Financial and Managerial Accounting: Information for Decisions
6th Edition
ISBN: 9780078025761
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Question
Chapter 4, Problem 4SP
To determine
2.
To prepare: General ledger of the
Expert Solution
Explanation of Solution
Cash | Acct. No. Cash | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan1 | Common Stock | 25,000 | 25,000 | ||
Jan1 | Wages | 145 | 24,855 | ||
Jan7 | Purchase | 5,800 | 19,055 | ||
Jan7 | Accounts payable | 5,800 | 24,855 | ||
Jan9 | Accounts Receivable | 2,668 | 22,187 | ||
Jan11 | Service Revenue | 5,500 | 27,687 | ||
Jan13 | Loss on sale | 1,640 | 26,047 | ||
Jan13 | Sales | 5,200 | 31,427 | ||
Jan15 | Freight | 600 | 30,647 | ||
Jan16 | Service Revenue | 4,000 | 34,647 | ||
Jan26 | Sales | 5,800 | 40,447 | ||
Jan31 | Wages | 5,800 | 34,647 | ||
Jan17 | Accounts receivable | 500 | 34,147 | ||
Feb.1 | Advance rent paid | 2,475 | 31,672 | ||
Feb.3 | Cash memorandum | 496 | 31,176 | ||
Feb.5 | Advertisement expenses | 600 | 30,576 | ||
Feb.11 | Bills Receivable | 5,000 | 35,576 | ||
Feb.15 | Dividends | 4,800 | 30,776 | ||
Feb.26 | Wages | 1,000 | 29,776 | ||
Feb.27 | Reimbursement expenses | 192 | 29,584 | ||
March8 | Computer Supplies | 2,370 | 27,214 | ||
March11 | Minor repairs | 960 | 26,254 | ||
March16 | Service revenue earned | 5,260 | 31,514 | ||
March17 | Accounts payable | 1,100 | 30,414 | ||
March25 | Sales | 2,800 | 33,214 | ||
March30 | Sales | 2,200 | 35,414 | ||
March31 | Reimbursement expenses | 128 | 35,286 |
Table (31)
Purchases | Acct. No. Purchases | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan7 | Cash | 5,800 | 5,800 |
Table (32)
Wages | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan1 | Cash | 145 | |||
Jan31 | Cash | 1,250 | |||
Feb.26 | Cash | 1,000 | 2,395 |
Table (33)
Common Stock | Acct. No. Common Stock | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan7 | Cash | 25,000 | 25,000 |
Table (34)
Accounts Receivable | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan9 | Cash | 2,668 | |||
Feb 11 | Cash | 5,000 | |||
March 9 | Cash | 3,220 | 10,888 |
Table (35)
Service Revenue Earned | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan11 | Cash | 5,500 | |||
Jan16 | Cash | 4,000 | |||
March 16 | Cash | 5,260 | 10,888 |
Table (36)
Sales | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan13 | Cash | 5,200 | |||
Jan7 | Cash | 5,800 | |||
Feb 23 | Cash | 3,220 | |||
March 25 | Cash | 2,800 | |||
March 30 | Cash | 2,200 | 19,220 |
Table (37)
Cash Memorandum | |||||
---|---|---|---|---|---|
Date | Account Title | Debit ($) |
Date | Account Title | Credit ($) |
Feb 3 | Balance b/d | 496 | Feb 3 | Cash | 496 |
496 | 496 |
Table (38)
Loss on Sale | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan13 | Cash | 1,640 |
Table (39)
Freight | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan15 | Cash | 600 | 600 |
Table (40)
Advance Rent | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Feb 1 | Cash | 2,475 | 2,475 |
Table (41)
Accounts Payable | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Jan7 | Cash | 5,800 | |||
March 17 | Cash | 1,100 | 6,900 |
Table (42)
Advertisement Expenses | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Feb 5 | Cash | 600 | 600 |
Table (43)
Dividends | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Feb 15 | Cash | 4,800 | 4,800 |
Table (44)
Reimbursement Expenses | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
Feb 27 | Cash | 128 | 128 |
Table (45)
Computer supplies | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
March8 | Cash | 2,370 | 2,370 |
Table (46)
Minor Repairs | Acct. No. | ||||
---|---|---|---|---|---|
Date | Account Title and Explanation | Post ref | Debit ($) |
Credit ($) |
Balance ($) |
March11 | Cash | 960 | 960 |
Table (47)
To determine
3.
