Beruflich Dokumente
Kultur Dokumente
S.No
1
(a) Prepare journal entries for the transactions listed above and adjusting entries.
(b) Prepare an adjusted trial balance at December 31, 2017. 10
(c) Prepare an income statement and a retained earnings statement for the year ending December 31, 20
11
12
S.No
1
2
3
142000
10000
132000
4400 4
5
Answer A
Journal Entries
Accounts Title Debit Credit
Cash $ 49,200
Preferred Stock $ 48,000
Additional paid in capital-Preferred Stock $ 1,200
Cash $ 21,000
Common Stock $ 9,000
Additional paid in capital-Common Stock $ 12,000
Cash $ 36,000
Unearned Service Revenue $ 36,000
ed from April 1, 2017, to March 31, 2018.
Cash $ 276,000
Accounts Receivable $ 276,000
Supplies $ 35,100
Accounts Payable $ 35,100
20 per share dividend on the outstanding common stock, all payable on January 15, 2018.
Accounts Payable $ 32,200
Cash $ 32,200
Adjusting entries
Accounts Title Debit Credit
Supplies expense $ 33,600
Supplies $ 33,600
($ 4,400 add $ 35,100 less $ 5,900)
Answer B
ADJUSTED TRIAL BALANCE
Accounts Title
Cash
Accounts Receivable
less: allowance for doubtful accounts
Supplies
Land
Buildings
Accumulated Depreciation-Buildings
Accounts Payable
Common Stock
Retained Earnings
Preferred Stock
Additional paid in capital-Preferred Stock
(400 shares * $ 28 each) Additional paid in capital-Common Stock
Service Revenue
Unearned Service Revenue
Treasury Stock
Operating expenses
Preferred stock dividend payable
(7 % of 1,200 shares * $ 40 each) Common Stock dividend payable
Supplies expense
Bad debts expense
(8,500 shares * $ 1.20 per share) Depreciation expense
Income tax expense
Income tax payable
$ 8,500
Answer C
INCOME STATEMENT
Service Revenue
$ 229,900
$ 117,100
$ 35,130
$ 81,970
$ 127,400
$ -3,360
$ -10,200
$ 81,970
$ 195,810
$ 421,000