Tugas 3 - SIAK Seany Sukmawati - 1106154034

E3-3 Concordia Industries collected $105,000 from customers in 2014. Of the amount
collected, $28,000 was from revenue accrued from services performed in 2013. In addition,
Concordia recognized $44,000 of revenue in 2014, which will not be collected until 2015.
Concordia Industries also paid $72,000 for expenses in 2014. Of the amount paid,
$30,000 was for expenses incurred on account in 2013. In addition, Concordia incurred
$37,000 of expenses in 2014, which will not be paid until 2015.
I nstructions
(a) Compute 2014 cash-basis net income.
(b) Compute 2014 accrual-basis net income.
(a) 2014 cash-basic net income
Revenues = $105,000
Expenses = $72,000
Net income = 105,000 72,000 = $33,000
(b) 2014 accrual-basic net income
Revenues = $105,000 - $28,000 + $44,000 = $121,000
Expenses = $72,000 - $30,000 + $37,000 = $ 79,000
Net income = 121,000 79,000 = $42,000


Tugas 3 - SIAK Seany Sukmawati - 1106154034
P3-3A Costello Advertising Agency Inc. was founded by Pat Costello in January of 2013.
Presented below are both the adjusted and unadjusted trial balances as of December 31, 2014.
I nstructions
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the year ending
December 31, 2014, and a statement of finansial position 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 $14,500 in salaries in 2014, what was the balance in Salaries
and Wages Payable on December 31, 2013?





Tugas 3 - SIAK Seany Sukmawati - 1106154034
(a) Journal
Date Account Title Ref Debit Credit
2014 Adjusting Entries
Des. 31 Supplies Expense 3,600
Supplies 3,600
(To record supplies used)
Des. 31 Insurance Expense 850
Prepaid Expense 850
(To record insurance expired)
Des. 31 Depreciation Expense 5,000
Accumulated Depreciation---Equipment 5,000
(To record monthly depreciation)
Des. 31 Unearned Service Revenue 1,600
Service Revenue 1,600
(To record revenue for services performed)
Des. 31 Accounts Receivable 3,500
Service Revenue 3,500
(To record revenue for services performed)
Des. 31 Interest Expense 150
Interest Payable 150
(To record interest on notes payable)
Des. 31 Salaries and Wages Expense 1,300
Salaries dan Wages Payable 1,300
(To record accrued salaries and wages)

(b)
COSTELLO ADVERTISING AGENCY
Income Statement
For the Year Ended December 31, 2014
Revenues
Service Revenue $63,700
Expenses
Salaries and Wages Expense $11,300

Insurance Expense 850

Interest Expense 500

Depreciation Expense 5,000

Supplies Expense 3,600

Rent Expense 4,000

Total expenses 25,250
Net income $38,450

COSTELLO ADVERTISING AGENCY
Statement of Retained Earnings
For the Year Ended December 31, 2014
Retained Earnings, Jan 1 $5,500
Add: Net income 38,450
Less: Dividens 12,000
Retained Earnings, Dec 31 $31,950

Tugas 3 - SIAK Seany Sukmawati - 1106154034
COSTELLO ADVERTISING AGENCY
Statement of Financial Position
December 31, 2014
Assets
Cash

$11,000
Accounts Receivable

23,500
Art Supplies

5,000
Prepaid Insurance

2,500
Equipment $60,000

Accumulated Depreciation Equip 33,000 27,000
Total Assets $69,000

Liabilities and Stockholders' Equity
Liabilities
Accounts Payable $5,000

Interest Payable 150

Notes Payable 5,000

Unearned Advertising Revenue 5,600
Salaries and Wages Payable 1,300

Total Liabilities $17,050

Stockholders' Equity
Share Capital---Ordinary $20,000

Retained Earnings 31,950 51,950
Total liabilities and stockholders' equity $69,000

(c) Answer the following questions.
(1) If the note has been outstanding 6 months, what is the annual interest rate on
that note?
$150 * 2 = 300 annual interest on a principal balance of $5,000 = 6% simple interest
per year.
(2) If the company paid $14,500 in salaries in 2014, what was the balance in
Salaries and Wages Payable on December 31, 2013?
$1,300 + $14,500 - $11,300 = $4,500 balance on December 31, 2013.


