EXERCISE 3-2 (1015 minutes)
Wanda Landowska Company
Trial Balance
April 30, 2014
Debit
Cash ....................................................................... $ 4,800
Accounts Receivable ............................................
2,750
Prepaid Insurance ($700 + $100) ..........................
800
Equipment..............................................................
8,000
Accounts Payable ($4,500 $100) .......................
Property Taxes Payable ........................................
Owners Capital ($11,200 + $1,500) ...........................
Owners Drawing....................................................
1,500
Service Revenue....................................................
Salaries and Wages Expense ...............................
4,200
Advertising Expense ($1,100 + $300) ...................
1,400
Property Tax Expense ($800 + $100) ....................
900
$24,350
Credit
$ 4,400
560
12,700
6,690
$24,350
EXERCISE 3-3 (1520 minutes)
The ledger accounts are reproduced below, and corrections are shown in
the accounts.
Bal.
(1)
Cash
5,912 (4)
450
190
Accounts Receivable
Bal.
5,240 (1)
450
Bal.
Supplies
2,967
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Accounts Payable
Bal.
7,044
Common Stock
Bal.
8,000
Retained Earnings
Bal.
2,000
Kieso, Intermediate Accounting, 15/e, Solutions Manual
(For Instructor Use Only)
3-13
EXERCISE 3-3 (Continued)
Bal.
(2)
Equipment
6,100
3,200
Bal.
Service Revenue
Bal.
(3)
(5)
5,200
2,025
80
Office Expense
4,320 (2)
3,200
Blues Traveler Corporation
Trial Balance (corrected)
April 30, 2014
Debit
Cash ...................................................................... $ 6,172
Accounts Receivable ...........................................
4,790
Supplies ................................................................
2,967
Equipment .............................................................
9,300
Accounts Payable.................................................
Common Stock .....................................................
Retained Earnings ................................................
Service Revenue ...................................................
Office Expense .....................................................
1,120
$24,349
3-14
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Kieso, Intermediate Accounting, 15/e, Solutions Manual
Credit
$ 7,044
8,000
2,000
7,305
$24,349
(For Instructor Use Only)
EXERCISE 3-4 (1015 minutes)
Watteau Co.
Trial Balance
June 30, 2014
Debit
Cash ($2,870 + $180 $65 $65) ..................................... $ 2,920
Accounts Receivable ($3,231 $180) ..............................
3,051
Supplies ($800 $500) ......................................................
300
Equipment ($3,800 + $500) ...............................................
4,300
Accounts Payable ($2,666 $206 $260)........................
Unearned Service Revenue ($1,200 $325) ....................
Common Stock ..................................................................
Dividends ...........................................................................
575
Retained Earnings .............................................................
Service Revenue ($2,380 + $801 + $325)..........................
Salaries and Wages Expense ($3,400 + $670 $575) .....
3,495
Office Expense ..................................................................
940
$15,581
Credit
$ 2,200
875
6,000
3,000
3,506
$15,581
EXERCISE 3-5 (1015 minutes)
1.
2.
3.
4.
5.
Depreciation Expense ($250 X 3) .............................
Accumulated DepreciationEquipment ..........
750
Unearned Rent Revenue ($9,300 X 1/3)....................
Rent Revenue .....................................................
3,100
Interest Expense........................................................
Interest Payable .................................................
500
Supplies Expense......................................................
Supplies ($2,800 $850) ....................................
1,950
Insurance Expense ($300 X 3) ..................................
Prepaid Insurance ..............................................
900
Copyright 2013 John Wiley & Sons, Inc.
Kieso, Intermediate Accounting, 15/e, Solutions Manual
750
3,100
500
1,950
900
(For Instructor Use Only)
3-15
EXERCISE 3-6 (1015 minutes)
1.
2.
3.
4.
5.
Accounts Receivable .....................................................
Service Revenue .....................................................
750
Utilities Expenses ...........................................................
Accounts Payable ...................................................
520
Depreciation Expense ....................................................
Accumulated Depreciation Equipment ...............
400
Interest Expense .............................................................
Interest Payable.......................................................
500
Insurance Expense ($12,000 X 1/12) .............................
Prepaid Insurance ...................................................
1,000
Supplies Expense ($1,600 $500) .................................
Supplies ...................................................................
1,100
750
520
400
500
1,000
1,100
EXERCISE 3-7 (1520 minutes)
(a)
Ending balance of supplies
Add: Adjusting entry
Deduct: Purchases
Beginning balance of supplies
(b)
Total prepaid insurance
Amount used (6 X $400)
Present balance
$700
950
850
$800
$4,800
2,400
$2,400
($400 X 12)
The policy was purchased six months ago (August 1, 2013)
(c)
The entry in January to record salary and wages expense was
Salaries and Wages Expense ..............................
Salaries and Wages Payable ...............................
Cash ................................................................
3-16
Copyright 2013 John Wiley & Sons, Inc.
1,800
700
Kieso, Intermediate Accounting, 15/e, Solutions Manual
2,500
(For Instructor Use Only)
EXERCISE 3-7 (Continued)
The T account for salaries payable is
Salaries and Wages Payable
Paid
700 Beg. Bal.
?
January
End Bal.
800
The beginning balance is therefore
(d)
Ending balance of salaries and wages payable
Plus: Reduction of salaries and wages payable
Beginning balance of salaries and wages payable
$ 800
700
$1,500
Service revenue
Cash received
Unearned revenue reduced
$2,000
1,600
$ 400
Ending unearned revenue January 31, 2014
Plus: Unearned revenue reduced
Beginning unearned revenue December 31, 2013
$ 750
400
$1,150
EXERCISE 3-8 (1015 minutes)
1.
2.
3.
4.
Salaries and Wages Expense .........................................
Salaries and Wages Payable ...................................
1,900
Utilities Expense..............................................................
Accounts Payable ....................................................
600
Interest Expense ($30,000 X 8% X 1/12) .........................
Interest Payable .......................................................
200
Telephone and Internet Expense ...................................
Accounts Payable ....................................................
117
Copyright 2013 John Wiley & Sons, Inc.
Kieso, Intermediate Accounting, 15/e, Solutions Manual
1,900
600
200
(For Instructor Use Only)
117
3-17
EXERCISE 3-9 (1520 minutes)
(a)
10/15
10/17
10/20
(b)
10/31
10/31
10/31
10/31
3-18
Salaries and Wages Expense...........................
Cash ...........................................................
(To record payment of October 15
payroll)
800
Accounts Receivable ........................................
Service Revenue ........................................
(To record revenue for services
performed for which payment has
not yet been received)
2,400
Cash ...................................................................
Unearned Service Revenue ......................
(To record receipt of cash for
services not yet performed)
650
Supplies Expense .............................................
Supplies .....................................................
(To record the use of supplies during
October)
470
Accounts Receivable ........................................
Service Revenue ........................................
(To record revenue for services
performed for which payment has
not yet been received)
1,650
Salaries and Wages Expense...........................
Salaries and Wages Payable ....................
(To record liability for accrued payroll)
600
Unearned Service Revenue ..............................
Service Revenue ........................................
(To reduce the Unearned Service
Revenue account for service that
has been performed)
400
Copyright 2013 John Wiley & Sons, Inc.
Kieso, Intermediate Accounting, 15/e, Solutions Manual
800
2,400
650
470
1,650
600
400
(For Instructor Use Only)