E 2-4 E 2 - 5

1 Cash 50,000 1 K
Common Stock 50,000 2 E
2 Furniture & Fixtures 100,000 3 A
Cash 40,000 4 J
Note Payable 60,000 5 F
3 Inventory 200,000 6 B
Accounts payable 200,000 7 H
4 Accounts Receivable 280,000 8 C
Sales Revenue 280,000 9 D
5 Cost of Goods Sold 140,000 10 G
Iventory 140,000 11 I
5 Rent expense 6,000
cash 6,000
6 Prepaid Insurance 3,000
Cash 3,000
7 Accounts Payable 120,000
Cash 120,000
8 Cash 55,000
Accounts Receivable 55,000
9 Retained Earnings 5,000
Cash 5,000
10 Depreciation expense 2,000
Accumulated Depreciation 2,000
11 Insurance Expense 250
Prepaid Insurance 250
E 2 -8 The following is how figure was calculated for the number items in problem E 2 - 8.
1 Prepaid Insurance 10,000 1) 12,000 0.833333333
Insurance Expense 10,000 4)
2 Depreciation Expense 15,000 5) 0.5 3,000
Accumulated Depreciation 15,000
3 Salaries Expense 18,000
Salaries Payable 18,000
4 Interest Expense
Interest Payable
5 Unearned Rent Revenue 1,500
Rent Revenue 1,500
E 2 - 9 The following is how figure was calculated for the number items in problem E 2 - 8.
1 Interest Receviable 1)
Interest Revenue 2)
2 Rent Expense 3)
Prepaid Rent 6) 2,000 6,500
3 Rent Revenue
Unearned Rent Revenue
4 Depreciation Expense 4,500
Accumulated Depreciation 4,500
5 Salaries Expense 8,000
Salaries Payable 8,000
6 Supplies Expense 5,250
Supplies 5,250
E 2 - 6 E 2 - 7
1 I 1
2 I 2
3 D 3
4 I 4
5 D 5
6 D 6
7 D 7
8 I 8
9 I 9
10 I 10 At the end of October, recorded the amount of supplies that had beenused during the month.
11 I 11
12 D 12
13 I
14 I
15 D
16 D
The following is how figure was calculated for the number items in problem E 2 - 8.
10,000
1,500
The following is how figure was calculated for the number items in problem E 2 - 8.
3,250 5,250
Accured employee wages for October.
Received cash for advanced payment from customer.
Prepaid a cash dividend.
Paid rent for the next three months,.
Sold goods to a customer on account.
Purchased Inventory on account.
Purchased supplies for cash.
Paid employees wages for September.
Issued common stock in exchange cash.
Collected cash from customers for for goods to customer in 3.
Borrowed cash from a bank and signed note.
Debited Credited
10 5
8 5
4, 16 9, 3
3 1
6 5
15 5
5 12
5 4
5 11
At the end of October, recorded the amount of supplies that had beenused during the month. 7 6
5 13
17 15 Accured employee wages for October.
Received cash for advanced payment from customer.
Prepaid a cash dividend.
Paid rent for the next three months,.
Sold goods to a customer on account.
Purchased Inventory on account.
Purchased supplies for cash.
Paid employees wages for September.
Issued common stock in exchange cash.
Collected cash from customers for for goods to customer in 3.
Borrowed cash from a bank and signed note.
Balance Sheet
1/1 Bal. 5,000
1-Jan 3,500 800 13-Jan
18-Jan 4,000 5,500 16-Jan
800 20-Jan
3,000 30-Jan
1,000 31-Jan
1/1 Bal. 2,000 1/1 Bal. 5000
8-Jan 5,000 4,000 18-Jan 10-Jan 9,500
2,000
3,000 2,800
1/31 Bal. 9,700
Accounts Payable
3,500 1/1 Bal. 3,000
5,500 5,500
150
9,500
3,500 1/31 Bal. 12,650
6,500 1/1 Bal.
1,000
5,500 1/31 Bal.
Income Statement
0 1/1 Bal.
3,500 1-Jan
5,000 8-Jan
1/31 Bal.
8,500
1/1 Bal. 0 1/1 Bal.
1-Jan 2,000 20-Jan 800
8-Jan 2,800 1/31 Bal. 800
4,800
Cash
Accounts Receivable
Rent Expense
Sales Revenue
Cost of Goods Sold
Wage Expense
Inventory
Retained Earnings
Accumulated Depreciation
Advertising Expense
1/1 Bal. 0 1/1 Bal. 0
20-Jan 150 30-Jan 3,000
1/31 Bal. 150 1/31 Bal. 3,000
1/1 Bal. 11,000
2-Jan 5,500
1-Jan 13-Jan 800
8-Jan 1/31 Bal. 17,300
1/1 Bal. 10,000 1/1 Bal.
