Accounting Principles 10th Edition Weygandt Kimmel Chapter 3 PDF

Chapter 3, Adjusting Entries, pages 103 - 121
reference: Chapter 2, Recording Process, pages 63 - 72
General Journal (pg 117)

Date Account Titles & Explantion Debit Credit
Adjusting Entries
1 10/31 Supplies Expense $ 1,500

Supplies ($2,500 -$1,000) 1,500
(to record supplies used)
2 10/31 Insurance Expense ($600 / 12 = $50) $ 50

PrePaid Insurance 50
(to record insurance expired)
3 10/31 Depreciation Expense ($4,800 / 120) $ 40

Accum Deprec - Equip 40
(to record monthly depreciation expense)
4 10/31 UnEarned Service Revenues $ 400

Service Revenues 400
(to record revenue earned)
5 10/31 Accounts Receivable $ 200

Service Revenues 200
6 10/31 Interest Expense $ 50

Interest Payable 50
(to record accrued interest
$5,000 X 12% X 1/12 = $50)
7 10/31 Salaries & Wage Expense $ 1,200

Salaries & Wage Payable 1,200
(to record accrued salaries)
General Ledger
Cash UnEarn Ser Rev

Date Debit(+) Credit(-) Balance Date Debit(-) Credit(+) Balance
10/1/2013 $ 10,000 $ 10,000 10/2/2013 $ 1,200 $ 1,200
10/2 1,200 11,200 10/31 400 $ 800
10/3 900 10,300
10/4 600 9,700
10/20 500 9,200 Accum Dep - Equip
10/26 4,000 5,200 Date Debit(+) Credit(-) Balance
10/31 10,000 $ 15,200 10/31/2012 $ 40 $ 40
Supplies Owner's Capital

10/5/2013 $ 2,500 $ 2,500 10/1/2013 $ 10,000 $ 10,000
1,500 $ 1,000
PrePaid Insur -Owner's Drawings

Date Debit(+) Credit(-) Balance Date Debit(+) Credit(-) Balance
10/4/2013 $ 600 $ 600 10/20/2013 $ 500 $ 500
50 $ 550
Equipment Service Revenues

10/1/2013 $ 5,000 $ 5,000 10/31/2013 $ 10,000 $ 10,000
10/31 400 10,400
10/31 200 $ 10,600
Notes Payable -Sal & Wages Exp

Date Debit(-) Credit(+) Balance Date Debit(+) Credit(-) Balance
10/1/2013 $ 5,000 $ 5,000 10/26/2013 $ 4,000 $ 4,000
10/31 1,200 $ 5,200
Accounts Payable -Rent Exp

10/5/2013 $ 2,500 $ 2,500 10/3/2013 $ 900 $ 900
General Ledger
-Supplies Exp -Insurance Exp

10/31/2012 $ 1,500 $ 1,500 10/31/2012 $ 50 $ 50
-Deprec Exp Accounts Receivable

10/31/2012 $ 40 $ 40 10/31/2012 $ 200 $ 200
Interest Payable -Interest Exp

10/31/2012 $ 50 $ 50 10/31/2012 $ 50 $ 50
Sal & Wages Payable

Date Debit(-) Credit(+) Balance 20 Ledger Accounts
10/31/2012 $ 1,200 $ 1,200
(adjustments in red)
Pioneer Company
Adjusted Trial Balance, October 31, 2012
Adjusted Trial Balance

Account Title Debit Credit
1 Cash $ 15,200
2 Accounts Receivable 200
3 Supplies 1,000
4 PrePaid Insurance 550
5 Equipment 5,000
6 Accum Deprec - Equip 40
7 Notes Payable 5,000

8 Accounts Payable 2,500
9 UnEarned Service Revenue 800
10 Salary & Wage Payable 1,200
11 Interest Payable 50
12 Owner's Capital 10,000

13 Owner's Drawings 500
14 Service Revenue 10,600

15 Salaries & Wages Expense 5,200
16 Supplies Expense 1,500
17 Rent Expense 900
18 Insurance Expense 50
19 Interest Expense 50
20 Depreciation Expense 40
$ 30,190 $ 30,190
Income Statement
month ending October 31, 2012
Revenues
Service Revenues $ 10,600
Expenses
Salaries & Wages Expense (5,200)
Supplies Expense (1,500)
Rent Expense (900)
Insurance Expense (50)
Interest Expense (50)
Depreciation Expense (40)
Total Expenses (7,740)
Net Income $ 2,860
Owner's Equity Statement

Owner's Capital, October 1 $ -

Add: Investments 10,000
Add: Net Income 2,860
12,860
Less: Drawings (500)
Owner's Capital, October 31 $ 12,360
Balance Sheet
Assets
Cash $ 15,200
Accounts Receivable 200
Supplies 1,000
Equipment 5,000
Less: Accumulated Depreciation (40) 4,960
Total Assets $ 21,910
Liabilities & Owner's Equity

Liabilities
Notes Payable $ 5,000
Accounts Payable 2,500
UnEarned Service Revenues 800
Salaries & Wages Payable 1,200
Interest Payable 50
Total Liabilities $ 9,550
Owner's Equity
Owner's Capital 12,360
Total Liabilities & Owner's Equity $ 21,910
Statement of CashFlows
Cash Flows from Operating Activities

cash receipts from revenues $ 11,200
cash payments for expenses (5,500)
Net Cash Provided by Operating Activities $ 5,700
Cash Flow from Investing Activities

Purchase of Equipment $ -
Cash Flow from Financing Activities

Investment by Owners 10,000
Drawings by Owners (500)
$ 9,500
net change in cash $ 15,200
cash at beginning of period $ -

cash at end of period $ 15,200
Chapter 3, Recording Process, pages 63 - 72
the purpose of transaction analysis is to identify the type of account

involved, then to determine whether to make a debit or credit to the account
General Journal
1 10/1/2013 Cash $ 10,000

(owner's investment of cash in a business)
2 10/1 Equipment $ 5,000

Notes Payable 5,000
(purchase of equipment on account)
(issued 3 month, 12% note for equip)
3 10/2 Cash $ 1,200

UnEarned Service Revenue 1,200
(cash received for future service)
4 10/3 Rent Expense $ 900

Cash 900
(paid october rent)
5 10/4 PrePaid Insurance $ 600

Cash 600
(paid one year policy, effective October 1)
6 10/5 Supplies $ 2,500

(purchased supplies on account)
7 10/20 Owner's Drawings $ 500

Cash 500
(withdrew cash for personal use)
8 10/26 Salaries &Wages Expense $ 4,000

Cash 4,000
(paid salaries to date)
9 10/31 Cash $ 10,000

Service Revenue 10,000
(received cash for services provided)
General Ledger
Cash UnEarn Ser Rev

10/1/2013 $ 10,000 $ 10,000 10/2/2013 $ 1,200 $ 1,200
10/2 1,200 11,200
10/3 900 10,300
10/4 600 9,700
10/20 500 9,200
10/26 4,000 5,200
10/31 10,000 $ 15,200

10/5/2013 $ 2,500 $ 2,500 10/1/2013 $ 10,000 $ 10,000
PrePaid Insur -Owner's Drawings

