The Recording Process Solutions Part 4

PROBLEM 2-3A (a) & (c) Balance (4) (7) Cash 8,000 (1) (3) 14,000 (5) 6,000 (8) (9) 4,000 Jack Shellenkamp, Capital Balance 41,000 41,000 1,000 2,000 15,000 3,000 3,000 (9) Repair Services Revenue (7) 15,000 15,000 Accounts Receivable Balance 15,000 (4) 14,000 (7) 9,000 10,000 Balance (2) Balance Balance (5) Parts Inventory 13,000 4,000 (6) 13,000 (1) Advertising Expense 1,000 1,000 (3) Miscellaneous Expense 2,000 2,000 (6) Repair Parts Expense 4,000 4,000 (8) Wage Expense 3,000 3,000 4,000 Prepaid Rent 3,000 3,000 Shop Equipment 21,000 21,000 Accounts Payable Balance (2) 15,000 19,000 4,000 8,000 Jack Shellenkamp, Drawing 3,000 3,000 PROBLEM 2-3A (Continued) (b) Trans. Account Titles and Explanation Debit 1. Advertising Expense..................................... Cash......................................................... 1,000 2. Parts Inventory................................................ Accounts Payable ............................... 4,000 3. Miscellaneous Expense ............................... Cash......................................................... 2,000 4. Cash.................................................................... Accounts Receivable ......................... 14,000 5. Accounts Payable .......................................... Cash......................................................... 15,000 6. Repair Parts Expense ................................... Parts Inventory..................................... 4,000 7. Cash.................................................................... Accounts Receivable .................................... Repair Services Revenue.................. 6,000 9,000 8. Wage Expense ................................................ Cash......................................................... 3,000 9. Jack Shellenkamp, Drawing ....................... Cash......................................................... 3,000 Credit 1,000 4,000 2,000 14,000 15,000 4,000 15,000 3,000 3,000 PROBLEM 2-3A (Continued) (d) BYTE REPAIR SERVICE Trial Balance January 31, 2010 Cash ................................................................................ Accounts Receivable................................................. Parts Inventory ............................................................ Prepaid Rent................................................................. Shop Equipment ......................................................... Accounts Payable....................................................... Jack Shellenkamp, Capital ...................................... Jack Shellenkamp, Drawing.................................... Repair Services Revenue......................................... Advertising Expense ................................................. Miscellaneous Expense............................................ Repair Parts Expense................................................ Wage Expense ............................................................. Debit $ 4,000 10,000 13,000 3,000 21,000 3,000 1,000 2,000 4,000 3,000 $64,000 Credit $ 8,000 41,000 15,000 $64,000 PROBLEM 2-4A STERLING COMPANY Trial Balance May 31, 2010 Debit Cash ($5,850 + $520 – $405) ............................................... $ 5,965 Accounts Receivable ($2,570 – $210).............................. 2,360 Prepaid Insurance ($700 + $100)....................................... 800 Supplies ($0 + $520) .............................................................. 520 Equipment ($8,000 – $520).................................................. 7,480 Accounts Payable ($4,500 – $100 + $520 – $210)........ Property Taxes Payable ....................................................... M. Sterling, Capital ($11,700 + $1,000) ............................ M. Sterling, Drawing ($0 + $1,000) .................................... 1,000 Service Revenue..................................................................... Salaries Expense ($4,200 + $200) ..................................... 4,400 Advertising Expense ($1,100 + $405) .............................. 1,505 Property Tax Expense ($800 + $100) ............................... 900 $24,930 Credit $ 4,710 560 12,700 6,960 $24,930 PROBLEM 2-5A (a) & (c) Cash Date Apr. 1 2 9 10 12 25 29 30 30 Explanation Balance Ref. Debit Credit  J1 J1 J1 J1 J1 J1 J1 J1 800 2,800 3,000 500 5,200 2,000 85 900 Accounts Receivable Date Apr. 30 Explanation No. 112 Debit 85 Credit Balance 85 Explanation Ref. J1 Debit 900 Credit Balance 900 Explanation Balance Ref. Debit Credit Balance 10,000 Explanation Balance Ref. Debit Credit Balance 8,000 No. 136 Land Date Apr. 1 No. 140  Buildings Date Apr. 1 6,000 5,200 8,000 5,000 4,500 9,700 7,700 7,785 6,885 Ref. J1 Prepaid Rentals Date Apr. 30 No. 101 Balance No. 145  PROBLEM 2-5A (Continued) Equipment Date Explanation Apr. 1 Balance Ref. Debit Credit Debit Credit  Accounts Payable Date Apr. 1 10 20 Explanation Balance No. 201 Ref.   