Professional Documents
Culture Documents
$286,176
(2)
+137,590
(3)
Liabilities
Property, Plant,
+ Inventory + and Equipment =
Accounts
Payable
Common
+
Stock
Stockholders Equity
+
Retained
Earnings
+$286,176
+$137,590
+$77,662
Issued stock
+$77,662
(a)
(b)
(c)
(d)
(e)
(f)
Accounts Payable
Advertising Expense
Service Revenue
Accounts Receivable
Retained Earnings
Dividends
Debit
Effect
Decrease
Increase
Decrease
Increase
Decrease
Increase
Credit
Effect
Increase
Decrease
Increase
Decrease
Increase
Decrease
Normal
Balance
Credit
Debit
Credit
Debit
Credit
Debit
16
27
Cash........................................................................
Common Stock...............................................
10,000
Prepaid Insurance..................................................
Cash.................................................................
1,500
Cash........................................................................
Service Revenue............................................
900
Salaries Expense...................................................
Cash.................................................................
500
10,000
1,500
900
Copyright 2009 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 5/e, Solutions Manual(For Instructor Use Only)
500
3-1
EXERCISE 3-8
General Journal
Date
Oct. 1
Account Titles
Cash..................................................................
Common Stock.........................................
Debit
30,000
30,000
No entry.
Office Furniture................................................
Accounts Payable....................................
4,600
Accounts Receivable.......................................
Service Revenue......................................
10,800
Cash..................................................................
Service Revenue......................................
140
Accounts Payable............................................
Cash..........................................................
700
Salaries Expense.............................................
Cash..........................................................
3,500
10
27
30
Credit
4,600
10,800
140
700
3,500
EXERCISE 3-16
Account
Accounts payable
Accounts receivable
Common stock
Depreciation expense
Interest expense
Interest income
Inventories
Prepaid expenses
Property and equipment
Revenues
(a)
Normal Balance
Debit or Credit
Credit
Debit
Credit
Debit
Debit
Credit
Debit
Debit
Debit
Credit
(b)
Balance Sheet or
Income Statement
Balance sheet
Balance sheet
Balance sheet
Income statement
Income statement
Income statement
Balance sheet
Balance sheet
Balance sheet
Income statement
Copyright 2009 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 5/e, Solutions Manual(For Instructor Use Only)
3-2
PROBLEM 3-4A
Date
Mar. 1
10
18
19
25
Debit
50,000
Land..................................................................
Buildings...........................................................
Equipment........................................................
Cash..........................................................
(Purchased Arnies Golf Land)
23,000
9,000
6,000
Advertising Expense.......................................
Cash..........................................................
(Paid for advertising)
1,600
Prepaid Insurance............................................
Cash..........................................................
(Paid for one-year insurance policy)
2,400
Equipment........................................................
Accounts Payable....................................
(Purchased equipment on account)
4,700
Cash..................................................................
Golf Revenue............................................
(Received cash for revenue earned)
1,200
2,500
Dividends..........................................................
Cash..........................................................
(Payment of cash dividend)
500
Credit
50,000
38,000
Copyright 2009 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 5/e, Solutions Manual(For Instructor Use Only)
1,600
2,400
4,700
1,200
2,500
500
3-3
Copyright 2009 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 5/e, Solutions Manual(For Instructor Use Only)
3-4
30
31
Debit
700
Accounts Payable............................................
Cash..........................................................
(Paid creditor on account)
4,700
Cash..................................................................
Golf Revenue............................................
(Received cash for revenue earned)
800
Credit
700
4,700
Copyright 2009 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 5/e, Solutions Manual(For Instructor Use Only)
800
3-5
PROBLEM 3-5A
(a)
Date
Apr. 1
Debit
15,000
15,000
No entrynot a transaction.
Rent Expense...................................................
Cash..........................................................
(Paid monthly office rent)
900
Supplies............................................................
Accounts Payable....................................
(Purchased supplies on account
from Spring Green Company)
1,000
Accounts Receivable.......................................
Service Revenue......................................
(Billed clients for services rendered)
1,500
Cash..................................................................
Unearned Revenue..................................
(Received cash advance for future
service)
500
Cash..................................................................
Service Revenue......................................
(Received cash for revenue earned)
2,300
Salaries Expense.............................................
Cash..........................................................
(Paid monthly salary)
1,500
Accounts Payable............................................
Cash..........................................................
(Paid Spring Green Company
on account)
300
10
11
20
30
30
Credit
900
1,000
1,500
Copyright 2009 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 5/e, Solutions Manual(For Instructor Use Only)
500
2,300
1,500
300
3-6
4/10
Bal.
4/3
Bal.
4/30
Cash
15,000 4/2
500 4/30
2,300 4/30
15,100
900
1,500
300
Accounts Receivable
1,500
1,500
4/30
Bal.
Salaries Expense
1,500
1,500
4/2
Bal.
Rent Expense
900
900
Supplies
1,000
1,000
Accounts Payable
300 4/3
1,000
Bal.
700
Unearned Revenue
4/11
500
Bal.
500
Common Stock
4/1
Bal.
15,000
15,000
Service Revenue
4/10
1,500
4/20
2,300
Bal.
3,800
Copyright 2009 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 5/e, Solutions Manual(For Instructor Use Only)
3-7
Cash.......................................................................
Accounts Receivable...........................................
Supplies................................................................
Accounts Payable................................................
Unearned Revenue...............................................
Common Stock.....................................................
Service Revenue..................................................
Salaries Expense..................................................
Rent Expense.......................................................
Debit
$15,100
1,500
1,000
1,500
900
$20,000
Credit
$ 700
500
15,000
3,800
$20,000