10/4/2013 $ 600 $ 600 10/20/2013 $ 500 $ 500
Equipment Service Revenues

10/1/2013 $ 5,000 $ 5,000 10/31/2013 $ 10,000 $ 10,000
Notes Payable -Sal & Wages Exp

10/1/2013 $ 5,000 $ 5,000 10/26/2013 $ 4,000 $ 4,000
Accounts Payable -Rent Exp

10/5/2013 $ 2,500 $ 2,500 10/3/2013 $ 900 $ 900
Pioneer Company
Trial Balance, October 31, 2012
Trial Balance
Cash $ 15,200
Supplies 2,500
Equipment 5,000
Notes Payable 5,000


Owner's Drawings 500

Salaries & Wages Expense 4,000
Rent Expense 900
$ 28,700 $ 28,700
Chapter 3, P3-1A Adjusting Entries, page 137
McGEE COMPANY
General Journal
Adjusting Entries
1 6/30/2012 Supplies Expense $ 1,250

Supplies ($2000 -$750) 1,250
2 6/30 Utility Expense $ 150

Accounts payable 150
(to record utility bill to be paid next month)
3 6/30 Insurance Expense ($3000/12) $ 250

4 6/30 UnEarned Service Revenues $ 2,800

(to record service revenue earned)
5 6/30 Salaries & Wage Expense $ 1,900

6 6/30 Depreciation Expense ($15000/60) $ 250

(to record monthly depreciation expense)
7 6/30 Accounts receivable $ 1,200

General Ledger
Cash UnEarn Service Rev

$7,150 $7,150 $ 4,000 $ 4,000
2,800 1,200
Accounts Receivable Owner's Capital

$ 6,000 $ 6,000 $ 21,750 $ 21,750
1,200 7,200
Supplies Service Revenues

$ 2,000 $ 2,000 $ 7,900 $ 7,900
1,250 750 2,800 10,700
1,200 11,900
PrePaid Insur -Salaries & Wage Expen

$ 3,000 $ 3,000 $ 4,000 $ 4,000
250 2,750 1,900 5,900
Equipment -Rent Expense

$ 15,000 $ 15,000 $ 1,000 $ 1,000
Accounts Payable
Date Debit(-) Credit(+) Balance
$4,500 $4,500
$ 150 4,650
General Ledger

$ 1,250 1,250 $ 250 250
-Deprec Expense Accu Deprec Equip

$ 250 250 $ 250 250
-Utility Expense Sal & Wage Payable

$ 150 150 $ 1,900 1,900
McGEE COMPANY
Adjusted Trial Balance, June 30, 2012

1 Cash $7,150
2 Accounts Receivable 7,200
3 Supplies 750
4 PrePaid Insurance 2,750
5 Equipment 15,000
6 Accum Deprec - Equipment 250

8 UnEarned Service Revenue 1,200

13 Rent Expense 1,000
14 Utilities Expense 150
$41,650 $ 41,650
Income Statement
month ending June 30, 2012
Revenues
Service Revenue 11,900 $ -
Expenses
Rent Expense 1,000
Utilities Expense 150
Supplies Expense 1,250
Insurance Expense 250
Depreciation Expense 250
Total Expenses 8,800
Net Income $ 3,100

Owner's Capital, August 1 $ -

24,850
Less: Drawings
Owner's Capital, June 30 $ 24,850
Balance Sheet
Assets
Cash $ 7,150
Accounts Receivable 7,200
Supplies 750
PrePaid Insurance 2,750
Equipment 15,000
Less:Accum Deprec - Equip (250)
14,750

Liabilities
Accounts Payable $ 4,650
UnEarned Service Revenues 1,200
Mortgage Payable -
Salaries & Wages Payable 1,900
Interest Payable -
Owner's Equity
P3-1A Tony Masasi started his own consulting fi rm, McGee Company, on June 1, 2012. The
trial balance at June 30 is shown below.
McGEE COMPANY
Trial Balance, June 30, 2012
Trial Balance
Cash $7,150
Supplies 2,000
Equipment 15,000
Accounts Payable $4,500


Salaries & Wage Expense 4,000
Rent Expense 1,000
$38,150 $ 38,150
In addition to those accounts listed on the trial balance, the chart of accounts for McGee
Company also contains the following accounts and account numbers: No. 158 Accumulated
DepreciationEquipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense,
No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 732 Utilities Expense.
Other data:
1. Supplies on hand at June 30 are $750.
2. A utility bill for $150 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. $2,800 of unearned service revenue has been earned at the end of the month.
5. Salaries of $1,900 are accrued at June 30.
6. The equipment has a 5-year life with no salvage value. It is being depreciated at $250 per
month for 60 months.
7. Invoices representing $1,200 of services performed during the month have not been recorded
as of June 30.
Chapter 3, Adjusting Entries, P3-2A, pages 138-139
Melton River Resort
General Journal
Adjusting Entries
1 8/31 Insurance Expense $ 900

Prepaid Insurance 900
($300x3, to record insurance expired)

Supplies ($3,300 -$800) 2,500
3 8/31 Depreciation Expense ($6,000x1/4) $ 1,500

Accum Deprec - Building 1,500
(to record deprec expens for 3 months)
4 8/31 Depreciation Expense ($2,400x1/4) $ 600

(to record deprec expens for 3 months)
5 8/31 UnEarned Rent Revenues $ 4,800

Rent Revenues 4,800
(to record rent revenue earned)
6 8/31 Salaries & Wage Expense $ 400

Salaries & Wage Payable 400
7 8/31 Accounts Receivable $ 4,000

Rent Revenue 4,000

Interest Payable 600
$80,000 X 9% X 1/12 = $600)
General Ledger
Cash UnEarn Rent Rev

08/01/2012 $19,600 $19,600 08/01/2012 $ 7,400 $ 7,400
8/31 4,800 $ 2,600
Supplies Mortgage Payable

08/01/2012 $ 3,300 $ 3,300 08/01/2012 $ 80,000 $ 80,000
8/31 2,500 $ 800
PrePaid Insur Owner's Capital

08/01/2012 $ 6,000 $ 6,000 08/01/2012 $ 100,000 $ 100,000
8/31 900 $ 5,100
Land -Owner's Drawings

08/01/2012 $ 25,000 $ 25,000 08/01/2012 $ 5,000 $ 5,000
Building Rent Revenues

08/01/2012 $ 125,000 $ 125,000 08/01/2012 $ 80,000 $ 80,000
8/31 4,800 $ 84,800
8/31 4,000 $ 88,800
Equipment -Maint & Repair Expense

08/01/2012 $ 26,000 $ 26,000 08/01/2012 $ 3,600 $ 3,600
Accounts Payable -Salaries & Wage Expen

08/01/2012 $6,500 $6,500 08/01/2012 $ 51,000 $ 51,000
8/31 $ 400 $ 51,400
-Utilities Expen
Date Debit(+) Credit(-) Balance
08/01/2012 $ 9,400 $ 9,400
General Ledger

8/31/2012 $ 2,500 $ 2,500 8/31/2012 $ 900 $ 900
-Deprec Expense Accounts Receivable

8/31/2012 $ 1,500 $ 1,500 8/31/2012 $ 4,000 $ 4,000
8/31 600 2,100
Interest Payable -Interest Expense

