Solutions To Ch4 Exercises

BRIEF EXERCISE 4-4
Dec. 31
31
31
31
Service Revenue ..............................................

Income Summary .....................................
50,000
Income Summary .............................................

Salaries and Wages Expense ..................
Supplies Expense.....................................
34,000
Income Summary .............................................

Owners Capital ........................................
16,000
Owners Capital ................................................

Owners Drawings ....................................
2,000
50,000
27,000
7,000
16,000
2,000
BRIEF EXERCISE 4-5

Salaries and Wages
Expense
Bal. 27,000 (2) 27,000
Supplies Expense
Bal. 7,000 (2) 7,000
Copyright 2011 John Wiley & Sons, Inc.
Income Summary
(2) 34,000 (1) 50,000
(3) 16,000
50,000
50,000
Service Revenue
(1) 50,000 Bal. 50,000
Owners Capital
(4)
2,000 Bal. 30,000
(3) 16,000
Bal. 44,000
Owners Drawings
Bal. 2,000 (4) 2,000
Weygandt, Accounting Principles, 10/e, Solutions Manual
(For Instructor Use Only)
4-1
SOLUTIONS TO EXERCISES
EXERCISE 4-1
TINOISAMOA COMPANY
Worksheet
For the Month Ended June 30, 2012
Account Titles
Cash
Trial Balance
Adjustments
Dr.
Dr.
Cr.
Cr.
Adj. Trial Balance

Dr.
Cr.
Income Statement
Dr.
Cr.
Balance Sheet
Dr.
2,320
2,320
2,320
2,440
2,440
2,440
Cr.
Accounts
Receivable
Supplies
1,880
Accounts Payable
(a) 1,380
500
1,120
500
1,120
1,120
100
100
Unearned Service
Revenue
240 (b)
Owners Capital
3,600
Service Revenue
2,400
140
3,600
(b)
140
3,600
2,540
2,540
Salaries and
Wages Expense
560
(c)
210
770
770
160
160
1,380
1,380
Miscellaneous
Expense
Totals
160
7,360
7,360
Supplies Expense
(a) 1,380
Salaries and
Wages Payable
Totals
Net Income
Totals
(c)
1,730
210
1,730
210
7,570
7,570
210
2,310
2,540
5,260
5,030
2,540
5,260
5,260
230
2,540
230
4-2
EXERCISE 4-2
PISA COMPANY
(Partial) Worksheet
For the Month Ended April 30, 2012
Adjusted
Trial Balance
Cr.
Income
Statement
Account Titles
Cash
Accounts Receivable
Prepaid Rent
Equipment
Accum. Depreciation
Equipment
Notes Payable
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Salaries and Wages
Expense
Rent Expense
Depreciation Expense
Interest Expense
Interest Payable
Totals
Net Income
Totals
Dr.
10,000
7,840
2,280
23,050
Dr.
Balance Sheet
Cr.
Dr.
10,000
7,840
2,280
23,050
4,921
5,700
4,920
27,960
4,921
5,700
4,920
27,960
3,650
3,650
15,590
10,840
760
671
57
59,148
Cr.
15,590
10,840
760
671
57
57
59,148
12,328
3,262
15,590
15,590
46,820
15,590
46,820
57
43,558
3,262
46,820
4-3
EXERCISE 4-3
PISA COMPANY
Income Statement
Revenues
Service revenue .......................................................
Expenses
Salaries and wages expense ..................................
Rent expense ...........................................................
Depreciation expense ..............................................
Interest expense ......................................................
Total expenses .................................................
Net income .......................................................................
$15,590
$10,840
760
671
57
12,328
$ 3,262
PISA COMPANY
Owners Equity Statement
Owners Capital, April 1 ...........................................................
Add: Net income .....................................................................
Less: Drawings ........................................................................
Owners Capital, April 30 .........................................................
$27,960
3,262
31,222
3,650
$27,572
PISA COMPANY
Balance Sheet
April 30, 2012
Assets
Current assets
Cash..........................................................................
Accounts receivable ................................................
Prepaid rent..............................................................
Total current assets .........................................
Property, plant, and equipment
Equipment ................................................................
Less: Accumulated depreciationequipment .....
Total assets ......................................................
$10,000
7,840
2,280
$20,120
23,050
4,921
18,129
$38,249
4-4
EXERCISE 4-3 (Continued)

PISA COMPANY
Balance Sheet (Continued)
April 30, 2012
Liabilities and Owners Equity
Current liabilities
Notes payable ..........................................................
Accounts payable ....................................................
Interest payable .......................................................
Total current liabilities .....................................
Owners equity
Owners capital ........................................................
Total liabilities and owners equity .................
$5,700
4,920
57
$10,677
27,572
$38,249
4-5
EXERCISE 4-7
(a) Service Revenue ....................................................
Income Summary .............................................
4,300
Income Summary ...................................................

Salaries and Wages Expense ..........................
Miscellaneous Expense ...................................
Supplies Expense ............................................
3,500
Income Summary ...................................................

Owners Capital ................................................
800
Owners Capital ......................................................