To prepare: A partial worksheet of 6 columns
Expert Solution
Explanation of Solution
Accounts | Unadjusted |
Adjustments | Adjusted Trial balance | Income Statement | Balance Sheet and statement of enquiry | |||||
---|---|---|---|---|---|---|---|---|---|---|
Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | |
Cash | 8,200 | 8,200 | 8,200 | |||||||
Accounts Receivable | 11,250 | 11,250 | 11,250 | |||||||
Allowance for sales discounts | 50 | 50 | 50 | |||||||
Inventory | 21,250 | 250 | 21,000 | 21,000 | ||||||
Inventory Returns estimated | 200 | 300 | 500 | 500 | ||||||
Supplies | 3,800 | 3,000 | 800 | 800 | ||||||
Prepaid insurance | 900 | 600 | 300 | 300 | ||||||
Equipment | 34,200 | 34,200 | 34,200 | |||||||
Accumulated depreciatin.-Equipment | 3,700 | 3,700 | 7,400 | 7,400 | ||||||
Accounts payable | 16,000 | 16,000 | 16,000 | |||||||
Salaries payable | 800 | 800 | 800 | |||||||
Sales refund payable | 300 | 900 | 1,200 | 1,200 | ||||||
Capital Investments | 41,900 | 41,900 | 41,900 | |||||||
Withdrawals | 4,000 | 4,000 | 4,000 | |||||||
Sales | 321,000 | 321,000 | 321,000 | |||||||
Sales returns and allowances | 1,100 | 900 | 2,000 | 2,000 | ||||||
Sales discounts | 4,250 | 50 | 4,300 | 4,300 | ||||||
Cost of goods sold | 230,450 | 250 | 300 | 230,400 | 230,400 | |||||
3,700 | 3,700 | 3,700 | ||||||||
Salaries expense | 43,000 | 800 | 43,800 | 43,800 | ||||||
Insurance expense | 600 | 600 | 600 | |||||||
Rent expense | 9,000 | 9,000 | 9,000 | |||||||
Supplies expense | 3,000 | 3,000 | 3,000 | |||||||
Advertising expense | 11,300 | 11,300 | 11,300 | |||||||
Totals | 382,900 | 382,900 | 9,600 | 9,600 | 388,350 | 388,350 | 308,100 | 80,250 | 67,350 | |
Net income | 12,900 | 12,900 | ||||||||
Totals | 321,000 | 321,000 | 80,250 | 80,250 |
Table (48)
To determine
4.
To prepare: Income statement.
Expert Solution
Explanation of Solution
S Company | ||
---|---|---|
Income Statement | ||
For the Month of March 31, 2016 | ||
Particulars | Amount ($) | Amount ($) |
Services Revenue | 25,307 | |
Net sales | 18,693 | |
Total Revenue | 44,000 | |
:Cost of goods sold | 14,052 | |
Depreciation expense office equipment | 400 | |
Depreciation expense computer equipment | 1,250 | |
Wages | 3,250 | |
Insurance expense | 555 | |
Rent expense | 2,475 | |
Computer Supplies expense | 1,305 | |
Advertising expense | 600 | |
Reimbursement expense | 320 | |
Repairs expense | 960 | |
Total expenses | 25,167 | |
Net Income | 18,833 |
Table (49)
To determine
5.
To prepare: Statement of
Expert Solution
Explanation of Solution
Prepare statement of retained earnings as follow:
S Company | |
---|---|
Statement of Retained Earnings | |
For the Month of March 31, 2016 | |
Particulars | Amount ($) |
Opening balance of retained earnings | 7,860 |
Net income | 18,333 |
26,193 | |
Dividends | (4,800) |
Ending balance of retained earnings | 21,393 |
Hence, the retained earnings of the company are $21,393.
To determine
6.
To prepare: Classified balance sheet from unadjusted balance sheet.
Expert Solution
Explanation of Solution
Prepare classified balance sheet as follow:
S Company | ||
---|---|---|
Balance Sheet | ||
As on December 31, 2016 | ||
Particulars | Amount ($) |
Amount ($) |
Assets | ||
Cash | 68,057 | |
Accounts Receivable | 22,867 | |
Inventory | 704 | |
Computer Supplies | 2,005 | |
Prepaid Insurance | 1,110 | |
Prepaid Rent | 825 | |
Office Equipment: | 8000 | |
Less: Accumulated Depreciation | (800) | |
Computer Equipment | 20,000 | |
: Less: Accumulated Depreciation | (2500) | |
Total Assets | 120,268 | |
Liabilities and Owners' Equity | ||
Accounts Payable | 0 | |
Wages Payable | 875 | |
Unearned computer service revenue | 0 | |
Common Stock | 98,000 | |
Retained Earnings | 21,393 | |
Total Liabilities and Owners' Equity | 120,268 |
Table (50)
Hence, the total of balance sheet is $120,268.
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Chapter 4 Solutions
Financial and Managerial Accounting: Information for Decisions
Ch. 4 - Prob. 1MCQCh. 4 - A company purchased $4,500 0f merchandise on May 1...Ch. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - How does a company that uses a perpetual inventory...
Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Recording purchases, returns, and discounts taken...Ch. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Prob. 17QSCh. 4 - Prob. 18QSCh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Exercise 4-14 Computing and analysinig acid-test...Ch. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Prob. 18ECh. 4 - Prob. 19ECh. 4 - Prob. 20ECh. 4 - Prob. 1PSACh. 4 - Prob. 2PSACh. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 5PSACh. 4 - Prob. 6PSACh. 4 - Prob. 1PSBCh. 4 - Prob. 2PSBCh. 4 - Prob. 3PSBCh. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Prob. 6PSBCh. 4 - Prob. 4SPCh. 4 - Prob. 1GLPCh. 4 - Prob. 2GLPCh. 4 - Prob. 3GLPCh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - COMMUNICATING IN PRACTICE C2 P3 P5 BTN 4-4 You are...Ch. 4 - Prob. 5BTNCh. 4 - TEAMWORK IN ACTION C1 C2 BTN 4-6 Official Brands’s...Ch. 4 - Prob. 7BTNCh. 4 - Prob. 8BTNCh. 4 - Prob. 9BTN
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