8/31/2012 $ 600 $ 600 8/31/2012 $ 600 $ 600
Sal & Wage Payable Accu Deprec Build

Date Debit(-) Credit(+) Balance Date Debit(-) Credit(+) Balance
8/31/2012 $ 400 $ 400 8/31/2012 $ 1,500 $ 1,500
Accu Deprec Equip

8/31/2012 $ 600 $ 600
Melton River Resort

Adjusted Trial Balance, August 31, 2012

1 Cash $19,600
3 Supplies 800
5 Land 25,000
6 Buildings 125,000
7 Equipment 26,000
8 Accum Deprec - Building 1,500

11 UnEarned Rent Revenue 2,600
12 Mortgage Payable 80,000
13 Salary & Wage Payable 400

16 Owner's Drawings 5,000
17 Rent Revenue 88,800

18 Maintenance & Repair Expense 3,600
20 Utilities Expense 9,400
24 Depreciation Expense 2,100
$281,000 $ 281,000
Income Statement
month ending August 31, 2012
Revenues
Rent Revenues $ 88,800
Expenses
Maintenance & Repair Expense (3,600)
Utilities Expense (9,400)
Depreciation Expense (2,100)
Net Income $ 18,300


118,300
Less: Drawings (5,000)
Owner's Capital, August 31 $ 113,300
Balance Sheet
Assets
Cash $ 19,600
Supplies 800
Land 25,000
Buildings 125,000
Less:Accum Deprec - Building (1,500) 123,500
Equipment 26,000
Less:Accum Deprec - Equip (600) 25,400

Liabilities
UnEarned Service Revenues 2,600
Mortgage Payable 80,000
Salaries & Wages Payable 400
Owner's Equity
Melton River Resort opened for business on June 1 with eight air-conditioned
units. Its trial balance before adjustment on August 31 is as follows.
Melton River Resort

Trial Balance, August 31, 2012
Trial Balance
Cash $19,600
Supplies 3,300
Land 25,000
Buildings 125,000
Equipment 26,000

UnEarned Rent Revenue 7,400

Owner's Drawings 5,000
Rent Revenue 80,000

Maintenance & Repair Expense 3,600
Utilities Expense 9,400
$273,900 $ 273,900
In addition to those accounts listed on the trial balance, the chart of accounts for Melton River
Resort also contains the following accounts and account numbers: No. 112 Accounts Receivable,
No. 144 Accumulated DepreciationBuildings, No. 150 Accumulated DepreciationEquipment,
No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No. 620 Depreciation Expense,
No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense.
Other data:
1. Insurance expires at the rate of $300 per month.
2. A count on August 31 shows $800 of supplies on hand.
3. Annual depreciation is $6,000 on buildings and $2,400 on equipment.
4. Unearned rent revenue of $4,800 was earned prior to August 31.
5. Salaries of $400 were unpaid at August 31.
6. Rentals of $4,000 were due from tenants at August 31. (Use Accounts Receivable.)
7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)
Chapter 3, Adjusting Entries, P3-3A , page 139
Minor Advertising Agency
General Journal
Adjusting Entries
1 12/31/2012 Accounts Receivable (21,500-20,000) $ 1,500


Supplies ($8600 -$4800) 3,800
3 12/31 Insurance Expense ($3350-2500) $ 850

4 12/31 Depreciation Expense ($34,000-28,000) $ 6,000

Accum Deprec - Equip 6,000
(to record deprec expense)
5 12/31 UnEarned Service Revenue (7,200-5,900) $ 1,300

6 12/31 Interest Expense ($500-350) $ 150

(to record accrued interest)
7 12/31 Salaries & Wage Expense (12,100-10,000) $ 2,100

General Ledger
Cash Note Payable

12/01/2012 $11,000 $11,000 12/01/2012 $ 5,000 $ 5,000
Accounts Receivable UnEarn Service Revenue

12/01/2012 $ 20,000 $ 20,000 12/01/2012 $ 7,200 $ 7,200
12/31 1,500 21,500 12/31 1,300 5,900

12/01/2012 $ 8,600 $ 8,600 12/01/2012 $ 25,500 $ 25,500
12/31 3,800 $ 4,800
PrePaid Insurance -Owner's Drawings

12/01/2012 $ 3,350 $ 3,350 12/01/2012 $ 12,000 $ 12,000
12/31 850 2,500
Equipment Service Revenue

12/01/2012 $ 60,000 $ 60,000 12/01/2012 $ 58,600 $ 58,600
12/31 1,500 60,100
12/31 1,300 61,400
Accu Deprec Equipment -Salaries & Wage Expen

12/01/2012 $ 28,000 $ 28,000 12/01/2012 $ 10,000 $ 10,000
12/31 6,000 34,000 12/31 2,100 $ 12,100
Accounts Payable -Rent Expense

12/01/2012 5,000 5,000 12/01/2012 $ 4,000 $ 4,000
-Interest Expense
12/01/2012 $ 350 $ 350
12/31 $ 150 500
General Ledger
-Supplies Expense -Insurance Expense

12/31 $ 3,800 $ 3,800 12/31 $ 850 $ 850
-Deprec Expense Salary & Wage Payable

12/31 $ 6,000 $ 6,000 12/31 $ 2,100 $ 2,100
Interest Payable
12/31 $ 150 $ 150

Adjusted Trial Balance, December 31, 2012

1 Cash $11,000
3 Supplies 4,800
5 Equipment 60,000
6 Accum Deprec - Equipment 34,000

8 Note Payable 5,000
9 UnEarned service Revenue 5,900


20 Depreciation Expense 6,000
$139,050 $ 139,050
Income Statement
month ending December 31, 2012
Revenues
Service Revenue $ 61,400
Expenses
Rent Expense (4,000)
Depreciation Expense (6,000)
Net Income $ 34,150

Owner's Capital, December 1 $ -

59,650
Owner's Capital, December 31 $ 47,650
Balance Sheet
Assets
Cash $11,000
Supplies 4,800
Equipment 60,000
Less:Accum Deprec - Equip (34,000) 26,000

Liabilities
Note Payable 5,000
UnEarned service Revenue 5,900
Salary & Wage Payable 2,100
Owner's Equity
P3-A3 C
(c) Answer the following questions.
(1) If the note has been outstanding 6 months, what is the annual interest rate on that note?
Based on the balance in interest payable, interest is $50 per month or 1% of the note
1% X 6 = 6 % interest per year
(2) If the company paid $12,500 in salaries in 2012, what was the balance in Salaries and
Wages Payable on December 31, 2011?
Salaries
& Wage
Expense
is
$12,100
Less
Salaries
& Wage
Payable
on
12/31/12
is $1,500
=
$10,000.
Total
payment
s =
$12,500

$10,000
= $2,500
Salaries
& Wage
Payable
on
12/31/11
P3-3A Minor Advertising Agency was founded by Brandon Minor in January of 2011. Presented
below are both the adjusted and unadjusted trial balances as of December 31, 2012.