Owners Drawings............................................
628
(b)
4,300
1,344
256
1,900
800
628
WILLOW TURENNE COMPANY

Post-Closing Trial Balance
For the Month Ended June 30, 2012
Account Titles
Cash ........................................................................
Accounts Receivable .............................................
Supplies ..................................................................
Accounts Payable ..................................................
Salaries and Wages Payable .................................
Unearned Service Revenue ...................................
Owners Capital ......................................................
Debit
$3,712
3,904
480
$8,096
Credit
$1,556
448
160
5,932
$8,096
4-2
OMER ASIK, P.I.
Worksheet
For the Quarter Ended March 31, 2012
Account Titles
Trial Balance
Dr.
Cr.
11,400
5,620
1,050
2,400
30,000
Dr.
Cr.
(e) 1,030
(a)
(d)
570
600
Dr.
Dr.
Cr.
11,400
6,650
480
1,800
30,000
10,000
12,350
20,000
Balance Sheet
Dr.
10,000
12,350
20,000
600
13,620
(e) 1,030
Cr.
11,400
6,650
480
1,800
30,000
10,000
12,350
20,000
600
2,200
1,300
1,200
200
55,970
Cr.
Income
Statement
600
14,650
14,650
2,200
1,300
1,200
200
2,200
1,300
1,200
200
570
800
570
800
55,970
(a)
(b)
570
800
(c)
300
(d)
600
3,300
(b)
800
800
300
(c)
300
3,300
800
300
300
600
58,100
58,100
300
600
7,170
7,480
14,650
14,650
50,930
14,650
50,930
43,450
7,480
50,930
Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue
Earned but unbilled.
PROBLEM 4-1A
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Notes Payable
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Salaries and Wages
Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Totals
Supplies Expense
Accumulated
DepreciationEquipment
Interest Expense
Interest Payable
Insurance Expense
Totals
Net Income
Totals
Adjusted
Trial Balance
Adjustments
SOLUTIONS TO PROBLEMS
(a)
PROBLEM 4-1A (Continued)

(b)
OMER ASIK, P.I.

Income Statement
Revenues
Service revenue...............................................
Expenses
Salaries and wages expense ..........................
Travel expense ................................................
Rent expense ...................................................
Depreciation expense .....................................
Insurance expense ..........................................
Supplies expense ............................................
Interest expense ..............................................
Miscellaneous expense ..................................
Total expenses.........................................
Net income ..............................................................
$14,650
$2,200
1,300
1,200
800
600
570
300
200
7,170
$ 7,480
OMER ASIK, P.I.

Owners Capital, January 1 ....................................
Add: Investment by owner ...................................
Net income ...................................................
Less: Drawings ......................................................
Owners Capital, March 31 .....................................
$
$20,000
7,480
27,480
27,480
600
$26,880
4-9

OMER ASIK, P.I.
Balance Sheet
March 31, 2012
Assets
Current assets
Cash ...............................................................
Accounts receivable .....................................
Supplies .........................................................
Prepaid insurance .........................................
Total current assets ..............................
Equipment .....................................................
Less: Accumulated depreciation
equipment ..........................................
Total assets............................................
$11,400
6,650
480
1,800
$20,330
30,000
800
29,200
$49,530

Current liabilities
Notes payable ................................................
Accounts payable .........................................
Interest payable .............................................
Total current liabilities ..........................
Owners equity
Owners capital..............................................
Total liabilities and owners
equity ..................................................
(c) Mar. 31
31
31
31
$10,000
12,350
300
$22,650
26,880
$49,530
Supplies Expense .................................

Supplies .........................................
570
Depreciation Expense ..........................

Accumulated Depreciation
Equipment .................................
800
Interest Expense ...................................

Interest Payable ............................
300
Insurance Expense ...............................

Prepaid Insurance .........................
600
570
800
300
600
4-10

Mar. 31
(d) Mar. 31
31
31
31
Accounts Receivable ...............................

Service Revenue ...............................
1,030
Service Revenue .......................................

Income Summary ..............................
14,650
Income Summary......................................
Travel Expense..................................
Salaries and Wages Expense ...........
Rent Expense ....................................
Insurance Expense ...........................
Depreciation Expense.......................
Supplies Expense .............................
Interest Expense ...............................
Miscellaneous Expense ....................
7,170
Income Summary......................................
Owners Capital .................................
7,480
Owners Capital ........................................

Owners Drawings.............................
600
1,030
14,650
1,300
2,200
1,200
600
800
570
300
200
7,480
600
4-11
PROBLEM 4-2A
(a)
BOOZER COMPANY
Partial Worksheet
For the Year Ended December 31, 2012
Account
No. Titles
101
112
126
130
151
152
200
201
212
230
301
306
400
610
631
711
722
726
905
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Acc. Depr.Equip.
Notes Payable
Accounts Payable
Salaries and Wages
Payable
Interest Payable
Owners Capital
Owners Drawings
Service Revenue
Advertising Expense
Supplies Expense
Insurance Expense
Salaries and Wages
Expense
Interest Expense
Totals
Net Income
Totals
Adjusted
Trial Balance
Dr.
Cr.
Income
Statement
Dr.
Cr.
Balance
Sheet
Dr.
Cr.
18,800
16,200
2,300
4,400
46,000
18,800
16,200
2,300
4,400
46,000
20,000
20,000
8,000
20,000
20,000
8,000
2,600
1,000
26,000
2,600
1,000
26,000
12,000
12,000
87,800
10,000
3,700
8,000
4,000
39,000
1,000
165,400 165,400
87,800
10,000
3,700
8,000
4,000
39,000
1,000
65,700
22,100
87,800
87,800
99,700
87,800
99,700
77,600
22,100
99,700
4-12

