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Problem 5-3B

2.
Boomer Demolition Company
Work Sheet
For Year Ended June 30, 2005

Account
Cash
Supplies
Prepaid insurance
Equipment

Unadjusted
Trial Balance
Debit
9,000
18,000
14,600
140,000

Accumulated amortization, equipment


Accounts payable
Interest payable
Rent payable
Wages payable
Business taxes payable
Long-term notes payable
Rusty Boomer, capital
Rusty Boomer, withdrawals
Demolition fees earned
Amortization expense, equipment
Wages expense
Interest expesne
Insurance expense
Rent expense
Supplies expense
Business taxes expense

51,400
2,200
48,800
8,400

Repairs expense
Utilities expense

6,700
16,800

4. Analysis of potential errors.

Credit

10,000
16,000
90,000
66,900
4,000
137,000

Adjustments
Debit

Credit

Adjusted
Trial Balance
Debit

Credit

Income Statement
Debit

Credit

Balance Sheet &


Statement of Owner's
Equity
Debit
Credit

General Journal
Date
Accounts and explanation
Sept. 30

PR

3.

4.
Analysis component:

eneral Journal
Debit

Credit

Boomer Demolition Company


Income Statement
For the Year ended June 30, 2005
Revenues:
Demolition fees earned
Operating expenses:
Amortization expense, equipment
Wages expense
Interest expense
Insurance expense
Rent expense
Supplies expense
Business taxes expense
Repairs expense
Utilities expense
Total operating expenses
Net loss

Boomer Demolition Company


Statement of Owner's Equity
For the Year ended June 30, 2005
R. Boomer, capital, July 1
Add:Investment by owner
Less: Withdrawals by owner
Net loss
R. Boomer, capital, June 30

Boomer Demolition Company


Balance Sheet
June 30, 2005
Assets
Current Assets:
Cash
Supplies
Prepaid insurance
Total current assets
Capital Assets:
Equipment
Less: Accumulated amortization, equipment
Total capital assets

Total assets
Liabilities and Owner's Equity
Current Liabilities:
Accounts payable
Interest payable
Wages payable
Current portion of long-term note payable
Total current liabilities
Long-term Liabilities:
Long-term note payable(less current portion
Total liabilities
Owner's Equity:
Rusty Boomer, capital
Total liabilities and owner's equity