Trial Balance, December 31, 2012
Trial Balance
Unadjusted Adjusted
Account Title Debit Credit Debit Credit
Cash $11,000 $ 11,000

Accounts Receivable 20,000 21,500 1500
Supplies 8,600 4,800 3800
PrePaid Insurance 3,350 2,500 850
Equipment 60,000 60,000
Accum Deprec - Equipment $ 28,000 $ 34,000 6000
Accounts Payable 5,000 5,000

Interest Payable 0 150 150
Notes Payable 5,000 5,000
UnEarned Service Revenue 7,200 5,900 1300
Salaries & Wage Payable 0 2,100 2100
Owner's Capital 25,500 25,500

Owner's Drawings 12,000 12,000
Service Revenue 58,600 61,400 2800

Salaries & Wage Expense 10,000 12,100 2100
Insurance Expense 850 850
Interest Expense 350 500 150
Depreciation Expense 6,000 6,000
Supplies Expense 3,800 3,800
Rent Expense 4,000 4,000
$129,300 $ 129,300 $ 139,050 $ 139,050
Instructions
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and an owners equity statement for the year ending
December 31, 2012, and a balance sheet at December 31.
(c) Answer the following questions.
(1) If the note has been outstanding 6 months, what is the annual interest rate on that note?
(2) If the company paid $12,500 in salaries in 2012, what was the balance in Salaries and
Wages Payable on December 31, 2011?
of the note payable ($ 5,000)
A review of the ledger of D. J. Moore Company at December 31, 2012, produces the following data pertaining to the preparatio
1. Salaries and Wages Payable $0. There are eight salaried employees. Salaries are paid every Friday for the current week. Fiv
2. Unearned Rent Revenue $224,676. The company began subleasing office space in its new building on November 1. At Dece
Term
Date (in months) Monthly Rent
Nov. 1 6 $5,184
Dec. 1 6 $8,355
3. Prepaid Advertising $16,301. This balance consists of payments on two advertising contracts. The contracts provide for mon
Contract Date Amount

A650 1-May $7,124
B974 Oct. 1 9,177
The first advertisement runs in the month in which the contract is signed.
4. Notes Payable $122,000. This balance consists of a note for one year at an annual interest rate of9%, dated June 1.
Account Titles and

No. Date Explanation Debit Credit
Salaries and Wages

1 Payable 5 x $950x 2/5
3 x $680x 2/5
2 Rent Revenue 4x $5,184x 2

2x $8,355x 1
3 Prepaid Advertising A650 $548per month for 8 months

B974 $437per month for 3 months
4 Interest Payable ($122,000x9% x 7/12)

g data pertaining to the preparation of annual adjusting entries.
ery Friday for the current week. Five employees receive a salary of $950each per week, and three employees earn $680each per week. Ass
w building on November 1. At December 31, the company had the following rental contracts that are paid in full for the entire term of the leas
Number of
Leases
4
2
cts. The contracts provide for monthly advertising in two trade magazines. The terms of the contracts are as follows.
Number of
Magazine
Issues
13
21
t rate of9%, dated June 1.
= $1,900
= 816
= $2,716
= $41,472
= 16,710
= $58,182
= $4,384
= 1,311
= $5,695
= $6,405
es earn $680each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days
full for the entire term of the lease.

employees worked the last 2 days of December.
Chapter 3, P3-5A Recording Process, page 140
General Journal
1 9/8 Salaries and Wage expense $ 900

Salaries and Wage Payable $ 500
Cash 1,400
(paid salaries )
2 9/10 Cash $ 1,200

(Received cash in payment on account)
3 9/12 Cash $ 3,400

(Received cash for services provided)
4 9/15 Equipment $ 3,000

(Purchased equipment on account)
5 9/17 Supplies $ 1,200

(Purchased supplies on account)
6 9/20 Accounts payable $ 4,500

Cash 4,500
(paid cash on account)

Cash 500
(paid rent for Sept)

Cash 1,250
(paid salaries)

(Received payment on account)
10 9/29 Cash $ 650

UnearnedService Revenue 650
(Received cash for future services)
General Ledger
Cash Owner's Capital

$4,880 $4,880 $ 18,600 $ 18,600
$ 1,400 3,480
$ 1,200 4,680
$ 3,400 8,080
$ 4,500 3,580
500 3,080
1,250 1,830
650 $2,480

$ 3,520 $ 3,520 $ 1,400 $ 1,400
1,200 2,320 650 2,050
2,100 4,420
Supplies Salary & Wage Payable

$ 2,000 $ 2,000 $ 500 $ 500
1,200 3,200 500 -

$ 15,000 $ 15,000 $ 3,400 $ 3,400
3,000 18,000 2,100 5,500

$1,500 $1,500 $ 900 $ 900
1,250 2,150

3,400 3,400 $ 500 $ 500
$ 3,000 6,400
$ 4,500 1,900
$ 1,200 3,100
Moore Equipment Inc.
Trial Balance
Cash $2,480
Supplies 3,200
Equipment 18,000
Accum Deprec Equipment $1,500

Salary & Wage Payable 0

Rent Expense 500
$30,750 $ 30,750
Moore Equipment Repair Co.
General Journal
Adjusting Entries
1 9/30 Supplies Expense ($3200-1300) $ 1,900

Supplies 1,900

3 9/30 Depreciation Expense $ 100

(to record deprec expense, 100/month)

General Ledger

4880 4880 18600 18600
1400 3480
1200 4680
3400 8080
4500 3580
500 3080
1250 1830
650 2480

3520 3520 1400 1400
1200 2320 650 2050
2100 4420 $ 1,450 $ 600

2000 2000 500 500
1200 3200 500 0
1,900 1,300 300 300

15000 15000 3400 3400
3000 18000 2100 5500
1,450 6,950

1500 1500 900 900
100 1,600 1250 2150
$ 300 $ 2,450

3400 3400 500 500
3000 6400
4500 1900
1200 3100
-Supplies Expense -Deprec Expense

$ 1,900 $ 1,900 $ 100 $ 100
Moore Equipment Repair Co.
Adjusted Trial Balance, September, 30, 2012

1 Cash 2,480
3 Supplies 1,300
4 Equipment 18,000
5 Accum Deprec Equipment 1,600

UnEarned Service Revenue 600

Rent Expense 500
$31,150 $ 31,150
Chapter 3, P3-5A - Adjusting Entries, page 140
Income Statement
month ending September 30, 2012
Revenues
Expenses
Rent Expense 500
(4,950)
Total Expenses
Net Income $ 2,000

Owner's Capital, Sept 1 $ -

20,600
Less: Drawings -
Owner's Capital, Sept 30 $ 20,600
Balance Sheet
Assets
Cash $2,480
Supplies 1,300
Equipment 18,000
Less:Accum Deprec - Equip (1,600) $16,400
Total Assets $24,600

Liabilities
Accounts Payable 3100
Owner's Equity
P3-5A On September 1, 2012, the account balances of Moore Equipment Repair were as
follows.
Debits Credits
Cash $4,880 Accum Deprec Equipment $1,500
Accounts Receivable 3,520 Accounts Payable 3,400
Supplies 2,000 Unearned Service Revenue 1,400
Equipment 15,000 Salaries and Wages Payable 500
Owners Capital 18,600
$25,400 $25,400
During September, the following summary transactions were completed.