(b)
BOOZER COMPANY
Income Statement
Revenues
Service revenue.............................................
Expenses
Salaries and wages expense ........................
Advertising expense .....................................
Depreciation expense ...................................
Insurance expense ........................................
Supplies expense ..........................................
Interest expense ............................................
Total expenses.......................................
Net income ............................................................
$87,800
$39,000
10,000
8,000
4,000
3,700
1,000
65,700
$22,100
BOOZER COMPANY
Owners Capital, January 1 ....................................................
Add: Net income ...................................................................
Less: Drawings ......................................................................
Owners Capital, December 31...............................................
$26,000
22,100
48,100
12,000
$36,100
4-13

BOOZER COMPANY
Balance Sheet
December 31, 2012
Assets
Current assets
Cash ...............................................................
Supplies .........................................................
Equipment .....................................................
equipment ..........................................
Total assets............................................
$18,800
16,200
2,300
4,400
$41,700
46,000
20,000
26,000
$67,700

Current liabilities
Notes payable ................................................
Accounts payable .........................................
Salaries and wages payable .........................
Interest payable .............................................
Total current liabilities ..........................
Long-term liabilities
Notes payable ................................................
Total liabilities........................................
Owners equity
Owners capital..............................................
equity ...................................................
$5,000
8,000
2,600
1,000
$16,600
15,000
31,600
36,100
$67,700
4-14

(c)
General Journal
Date
Account Titles and Explanation
Dec. 31 Service Revenue .................................
Income Summary .......................
Ref.
400
350
Debit
87,800
31 Income Summary ................................

Advertising Expense..................
Supplies Expense ......................
Depreciation Expense ................
Insurance Expense ....................
Salaries and Wages Expense ....
Interest Expense ........................
350
610
631
711
722
726
905
65,700
31 Income Summary ................................

Owners Capital ..........................
350
301
22,100
31 Owners Capital ...................................

Owners Drawings ......................
301
306
12,000
J14
Credit
87,800
10,000
3,700
8,000
4,000
39,000
1,000
22,100
12,000
(d)
Date
Explanation
Jan. 31 Balance
Dec. 31 Closing entry
31 Closing entry
Owners Capital
Ref.
Debit
J14
J14
12,000
Date
Explanation
Dec. 31 Balance
31 Closing entry
Owners Drawings
Ref.
Debit
12,000
J14
Credit
26,000
22,100
No. 301
Balance
26,000
48,100
36,100
Credit
No. 306
Balance
12,000
0
12,000
4-15
Explanation
Closing entry
Closing entry
Closing entry
Income Summary
Ref.
Debit
J14
J14
65,700
J14
22,100
Date
Explanation
Dec. 31 Balance
31 Closing entry
Service Revenue
Ref.
Debit
J14
87,800
Date
Explanation
Dec. 31 Balance
31
Closing entry
Advertising Expense
Ref.
Debit
10,000
J14
Date
Dec. 31
31
31
Explanation
Balance
Closing entry
Supplies Expense
Ref.
Debit
3,700
J14
Date
Explanation
Dec. 31 Balance
31 Closing entry
Ref.
Debit
8,000
J14
Date
Dec. 31
31
Date
Dec. 31
31
Explanation
Balance
Closing entry
Insurance Expense
Ref.
Debit
4,000
J14
Credit
87,800
No. 350
Balance
87,800
22,100
0
Credit
87,800
No. 400
Balance
87,800
0
Credit
10,000
Credit
3,700
Credit
8,000
Credit
4,000
No. 610
Balance
10,000
0
No. 631
Balance
3,700
0
No. 711
Balance
8,000
0
No. 722
Balance
4,000
0
4-16

