Beruflich Dokumente
Kultur Dokumente
4,810
(a)
7,000
(g)
2,010
$ 510 $ 1,600 (h) $ 450 (n)
$1,780 $15,400 $ 200
510 (b) 1,600 (i) 450
190
(c)
1,000 ( 1250)
(o)
$2,100 (d) $16,000 $ 1900 (p)
$2,100 (e) $16,000 (j) $1,900
$ 600 (f) $ 2,000 $1,300
2,100 16,000
(k)
1900
(q)
$2,700 $18,000 (l) $3,200 (r)
2. User insight: Income statement discussed
Owner's capital
Total liabilities and owner's equity
Set C
Revenues
Set A Set B
Chapter 1, P 2.
1. Financial statements completed
Income Statement
Expenses
Statement of Owner's Equity
Net income
Beginning balance
Net income
Less withdrawals
Ending balance
It's important to prepare the income statement before the balance sheet because the income statement
includes all transactions that impact a business. A balance sheet just shows the position of a company on a
specific date.
Total assets
Balance Sheet
Liabilities
Owner's equity
Ch1 P2
Amount
$ 750
400
600
750
$2,500
Amount
$ 300
750
400
600
$2,050
b july 15
c
july
Total July purchases
5
july 22
d july 30
a
Date Received
2. Purchases recognized on date received
Order Date Shipped
Total July purchases
c july 16
d july 23
e july 27
Date Shipped
july 10
Date Received
Chapter 2, E 4.
1. Purchases recognized on date shipped
Order
b
Ch2 E4
= +
= $ $
$ $ $
M. Powell,
Withdrawals
+ Revenues
Chapter 2, E 5.
Assets = Liabilities
Expenses
+
Owner's Equity
M. Powel, Capital
Ch2 E5
[Pg 10]
Post.
Ref. Debit Credit
14 6,000
2,000
4,000
28 3,000
3,000
Ref. Debit Debit Credit
13 8,000
14 J10 6,000
28 J10 3,000
Ref. Debit Debit Credit
14 J10 6,000 6,000
Ref. Debit Debit Credit
14 J10 4,000
28 J10 3,000 1,000
Credit
Dec 4,000
2011
Accounts Payable
Payable 212
Post.
Date Item
Balance
2011
Dec
Balance
Date Item Credit
Post.
Office Equipment 146
Dec. Balance
3,000
2011
Post.
2,000
Balance
Date Item Credit
General Ledger
Cash 111
Date Description
Accounts payable
Cash
Equipment
Made partial payment on purchased
equipment.
Chapter 2, E 18.
Cash
2011
Dec
General Journal
Accounts payable
Purchase of equipment on account
with downpayment.
Ch2 E18
f 2,040 j 1,380 e 330
1,380 c 190 2,040 1,380
Bal. 660
i 40
k 90
l 440
m 300
7,080 1,650
5,430
5,000 a 3,600 h 330 e 330
480 g 380 g 860
5,480 Bal. 3,980 330 1,190
Bal. 860
a 14,300 m 300 f 2,040
440 k 90 b 260
40 c 190
Repair Expense Advertising Expense
Salaries Expense Utilities Expense Rent Expense
l
C. Dahlen, Capital C. Dahlen, Withdrawals
i
Cash Supplies
a 5,700 b
Tuition Revenue
a
g
Computers Office Equipment Accounts Payable
Bal.
h 330
Accounts Receivable
Chapter 2, P 3.
1. T accounts set up
2.
Transactions recorded in the accounts (be sure to put the transaction letter beside the amounts
for easy identification)
Bal.
260
j
Ch2 P3 (1)
$ 5,430
660
330
5,480
3,980
$ 860
14,300
300
2,040
440
90
260
40
190
$17,200 $17,200
4. User Insight: Transactions "f" and "j" examined
The total revenues recognized is $ 2,040. This is based on accrual basis. However the cash received
from the revenue is only $ 1,380. There is a difference in the revenue recognized and the revenue
collected. Financial reporting is based on accrual basis and revenue is recognized when earned and
not during collection. There are really times when the business would report high net income but
would still have problems with its cash flows. This is because revenues are recognized even if not yet
collected. If the business can't collect payments from its customers right at the right time, it may
report high income but will have cash problems.