2 Sept. 8 Paid $1,400 for salaries due employees, of which $900 is for September.
3 10 Received $1,200 cash from customers on account.
4 12 Received $3,400 cash for services performed in September.
5 15 Purchased store equipment on account $3,000.
6 17 Purchased supplies on account $1,200.
7 20 Paid creditors $4,500 on account.
8 22 Paid September rent $500.
9 25 Paid salaries $1,250.
10 27 Performed services on account and billed customers for services provided $2,100.
11 29 Received $650 from customers for future service.
Adjustment data consist of:

1. Supplies on hand $1,300.
2. Accrued salaries payable $300.
3. Depreciation is $100 per month.
4. Unearned service revenue of $1,450 is earned.
Instructions
(a) Enter the September 1 balances in the ledger accounts.
(b) Journalize the September transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts:
No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense,
No. 726 Salaries and Wages Expense, and No. 729 Rent Expense
(d) Prepare a trial balance at September 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and an owners equity statement for September and a balance
sheet at September 30.
-
NOT DONE
Olsen Graphics Company
General Journal
Adjusting Entries
1 1/31 Supplies $ 1,500

2 1/31 Interest Expense (20000, 9%, 6 month note) $ 750

$20,000 X 9% X 1/12 = $150)
3
1/31 PrePaid Insurance ($2700/12*4months=900) $ 1,800
Insurance Expense 1,800
4
1/31 Service Revenues $ 1,300
UnEarnedService Revenues 1,300
(to record rent revenue earned)
5
1/31 Accounts Receivable $ 2,000
Sales Revenues 2,000
(to record servicerevenue earned)
6
1/31 Depreciation Expense ($2250/12*6) $ 1,125
Accum Deprec - Equip 1,125
General Ledger
Cash Note Payable

01/01/2012 $8,600 $8,600 1/1/2012 $20,000 $ 20,000
Accounts Receivable Accounts Payable

1/1/2012 $ 14,000 $14,000 1/1/2012 $ 9,000 $ 9,000
2,000 $ 16,000
Equipment Owner's Capital

1/1/2012 $ 45,000 $45,000 1/1/2012 $ 22,000 $ 22,000
1/31
Prepaid Insurance Sales Revenue

1/1/2012 $ 1,800 $1,800 1/1/2012 $ 52,100 $ 52,100
2,000 $ 54,100
Sal and Wage Expense Service Revenues

1/1/2012 $ 30,000 $30,000 1/1/2012 $ 6,000 $ 6,000
1,300 $ 4,700
Supplies Expense -Utilities Expense

1/1/2012 $3,700 $3,700 1/1/2012 $ 1,700 $1,700
1,500 $2,200
Advertising Expense Supplies

1/1/2012 $ 1,900 $1,900 1/1/2012 $ 1,500 $1,500
-Rent Expen
1/1/2012 $ 1,500 $1,500
General Ledger
-Deprec Expense -Insurance Exp

1/31/2012 $ 1,125 $ 1,125 1,800 $ 1,800
Interest Payable -Interest Expense

1/31/2012 $ 750 $ 750 1/31/2012 $ 750 $ 750
Accu Deprec Equip UnEarned Service Revenue

1/31/2012 $ 1,125 $ 1,125 1/31/2012 $ 1,300 $ 1,300
Olsen Graphics Company

Adjusted Trial Balance, August 31, 2012

1 Cash $8,600
Supplies $1,500
PrePaid Insurance $1,800
Equipment 45,000
Accum Deprec - Equipment 1,125
Note Payable 20,000

UnEarned Rent Revenue 1,300

Owner's Drawings
Sales Revenue 54,100

Salary and Wage Exp 30,000

Advertising Expense 1,900
Interest Expense 750
Rent Expense 1,500
Depreciation Expense 1,125
$112,975 $ 112,975
Income Statement
Revenues
Rent Revenues
Expenses
Maintenance & Repair Expense
Salaries & Wages Expense
Utilities Expense
Supplies Expense
Insurance Expense
Interest Expense
Depreciation Expense
Total Expenses
Net Income


Add: Investments -
Add: Net Income -
-
Less: Drawings -
Balance Sheet
Assets
Cash
Accounts Receivable
Supplies
PrePaid Insurance
Land
Buildings
Less:Accum Deprec - Building
Equipment
Less:Accum Deprec - Equip
Total Assets

Liabilities
Accounts Payable
UnEarned Service Revenues
Mortgage Payable
Salaries & Wages Payable
Interest Payable
Total Liabilities
Owner's Equity
Owner's Capital
Total Liabilities & Owner's Equity
* P3-6A Olsen Graphics Company was organized on January 1, 2012, by Gwen Olsen. At the
end of the fi rst 6 months of operations, the trial balance contained the accounts shown below.
Debits Credits
Cash $8,600 Notes Payable $20,000
Equipment 45,000 Owners Capital 22,000
Insurance Expense 2,700 Sales Revenue 52,100
Salaries and Wages Expense 30,000 Service Revenue 6,000
Supplies Expense $3,700 $109,100
Advertising Expense 1,900
Rent Expense 1,500
$109,100
Analysis reveals the following additional data.

1. The $3,700 balance in Supplies Expense represents supplies purchased in January. At June 30,
$1,500 of supplies was on hand.
2. The note payable was issued on February 1. It is a 9%, 6-month note.
3. The balance in Insurance Expense is the premium on a one-year policy, dated March 1, 2012.
4. Service revenues are credited to revenue when received. At June 30, service revenue of $1,300
is unearned.
5. Sales revenue earned but unrecorded at June 30 totals $2,000.
6. Depreciation is $2,250 per year.
Instructions
(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6
months.)
(b) Prepare an adjusted trial balance.
(c) Prepare an income statement and owners equity statement for the 6 months ended June 30
and a balance sheet at June 30.
(b) Adj. trial balance $112,975

(c) Net income $18,725
Ending capital $40,725
Total assets $71,775
Chapter 3, P3-1B Adjusting Entries, pages 141-142
Omiyale Consulting Inc.
General Journal
Adjusting Entries

Supplies ($1900-900) 1,000
2 5/31 Utility Expense $ 250

Accounts payable 250
(to record utility bill to be paid next month)

( to record insurance expired)
4 8/31 UnEarned Service Revenues (2000-400) $1,600

5 8/31 Salaries & Wage Expense ((900 x 3/5 x 2) $ 1,080

6 8/31 Depreciation Expense (11,400/60) $ 190

Accum Deprec - Equip/Furniture 190
(to record deprec expens for 1 month)
7 8/31 Accounts receivable $ 1,700

General Ledger
Cash UnEarn Service Rev

05/01/2012 $4,500 $4,500 08/01/2012 $2,000 $ 2,000
$1,600 $ 400
Supplies Accounts Payable

08/01/2012 $ 1,900 $ 1,900 $ 4,500 $ 4,500
1,000 $ 900 250 $ 4,750

08/01/2012 $ 3,600 $ 3,600 08/01/2012 $ 17,700 $ 17,700
8/31 150 $ 3,450
Accounts Receivable -Rent Expense

08/01/2012 $ 6,000 $ 6,000 $ 900 $ 900
$ 1,700 $ 7,700

08/01/2012 $ 11,400 $ 11,400 08/01/2012 $ 7,500 $ 7,500
1,700 $ 9,200
1,600 $ 10,800
-Salaries & Wage Expen

