Minute Maid, a firm providing housecleaning services, began business on April 1, 2019.

The following transactions

Record the transactions for April using the financial statement effects template.

Assets

Accounts
Date Transaction Cash
Receivable

A.Falcon invested $9,000 cash to begin the business in exchange for

1-Apr-19 common stock.
$ 9,000
Paid $2,850 cash for six months' lease on van for the business.
2-Apr-19
$ (2,850)
Borrowed $10,000 cash from bank and signed note payable agreeing
3-Apr-19 to repay it in 1 year plus 10% interest.
$ 10,000
Purchased $5,500 of cleaning equipment; paid $2,500 cash with the
3-Apr-19 remainder due within 30 days.
$ (2,500)
Paid $4,300 cash for cleaning supplies.
4-Apr-19
$ (4,300)
Paid $350 cash for advertisements to run in newspaper during April.
7-Apr-19
$ (350)
Billed customers $3,500 for services performed.
21-Apr-19
$ 3,500
Paid $3,000 cash on account to cleaning equipment suppliers (see
23-Apr-19 April 3).
$ (3,000)
Collected $2,300 cash from customers on their accounts.
28-Apr-19
$ 2,300 $ (2,300)
Paid $1,000 cash for dividends.
29-Apr-19
$ (1,000)
Paid $1,750 cash for April wages.
30-Apr-19
$ (1,750)
Paid $995 cash to service station for gasoline used during April.
30-Apr-19
$ (995)
he following transactions occurred during the month of April.

Assets Liabilities Equity Revenue

Supplies Prepaid Van Equipment Accounts Notes Payable Common Retained Clearing Fees
Lease Payable Stock Earnings Earned

$ 9,000

$ 2,850

$ 10,000

$ 5,500 $ 3,000

$ 4,300

$ (350)

$ 3,500 $ 3,500

$ (3,000)

$ (1,000)

$ (1,750)

$ (995)
 Expenses

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Expense Expense nt Expense

$ 350

$ 1,750

$ 995
Deluxe Building Services offers custodial services on both a contract basis and an hourly basis. On
January 1, 2019, Deluxe collected $20,100 in advance on a six-month contract for work to be
performed evenly during the next six months. Assume that Deluxe closes its books and issues
financial reports on a monthly basis.

a. Prepare the entry on January 1 to record the receipt of $20, 100 cash for contract work ( 1) using the
financial statements effect template
Assets Liabilities Equity
Accounts Common Retained Revenue Expenses
Date Cash Payable Stock Earnings
1-Jan-19 $ 20,100 $ 20,100

b. Prepare the adjusting entry to be made on January 31, 2019, for the contract work done during January (1)
using the financial statements effect template
Assets Liabilities Equity
Accounts Common Retained Revenue Expenses
Date Cash Payable Stock Earnings
31-Jan-19 $ (3,350) $ 3,350
Revenue earned for one month = 20100/6
= $3350
For each of the following separate situations, prepare the necessary adjustments (a) using the financial statement

Assets

Prepaid Accounts Accumulated

Transaction Cash Assets receivable depreciation

1. Unrecorded depreciation on equipment is $610. $ (610)

2. On the date for preparing financial statements, an
estimated utilities expense of $390 has been
incurred, but no utility bill has yet been received or
paid.

3. On the first day of the current period, rent for four $ (700)
periods was paid and recorded as a $2,800 debit to
Prepaid Rent and a $2,800 credit to Cash.
4. Nine months ago, the Hartford Financial Services
Group sold a one-year policy to a customer and
recorded the receipt of the premium by debiting
Cash for $624 and crediting Contract Liabilities for
$624. No adjusting entries have been prepared
during the nine-month period. Hartford's annual
financial statements are now being prepared.

5. At the end of the period, employee wages of $965

have been incurred but not yet paid or recorded.

6. At the end of the period, $300 of interest income $ (300)

has been earned but not yet received or recorded.
ng the financial statement effects template

Liabilities Equity Revenue Expenses

Accounts Common Retained Interest Depreciati Utility Rent Wage

Payable Stock Earnings Income on Expense expenses expense
expense
$ 610
$ 390 $ 390

$ 700

$ (468) $ 468

$ (965) $ 965

$ 300
Solomon Corporation's adjusted trial balance for the year ending December 31, 2018, is:

Prepare its income statement and statement of stockholders' equity for the current year, and its
balance sheet for the current year-end. Cash dividends were $8,000 and there were no stock
issuances or repurchases.

Adjusted Trial Balance (Dec 31, 2018) Income S

Cash . $ 4,000 31st Dece
Accounts receivable $ 6,500 Service fees revenue
Equipment $ 78,000 Rent expense
Accumulated depreciation $ 14,000 Salaries expense
Notes payable $ 10,000 Depreciation expense
Common stock $ 43,000 Total Expense
Retained earnings $ 12,600 Net Income
Service fees revenue $ 71,000
Rent expense $ 18,000
Salaries expense $ 37,100
Depreciation expense $ 7,000
Totals $ 150,600 $ 150,600
 Income Statement
31st December 2018
Service fees revenue $ 71,000
Rent expense $ 18,000
Salaries expense $ 37,100
Depreciation expense $ 7,000
Total Expense $ 62,100
Net Income $ 8,900
Solomon Corporation's adjusted trial balance for the year ending December 31, 2018, is:

Prepare its income statement and statement of stockholders' equity for the current year, and its
balance sheet for the current year-end. Cash dividends were $8,000 and there were no stock
issuances or repurchases.