J1 J1 1,000 1,000 Mortgage Payable Date Apr. 1 10 Explanation Balance Tony Carpino, Capital Date Explanation Apr. 1 Balance Explanation Ref. Debit Credit   Explanation Balance 8,000 6,000 J1 2,000 Ref. Debit Credit No. 301 Balance 20,000 Ref. J1 J1 Debit Credit 2,800 5,200 Balance 2,800 8,000 Ref. J1 Debit Credit 170 Balance 170  No. 405 Concession Revenue Date Apr. 30 Balance 2,000 1,000 2,000 No. 275 Admission Revenue Date Apr. 9 25 No. 157 Balance 6,000 No. 406 PROBLEM 2-5A (Continued) Advertising Expense Date Explanation Apr. 12 Ref. J1 Debit 500 Credit Film Rental Expense Date Apr. 2 20 Explanation No. 632 Ref. J1 J1 Debit 800 1,000 Credit Salaries Expense Date Apr. 29 Explanation Balance 800 1,800 No. 726 Ref. J1 Debit 2,000 Credit (b) Date Apr. 2 No. 610 Balance 500 Account Titles and Explanation Film Rental Expense ............................... Cash ................................................... (Paid film rental) Ref. 632 101 Debit 800 3 No entry—not a transaction. 9 Cash.............................................................. Admission Revenue...................... (Received cash for services provided) 101 405 2,800 10 Mortgage Payable .................................... Accounts Payable .................................... Cash ................................................... (Made payments on mortgage and accounts payable) 275 201 101 2,000 1,000 Balance 2,000 J1 Credit 800 2,800 3,000 PROBLEM 2-5A (Continued) Date Account Titles and Explanation Apr. 11 No entry—not a transaction. Ref. Debit 12 Advertising Expense................................. Cash ..................................................... (Paid advertising expenses) 610 101 500 20 Film Rental Expense ................................. Accounts Payable ........................... (Rented film on account) 632 201 1,000 25 Cash................................................................ Admission Revenue........................ (Received cash for services provided) 101 405 5,200 29 Salaries Expense........................................ Cash ..................................................... (Paid salaries expense) 726 101 2,000 30 Cash................................................................ Accounts Receivable ................................ Concession Revenue ..................... (17% X $1,000) (Received cash and balance on account for concession revenue) 101 112 406 85 85 Prepaid Rentals .......................................... Cash ..................................................... (Paid cash for future film rentals) 136 101 900 30 Credit 500 1,000 5,200 2,000 170 900 PROBLEM 2-5A (Continued) (d) LAKE THEATER Trial Balance April 30, 2010 Cash ................................................................................ Accounts Receivable................................................. Prepaid Rentals ........................................................... Land................................................................................. Buildings........................................................................ Equipment ..................................................................... Accounts Payable....................................................... Mortgage Payable....................................................... Tony Carpino, Capital................................................ Admission Revenue................................................... Concession Revenue................................................. Advertising Expense ................................................. Film Rental Expense.................................................. Salaries Expense ........................................................ Debit $ 6,885 85 900 10,000 8,000 6,000 500 1,800 2,000 $36,170 Credit $ 2,000 6,000 20,000 8,000 170 $36,170 PROBLEM 2-1B J1 Date Mar. 1 Account Titles and Explanation Cash .................................................................. Barry Schultz, Capital........................ (Owner’s investment of cash in business) 3 Land .................................................................. Buildings ......................................................... Equipment....................................................... Cash ........................................................ (Purchased Heeren’s Golf Land) 12,000 2,000 1,000 5 Advertising Expense ................................... Cash ........................................................ (Paid for advertising) 700 6 Prepaid Insurance ........................................ Cash ........................................................ (Paid for one-year insurance policy) 600 10 Equipment....................................................... Accounts Payable............................... (Purchased equipment on account) 1,050 18 Cash .................................................................. Golf Revenue........................................ (Received cash for services provided) 340 19 Cash .................................................................. Unearned Revenue ............................. (Received cash for coupon books sold) 1,000 Ref. Debit 20,000 Credit 20,000 15,000 700 600 1,050 340 1,000 PROBLEM 2-1B (Continued) Date Mar. 25 Account Titles and Explanation Barry Schultz, Drawing .......................... Cash .................................................... (Withdrew cash for personal use) Ref. Debit 800 30 Salaries Expense...................................... Cash .................................................... (Paid salaries) 250 30 Accounts Payable .................................... Cash .................................................... (Paid creditor on account) 1,050 31 Cash ............................................................. Golf Revenue.................................... (Received cash for services provided) 200 Credit 800 250 1,050 200