08/01/2012 $ 3,400 $ 3,400
1,080 $ 4,480
General Ledger
-Supplies Exp -Utilities Expense

8/31/2012 $ 1,000 $ 1,000 8/31/2012 $ 250 $ 250
-Deprec Expense Accu Deprec Furniture

8/31/2012 $ 190 $ 190 8/31/2012 190 $ 190
8/31 190
Sal & Wage Payable -Insurance Expense

8/31/2012 $ 1,080 $ 1,080 8/31/2012 $ 150 $ 150

Adjusted Trial Balance, May 31, 2012

1 Cash $4,500
3 Supplies 900
Equipment (furniture) 11,400
Accum Deprec - Equipment 190


Owner's Drawings

Rent Expense 900
$34,920 $ 34,920
Income Statement
month ending May 31, 2012
Revenues
service Revenues $ 10,800
Expenses
Rent Expense 900
Net Income $ 3,830


21,530
Less: Drawings -
Balance Sheet
Assets
Cash $4,500
Supplies 900
Equipment (furniture) 11,400
Accum Deprec - Equipment (190)
-

Liabilities
Salaries & Wages Payable
Interest Payable -
Owner's Equity
Fran Omiyale started her own consulting fi rm, Omiyale Consulting, on May 1, 2012. The
trial balance at May 31 is as follows.

Trial Balance, May 31, 2012
Trial Balance
Cash $4,500
Supplies 1,900
Equipment 11,400

UnEarned Service Revenue $2,000

Rent Expense 900
$31,700 $ 31,700
In addition to those accounts listed on the trial balance, the chart of accounts for Omiyale
Consulting also contains the following accounts and account numbers: No. 150 Accumulated
DepreciationEquipment, No. 212 Salaries and Wages Payable, No. 631 Supplies Expense,
No. 717 Depreciation Expense, No. 722 Insurance Expense, and No. 736 Utilities Expense.
Other data:
1. $900 of supplies have been used during the month.
2. Utilities expense incurred but not paid on May 31, 2012, $250.
3. The insurance policy is for 2 years.
4. $400 of the balance in the unearned service revenue account remains unearned at the end of
the month.
5. May 31 is a Wednesday, and employees are paid on Fridays. Omiyale Consulting has two
employees, who are paid $900 each for a 5-day work week.
6. The offi ce furniture has a 5-year life with no salvage value. It is being depreciated at $190 per
month for 60 months.
7. Invoices representing $1,700 of services performed during the month have not been recorded
as of May 31.
(c) Adj. trial balance $34,920 (adding 3220)
Chapter 3,Adjusting Entries, P3-2B, pages 142
The Bear Motel
General Journal
Adjusting Entries

( to record insurance expired)
2 5/31 Supplies Expense (2080-750) $ 1,330

Supplies 1,330
3 5/31 Depreciation Expense ($3000x12) $ 250

Accum Deprec - Building 250
(to record deprec expens for the month)
4 5/31 Depreciation Expense ($1500x12) $ 125

(to record deprec expens for the month)

$40,000 X 12% X 1/12 = $400)
6
5/31 UnEarned Rent Revenues (3300/2/3rd) $2,200
Rent Revenue 2,200
7
5/31 Salaries & Wage Expense $ 750
General Ledger
Cash UnEarn Rent Rev

05/01/2012 $3,500 $3,500 05/01/2012 $ 3,300 $ 3,300
$2,200 $ 1,100
Supplies Mortgage Payable

05/01/2012 $ 2,080 $ 2,080 05/01/2012 $ 40,000 $ 40,000
1,330 $ 750

05/01/2012 $ 2,400 $ 2,400 05/01/2012 $ 41,380 $ 41,380
8/31 200 $ 2,200
Land -Utilities Expen

05/01/2012 $ 12,000 $ 12,000 05/01/2012 $ 900 $ 900
Building Rent Revenues

05/01/2012 $ 60,000 $ 60,000 05/01/2012 $ 10,300
2,200 $ 12,500
-
Equipment -Advertising Expense

05/01/2012 $ 15,000 $ 15,000 05/01/2012 $ 600 $ 600
Accounts Payable -Salaries & Wage Expen

05/01/2012 $4,800 $4,800 05/01/2012 $ 3,300 $ 3,300
$ 750 $ 4,050
General Ledger

5/31/2012 $ 1,330 $ 1,330 5/31/2012 $ 200 $ 200
-Deprec Expense -Interest Expense

5/31/2012 $ 250 $ 250 5/31/2012 $ 400 $ 400
5/31/2012 $125 375
Interest Payable Accu Deprec Build

5/31/2012 $ 400 $ 400 5/31/2012 $ 250 $ 250
Sal & Wage Payable Accu Deprec Equip

5/31/2012 $ 750 $ 750 5/31/2012 $ 125 $ 125
The Bear Motel

Adjusted Trial Balance, May 31, 2012

Cash $3,500
Supplies 750
Prepaid Insurance 2,200
Land 12,000
Buildings 60,000
Equipment $ 15,000
Accum Deprec - Building 250
Accum Deprec - Equipment 125

Unearned Rent Revenue 1,100

Owners's Drawing -
Rent Revenue 12,500

Advertising Expense 600
$101,305 $ 101,305
Income Statement
Revenues
Rent Revenues $ 12,500
Expenses
Net Income $ 4,645


46,025
Less: Drawings
Balance Sheet
Assets
Cash $3,500
Supplies 750
Land 12,000
Buildings 60,000
Equipment 15,000
Less:Accum Deprec - Building (250)
Less:Accum Deprec - Equip - (125)

Liabilities
Unearned Rent Revenue $1,100
Mortgage Payable $40,000
Interest Payable $400
Salary & Wage Payable $750
Owner's Equity
P3-2B The Bear Motel opened for business on May 1, 2012. Its trial balance before adjustment
on May 31 is as follows.
The Bear Motel

Trial Balance, May 31, 2012
Trial Balance
Cash $3,500
Supplies 2,080
Land 12,000
Buildings 60,000
Equipment 15,000

Unearned Rent Revenue 3,300
Rent Revenue 10,300

Salaries and Wages Expense 3,300
14 accounts $99,780 $ 99,780
In addition to those accounts listed on the trial balance, the chart of accounts for Bear Motel
also contains the following accounts and account numbers: No. 142 Accumulated Depreciation
Buildings, No. 150 Accumulated DepreciationEquipment, No. 212 Salaries and Wages Payable,
No. 230 Interest Payable, No. 619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest
Expense, and No. 722 Insurance Expense. ( 8 accounts)
Other data:
1. Prepaid insurance is a 1-year policy starting May 1, 2012.
2. A count of supplies shows $750 of unused supplies on May 31.
3. Annual depreciation is $3,000 on the buildings and $1,500 on equipment.
4. The mortgage interest rate is 12%. (The mortgage was taken out on May 1.)
5. Two-thirds of the unearned rent revenue has been earned.
6. Salaries of $750 are accrued and unpaid at May 31.
Chapter 3, Adjusting Entries, P3-3B , page 143
Pererman Co.
General Journal
Adjusting Entries
1 12/31/2012 Accounts Receivable (11,500-10400) $ 1,100

