Post on 28-Nov-2014
transcript
Comprehensive Problem
GENERAL JOURNALDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $
Sep 1 Cash 1 100,000Anthony Ferrara Capital 30 100,000
Investment made by the owner
1 Prepaid rent 6 9,000Cash 1 9,000
Paid rent in advance180,000
1 Rental Equipmnet 10 90,000Cash 1 110,000Notes Payable 20
Purchased equipmnet on partail cash
4 Office supplies 8 1,630Accounts Payable 22 1,630
Purchased office supplies on accounts
8 Cash 1 10,000Unearned Rental Fees 29 10,000
Received cash in advance
12 Salaries Expense 60 3,600Cash 1 3,600
Paid salaries
15 Cash 1 5,300Accounts Receivable 4 800
Rental Fee Earned 50 6,100Received cash in advance
17 Maintenance Expense 61 340Accounts payable 22 340
Purchased rental parts on accounts
23 Cash 1 210Accounts Receivable 4 210
Received cash on accounts
25 NO ENTRY
26 Salaries Expense 60 3,600Cash 1 3,600
Paid salaries
27 Accounts Payable 22 340Cash 1 340
Paid cash on accounts
28 Anthony Ferrara Drawing 35 2,000Cash 1 2,000
Withdrew Cash
29 NO ENTRY
29 Unexpired Insurance 7 2,700Cash 1 2,700
Purchased insurance policy
30 Utilities expense 62 270Accounts payable 22 270
Received a bill for utility
30 Cash 1Rental fee Earned 50
Received cash in advance
ADJUSTING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep (a) Rent Expense 63 3,000
Prepaid Rent 6 3,000Adjusted the Monthly rent in rent expense
(b) Interest Expense 66 825Interest Payable 25 825
Unrecorded expense being recorded
© Depreciation Expense: Rental Equipment 65 1500Accumulated Depriciation:Rental Equip 12 1500
180,000 1 150010 12
Recoded depreciation for rental equipment
(d) Office Supplies Expense 64 530Office Supplies 8 530
1630-1500=530Unrecorded Expense being recorded
(e) Unearned Rental Fees 29 4,840Rental fees Earned 50 4,840
Part Of advances earned
(f) Accounts Receivable 4 500Rental Fee Earned 50 500
100*5=500Unrecorded revenue being recorded
(g) Salaries Expense 60 900
Salaries Payable 26 900unrecorded expense being recorded
Tony's RentalAdjusted Trial Balance
Sep 30, 20__ACCOUNTS TITLE DEBIT $ CREDIT $
Cash 32,720Accounts Receivable 1,090Prepaid Rent 6,000Unexpired Insurance 2,700Office Supplies 1100Rental Equipment 180,000Accumulated Depriciation:Rental Equipment 1,500Notes Payable 110,000Accounts Payable 1,900Interest Payable 825Salaries Payable 900Unearned Rental Fee 5,160Anthony Ferrara Capital 100,000Anthony Ferrara Drawings 2,000Rental fee earned 19,890Salaries Expense 8,100Maintenance Expense 340Utilities Expense 270Rent Expense 3,000Office Supplies Expense 530Depriciation Expense: Rental Equipment 1,500Interest Expense 825
Total 240,175 240,175
Tony's RentalIncome Statement
Sep 30, 20__EXPENSES $ REVENUES $
Salaries Expense 8,100 Rental fee Earned 19,890Maintenance Expense 340Utilities Expense 270Rent Expense 3,000Office Supplies Exp 530Dep. Exp: Rental Eq 1,500Interest Expense 825Net Income 5,325Total 19,890 19,890
Tony's RentalStatement of owners Equity
Sep 30, 20__DEBIT $ CREDIT $
Anthony Ferrara Drawing 2,000 Anthony Ferrara capital 100,000
Capital as on sep 30 103,325 Net Income 5,325105,325 105,325
Tony's RentalBalance SheetSep 30, 20__
ASSETS $ Liabilities+O' Equity $Cash 32,720 LIABILITIESAccounts Receivable 1,090 Accounts Payable 1,900Prepaid Rent 6,000 Interest Payable 825Unexpired Insurance 2,700 Salary Payable 900Office Supplies 1,100 Notes Payable 110,000Rental Equipment Unearned rent 5,160Acc Dep 180,000 178,500 Total Laibilities 118,785
-15,000 Owners EquityAnthony Ferrar Capital 103,325
Total Assets Err:522 Err:522
CLOSING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Rental Fee Earned 50 19,890
Income Summary 40 19,890To Close revenues into income summary
Income Summary 40 14,565Salaries Expense 60 8,100Maintenance Expense 61 340Utilities Expense 62 270Rent Expense 63 3,000Office Supplies Exp 64 530Dep. Exp: Rental Eq 65 1,500