Tugas 3 - SIAK Seany Sukmawati - 1106154034
E4-6 Selected worksheet data for Freeman Company are presented below.
Account Titles Trial Balance Adjusted Tral Balance
Dr. Cr. Dr. Cr.
Accounts Receivable




? 34,000
Prepaid Insurance
26,000 18,000
Supplies
7,000 ?
Accumulated Depreciation---Equipment
12,000 ?
Salaries and Wages Payable
? 5,000
Service Revenue
88,000 95,000
Insurance Expense
?
Depreciation Expense
10,000
Supplies Expense
4,700
Salaries and Wages Expense
? 49,000
I nstructions
(a) Fill in the missing amounts.
(b) Prepare the adjusting entries that were made.
(a)
Account Titles Trial Balance Adjusted Tral Balance
Dr. Cr. Dr. Cr.
Accounts Receivable




23,000 34,000
Prepaid Insurance
26,000 18,000
Supplies
7,000 2,300
Accumulated Depreciation---Equipment
12,000 22,000
Salaries and Wages Payable
0 5,000
Service Revenue
88,000 95,000
Insurance Expense
4,000
Depreciation Expense
10,000
Supplies Expense
4,700
Salaries and Wages Expense
44,000 49,000
Totals
$100,000 $100,000 $122,000 $122,000
(b)
Date Account Title Ref Debit Credit
Supplies Expense 4,300
Supplies 4,300
(To record supplies used)
Insurance Expense 4,000
Prepaid Expense 4,000
(To record insurance expired)
Depreciation Expense 10,000
Accumulated Depreciation---Equipment 10,000
(To record monthly depreciation)
Accounts Receivable 11,000
Service Revenue 11,000
(To record revenue for services performed)
Salaries and Wages Expense 5,000
Salaries dan Wages Payable 5,000
(To record accrued salaries and wages)
(1)
(2)
(3)
(4)
(5)
(6)
Tugas 3 - SIAK Seany Sukmawati - 1106154034
P4-5B Tom Brennan opened Brennan's Cleaning Service on July 1, 2014. During July the
following transactions were completed.
July 1 Stockholders invested $20,000 cash in the business in exchange for ordinary shares.
1 Purchased used truck for $12,000, paying $4,000 cash and the balance on account.
3 Purchased cleaning supplies for $2,100 on account.
5 Paid $1,800 cash on one-year insurance policy effective July 1.
12 Billed customers $5,900 for cleaning services.
18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on
cleaning supplies.
20 Paid $4,500 cash for employee salaries.
21 Collected $4,400 cash from customers billed on July 12.
25 Billed customers $8,000 for cleaning services.
31 Paid $350 for the monthly gasoline bill for the truck.
31 Declared and paid a $1,200 cash dividend.
The chart of accounts for Brennan's Cleaning Service contains the following accounts: No.
101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No.
157 Equipment, No. 158 Accumulated Depreciation---Equipment, No. 201 Accounts Payable,
No. 212 Salaries and Wages Payable, No. 311 Share Capital---Ordinary, No. 320 Retained
Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633
Gasoline Expense, No. 631 Supplies Expense, No. 711 Depreciation Expense, No. 722
Insurance Expense, and No. 726 Salaries and Wages Expense.
I nstructions
(a) Journalize and post the July transactions. Use page J1 for the journal and the three-
column form of account.
(b) Prepare a trial balance at July 31 on a worksheet.
(c) Enter the following adjustments on the worksheet and complete the worksheet.
(1) Services provided but unbilled and uncollected at July 31 were $3,300.
(2) Depreciation on equipment for the month was $500.
(3) One-twelfth of the insurance expired.
(4) An inventory count shows $600 of cleaning supplies on hand at July 31.
(5) Accrued but unpaid employee salaries were $2,200.
(d) Prepare the income statement and retained earnings statement for July and a classified
balance sheet at July 31.
Tugas 3 - SIAK Seany Sukmawati - 1106154034
(e) Journalize and post adjusting entries. Use page J2 for the journal.
(f) Journalize and post closing entries and complete the closing process. Use page J3 for the
journal.
(g) Prepare a post-closing trial balance at July 31.