2 12/31 Supplies Expense (1500-650) $ 850

Supplies ($ ) 850
3 12/31 Rent Expense ($2200-1200) $ 1,000

PrePaid Rent 1,000
4 12/31 Depreciation Expense ($ ) $ 700

5 12/31 UnEarned Rent Revenue (1900-1050) $ 850

Rent Revenue 850
6 12/31 Interest Expense ($100-0) $ 100

7 12/31 Salaries & Wage Expense (8725-8000) $ 725

General Ledger
Cash Note Payable

12/01/2012 $8,700 $ 8,700 12/01/2012 $ 10,000 $ 10,000
Accounts Receivable UnEarn Rent Revenue

12/01/2012 $ 10,400 $ 10,400 12/01/2012 $ 1,900 $ 1,900
12/31 1,100 11,500 12/31 850 1,050

12/01/2012 $ 1,500 $ 1,500 12/01/2012 $ 22,000 $ 22,000
12/31 850 $ 650
PrePaid Rent -Owner's Drawings

12/01/2012 $ 2,200 $ 2,200 12/01/2012 $ 1,600 $ 1,600
12/31 1,000 1,200

12/01/2012 $ 18,000 $ 18,000 12/01/2012 $ 16,000 $ 16,000
12/31 1,100 17,100
Accounts Payable Rent Revenue

12/01/2012 2,500 $ 2,500 12/01/2012 $ 1,410 $ 1,410
12/31 2,500 12/31 850 $ 2,260
-Utilities Expense -Salaries & Wage Expen

12/01/2012 $ 1,510 $ 1,510 12/01/2012 $ 8,000 $ 8,000
12/31 725 $ 8,725
'-Accumulated Deprec expense -Rent Expense

12/01/2012 $ 0 $ 0 12/01/2012 $ 1,900 $ 1,900
12/31 $700 700 $ 1,000 $ 2,900
General Ledger
-Supplies Expense -Interest Expense

12/31 $ 850 $ 850 12/31 $ 100 $ 100
-Deprec Expense Salary & Wage Payable

12/31 $ 700 $ 700 12/31 $ 725 $ 725
Interest Payable -Insurance Expense

12/31 $ 100 $ 100 12/01/2012 $ 1,000 $ - $ 1,000
12/31
Pererman Co.
Adjusted Trial Balance, September 30, 2012

1 Cash $ 8,700
3 Supplies 650
5 Equipment 18,000

8 Note Payable 10,000
9 UnEarned service Revenue 1,050
10 Salary & Wage Payable 725

Rent Revenue 2,260
17 Supplies Expense 850
20 Utility Expense 1,510
$56,435 $ 56,435
Income Statement
Revenues 2,260
Expenses
Rent Expense 100
Depreciation Expense 1,510
Total Expenses 14,785 (14,785)
Net Income $ 4,575


Add: Investments 22000
Add: Net Income 4,575 4575
26,575
Owner's Capital, December 31 $ 24,975
Balance Sheet
Assets
Cash $ 8,700
Accounts Receivable $ 11,500
Supplies $ 650
PrePaid Insurance $ 1,200
Equipment $ 18,000
Less:Accum Deprec - Equip (700)

Liabilities
Note Payable $ 10,000
UnEarned service Revenue $ 1,050
Salary & Wage Payable $ 725
Interest Payable $ 100
Owner's Equity
P3-3B Peterman Co. was organized on July 1, 2012. Quarterly financial statements are prepared.
The unadjusted and adjusted trial balances as of September 30 are shown below.
Pererman Co.
Trial Balance, September 30, 2012
Trial Balance
Unadjusted Adjusted
Account Title Debit Credit Debit Credit
Cash $8,700 $8,700

Accounts Receivable 10,400 11,500 1100
Supplies 1,500 650 850
PrePaid Rent 2,200 1,200 1000
Equipment 18,000 18,000
Accum Deprec - Equipment $ 0 $700 700
Notes Payable 10,000 $ 10,000

Accounts Payable 2,500 2,500
Salaries & Wage Payable 0 725 725
Interest Payable 0 100 100
UnEarned Rent Revenue 1,900 1,050 850
Owner's Capital 22,000 22,000

Owner's Drawings 1,600 1,600
Service Revenue 16,000 17,100 850

Rent Revenue 1,410 2,260 850
Salaries & Wage Expense 8,000 8,725 725
Rent Expense 1,900 2,900 1000
Depreciation Expense 700 700
Supplies Expense 850 850
Utilities Expense 1,510 1,510
Interest Expense 100 100
$53,810 $ 53,810 $56,435 $ 56,435
Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and an owners equity statement for the 3 months ending
September 30 and a balance sheet at September 30.
(c) If the note bears interest at 12%, how many months has it been outstanding?
Net income $4,575 Total assets $39,350
P3-4B A review of the ledger of Roach Company at December 31, 2012, produces the following
data pertaining to the preparation of annual adjusting entries.
1. Prepaid Insurance $10,440. The company has separate insurance policies on its buildings and
its motor vehicles.
Policy B4564 on the building was purchased on April 1, 2011, for $7,920.
The policy has a term of 3 years.
Policy A2958 on the vehicles was purchased on January 1, 2012, for $4,500
This policy has a term of 2 years.
Date Term in months Monthly Rent

No of Leases
1-Nov 9 5,000 5
1-Dec 6 8,500 5
Rent Revenue 5000 * 5 = 25,000 * 2 months ( Nov and Dec)

8,500 * 4 = 34,000 * 1 month ( DEC)
Total 84,000 Rent Revenue
($122,000x9% =
Interest 10,800 for 12 month.
Payable For 1 month = 900
for 2 month Nov and
Dec = 1,800
Salaries and Wages Payable $0. There are eight salaried employees. Salaries are paid every
Friday for the current week. Five employees receive a salary of $700 each per week, and three
employees earn $500 each per week. Assume December 31 is a Tuesday. Employees do not
work weekends. All employees worked the last 2 days of December.
Salaries and
Wages Payable 5 x $700x 2/5 = $1,400
3 x $500x 2/5 = 600
$2,000
7,920 for 3 years so 220 per month and for 2012 .. 12 months , it is 2640 + 2250 = 4890 2640 + 2250 = 4890
4500 is for 2 years so for 1 year it is 2250
2. Unearned Rent Revenue $429,000. The company began subleasing offi ce space in its new
building on November 1. At December 31, the company had the following rental contracts
that are paid in full for the entire term of the lease.
Date Term in months Monthly Rent No of Leases

1-Nov 9 5,000 5
1-Dec 6 8,500 5
of Leases
ov and Dec) 5 = number of leases

4 number of leases
ent Revenue
40 + 2250 = 4890
e in its new
contracts
Chapter 3, Recording Process,P3-5B page 144
General Journal
1 9/8 Salaries and Wage expense $ 1,000

Salaries and Wage Payable $ 700
Cash 1,700
(paid salaries )
2 9/10 Cash $ 3,420

(Received cash in payment on account)
3 9/12 Cash $ 3,100

(Received cash for services provided)
4 9/15 Equipment $ 2,000

(Purchased equipment on account)
5 9/17 Supplies $ 700

(Purchased supplies on account)
6 9/20 Accounts payable $ 2,700

Cash 2,700
(paid cash on account)