2-Jan
4-Jan
10-Jan
1/31 Bal. 10,000 1/31 Bal.
1/1 Bal. 0
30-Jan 3,000
1/31 Bal. 3,000
Equipment
Rent Expense Wage Expense
Common Stocks
P 2- 2 (part 2) Debit Credit
1-Jan Cash 3500 Account Title
Sales Revenue 3500 Cash
1-Jan Cost of goods Sold 2000 Accounts Recievable
Inventory 2000 Inventory
2-Jan Equipment 5500 Equipment
Accounts Payable 5500 Accumulated Depreciation
4-Jan Advertising Expense 150 Accounts Payable
Accounts Payable 150 Common Stock
8-Jan Accounts Receivable 5000 Retained Earnings
Sales Revenue 5000 Sales Revenue
8-Jan Cost of goods Sold 2800 Cost of Goods Sold
Inventory 2800 Wage Expense
10-Jan Inventory 9500 Rent Expense
Accounts Payable 9500 Advertising Expense
13-Jan Equipment 800 Totals
Cash 800
16-Jan Accounts Payable 5500
Cash 5500
18-Jan Cash 4000
Accounts Receivable 4000
20-Jan Rent Expense 800
Cash 800
30-Jan Wage Expense 3000
Cash 3000
31-Jan Retained Earnings 1000
Cash 1000
Account Title Debit Credits
1,400
Accounts Recievable 3,000
9,700
17,300
Accumulated Depreciation 3,500
Accounts Payable 12,650
Common Stock 10,000
Retained Earnings 5,500
Sales Revenue 8,500
Cost of Goods Sold 4,800
Wage Expense 3,000
Rent Expense 800
Advertising Expense 150
40,150 40,150
P 2 - 3
Depreciation expense 10000
Accumulated Depreciation 10000
Wage Expense 1500
Wage Payable 1500
Interest Expense 1500
Interest Payable 1500
Interest Receivable 1333
Interest Revenue 1333
Prepaid Insurance 3750
Insurance Expense 3750
Supplies Expense 700
Supplies 700
Sales Revenue 2000
Unearned Revenue 2000
Rent Expense 1000
Prepaid rent 1000
Part 1 - 2
(a) Depreciation Expense 1,000
Accumulated Depreciation - Building 1,000
(b) Depreciation Expense 10,000
Accumulated Depreciation - Equipment 10,000
(c) Insurance Expense 1,500
Prepaid Insurance 1,500
(d) Salaries Expense 1,500
Salaries Payable 1,500
(e) Rent Revenue 1,200
Unearned Rent Revenue 1,200
E 2 - 9 part 3
Account Title Debit Credit
Cash 8,000
Accounts Receivable 9,000
Prepaid Insurance 1,500
Land 200,000
Buildings 50,000
Accumulated Depreciation Buildings 21,000
Equipment 100,000
Accumalated Depreciation - Equipment 50,000
Accounts Payable 35,050
Salary Payable 1,500
Unearned Rent Revenue 1,200
Common Stock 200,000
Retained Earnings 56,450
Sales Revenue 90,000
Interest Revenue 3,000
Rent Expense 6,300
Salaries Expense 38,500
Depreciation Expense 11,000
Insurance Expense 1,500
Utility Expense 30,000
Maintence Expense 15,000
464,500 464,500
E 2-9 part 4
Closing entries at Dec 31, 2013 90,000
Sales Revenue 3,000
Interest Revenue 6,300
Rent Revenue
Income Summary 96,000
Income Summary
Salaries Expense
Depreciation Expense
Insurance Expense
Utility Expense
Maintenance Expense
Income Summary
Retained Earnings 3,300
Bagley Consulting Company
Adjusted Trial Balance
E 2- 9 part 5
Account Title Debit
Cash 8,000
Accounts Receivable 9,000
Prepaid Insurance 1,500
99,300 Land 200,000
Buildings 50,000
Accumulated Depreciation Buildings
38,500 Equipment 100,000
11,000 Accumalated Depreciation - Equipment
1,500 Accounts Payable
30,000 Salaries Payable
15,000 Unearned Rent Revenue
Common Stock
Retained Earnings
Totals 368,500
3,300
Credit
21,000
50,000
35,050
1,500
1,200
200,000
59,750
368,500