Cash
Accounts Receivable
Supplies
Computers
Office Equipment
Accounts Payable
Tuition Revenue
Salaries Expense
Utilities Expense
Rent Expense
Repair Expense
Advertising Expense
Chapter 2, P 3. (Continued)
3. Trial balance prepared
C. Dahlen, Withdrawals
C. Dahlen, Capital
Star Office Training
Trial Balance
May 31, 2012
Ch2 P3 (2)
$14,620
$5,680
1,350
580
380
2,920
320
720
11,950
$ 2,670
$15,034
2,670
$17,704
2,000
$15,704
Chapter 3, E 10.
For the Month Ended August 31, 2011
Alvin Cleaning Company
Income Statement
Net income
Revenue
Janitorial Revenue
Expenses
Wages Expense
Rent Expense
Less: A. Wish, Withdrawals
For the Month Ended August 31, 2011
A. Wish, Capital , August 1, 2011
Alvin Cleaning Company
Statement of Owner's Equity
Subtotal
A. Wish, Capital , August 31, 2011
Net Income
Total expenses
Gas, Oil, and Other Truck Expenses
Insurance Expense
Supplies Expense
Depreciation Expense- Cleaning Equipment
Depreciation Expense- Truck
Ch3 E10 (1)
$ 4,750
2,592
380
200
152
$ 3,875
320
3,555
$ 7,200
720 6,480
$18,109
$ 420
295
1,690
$ 2,405
$15,704
15,704
$18,109
Accounts Receivable
Cash
Total Owner's Equity
Chapter 3, E 10. (Continued)
Accounts Payable
Total Assets
Truck
Assets
Alvin Cleaning Company
Less: Accumulated Depreciation-Truck
Prepaid Rent
Cleaning Supplies
Balance Sheet
August 31, 2011
Wages Payable
Total Liabilities and Owner's Equity
A. Wish, Capital , August 31, 2011
Less: Accumulated Depreciation-Cleaning Equipment
Total Liabilities
Prepaid Insurance
Cleaning Equipment
Owner's Equity
Liabilities
Unearned Janitorial Revenue
Ch3 E10 (2)
$ 2,400
3,800
$ 6,200
2,900
$ 3,300
$ 2,200
19,500
$21,700
1,200
$20,500
$ 4,200
8,900
$13,100
1,900
$11,200
[Subtotal]
Chapter 3, E 13.
Cash payments for insurance during 2010
Less: Unearned fees, beginning
Cash receipts from fees during 2010
Cash payments for wages during 2010
Prepaid insurance, ending
Wages payable, beginning
Add: Wages expense
Add: Insurance expense
[Subtotal]
Less: Prepaid insurance, beginning
Add: Fees earned
[Subtotal]
Less: Wages payable, ending
Unearned fees,ending
Ch3 E13
Debit Credit Debit Credit Debit Credit Debit Credit
10,072 10,072 10,072
29,314 29,314 29,314
5,340 h 816 1 3,060 3,096 3,096
14,700 2 13,270 1,430 1,430
2,460 3 2,274 186 186
15,000 15,000 15,000
196,000 196,000 196,000
53,400 4 14,400 67,800 67,800
103,800 103,800 103,800
30,900 5 15,450 46,350 46,350
15,900 15,900 15,900
10,800 6 2,700 13,500 13,500
9,396 9,396 9,396
8,340 7 2,980 5,360 5,360
72,000 72,000 72,000
128,730 128,730 128,730
30,000 30,000 30,000
283,470 283,470 283,470
28,800 7 2,980 31,780 31,780
h 816 816 816
120,600 i 1,920 122,520 122,520
44,400 44,400 44,400
31,050 31,050 31,050
7,200 7,200 7,200
=
Sept. 1 18,000
18,000
Premium on Bonds Payable
Bonds Payable
Issuance of Bonds Payable
Bond Interest Expense
Premium on Bonds Payable
Bond Interest Payable
Chapter 13, SE 6.
Cash
To record Interest Expense and amtz of premium
$400,000 0.09 12
$439,600 0.08 12
Cash
To reflect payment of Interest 3/1-8/31 on 9/1
$18,000 $17,584 $416
Bond Interest Payable
Ch13 SE6
$95,132
159,740
$254,872
4% 6 / 12 =
$350,000
254,872
$ 95,128
** $350,000 $7,000
Face value
Cash paid
Gain
(from Table 2*): $7,000 13.5903
Present value of a single payment at the end of 20 periods
with interest compounded semiannually at 4% (8% 2)
* From the appendix on present value tables.
Chapter 13, E 16.
1. Current market value of the bonds calculated.
Present value of 20 periodic payments at 4% (8% 2)
(from Table 1*): $350,000 0.4564
2. Gain or loss determined.
Market value (total present value) of bond issue
** **
Ch13 E16