Name: Answer Key

PROBLEM #1

Date Accounts & Explanations Debit Credit

10/1 Cash 50,000
Clay, Capital 50,000

10/2 Equipment 12,000

Cash 4,000
Notes Payable 8,000

10/3 Supplies 500

A/P 500

10/4 Rent Expense 1,000

Cash 1,000

10/8 A/R 15,000

Professional Fees 15,000

10/10 A/P 500

Cash 500

10/14 Repair Expense 2,500

A/P 2,500

10/15 Salaries Expense 3,000

Cash 3,000

10/17 Clay, Drawing 800

Cash 800

10/18 Cash 2,000

Professional Fees 2,000

10/20 Cash 7,000

A/R 7,000

10/28 Cash 3,000

Unearned Professional Fees 3,000

10/31 Utilities Expense 900

Cash 900
Problem #2

Account: Cash #11 Account: Service Revenue #41

Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance
5/1 Balance 80,000 Dr. 5/1 J33 500 500 Cr.
5/1 J33 500 80,500 Dr. 5/5 J33 2,000 2,500 Cr.
5/12 J33 3,000 83,500 Dr.
5/15 J33 1,000 82,500 Dr.
5/20 J33 800 81,700 Dr.
5/31 J33 750 80,950 Dr.

Account: Accounts Receivable #12 Account: Salaries Expense #51

Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance
5/1 Balance 12,000 Dr. 5/31 J33 750 750 Dr.
5/5 J33 2,000 14,000 Dr.

Account: Supplies #14 Account: Rent Expense #52

Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance
5/1 Balance 2,000 Dr. 5/15 J33 1,000 1,000 Dr.
5/7 J33 300 2,300 Dr.

Account: Office Equipment #18 Account: Advertising Expense #53

Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance
5/1 Balance 6,000 Dr.
5/7 J33 5,000 11,000 Dr.

Account: Accounts Payable #21 Account: Utilities Expense #55

Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance
5/1 Balance 10,000 Cr. 5/20 J33 800 800 Dr.
5/7 J33 5,300 15,300 Cr.

Account: Unearned Service Revenue #25 Account: Miscellaneous Expense #59

Date Explanation Ref. Debit Credit Balance Date Explanation Ref. Debit Credit Balance
5/12 J33 3,000 3,000 Cr.

Account: Schultz, Capital #31

Date Explanation Ref. Debit Credit Balance B) Schultz Company
5/1 Balance 90,000 Cr. Trial Balance
For the Month Ended 5/30/0X

Debit Credit
Cash 80,950
Accounts Receivable 14,000
Supplies 2,300
Office Equipment 11,000
Accounts Payable 15,300
Unearned Service Revenue 3,000
Shultz, Capital 90,000
Service Revenue 2,500
Salaries Expense 750
Rent Expense 1,000
Utilities Expense 800
Totals 110,800 110,800
 PROBLEM #3

Date Accounts & Explanations Debit Credit

12/31 Supplies Expense 4,300
Supplies 4,300
(Adj. Entry)

12/31 Unearned Cleaning Fees 6,000

Cleaning Fees 6,000
(Adj. Entry)

12/31 Depreciation Expense - Equip. 8,400

A/D - Equipment 8,400
(Adj. Entry)

12/31 Salaries Expense 4,000

Salaries Payable 4,000
(Adj. Entry)

12/31 A/R 8,000

Cleaning Fees 8,000
(Adj. Entry)

12/31 Insurance Expense 1,200

Prepaid Insurance 1,200
(Adj. Entry)
 PROBLEM #4

Date Accounts & Explanations Debit Credit

12/31 Service Revenue 104,000
Income Summary 104,000
(Closing Entry)

12/31 Income Summary 70,600

Salaries Expense 36,600
Rent Expense 24,000
Supplies Expense 8,000
Depreciation Expense - Store Equip. 2,000
(Closing Entry)

12/31 Income Summary 33,400

PC Capital 33,400
(Closing Entry)

12/31 PC Capital 8,000

PC Drawing 8,000
(Closing Entry)
 Hank's Service Company
Worksheet
For the Month Ended 07/31/00

Trial Balance Adjustments Adjusted Trial Bal. Income Statement Balance Sheet
Accounts Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 12,000 12,000 12,000
Accounts Receivable 24,000 24,000 24,000
Prepaid Insurance 2,400 B) 400 2,000 2,000
Supplies 1,000 A) 500 500 500
Equipment 25,000 25,000 25,000
Accum. Deprec.-Equip. 2,000 C) 400 2,400 2,400
Accounts Payable 5,000 5,000 5,000
Unearned Service Fees 8,000 D) 4,000 4,000 4,000
Hank-Capital 19,000 19,000 19,000
Hank-Drawing 4,000 4,000 4,000
Service Revenue 44,000 D) 4,000 48,000 48,000
Salaries Expense 8,000 E) 1,000 9,000 9,000
Rent Expense 1,600 1,600 1,600
Totals 78,000 78,000
Supplies Expense A) 500 500 500
Insurance Expense B) 400 400 400
Depreciation Expense C) 400 400 400
Salaries Payable E) 1,000 1,000 1,000
6,300 6,300 79,400 79,400 11,900 48,000 67,500 31,400
Net Income 36,100 36,100
48,000 48,000 67,500 67,500