To close expenses into income summary
INCOME SUMMARY14,565 19,890
Bal 5,325
DATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Income Summary 40 5,325
Anthony Ferrara Capital 30 5,325To Close Profit to capital account
Anthony Ferrara Capital 30 2,000Anthony Ferrara Drawing 35 2,000
To close drawing to capital
Tonys RentalAfter closing, Trial balanceSep 30, 20__
ACCOUNTS TITLE DEBIT $ CREDIT $Cash 32,720Accounts Receivable 1,090Prepaid Rent 6,000Unexpired Insurance 2,700Office Supplies 1100Rental Equipment 180,000Accumulated Depriciation:Rental Equipment 1,500Notes Payable 110,000Accounts Payable 1,900Interest Payable 825Salaries Payable 900Unearned Rental Fee 5,160Anthony Ferrara Capital 103,325
Total 223,610 223,610
Problem4-9
ADJUSTING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $
31-Jul (a) Film Rental Expense 15,200Prepaid film rental 15,200
Adjusted the Monthly rent in rent expense
(b) Depreciation Expense: Building 700Accumulated Depreciation: Building 700
168,000 1 70020 12
Recorded Depreciation for Building
© Depreciation Expense: Projection Equipment 600Accumulated Depriciation:Projection Eq 600
36,000 1 6005 12
Recoded depreciation for projection equipment
(d) Interst Expense 1,650Interest Payable 1,650
Unrecorded expense being recorded
(e) Unearned Admission Revenue 500Admission Revenue 500
Part of advances earned
(f) Concession Receivable 2,250Concession Revenue 2,250
Unrecorded revenue being recorded
(g) Salaries Expense 1,500Salaries Payable 1,500
unrecorded expense being recorded
Kent CinemaAdjusted Trial Balance
July 31, 19__ACCOUNTS TITLE DEBIT $ CREDIT $
Cash 20,000Concessions Receivable 2,250Prepaid Film Rental 16,000Land 80,000Building 168,000Accumulated Depriciation:Building 11,200Projection Equipment 36,000Accumulated Depriciation:Projection Equip 3,600Notes Payable 190,000Accounts Payable 4,400Interest Payable 1,650Salaries Payable 1,500Unearned Admission Revenue 500Li Trong Capital 103,400Li Trong Drawings 3,500Admission Revenue 37,400Concessions Revenue 2,250Salaries Expense 10,200Light & Power Expense 1,800Depriciation Expense: Building 700Depriciation Expense: Projection Equipment 600Film Rental Expense 15,200Interest Expense 1,650
Total 355,900 355,900
Kent CinemaIncome Statement
July 31, 19__EXPENSES $ REVENUES $
Salaries Expense 10,200 Admission Revenue 37,400Light & Power expense 1,800 Concession Revenue 2,250Dep exp: Building 700dep Exp: Projection Eq 600Film Rental expense 15,200Interest Expense 1,650Net Income 9,500Total 39,650 39,650
Kent CinemaStatement of owners equity
July 31, 19__DEBIT $ CREDIT $
Li Tong Drawing 3,500 Li Tong Capital 103,400Capital as on sep 30 109,400 Net Income 9,500
112,900 112,900
Kent CinemaBalance SheetJuly 31, 19__
ASSETS $ Liabilities+O' Equity $Cash 20,000 LIABILITIESConcessions receivable 2,250 Unearned admission 500Prepaid Film Rental 16,000 Interest Payable 1,650Land 80,000 Salary Payable 1,500Building Notes Payable 190,000Acc Dep 168,000 156,800 Accounts Payable 4,400
-11,200 Total Laibilities 198,050Projection equipment Owners EquityAcc Dep 36,000 Li Tong Capital 109,400
-3,600 32,400Total Assets 307,450 307,450
CLOSING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Admission Revenue 37,400
Concession Revenue 2,250Income Summary 39,650
To Close revenues into income summary
Income Summary 30,150Salaries Expense 10,200Light & Power Expense 1,800Depriciation Expense: Building 700Depriciation Expense: Projection Eq 600Film Rental Expense 15,200Interest Expense 1,650
To close expenses into income summary
INCOME SUMMARY30,150 39,650
Bal 9,500
DATE ACCOUNT TITLES and EXPLANATION DEBIT $ CREDIT $30-Sep Income Summary 9,500
Li Tong Capital 9,500
To Close Profit to capital account
