$10,000
3,900

Less: Drawings ....................................................


Owners Capital, March 31 ...................................

13,900
13,900
700
$13,200

DEVINES CARPET CLEANERS


Balance Sheet
March 31, 2012
Assets
Current assets
Cash ...............................................................
Accounts receivable .....................................
Supplies .........................................................
Prepaid insurance .........................................
Total current assets ..............................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

$2,500
6,400
250
1,100
$10,250

(For Instructor Use Only)

4-30

PROBLEM 4-5A (Continued)


DEVINES CARPET CLEANERS
Balance Sheet (Continued)
March 31, 2012
Assets (Continued)
Property, plant, and equipment
Equipment .......................................................
Less: Accumulated depreciation
equipment ............................................
Total assets..............................................

$6,000
300

5,700
$15,950

Liabilities and Owners Equity


Current liabilities
Accounts payable ...........................................
Salaries and wages payable ...........................
Total current liabilities ............................
Owners equity
Owners capital................................................
Total liabilities and owners equity ........

$2,200
550
$ 2,750
13,200
$15,950

(e)
Date
Mar. 31
31

31
31
31

General Journal
Account Titles and Explanation
Accounts Receivable .........................
Service Revenue .......................

Ref.
112
400

Debit
500

Depreciation Expense .......................


Accumulated Depreciation
Equipment .............................

711

300

Insurance Expense ............................


Prepaid Insurance .....................

722
130

100

Supplies Expense ..............................


Supplies .....................................

634
128

950

Salaries and Wages Expense ............


Salaries and Wages Payable ....

726
212

550

Copyright 2011 John Wiley & Sons, Inc.

J2
Credit
500

158

Weygandt, Accounting Principles, 10/e, Solutions Manual

300
100
950
550

(For Instructor Use Only)

4-31

PROBLEM 4-5A (Continued)


(f)
General Journal
Date
Account Titles and Explanation
Mar. 31 Service Revenue ................................
Income Summary ......................

Ref.
400
350

Debit
7,800

31 Income Summary ...............................


Salaries and Wages Expense ...
Depreciation Expense ...............
Insurance Expense ....................
Supplies Expense ......................
Gasoline Expense .....................

350
726
711
722
634
633

3,900

31 Income Summary ...............................


Owners Capital .........................

350
301

3,900

31 Owners Capital ..................................


Owners Drawings .....................

301
306

700

(g)

7,800
2,350
300
100
950
200
3,900
700

DEVINES CARPET CLEANERS


Post-Closing Trial Balance
March 31, 2012

Cash.....................................................................
Accounts Receivable ..........................................
Supplies ..............................................................
Prepaid Insurance...............................................
Equipment ...........................................................
Accumulated DepreciationEquipment ...........
Accounts Payable ...............................................
Salaries and Wages Payable ..............................
Owners Capital ..................................................
000,000

Copyright 2011 John Wiley & Sons, Inc.

J3
Credit

Debit
$ 2,500
6,400
250
1,100
6,000

Credit

$16,250

Weygandt, Accounting Principles, 10/e, Solutions Manual

300
2,200
550
13,200
$16,250

(For Instructor Use Only)

4-32

COMPREHENSIVE PROBLEM: CHAPTERS 2 TO 4

(a)
Date
July 1
1

3
5
12
18
20
21
25
31
31

General Journal
Account Titles and Explanation
Cash .....................................................
Owners Capital .........................

Ref.
101
301

Debit
14,000

Equipment ...........................................
Cash ...........................................
Accounts Payable .....................

157
101
201

10,000

Supplies ...............................................
Accounts Payable .....................

128
201

800

Prepaid Insurance ...............................


Cash ...........................................

130
101

1,800

Accounts Receivable ..........................


Service Revenue .......................

112
400

3,800

Accounts Payable ...............................


Cash ...........................................

201
101

1,400

Salaries and Wages Expense .............


Cash ...........................................

726
101

1,600

Cash .....................................................
Accounts Receivable ................

101
112

1,400

Accounts Receivable ..........................


Service Revenue .......................

112
400

1,500

Gasoline Expense ...............................


Cash ...........................................

633
101

400

Owners Drawings...............................
Cash ...........................................