Salaries and Wages Expense
Date
Explanation
Ref.
Debit
Dec. 31 Balance
39,000
31 Closing entry
J14
Date
Explanation
Dec. 31 Balance
31 Closing entry
(e)
Credit
39,000
Interest Expense
Ref.
Debit
1,000
J14
Credit
1,000
No. 726
Balance
39,000
0
No. 905
Balance
1,000
0
BOOZER COMPANY
December 31, 2012
Cash.....................................................................
Accounts Receivable ..........................................
Supplies ..............................................................
Prepaid Insurance...............................................
Equipment ...........................................................
Equipment .......................................................
Notes Payable .....................................................
Accounts Payable ...............................................
Salaries and Wages Payable ..............................
Interest Payable ..................................................
Owners Capital ..................................................
Debit
$18,800
16,200
2,300
4,400
46,000
$87,700
Credit
$20,000
20,000
8,000
2,600
1,000
36,100
$87,700
4-17
PROBLEM 4-3A
(a)
CARLOS COMPANY
Income Statement
Revenues
Service revenue...........................................
Expenses
Salaries and wages expense ......................
Maintenance and repairs expense .............
Utilities expense ..........................................
Depreciation expense .................................
Insurance expense ......................................
Total expenses.....................................
Net loss ...............................................................
$46,000
$35,200
4,400
4,000
2,800
1,200
47,600
$ (1,600)
CARLOS COMPANY
Owners Capital, January 1 ................................
Add: Additional investment by owner .............
Less: Net loss ....................................................
Drawings ..................................................
Owners Capital, December 31...........................
$30,000
4,000
34,000
$1,600
7,200
8,800
$25,200
CARLOS COMPANY
Balance Sheet
December 31, 2012
Assets
Current assets
Cash .............................................................
Accounts receivable ...................................
Prepaid insurance .......................................
Total current assets ............................
Equipment ...................................................
equipment ........................................
Total assets..........................................
$6,200
7,500
1,800
$15,500
33,000
8,600
24,400
$39,900
4-18

CARLOS COMPANY
December 31, 2012
Current liabilities
Accounts payable .......................................
Salaries and wages payable .......................
Total current liabilities ........................
Owners equity
Owners capital............................................
equity ................................................
$11,700
3,000
$14,700
25,200
$39,900
(b)
General Journal
Date
Account Titles
Dec. 31 Service Revenue .................................
Income Summary .......................
Ref.
400
350
Debit
46,000
Income Summary ...............................

Maintenance and Repairs
Expense ..................................
Depreciation Expense ...............
Insurance Expense....................
Salaries and Wages Expense ...
Utilities Expense........................
350
47,600
Owners Capital ..................................

Income Summary ......................
301
350
1,600
Owners Capital ..................................

Owners Drawings .....................
301
306
7,200
31
31
31
46,000
622
711
722
726
732
Credit
4,400
2,800
1,200
35,200
4,000
1,600
7,200
4-19

(c)
12/31
12/31
Owners Capital
No. 301
1,600 12/31 Bal. 34,000
7,200
12/31 Bal. 25,200
Owners Drawings
12/31 Bal.
7,200 12/31
12/31
12/31
Income Summary
47,600 12/31
12/31
47,600
No. 306
7,200
No. 350
46,000
1,600
47,600
Service Revenue
No. 400
46,000 12/31 Bal. 46,000
(d)

Expense
12/31 Bal.
4,400 12/31
No. 622
4,400
Depreciation Expense No. 711

12/31 Bal.
2,800 12/31
2,800
Insurance Expense
12/31 Bal.
1,200 12/31
No. 722
1,200

12/31 Bal. 35,200 12/31
No. 726
35,200
Utilities Expense
12/31 Bal.
4,000 12/31
No. 732
4,000
CARLOS COMPANY
December 31, 2012
Cash.....................................................................
Equipment ...........................................................
Accumulated DepreciationEquipment ...........
Owners Capital ..................................................
Totals ...........................................................
Debit
$ 6,200
7,500
1,800
33,000
$48,500
Credit
$ 8,600
11,700
3,000
25,200
$48,500
4-20
(a)
NOAH AMUSEMENT PARK

Worksheet
For the Year Ended September 30, 2012
Account Titles
Trial Balance
Dr.
Adjustments
Cr.
Cr.
(a) 16,400
(b) 21,000
(d)
(c)
6,000
(d)
2,700
Dr.
Cr.
Income
Statement
Dr.
Cr.
41,400
2,200
10,900
80,000
120,000
42,200
14,600
1,000
50,000
109,700
2,700
14,000
280,200
280,200
105,000
3,000
4,000
30,500
9,400
16,900
21,000
10,000
30,500
9,400
16,900
21,000
10,000
(b) 21,000
(a) 16,400
21,000
16,400
21,000
16,400
(f)
4,000
6,000
4,000
6,000
(e)
53,100
3,000
53,100
Cr.
42,200
14,600
1,000
50,000
109,700
105,000
(c)
Dr.
41,400
2,200
10,900
80,000
120,000
14,000
(e)
(f)
Balance Sheet
3,000
504,700 504,700
4,000
6,000
236,200 280,200
44,000
280,200 280,200
268,500
268,500
3,000
224,500
44,000
268,500
Key: (a) Supplies Used; (b) Expired Insurance; (c) Depreciation Expensed; (d) Admissions Revenue Earned; (e) Accrued Property Taxes;
(f) Accrued Interest Payable.
PROBLEM 4-4A
Cash
41,400
Supplies
18,600
Prepaid Insurance
31,900
Land
80,000
Equipment
120,000
Accumulated
Depreciation
Equipment
36,200
Accounts Payable
14,600
Unearned Ticket Revenue
3,700
Mortgage Payable
50,000
Owners Capital
109,700
Owners Drawings
14,000
Ticket Revenue
277,500
105,000
Expense
30,500
Advertising Expense
9,400
Utilities Expense
16,900
Property Tax Expense
18,000
Interest Expense
6,000
Totals
491,700 491,700
Insurance Expense
Supplies Expense
Interest Payable
Property Taxes Payable
Totals
Net Income
Totals
Dr.
Adjusted
Trial Balance
4-47