(a)
General Journal
Date Account Titles and Explanation Ref. Debit Credit
July 1 Cash 101 20,000
Share Capital---Ordinary 311 20,000
(Issued shares for cash)
1 Equipment 157 12,000
Cash 101 4,000
Accounts Payable 201 8,000
(Purchased truck for cash with balance on
accounts)

3 Supplies 126 2,100
Account Payable 201 2,100
(Purchased cleaning supplies on account)
5 Prepaid insurance 130 1,800
Cash 101 1,800
(Paid one-year policy: effective date July 1)
12 Account Receivale 112 5,900
Service Revenue 101 5,900
(Billed customer for services provided)
18 Account Payable 201 1,500
Cash 101 1,500
(Paid cash on amount owed on truck)
18 Account Payable 201 1,400
Cash 101 1,400
(Paid cash on amount owed on cleaning
supplies)

20 Salaries and Wages Expense 726 4,500
Cash 101 4,500
(Paid salaries expense)
21 Cash 101 4,400
Account Receivable 112 4,400
(Receive cash for services provided billed on
July 12)

25 Account Receivale 112 8,000
Service Revenue 101 8,000
(Billed customer for services provided)
31 Gasoline Expense 633 350
Cash 101 350
(Paid for the monthly gasoline bill for the truck)
31 Dividends 332 1,200
Cash 101 1,200
(declared and paid a cash dividends)
J1
Tugas 3 - SIAK Seany Sukmawati - 1106154034

General Ledger
Cash
No. 101
Date Explanation Ref. Debit Credit Balance
July 1 J1 20,000 20,000
1 J1 4,000 16,000
5 J1 1,800 14,200
18 J1 1,500 12,700
18 J1 1,400 11,300
20 J1 4,500 6,800
21 J1 4,400 11,200
31 J1 350 10,850
31 J1 1,200 9,650

Account Receivable
No. 112
Date Explanation Ref. Debit Credit Balance
Jul.12 J1 5,900 5,900
21 J1 4,400 1,500
25 J1 8,000 9,500

Supplies
No. 126
Date Explanation Ref. Debit Credit Balance
July 3 J1 2,100 2,100

Prepaid Insurance
No. 130
Date Explanation Ref. Debit Credit Balance
July 5 J1 1,800 1,800

Equipment
No. 157
Date Explanation Ref. Debit Credit Balance
July 1 J1 12,000 12,000

Account Payable
No. 201
Date Explanation Ref. Debit Credit Balance
July 1 J1 8,000 8,000
3 2,100 10,100
18 1,500 8,600
18 1,400 7,200

Share Capital---Ordinary
No. 311
Date Explanation Ref. Debit Credit Balance
July 1 J1 20,000 20,000

Dividends
No. 332
Date Explanation Ref. Debit Credit Balance
Jul.31 J1 1,200 1,200

Service Revenue
No. 400
Date Explanation Ref. Debit Credit Balance
Jul.12 J1 5,900 5,900
25 8,000 13,900

Gasoline Expanse
No. 633
Date Explanation Ref. Debit Credit Balance
Jul.31 J1 350 350

Salaries and Wages Expanse
No. 726
Date Explanation Ref. Debit Credit Balance
July 3 J1 4,500 4,500

(b)

BRENNANS CLEANING SERVICE
Trial Balance
July 31, 2014

Debit Credit
Cash $ 9,650
Account Receivable 9,500
Supplies 2,100
Prepaid Insurance 1,800
Equipment 12,000
Accounts Payable $ 7,200
Share Capital--Ordinary 20,000
Dividends 1,200
Service Revenue 13,900
Gasoline Expense 350
Salaries and Wages Expense 4,500

$ 41,100

$ 41,100


Tugas 3 - SIAK Seany Sukmawati - 1106154034
(c)