Cash 400
(paid rent for Sept)

Cash 1,700
(paid salaries)

(Received payment on account)
10 9/29 Cash $ 600

UnearnedService Revenue 600
(Received cash for future services)
General Ledger

$2,400 $2,400 $ 13,950 $ 13,950
$ 1,700 700
$ 3,420 4,120
$ 3,100 7,220
$ 2,700 4,520
400 4,120
1,700 2,420
600 $3,020

$ 4,250 $ 4,250 $ 1,200 $ 1,200
3,420 830 600 1,800
1,900 2,730

$ 1,800 $ 1,800 $ 700 $ 700
700 2,500 700 -

$ 12,000 $ 12,000 $ 3,100 $ 3,100
2,000 14,000 1,900 5,000

$2,000 $2,000 $ 1,000 $ 1,000
1,700 2,700

2,600 2,600 $ 400 $ 400
$ 2,000 4,600
$ 2,700 1,900
$ 700 2,600
Robinson Equipment Repair
Trial Balance
Cash $3,020
Supplies 2,500
Equipment 14,000
Accum Deprec Equipment $2,000


Rent Expense 400
$25,350 $ 25,350
General Journal
Adjusting Entries
1 9/30 Supplies Expense ($2500-1400) $ 1,100

Supplies 1,100

3 9/30 Depreciation Expense $ 200

(to record deprec expense, 100/month)

General Ledger

2400 2400 13,950 13950
1700 700
3420 4120
3100 7220
2700 4520
400 4120
1700 2420
600 3020

4250 4250 1200 1200
3420 830 600 1800
1900 2730 $ 1,250 $ 550

1800 1800 0 0
700 2500 350 350
1,100 1,400

12000 12000 3100 3100
2000 14000 1900 5000
1,250 6,250

2000 2000 1000 1000
200 2,200 1700 2700
$ 350 $ 3,050

2600 2600 400 400
2000 4600
2700 1900
700 2600
-Supplies Expense -Deprec Expense

$ 1,100 $ 1,100 $ 200 $ 200
Adjusted Trial Balance, September, 30, 2012

1 Cash 3,020
3 Supplies 1,400
4 Equipment 14,000
5 Accum Deprec Equipment 2,200


Rent Expense 400
25,900 $ 25,900
Income Statement
Revenues
Expenses
Rent Expense 400
4,750 (4,750)
Total Expenses
Net Income $ 1,500


15,450
Less: Drawings -
Owner's Capital, Sept 30 $ 15,450
Balance Sheet
Assets
Cash 3,020
Supplies 1,400
Equipment 14,000
Less:Accum Deprec - Equip (2,200)
Total Assets $18,950

Liabilities
Owner's Equity
P3-5B On November 1, 2012, the account balances of Robinson Equipment Repair were as
follows.
Debits Credits
Cash $2,400 Accum Deprec Equipment $2,000
Supplies 1,800 Unearned Service Revenue 1,200
Equipment 12,000 Salaries and Wages Payable 700
Owners Capital 13,950
$25,400 $25,400
During November, the following summary transactions were completed.

2 Nov. 8 Paid $1,700 for salaries due employees, of which $700 is for October salaries.
3 10 Received $3,420 cash from customers on account.
4 12 Received $3,100 cash for services performed in November.
5 15 Purchased equipment on account $2,000.
6 17 Purchased supplies on account $700.
7 20 Paid creditors on account $2,700.
8 22 Paid November rent $400.
9 25 Paid salaries $1,700.
10 27 Performed services on account and billed customers for services provided $1,900.
11 29 Received $600 from customers for future service.
Adjustment data consist of:

1. Supplies on hand $1,400.
2. Accrued salaries payable $350.
3. Depreciation for the month is $200.
4. Unearned service revenue of $1,250 is earned.
Instructions
(a) Enter the November 1 balances in the ledger accounts.
(b) Journalize the November transactions.
(c) Post to the ledger accounts. Use J1 for the posting reference. Use the following additional accounts:
No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense,
No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(d) Prepare a trial balance at November 30.
(e) Journalize and post adjusting entries.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement and an owners equity statement for November and a balance
sheet at November 30.
Trial balance $25,350

Adj. trial balance $25,900
Net income $1,500;
Total assets $18,950
-

Accounting Principles 10th Edition Weygandt Kimmel Chapter 3 PDF

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Accounting Principles 10th Edition Weygandt Kimmel Chapter 3 PDF

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Chapter 3, Adjusting Entries, pages 103 - 121

reference: Chapter 2, Recording Process, pages 63 - 72

General Journal (pg 117)

1 10/31 Supplies Expense $ 1,500

2 10/31 Insurance Expense ($600 / 12 = $50) $ 50

3 10/31 Depreciation Expense ($4,800 / 120) $ 40

4 10/31 UnEarned Service Revenues $ 400

5 10/31 Accounts Receivable $ 200

6 10/31 Interest Expense $ 50

7 10/31 Salaries & Wage Expense $ 1,200

Cash UnEarn Ser Rev

Supplies Owner's Capital

PrePaid Insur -Owner's Drawings

Equipment Service Revenues

Notes Payable -Sal & Wages Exp

Accounts Payable -Rent Exp

-Supplies Exp -Insurance Exp

-Deprec Exp Accounts Receivable

Interest Payable -Interest Exp

Sal & Wages Payable

Adjusted Trial Balance

7 Notes Payable 5,000

12 Owner's Capital 10,000

14 Service Revenue 10,600

Net Income $ 2,860

Owner's Equity Statement

Owner's Capital, October 1 $ -

Total Assets $ 21,910

Liabilities & Owner's Equity

Cash Flows from Operating Activities

Cash Flow from Investing Activities

Cash Flow from Financing Activities

net change in cash $ 15,200

cash at beginning of period $ -

the purpose of transaction analysis is to identify the type of account

1 10/1/2013 Cash $ 10,000

2 10/1 Equipment $ 5,000

3 10/2 Cash $ 1,200

4 10/3 Rent Expense $ 900

5 10/4 PrePaid Insurance $ 600

6 10/5 Supplies $ 2,500

7 10/20 Owner's Drawings $ 500

8 10/26 Salaries &Wages Expense $ 4,000

9 10/31 Cash $ 10,000

Cash UnEarn Ser Rev

Supplies Owner's Capital

PrePaid Insur -Owner's Drawings

Equipment Service Revenues

Notes Payable -Sal & Wages Exp

Accounts Payable -Rent Exp

Notes Payable 5,000

Owner's Capital 10,000

Service Revenue 10,000

1 6/30/2012 Supplies Expense $ 1,250

2 6/30 Utility Expense $ 150

3 6/30 Insurance Expense ($3000/12) $ 250

4 6/30 UnEarned Service Revenues $ 2,800

5 6/30 Salaries & Wage Expense $ 1,900

6 6/30 Depreciation Expense ($15000/60) $ 250

7 6/30 Accounts receivable $ 1,200

Cash UnEarn Service Rev

Accounts Receivable Owner's Capital

Supplies Service Revenues