(b)
NOAH AMUSEMENT PARK

Balance Sheet
September 30, 2012
Assets
Current assets
Cash .............................................
Supplies .......................................
Prepaid insurance .......................
Total current assets ............
Land .............................................
Equipment ...................................
Less: Accum. depreciation
equipment ........................
Total assets..........................
$41,400
2,200
10,900
$ 54,500
80,000
$120,000
42,200
77,800
157,800
$212,300

Current liabilities
Mortgage
payable (due in 2013) ..............
Accounts payable .......................
Interest payable ...........................
Property taxes payable ...............
Unearned ticket
revenue ....................................
Total current liabilities ........
Long-term liabilities
Mortgage payable........................
Total liabilities......................
Owners equity
Owners capital
($109,700 + $44,000 $14,000) ......
Total liabilities and
owners equity .................
$15,000
14,600
4,000
3,000
1,000
$ 37,600
35,000
72,600
139,700
$212,300
4-22

(c) Sept. 30
30
30
30
30
30
(d) Sept. 30
30
30
30
Supplies Expense ................................

Supplies ........................................
16,400
Insurance Expense ..............................

Prepaid Insurance ........................
21,000
Depreciation Expense..........................
Equipment ..................................
6,000
Unearned Ticket Revenue ...................

Ticket Revenue .............................
2,700
Property Tax Expense .........................

Property Taxes Payable ...............
3,000
Interest Expense ..................................

Interest Payable ............................
4,000
Ticket Revenue.....................................
Income Summary .........................
280,200
Income Summary .................................

Salaries and Wages Expense ......
Expense .....................................
Insurance Expense .......................
Property Tax Expense ..................
Supplies Expense .........................
Utilities Expense...........................
Interest Expense...........................
Advertising Expense ....................
Depreciation Expense ..................
236,200
Income Summary .................................

Owners Capital ............................
44,000
Owners Capital ....................................

Owners Drawings ........................
14,000
16,400
21,000
6,000
2,700
3,000
4,000
280,200
105,000
30,500
21,000
21,000
16,400
16,900
10,000
9,400
6,000
44,000
14,000
4-23

(e)
NOAH AMUSEMENT PARK

September 30, 2012
Cash.....................................................................
Supplies ..............................................................
Land .....................................................................
Equipment ...........................................................
Interest Payable ..................................................
Property Taxes Payable .....................................
Unearned Ticket Revenue ..................................
Mortgage Payable ...............................................
Owners Capital ..................................................
Debit
$ 41,400
2,200
10,900
80,000
120,000
$254,500
Credit
$ 42,200
14,600
4,000
3,000
1,000
50,000
139,700
$254,500
4-24
PROBLEM 4-5A
(a)
Date
Mar. 1
1
3
5
14
18
20
21
28
31
31
General Journal
Cash ....................................................
Owners Capital .........................
Ref.
101
301
Debit
10,000
Equipment ..........................................
Cash ...........................................
Accounts Payable .....................
157
101
201
6,000
Supplies ..............................................
128
201
1,200
Prepaid Insurance ..............................

Cash ...........................................
130
101
1,200
Accounts Receivable .........................

Service Revenue .......................
112
400
4,800
Accounts Payable ..............................

Cash ...........................................
201
101
2,000
Salaries and Wages Expense ............

Cash ...........................................
726
101
1,800
Cash ...................................................
Accounts Receivable ................
101
112
1,400

Service Revenue .......................
112
400
2,500
Gasoline Expense ..............................

Cash ...........................................
633
101
200
Owners Drawings ..............................

Cash ...........................................
306
101
700
J1
Credit
10,000
3,000
3,000
1,200
1,200
4,800
2,000
1,800
1,400
2,500
200
700
4-25
Account Titles
Trial Balance
Dr.
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Gasoline Expense
Totals
Accum. Depr.Equipment
Insurance Expense
Supplies Expense
Salaries and Wages Payable
Totals
Net Income
Totals
Cr.
2,500
5,900
1,200
1,200
6,000
Adjusted
Trial Balance
Adjustments
Dr.
(a)
Cr.
500
(d)
(c)
950
100
Dr.
Dr.
Cr.
2,500
6,400
250
1,100
6,000
2,200
10,000
Balance Sheet
Dr.
2,200
10,000
700
7,300
(a)
(e)
550
(b)
300
500
Cr.
2,500
6,400
250
1,100
6,000
2,200
10,000
700
200
1,800
19,500
Cr.
Income
Statement
700
7,800
200
2,350
7,800
200
2,350
19,500
300
(b)
(c)
(d)
300
100
950
100
950
(e)
2,400
300
300
550
2,400
20,850
300
100
950
550
20,850
3,900
3,900
7,800
7,800
16,950
7,800
16,950
550
13,050
3,900
16,950
Key: (a) Service Revenue Earned; (b) Depreciation Expensed; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.
4-52
DEVINES CARPET CLEANERS
Worksheet
For the Month Ended March 31, 2012
(b)&(c)

