E3.

15
a Account Dr Cr
1 Insurance expense 1800
Cash 1800
2 Prepaid rent 6500
Cash 6500
3 Cash 3600
Unearned revenue 3600
4 Prepaid cleaning 2000
Cash 2000
5 Unearned revenue 1500
Cash 1500
b
1 Prepaid insurance 750
Insurance expense 750
2 Rental expense 5200
Prepaid rent 5200
3 Unearned revenue 1600
Service revenue 1600
4 Maintainance and Repair Expense 1000
Prepaid cleaning 1000
5 Unearned revenue 1025
Service revenue 1025
c

3.16
a Account Dr Cr
1 Utilities expense 425
425
2 Salaries expense 2000
Salaries payable 2000
3 Interest expense 400
Interest payable 400
4 Account receivables 300
Service revenue 300
5 Account receivables 6000
Rent revenue 6000
b
1 Utilities payable 425
 Cash 425
2 Salaries payable 2000
Cash 2000
3 Interest payable 400
Cash 400
4 Cash 300
Account receivables 300
5 Cash 6000
Account receivables 6000

P3.1
a Account Debit Credit
1 Supplies expense 900
Supplies 900
2 Utilities expense 250
Account Payable 250
3 Insurance expense 300
Prepaid insurance 300
4
5 Salaries and Wages expense 1104
Salaries and Wages payable 1104
6 Depreciation expense 190
Accumulated Depreciation - Equipment 190

7 Accounts Receivable 1700

Service revenue 1700

TB OB
Account number Debit Credit

101 Cash 4500

112 Accounts Receivable 6000

126 Supplies 1900

130 Prepaid Insurance 3600

149 Equipment 11400

201 Accounts Payable 4500

 209 Unearned Service Revenue 2000

311 Share Capital—Ordinary 18700

400 Service Revenue 9500

726 Salaries and Wages Expense 6400

729 Rent Expense 900

150 Accumulated Depreciation - Equipment

212 Salaries and Wages Payable

631 Supplies expense

717 Depreciation expense

722 Insurance expense

732 Utilities expense

TOTAL 34700 34700
P3.2

a Account Debit Credit

1 Insurance expense 200
Prepaid insurance 200
2 Supplies expense 1330
Supplies 1330
3a Depreciation expense 3600
Accumulated Depreciation - Building 3600
3b Depreciation expense 1500
Accumulated Depreciation - Equipment 1500
4 Interest expense 200
Interest payable 200
5 Unearned Rent Revenue 2200
Rent revenue 2200
6 Salaries and Wages Expense 750
 Salaries and Wages Payable 750
TB
OB
Account number Debit Credit
101 Cash 3400

126 Supplies 2080

130 Prepaid Insurance 2400

140 Land 12000

141 Buildings 60000

149 Equipment 14000

201 AP 4700

208 Unearned Rent Revenue 3300

275 Mortgage Payable 40000

311 Share Capital - Ordinary 41380

332 Dividends 1000

429 Rent Revenue 10300

610 Advertising Expense 600

726 Salaries and Wages Expense 3300

732 Utilities Expense 900

142 Accumulated Depreciation - Building

150 Accumulated Depreciation - Equipment

 212 Salaries and Wages Payable

230 Interest payable

619 Depreciation expense

631 Supplies expense

718 Interest expense

722 Insurance expense

TOTAL 99680 99680

Income statement
Revenue
Rent Revenue 12,500
Expenses
Salaries and Wages Expense 4,050
Advertising Expense 600
Utilities Expense 900
Depreciation expense 5,100
Supplies expense 1,330
Interest expense 200
Insurance expense 200
Total expense 12,380
Net income 120

Retained Earnings Statement

For the Month Ended 31 May 2020

Balance, May 1 -
Add: Net income 120
Less: Dividends 1,000
Balance, May 31 (880)

SFP as at May 31
Assets Liabilities
Building 60000 Mortgage Payable
Less: Accumul 3600 56400 AP
Land 12000 Salaries and Wages Payable
Equipment 14000 Interest payable
Less: Accumu 1500 12500 Unearned Rent Revenue
Prepaid Insurance 2200
Supplies 750 Equity
Cash 3400 Share Capital - Ordinary
Retained Earning

TOTAL ASSETS 87250

P3.3

TB
Account Dr Cr Dr

Cash 8,700 0

Accounts Receiva 10,400 1,100

Supplies 1,500

Prepaid Rent 2,200

Equipment 18,000 0

Accumulated Depreciation—Equipment 0
Notes Payable 10,000

Accounts Payable 2,500

Salaries and Wages Payable 0

Interest Payable 0

Unearned Rent Revenue 1,900 1,450

Share Capital—Ordinary 22,000

Dividends 1,600 0

Service Revenue 16,000

Rent Revenue 1,410
Salaries and Wag 8,000 725

Rent Expense 1,900 1,700

Depreciation Expense 700

Supplies Expense 850

Utilities Expense 1,510 0

Interest Expense 100

1 Dr Cr
Accounts Rece 1,100
Service Revenue 1,100
2
Supplies Exp 850
Supplies 850
3
Rent Expense 1,700
Prepaid Rent 1,700
4
Depreciation 700
Accumulated Depreciation—Equipment 700
5
Interest Expe 100
Interest Payable 100
6
Unearned Ren 1,450
Rent Revenue 1,450
7
Salaries and 725
Salaries and Wages Payable 725

Income statement
Revenue
Service Revenue 17100
Rent Revenue 2860
Expenses
Salaries and Wages Expense 8725
Rent Expense 3600
 Depreciation Expense 700
Supplies Expense 850
Utilities Expense 1510
Interest Expense 100
NI 4475

Retained Earnings Statement

For the 3 Months Ended Sep 30

Balance, July 1 0
Add: Net income 4475
Less: Dividends 1600
Balance, Sep 30 2875

SFP
 Adjustment EB
Debit Credit Debit Credit

4500

1700 7700

900 1000

300 3300

11400

250 4750
 2000

18700

1700 11200

1104 7504

900

190 190

1104 1104

900 900

190 190

300 300

250 250
4444 4444 37944 37944
 Adjustment EB
Debit Credit Debit Credit
0 0 3400

1330 750

200 2200

0 0 12000

0 0 60000

0 0 14000

0 0 4700

2200 1100

0 0 40000

0 0 41380

0 0 1000

2200 12500

0 0 600

750 4050

0 0 900

3600 3600

1500 1500
 750 750

200 200
5100 5100

1330 1330

200 200

200 200

9780 9780 105730 105730

bilities
40000
4700
750
200
 1100
46750
quity
41380
(880)
40500
87250

Cr Dr Cr

8700

11500

850 650

1,700 500

18000

700 700
0 10000

0 2500

725 725

100 100

450

0 22000

1600

1,100 17100
1,450 2860
8725

3600

700

850

1510
100