306
101

600

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

J1
Credit
14,000
3,000
7,000
800
1,800
3,800
1,400
1,600
1,400
1,500
400
600

(For Instructor Use Only)

4-33

Copyright 2011 John Wiley & Sons, Inc.

Account Titles

Trial Balance
Dr.

Weygandt, Accounting Principles, 10/e, Solutions Manual

Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Gasoline Expense
Salaries and Wages Expense
Total
Depreciation Expense
Accum. Depr.Equipment
Insurance Expense
Supplies Expense
Salaries and Wages Payable
Totals
Net Income
Totals

Cr.

6,600
3,900
800
1,800
10,000

Adjusted
Trial Balance

Adjustments
Dr.

Cr.

(a) 1,300
(d)
(c)

700
150

Dr.

Dr.

Cr.

6,600
5,200
100
1,650
10,000

6,400
14,000

Balance Sheet
Dr.

6,400
14,000

600
5,300

(a) 1,300
(e)

500

(b)

200

Cr.

6,600
5,200
100
1,650
10,000
6,400
14,000

600
400
1,600
25,700

Cr.

Income
Statement

600
6,600

400
2,100

6,600
400
2,100

25,700
200
(b)
(c)
(d)

200

150
700

150
700
(e)

2,850

200
200

500
2,850

27,700

200
150
700

500
27,700

3,550
3,050
6,600

6,600

24,150

6,600

24,150

(For Instructor Use Only)

Key: (a) Service Revenue; (b) Depreciation Expense; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.

500
21,100
3,050
24,150

COMPREHENSIVE PROBLEM (Continued)

4-86
JULIES MAIDS CLEANING SERVICE
Worksheet
For the Month Ended July 31, 2012

(b) & (c)

4-87

COMPREHENSIVE PROBLEM (Continued)


(a), (e) & (f)

Date
July 1
1
5
18
20
21
31
31

Date
July 12
21
25
31

Date
July 3
31

Date
July 5
31

Date

Explanation

Explanation

Adjusting

Explanation
Adjusting

Explanation
Adjusting

Explanation

Cash
Ref.
J1
J1
J1
J1
J1
J1
J1
J1

Debit
14,000

3,000
1,800
1,400
1,600
1,400
400
600

Accounts Receivable
Ref.
Debit
J1
3,800
J1
J1
1,500
J2
1,300
Supplies
Ref.
J1
J2

Debit
800

Credit
1,400

Credit
700

Prepaid Insurance
Ref.
Debit
J1
1,800
J2
Equipment
Ref.

Credit

Debit

No. 101
Balance
14,000
11,000
9,200
7,800
6,200
7,600
7,200
6,600
No. 112
Balance
3,800
2,400
3,900
5,200
No. 128
Balance
800
100

150

No. 130
Balance
1,800
1,650

Credit

No. 157
Balance

Credit

July 1

J1

10,000

10,000

COMPREHENSIVE PROBLEM (Continued)

Date
July 31

Date
July 1
3
18

Accumulated DepreciationEquipment
Explanation
Ref.
Debit
Credit
Adjusting
J2
200

Explanation

Accounts Payable
Ref.
Debit
J1
J1
J1
1,400

Date
July 31

Salaries and Wages Payable


Explanation
Ref.
Debit
Adjusting
J2

Date
July 1
31
31

Owners Capital
Ref.
Debit
J1
J3
J3
600

Date
July 31
31

Date
July 31
31
31

Explanation
Closing
Closing

Closing

Owners Drawings
Ref.
Debit
J1
600
J3

Explanation
Closing
Closing
Closing

Income Summary
Ref.
Debit
J3
J3
3,550
J3
3,050

Explanation

Credit
7,000
800

Credit
500

Credit
14,000
3,050

Credit
600

Credit
6,600

No. 158
Balance
200
No. 201
Balance
7,000
7,800
6,400
No. 212
Balance
500
No. 301
Balance
14,000
17,050
16,450
No. 306
Balance
600
0
No. 350
Balance
6,600
3,050
0

COMPREHENSIVE PROBLEM (Continued)