(a), (e) & (f)
Date
Mar. 1
1
5
18
20
21
31
31
Date
Mar. 14
21
28
31
Date
Mar. 3
31
Date
Mar. 5
31
Date
Mar. 1
Explanation
Explanation
Adjusting
Explanation
Adjusting
Explanation
Adjusting
Explanation
Cash
Ref.
J1
J1
J1
J1
J1
J1
J1
J1
Debit
10,000
3,000
1,200
2,000
1,800
1,400
200
700
Accounts Receivable
Ref.
Debit
J1
4,800
J1
J1
2,500
J2
500
Supplies
Ref.
J1
J2
Debit
1,200
Credit
1,400
Credit
950
Prepaid Insurance
Ref.
Debit
J1
1,200
J2
Equipment
Ref.
J1
Credit
Debit
6,000
Credit
100
Credit
No. 101
Balance
10,000
7,000
5,800
3,800
2,000
3,400
3,200
2,500
No. 112
Balance
4,800
3,400
5,900
6,400
No. 128
Balance
1,200
250
No. 130
Balance
1,200
1,100
No. 157
Balance
6,000
4-27
Date
Mar. 31
Date
Mar. 1
3
18
Date
Mar. 31
Date
Mar. 1
31
31
Date
Mar. 31
31
Date
Mar. 31
31
31
Accumulated DepreciationEquipment
Explanation
Ref.
Debit
Credit
Adjusting
J2
300
Explanation
Accounts Payable
Ref.
Debit
J1
J1
J1
2,000

Explanation
Ref.
Debit
Adjusting
J2
Explanation
Closing
Closing
Owners Capital
Ref.
Debit
J1
J3
J3
700
Closing
Owners Drawings
Ref.
Debit
J1
700
J3
Explanation
Closing
Closing
Closing
Income Summary
Ref.
Debit
J3
J3
3,900
J3
3,900
Explanation
Credit
3,000
1,200
Credit
550
Credit
10,000
3,900
Credit
700
Credit
7,800
No. 158
Balance
300
No. 201
Balance
3,000
4,200
2,200
No. 212
Balance
550
No. 301
Balance
10,000
13,900
13,200
No. 306
Balance
700
0
No. 350
Balance
7,800
3,900
0
4-28
Date
Mar. 14
28
31
31
Explanation
Adjusting
Closing
Service Revenue
Ref.
Debit
J1
J1
J2
J3
7,800
Closing
Gasoline Expense
Ref.
Debit
J1
200
J3
Explanation
Adjusting
Closing
Supplies Expense
Ref.
Debit
J2
950
J3
Explanation
Adjusting
Closing
Ref.
Debit
J2
300
J3
Date
Mar. 31
31
Explanation
Adjusting
Closing
Insurance Expense
Ref.
Debit
J2
100
J3
Date
Mar. 20
31
31

Explanation
Ref.
Debit
J1
1,800
Adjusting
J2
550
Closing
J3
Date
Mar. 31
31
Date
Mar. 31
31
Date
Mar. 31
31
Explanation
Credit
4,800
2,500
500
Credit
200
Credit
950
Credit
300
Credit
100
Credit
2,350
No. 400
Balance
4,800
7,300
7,800
0
No. 633
Balance
200
0
No. 634
Balance
950
0
No. 711
Balance
300
0
No. 722
Balance
100
0
No. 726
Balance
1,800
2,350
0
4-29

(d)

Income Statement
Revenues
Service revenue.............................................
Expenses
Salaries and wages expense ........................
Supplies expense ..........................................
Depreciation expense ...................................
Gasoline expense..........................................
Insurance expense ........................................
Total expenses.......................................
Net income ............................................................
$7,800
$2,350
950
300
200
100
3,900
$3,900

Owners Capital, March 1 .....................................
Add: Investments................................................
Net income .................................................
$
$10,000
3,900
Less: Drawings ....................................................

Owners Capital, March 31 ...................................
13,900
13,900
700
$13,200

Balance Sheet
March 31, 2012
Assets
Current assets
Cash ...............................................................
Supplies .........................................................
$2,500
6,400
250
1,100
$10,250
4-30

March 31, 2012
Assets (Continued)
Equipment .......................................................
equipment ............................................
Total assets..............................................
$6,000
300
5,700
$15,950

Current liabilities
Accounts payable ...........................................
Salaries and wages payable ...........................
Total current liabilities ............................
Owners equity
Owners capital................................................
Total liabilities and owners equity ........
$2,200
550
$ 2,750
13,200
$15,950
(e)
Date
Mar. 31
31
31
31
31
General Journal
Service Revenue .......................
Ref.
112
400
Debit
500
Depreciation Expense .......................

Equipment .............................
711
300
Insurance Expense ............................

Prepaid Insurance .....................
722
130
100
Supplies Expense ..............................

Supplies .....................................
634
128
950
Salaries and Wages Expense ............

Salaries and Wages Payable ....
726
212
550
J2
Credit
500
158
300
100
950
550
4-31

(f)
General Journal
Date
Mar. 31 Service Revenue ................................
Income Summary ......................
Ref.
400
350
Debit
7,800
31 Income Summary ...............................

Salaries and Wages Expense ...
Depreciation Expense ...............
Insurance Expense ....................
Supplies Expense ......................
Gasoline Expense .....................
350
726
711
722
634
633
3,900
31 Income Summary ...............................