Adjusted Trial Balance (Dec 31, 2018)

Cash . $ 4,000
Accounts receivable $ 6,500
Equipment $ 78,000
Accumulated depreciation $ 14,000
Notes payable $ 10,000
Common stock $ 43,000
Retained earnings $ 12,600
Service fees revenue $ 71,000
Rent expense $ 18,000
Salaries expense $ 37,100
Depreciation expense $ 7,000
Totals $ 150,600 $ 150,600
r 31, 2018, is:

nt year, and its

re no stock

Statement of Equity
31st December 2018
Beg. Common Stock $ 43,000
Common Stock Issued $ -
Ending Common Stock $ 43,000

Beg. Retained Earnings $ 20,600

Dividends $ 8,000
Net Income $ 8,900
Ending Retained Earnings $ 21,500
Total Equity $ 64,500
Solomon Corporation's adjusted trial balance for the year ending December 31, 2018, is:

Prepare its income statement and statement of stockholders' equity for the current year, and its
balance sheet for the current year-end. Cash dividends were $8,000 and there were no stock
issuances or repurchases.

Adjusted Trial Balance (Dec 31, 2018)

Cash . $ 4,000
Accounts receivable $ 6,500
Equipment $ 78,000
Accumulated depreciation $ 14,000
Notes payable $ 10,000
Common stock $ 43,000
Retained earnings $ 12,600
Service fees revenue $ 71,000
Rent expense $ 18,000
Salaries expense $ 37,100
Depreciation expense $ 7,000
Totals $ 150,600 $ 150,600
r 31, 2018, is:

nt year, and its

re no stock

Balance Sheet
31st December 2018
Assets
Cash . $ 4,000
Accounts receivable $ 6,500
Current Assets $ 10,500
Equipment $ 78,000
Accumulated Depreciation $ (14,000)
Non- Current Assets $ 64,000
Total Assets $ 74,500

Liabilities
Notes payable $ 10,000
Total Liabilities $ 10,000
Equity
Common Stock $ 43,000
Retaineds earnings $ 21,500
Total Equity $ 64,500
Total Liabilities & equity $ 74,500
Murdock Carpet Cleaners ended its first month of operations on June 30, 2019. Monthly financial statements will

1. The balance in Prepaid Rent was the amount paid on June 1 for the first four months' rent.
2. Supplies available at June 30 were $820.
3. Equipment, purchased June 1, has an estimated life of five years.
4. Unpaid and unrecorded employee wages at June 30 were $210.
5. Utility services used during June were estimated at $300. A bill is expected early in July.
6. Fees earned for services performed but not yet billed on June 30 were $380. The company uses the account Accounts Rece

Preadjusted Adjustments
Balnce
Cash Asset $ 1,180 $ -
Accounts receivable Asset $ 450 $ 380
Prepaid rent Asset $ 3,100 $ (775)
Supplies Asset $ 2,520 $ (1,700)
Equipment Asset $ 4,440 $ (74)
Accounts payable liabilities $ 760 $ 510
Common stock Equity $ 2,000 $ -
Retained earnings Equity $ 5,300 $ -
Service fees revenue $ 4,650 $ 380
Wages expense $ 1,020 $ 210
Rental Expense $ 775
Supplies Expenses $ 1,700
Depreciation expense $ 74
Utility Expense $ 300

Net Income $ 951

y financial statements will be prepared.The following Information is available

s the account Accounts Receivable to reflect amounts due but not yet billed.

Adjusted Balance Closing entries Ending Trial balance

$ 1,180 $ 1,180 $ 1,180

$ 830 $ 830 $ 830
$ 2,325 $ 2,325 $ 2,325
$ 820 $ 820 $ 820
$ 4,366 $ 4,366 $ 4,366
$ 1,270 $ 1,270 $ 1,270
$ 2,000 $ 2,000 $ 2,000
$ 5,300 $ 6,251 $ 6,251
$ 5,030 $ (5,030) $ -
$ 1,230 $ (1,230) $ -
$ 775 $ (775) $ -
$ 1,700 $ (1,700) $ -
$ 74 $ (74) $ -
$ 300 $ (300) $ -
Income Statement
Revenue
Service fees revenue $ 5,030
Expenses
Wages expense $ 1,230
Rental Expense $ 775
Supplies Expenses $ 1,700
Depreciation expense $ 74
Utility Expense $ 300
Net Income $ 951
Balance sheet
Assets
Cash $ 1,180
Accounts receivable $ 830
Prepaid rent $ 2,325
Supplies $ 820
Current Assets $ 5,155
Equipment $ 4,366
Non-Current Assets $ 4,366
Total Assets $ 9,521
Liabilities
Accounts payable $ 1,270
Total Liabilities $ 1,270
Equity
Common stock $ 2,000
Retained earnings $ 6,251
Total Equity $ 8,251

Total Liabilities and equity $ 9,521