Date
July 12
25
31
31

Explanation

Adjusting
Closing

Service Revenue
Ref.
Debit
J1
J1
J2
J3
6,600

Closing

Gasoline Expense
Ref.
Debit
J1
400
J3

Explanation
Adjusting
Closing

Supplies Expense
Ref.
Debit
J2
700
J3

Explanation
Adjusting
Closing

Depreciation Expense
Ref.
Debit
J2
200
J3

Date
July 31
31

Explanation
Adjusting
Closing

Insurance Expense
Ref.
Debit
J2
150
J3

Date
July 20
31

Salaries and Wages Expense


Explanation
Ref.
Debit
J1
1,600
Adjusting
J2
500

Date
July 31
31

Date
July 31
31

Date
July 31
31

Explanation

Credit
3,800
1,500
1,300

Credit
400

Credit
700

Credit
200

Credit
150

Credit

No. 400
Balance
3,800
5,300
6,600
0
No. 633
Balance
400
0
No. 634
Balance
700
0
No. 711
Balance
200
0
No. 722
Balance
150
0
No. 726
Balance
1,600
2,100

31

Closing

J3

2,100

COMPREHENSIVE PROBLEM (Continued)


(d)

JULIES MAIDS CLEANING SERVICE


Income Statement
For the Month Ended July 31, 2012
Revenues
Service revenue ..............................................
Expenses
Salaries and wages expense .........................
Supplies expense ...........................................
Gasoline expense ...........................................
Depreciation expense .....................................
Insurance expense .........................................
Total expenses ........................................
Net income ..............................................................

$6,600
$2,100
700
400
200
150
3,550
$3,050

JULIES MAIDS CLEANING SERVICE


Owners Equity Statement
For the Month Ended July 31, 2012
Owners Capital, July 1 ..........................................
Add: Investments .................................................
Net income...................................................
Less: Drawings ......................................................
Owners Capital, July 31 ........................................

$
$14,000
3,050

17,050
17,050
600
$16,450

COMPREHENSIVE PROBLEM (Continued)


JULIES MAIDS CLEANING SERVICE
Balance Sheet
July 31, 2012
Assets
Current assets
Cash.................................................................
Accounts receivable .......................................
Supplies ..........................................................
Prepaid insurance...........................................
Total current assets ................................
Property, plant, and equipment
Equipment .......................................................
Less: Accumulated depreciation
equipment............................................
Total assets .............................................

$6,600
5,200
100
1,650
$13,550
10,000
200

9,800
$23,350

Liabilities and Owners Equity


Current liabilities
Accounts payable ...........................................
Salaries and wages payable ..........................
Total current liabilities ............................
Owners equity
Owners capital ...............................................
Total liabilities and owners equity ........

$6,400
500
$ 6,900
16,450
$23,350

COMPREHENSIVE PROBLEM (Continued)


(e)
Date
July 31
31

31
31
31

General Journal
Account Titles and Explanation
Accounts Receivable ........................
Service Revenue .......................

Ref.
112
400

Debit
1,300

Depreciation Expense .......................


Accumulated Depreciation
Equipment .............................

711

200

Insurance Expense ............................


Prepaid Insurance ....................

722
130

150

Supplies Expense ..............................


Supplies ....................................

634
128

700

Salaries and Wages Expense ...........


Salaries and Wages Payable....

726
212

500

J2
Credit
1,300

158

200
150
700
500

(f)
Date
July 31
31

31
31

General Journal
Account Titles and Explanation
Service Revenue ................................
Income Summary......................

Ref.
400
350

Debit
6,600

Income Summary ..............................


Salaries and Wages Expense ..
Depreciation Expense ..............
Insurance Expense ...................
Supplies Expense .....................
Gasoline Expense .....................

350
726
711
722
634
633

3,550

Income Summary ..............................


Owners Capital ........................

350
301

3,050

Owners Capital .................................


Owners Drawings ....................

301
306

600

J3
Credit
6,600
2,100
200
150
700
400
3,050
600

COMPREHENSIVE PROBLEM (Continued)


(g)

JULIES MAIDS CLEANING SERVICE


Post-Closing Trial Balance
July 31, 2012
Cash ....................................................................
Accounts Receivable .........................................
Supplies ..............................................................
Prepaid Insurance ..............................................
Equipment ..........................................................
Accumulated DepreciationEquipment ..........
Accounts Payable ..............................................
Salaries and Wages Payable .............................
Owners Capital ..................................................

Debit
$ 6,600
5,200
100
1,650
10,000

Credit

$23,550

200
6,400
500
16,450
$23,550