Owners Capital .........................
350
301
3,900
31 Owners Capital ..................................

Owners Drawings .....................
301
306
700
(g)
7,800
2,350
300
100
950
200
3,900
700

March 31, 2012
Cash.....................................................................
Supplies ..............................................................
Equipment ...........................................................
Owners Capital ..................................................
000,000
J3
Credit
Debit
$ 2,500
6,400
250
1,100
6,000
Credit
$16,250
300
2,200
550
13,200
$16,250
4-32
COMPREHENSIVE PROBLEM: CHAPTERS 2 TO 4
(a)
Date
July 1
1
3
5
12
18
20
21
25
31
31
General Journal
Cash .....................................................
Owners Capital .........................
Ref.
101
301
Debit
14,000
Equipment ...........................................
Cash ...........................................
157
101
201
10,000
Supplies ...............................................
128
201
800
Prepaid Insurance ...............................

Cash ...........................................
130
101
1,800
Accounts Receivable ..........................

Service Revenue .......................
112
400
3,800
Accounts Payable ...............................

Cash ...........................................
201
101
1,400
Salaries and Wages Expense .............

Cash ...........................................
726
101
1,600
Cash .....................................................
Accounts Receivable ................
101
112
1,400
Accounts Receivable ..........................

Service Revenue .......................
112
400
1,500
Gasoline Expense ...............................

Cash ...........................................
633
101
400
Owners Drawings...............................
Cash ...........................................
306
101
600
J1
Credit
14,000
3,000
7,000
800
1,800
3,800
1,400
1,600
1,400
1,500
400
600
4-33
Account Titles
Trial Balance
Dr.
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accounts Payable
Owners Capital
Owners Drawings
Service Revenue
Gasoline Expense
Total
Accum. Depr.Equipment
Insurance Expense
Supplies Expense
Totals
Net Income
Totals
Cr.
6,600
3,900
800
1,800
10,000
Adjusted
Trial Balance
Adjustments
Dr.
Cr.
(a) 1,300
(d)
(c)
700
150
Dr.
Dr.
Cr.
6,600
5,200
100
1,650
10,000
6,400
14,000
Balance Sheet
Dr.
6,400
14,000
600
5,300
(a) 1,300
(e)
500
(b)
200
Cr.
6,600
5,200
100
1,650
10,000
6,400
14,000
600
400
1,600
25,700
Cr.
Income
Statement
600
6,600
400
2,100
6,600
400
2,100
25,700
200
(b)
(c)
(d)
200
150
700
150
700
(e)
2,850
200
200
500
2,850
27,700
200
150
700
500
27,700
3,550
3,050
6,600
6,600
24,150
6,600
24,150
Key: (a) Service Revenue; (b) Depreciation Expense; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.
500
21,100
3,050
24,150
COMPREHENSIVE PROBLEM (Continued)
4-86
JULIES MAIDS CLEANING SERVICE
Worksheet
For the Month Ended July 31, 2012
(b) & (c)
4-87

(a), (e) & (f)
Date
July 1
1
5
18
20
21
31
31
Date
July 12
21
25
31
Date
July 3
31
Date
July 5
31
Date
Explanation
Explanation
Adjusting
Explanation
Adjusting
Explanation
Adjusting
Explanation
Cash
Ref.
J1
J1
J1
J1
J1
J1
J1
J1
Debit
14,000
3,000
1,800
1,400
1,600
1,400
400
600
Accounts Receivable
Ref.
Debit
J1
3,800
J1
J1
1,500
J2
1,300
Supplies
Ref.
J1
J2
Debit
800
Credit
1,400
Credit
700
Prepaid Insurance
Ref.
Debit
J1
1,800
J2
Equipment
Ref.
Credit
Debit
No. 101
Balance
14,000
11,000
9,200
7,800
6,200
7,600
7,200
6,600
No. 112
Balance
3,800
2,400
3,900
5,200
No. 128
Balance
800
100
150
No. 130
Balance
1,800
1,650
Credit
No. 157
Balance
Credit
July 1
J1
10,000
10,000
Date
July 31
Date
July 1
3
18
Accumulated DepreciationEquipment
Explanation
Ref.
Debit
Credit
Adjusting
J2
200
Explanation
Accounts Payable
Ref.
Debit
J1
J1
J1
1,400
Date
July 31

Explanation
Ref.
Debit
Adjusting
J2
Date
July 1
31
31
Owners Capital
Ref.
Debit
J1
J3
J3
600
Date
July 31
31
Date
July 31
31
31
Explanation
Closing
Closing
Closing
Owners Drawings
Ref.
Debit
J1
600
J3
Explanation
Closing
Closing
Closing
Income Summary
Ref.
Debit
J3
J3
3,550
J3
3,050
Explanation
Credit
7,000
800
Credit
500
Credit
14,000
3,050
Credit
600
Credit
6,600
No. 158
Balance
200
No. 201
Balance
7,000
7,800
6,400
No. 212
Balance
500
No. 301
Balance
14,000
17,050
16,450
No. 306
Balance
600
0
No. 350
Balance
6,600
3,050
0
Date
July 12
25
31
31
Explanation
Adjusting
Closing
Service Revenue
Ref.
Debit
J1
J1
J2
J3
6,600
Closing
Gasoline Expense
Ref.
Debit
J1
400
J3
Explanation
Adjusting
Closing
Supplies Expense
Ref.
Debit
J2
700
J3
Explanation
Adjusting
Closing
Ref.
Debit
J2
200
J3
Date
July 31
31
Explanation
Adjusting
Closing
Insurance Expense
Ref.
Debit
J2
150
J3
Date
July 20
31