Li Tong Drawing 3,500Li Tong Capital 3,500
To close drawing to capital
Kent CinemaAfter closing, trail Balance
July 31, 19__ACCOUNTS TITLE DEBIT $ CREDIT $
Cash 20,000Concessions Receivable 2,250Prepaid Film Rental 16,000Land 80,000Building 168,000Accumulated Depriciation:Building 11,200Projection Equipment 36,000Accumulated Depriciation:Projection Equip 3,600Notes Payable 190,000Accounts Payable 4,400Interest Payable 1,650Salaries Payable 1,500Unearned Admission Revenue 500Li Trong Capital 109,400
Total 322,250 322,250
Problem4-10
ADJUSTING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $
30-Jun (a) Depriciation Expense: Aircraft 10,000Accumulated Depreciation: Aircraft 10,000
1.2m 1 10,00010 12
Recorded Depreciation for aircraft
(b) Unearned Passenger revenue 38,650Passenger revenue 38,650
Part of advances earned
© Salaries Expense 3,300Salaries payable 3,300unrecorded expense being recorded
(d) Interst Expense 5,000Interest Payable 5,000
Unrecorded expense being recorded
(e) Accounts receivable 4,600Freight Revenue 4,600
Unrecorded revenue being recorded
(f) Rent expense 4,800Prepaid rent 4,800
Advances rent transferred to expense account
(g) Insurance Expense 2,100Unexpired Insurance 2,100
unrecorded expense being recorded
Island HopperAdjusted Trial Balance
30-Jun-97ACCOUNTS TITLE DEBIT $ CREDIT $
Cash 23,600Accounts Receivable 11,800Prepaid Rent 4,800Unexpired Insurnace 18,900Aircraft 1,200,000Accumulated Depriciation:Aircraft 390,000Notes Payable 600,000Interest Payable 5,000Salaries Payable 3,300Unearned Passenger Revenue 21,350Mary Earhart Capital 230,850Mary Earhart Drawing 7,000Freight Revenue 135,550Passenger Revenue 38,650Salaries Expense 70,000Fuel Expense 53,800Depriciation Expense: Aircraft 10,000Maintenance expense 12,900Rent Expense 4,800Insurance Expense 2,100Interest Expense 5,000
Total 1,424,700 1,424,700
Island HopperIncome Statement
30-Jun-97EXPENSES $ REVENUES $
Salaries Expense 70,000 Freight Revenue 135,550Fuel Expense 53,800 Passenger Revenue 38,650Maintenance Expense 12,900Rent Expense 4,800Insurance Expense 2,100Dep. Exp: Aircraft 10,000
Interest Expense 5,000Net Income 15,600Total 174,200 174,200
Island HopperStatement Of owners equity
30-Jun-97DEBIT $ CREDIT $
Mary Earhart Drawing 7,000 Mary Earhart Capital 230,850Capital as on sep 30 239,450 Net Income 15,600
246,450 246,450
Island HopperBalance Sheet
30-Jun-97ASSETS $ Liabilities+O' Equity $
Cash 23,600 LIABILITIESAccounts Receivable 11,800 Unearned passenger 21,350Prepaid Rent 4,800 Interest Payable 5,000Unexpired Insurance 18,900 Salary Payable 3,300Aircraft Notes Payable 600,000Acc Dep 1,200,000 810,000 Total Laibilities 629,650
-390,000 Owners EquityMary Earhart Capital 239,450
Total Assets 869,100 869,100
CLOSING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Freight Revenue 135,550
Passenger Revenue 38,650Income Summary 174,200
To Close revenues into income summary
Income Summary 158,600Salaries Expense 70,000Fuel Expense 53,800Depriciation Expense: Aircraft 10,000Maintenance expense 12,900Rent Expense 4,800Insurance Expense 2,100Interest Expense 5,000
To close expenses into income summary
INCOME SUMMARY158,600 174,200
Bal 15,600
DATE ACCOUNT TITLES and EXPLANATION DEBIT $ CREDIT $30-Sep Income Summary 15,600
Mary Earhart Capital 15,600To Close Profit to capital account
Mary Earhart Drawing 7,000Mary Earhart Capital 7,000
To close drawing to capital
Island HopperAfter closing Trial Balance
30-Jun-97ACCOUNTS TITLE DEBIT $ CREDIT $
Cash 23,600Accounts Receivable 11,800Prepaid Rent 4,800Unexpired Insurnace 18,900Aircraft 1,200,000Accumulated Depriciation:Aircraft 390,000Notes Payable 600,000Interest Payable 5,000Salaries Payable 3,300Unearned Passenger Revenue 21,350Mary Earhart Capital 239,450
Total 1,259,100 1,259,100