You are on page 1of 6

EXERCISE 3-2 (1015 minutes)

Wanda Landowska Company


Trial Balance
April 30, 2014
Debit
Cash ....................................................................... $ 4,800
Accounts Receivable ............................................
2,750
Prepaid Insurance ($700 + $100) ..........................
800
Equipment..............................................................
8,000
Accounts Payable ($4,500 $100) .......................
Property Taxes Payable ........................................
Owners Capital ($11,200 + $1,500) ...........................
Owners Drawing....................................................
1,500
Service Revenue....................................................
Salaries and Wages Expense ...............................
4,200
Advertising Expense ($1,100 + $300) ...................
1,400
Property Tax Expense ($800 + $100) ....................
900
$24,350

Credit

$ 4,400
560
12,700
6,690

$24,350

EXERCISE 3-3 (1520 minutes)


The ledger accounts are reproduced below, and corrections are shown in
the accounts.

Bal.
(1)

Cash
5,912 (4)
450

190

Accounts Receivable
Bal.
5,240 (1)
450

Bal.

Supplies
2,967

Copyright 2013 John Wiley & Sons, Inc.

Accounts Payable
Bal.

7,044

Common Stock
Bal.

8,000

Retained Earnings
Bal.

2,000

Kieso, Intermediate Accounting, 15/e, Solutions Manual

(For Instructor Use Only)

3-13

EXERCISE 3-3 (Continued)

Bal.
(2)

Equipment
6,100
3,200

Bal.

Service Revenue
Bal.
(3)
(5)

5,200
2,025
80

Office Expense
4,320 (2)

3,200

Blues Traveler Corporation


Trial Balance (corrected)
April 30, 2014
Debit
Cash ...................................................................... $ 6,172
Accounts Receivable ...........................................
4,790
Supplies ................................................................
2,967
Equipment .............................................................
9,300
Accounts Payable.................................................
Common Stock .....................................................
Retained Earnings ................................................
Service Revenue ...................................................
Office Expense .....................................................
1,120
$24,349

3-14

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

Credit

$ 7,044
8,000
2,000
7,305
$24,349

(For Instructor Use Only)

EXERCISE 3-4 (1015 minutes)


Watteau Co.
Trial Balance
June 30, 2014
Debit
Cash ($2,870 + $180 $65 $65) ..................................... $ 2,920
Accounts Receivable ($3,231 $180) ..............................
3,051
Supplies ($800 $500) ......................................................
300
Equipment ($3,800 + $500) ...............................................
4,300
Accounts Payable ($2,666 $206 $260)........................
Unearned Service Revenue ($1,200 $325) ....................
Common Stock ..................................................................
Dividends ...........................................................................
575
Retained Earnings .............................................................
Service Revenue ($2,380 + $801 + $325)..........................
Salaries and Wages Expense ($3,400 + $670 $575) .....
3,495
Office Expense ..................................................................
940
$15,581

Credit

$ 2,200
875
6,000
3,000
3,506

$15,581

EXERCISE 3-5 (1015 minutes)


1.
2.
3.

4.
5.

Depreciation Expense ($250 X 3) .............................


Accumulated DepreciationEquipment ..........

750

Unearned Rent Revenue ($9,300 X 1/3)....................


Rent Revenue .....................................................

3,100

Interest Expense........................................................
Interest Payable .................................................

500

Supplies Expense......................................................
Supplies ($2,800 $850) ....................................

1,950

Insurance Expense ($300 X 3) ..................................


Prepaid Insurance ..............................................

900

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

750
3,100

500
1,950
900

(For Instructor Use Only)

3-15

EXERCISE 3-6 (1015 minutes)


1.
2.
3.

4.
5.

Accounts Receivable .....................................................


Service Revenue .....................................................

750

Utilities Expenses ...........................................................


Accounts Payable ...................................................

520

Depreciation Expense ....................................................


Accumulated Depreciation Equipment ...............

400

Interest Expense .............................................................


Interest Payable.......................................................

500

Insurance Expense ($12,000 X 1/12) .............................


Prepaid Insurance ...................................................

1,000

Supplies Expense ($1,600 $500) .................................


Supplies ...................................................................

1,100

750
520
400
500
1,000
1,100

EXERCISE 3-7 (1520 minutes)


(a)

Ending balance of supplies


Add: Adjusting entry
Deduct: Purchases
Beginning balance of supplies

(b)

Total prepaid insurance


Amount used (6 X $400)
Present balance

$700
950
850
$800
$4,800
2,400
$2,400

($400 X 12)

The policy was purchased six months ago (August 1, 2013)


(c)

The entry in January to record salary and wages expense was


Salaries and Wages Expense ..............................
Salaries and Wages Payable ...............................
Cash ................................................................

3-16

Copyright 2013 John Wiley & Sons, Inc.

1,800
700

Kieso, Intermediate Accounting, 15/e, Solutions Manual

2,500

(For Instructor Use Only)

EXERCISE 3-7 (Continued)


The T account for salaries payable is
Salaries and Wages Payable
Paid
700 Beg. Bal.
?
January
End Bal.
800
The beginning balance is therefore

(d)

Ending balance of salaries and wages payable


Plus: Reduction of salaries and wages payable
Beginning balance of salaries and wages payable

$ 800
700
$1,500

Service revenue
Cash received
Unearned revenue reduced

$2,000
1,600
$ 400

Ending unearned revenue January 31, 2014


Plus: Unearned revenue reduced
Beginning unearned revenue December 31, 2013

$ 750
400
$1,150

EXERCISE 3-8 (1015 minutes)


1.
2.
3.
4.

Salaries and Wages Expense .........................................


Salaries and Wages Payable ...................................

1,900

Utilities Expense..............................................................
Accounts Payable ....................................................

600

Interest Expense ($30,000 X 8% X 1/12) .........................


Interest Payable .......................................................

200

Telephone and Internet Expense ...................................


Accounts Payable ....................................................

117

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

1,900
600
200

(For Instructor Use Only)

117

3-17

EXERCISE 3-9 (1520 minutes)


(a)

10/15

10/17

10/20

(b)

10/31

10/31

10/31

10/31

3-18

Salaries and Wages Expense...........................


Cash ...........................................................
(To record payment of October 15
payroll)

800

Accounts Receivable ........................................


Service Revenue ........................................
(To record revenue for services
performed for which payment has
not yet been received)

2,400

Cash ...................................................................
Unearned Service Revenue ......................
(To record receipt of cash for
services not yet performed)

650

Supplies Expense .............................................


Supplies .....................................................
(To record the use of supplies during
October)

470

Accounts Receivable ........................................


Service Revenue ........................................
(To record revenue for services
performed for which payment has
not yet been received)

1,650

Salaries and Wages Expense...........................


Salaries and Wages Payable ....................
(To record liability for accrued payroll)

600

Unearned Service Revenue ..............................


Service Revenue ........................................
(To reduce the Unearned Service
Revenue account for service that
has been performed)

400

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

800

2,400

650

470

1,650

600

400

(For Instructor Use Only)

You might also like