Explanation
Ref.
Debit
J1
1,600
Adjusting
J2
500
Date
July 31
31
Date
July 31
31
Date
July 31
31
Explanation
Credit
3,800
1,500
1,300
Credit
400
Credit
700
Credit
200
Credit
150
Credit
No. 400
Balance
3,800
5,300
6,600
0
No. 633
Balance
400
0
No. 634
Balance
700
0
No. 711
Balance
200
0
No. 722
Balance
150
0
No. 726
Balance
1,600
2,100
31
Closing
J3
2,100

(d)

Income Statement
Revenues
Service revenue ..............................................
Expenses
Salaries and wages expense .........................
Supplies expense ...........................................
Gasoline expense ...........................................
Depreciation expense .....................................
Insurance expense .........................................
Total expenses ........................................
Net income ..............................................................
$6,600
$2,100
700
400
200
150
3,550
$3,050

Owners Capital, July 1 ..........................................
Add: Investments .................................................
Net income...................................................
Less: Drawings ......................................................
Owners Capital, July 31 ........................................
$
$14,000
3,050
17,050
17,050
600
$16,450

Balance Sheet
July 31, 2012
Assets
Current assets
Cash.................................................................
Accounts receivable .......................................
Supplies ..........................................................
Prepaid insurance...........................................
Total current assets ................................
Equipment .......................................................
equipment............................................
Total assets .............................................
$6,600
5,200
100
1,650
$13,550
10,000
200
9,800
$23,350

Current liabilities
Accounts payable ...........................................
Salaries and wages payable ..........................
Total current liabilities ............................
Owners equity
Owners capital ...............................................
Total liabilities and owners equity ........
$6,400
500
$ 6,900
16,450
$23,350

(e)
Date
July 31
31
31
31
31
General Journal
Accounts Receivable ........................
Service Revenue .......................
Ref.
112
400
Debit
1,300
Depreciation Expense .......................

Equipment .............................
711
200
Insurance Expense ............................

Prepaid Insurance ....................
722
130
150
Supplies Expense ..............................

Supplies ....................................
634
128
700
Salaries and Wages Expense ...........

Salaries and Wages Payable....
726
212
500
J2
Credit
1,300
158
200
150
700
500
(f)
Date
July 31
31
31
31
General Journal
Service Revenue ................................
Income Summary......................
Ref.
400
350
Debit
6,600
Income Summary ..............................

Salaries and Wages Expense ..
Depreciation Expense ..............
Insurance Expense ...................
Supplies Expense .....................
Gasoline Expense .....................
350
726
711
722
634
633
3,550
Income Summary ..............................

Owners Capital ........................
350
301
3,050
Owners Capital .................................

Owners Drawings ....................
301
306
600
J3
Credit
6,600
2,100
200
150
700
400
3,050
600

(g)

July 31, 2012
Cash ....................................................................
Accounts Receivable .........................................
Supplies ..............................................................
Prepaid Insurance ..............................................
Equipment ..........................................................
Accumulated DepreciationEquipment ..........
Accounts Payable ..............................................
Salaries and Wages Payable .............................
Owners Capital ..................................................
Debit
$ 6,600
5,200
100
1,650
10,000
Credit
$23,550
200
6,400
500
16,450
$23,550

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BRIEF EXERCISE 4-4

Service Revenue ..............................................

Income Summary .............................................

Income Summary .............................................

Owners Capital ................................................

BRIEF EXERCISE 4-5

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

Adj. Trial Balance

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

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Weygandt, Accounting Principles, 10/e, Solutions Manual

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Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

EXERCISE 4-3 (Continued)

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

Income Summary ...................................................

Income Summary ...................................................

Owners Capital ......................................................

WILLOW TURENNE COMPANY

(For Instructor Use Only)

Weygandt, Accounting Principles, 10/e, Solutions Manual

Copyright 2011 John Wiley & Sons, Inc.

PROBLEM 4-1A (Continued)

OMER ASIK, P.I.

OMER ASIK, P.I.

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

PROBLEM 4-1A (Continued)

Liabilities and Owners Equity

Supplies Expense .................................

Depreciation Expense ..........................

Interest Expense ...................................

Insurance Expense ...............................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

PROBLEM 4-1A (Continued)

Accounts Receivable ...............................

Service Revenue .......................................

Owners Capital ........................................

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

PROBLEM 4-2A (Continued)

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

PROBLEM 4-2A (Continued)

Liabilities and Owners Equity

Copyright 2011 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 10/e, Solutions Manual

(For Instructor Use Only)

PROBLEM 4-2A (Continued)