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M41.
Hagadorn Company
Adjusted Trial Balance
At June 30, 2011
Debit
Cash
175
Accounts receivable
420
Inventories
710
Prepaid expenses
Buildings and equipment
30
1,400
$
Accumulated depreciation
Land
Credit
250
300
Accounts payable
250
160
50
Unearned fees
90
Long-term debt
1,460
Contributed capital
400
Retained earnings
150
Sales revenue
2,400
Interest income
60
Cost of sales
780
Salaries expense
640
Rent expense
460
Depreciation expense
150
Interest expense
70
135
$ 5,270
$ 5,270
E46.
Req. 1
a.
Accrued expense
b.
Deferred expense
c.
Accrued revenue
d.
Deferred expense
e.
Deferred expense
f.
Deferred revenue
g.
Accrued revenue
Req. 2
a.
Computations
2,700
Wages expense (+E, SE) .................................................
Given
b.
675
Office supplies expense (+E, SE) .....................................
Office supplies (A) ..................................................
$450 + $500
675
c.
$560 x 2 months
d.
12,100
Depreciation expense (+E, SE) ........................................
Accumulated depreciation (+XA, A)
e.
Given
12,100
600
Insurance expense (+E, SE) .............................................
Prepaid insurance (A) .............................................
f.
$2,400 x 6/24 =
600
3,200
Unearned rent revenue (L) ...............................................
$600 used
$9,600 x 2/6 =
g.
= $1,120 earned
$3,200 earned
Given
800
AP47.
Req. 1
December 31, 2011, Adjusting Entries:
(a)
3,000
(b)
3,000
450
(c)
450
2,100
(d)
2,100
500
(e)
Req. 2
SOUTH BEND REPAIR SERVICE CO.
Income Statement
For the Year Ended December 31, 2011
500
3,150
3,150
Operating Revenue:
Service revenue
$48,000
Operating Expenses:
Depreciation expense
Insurance expense
Wages expense
3,000
450
2,100
32,900
38,950
9,050
3,150
$5,900
$1.97
AP47. (continued)
Assets
Current Assets:
Cash
Accounts receivable
Current Liabilities:
$19,600
7,000
Supplies
800
Prepaid insurance
450
Accounts payable
Wages payable
2,100
3,150
5,000
27,000
Total liabilities
12,750
(15,000)
5,100
Stockholders' Equity
Contributed capital
16,000
Retained earnings*
16,200
$44,950
Req. 3
7,750
27,850
Total assets
$ 2,500
32,200
$44,950
48,000
5,900
3,000
450
2,100
500
32,900
3,150
AP5-1.
Req. 1
TANGOCO
Balance Sheet
December 31, 2012
Assets
Current Assets
Cash ...........................................................................
Accounts receivable ....................................................
Prepaid rent ................................................................
Inventory .....................................................................
Total current assets ............................................
Long-Term Investments
Stock of PIL Corporation .............................................
Fixed Assets
Store equipment .........................................................
Less accumulated depreciation ..............................
Total fixed assets ...............................................
Other Assets
Used store equipment held for disposal ......................
Total assets ........................................................
$ 48,800
71,820
1,120
154,000
$275,740
36,400
67,200
13,440
53,760
9,800
$375,700
Liabilities
Current Liabilities
Accounts payable .......................................................
Income taxes payable .................................................
Total current liabilities.........................................
Long-Term Liabilities
Note payable ..............................................................
Total liabilities .....................................................
$ 58,800
9,800
$ 68,600
32,000
100,600
Stockholders' Equity
Contributed Capital
Common stock, par $1 per share, 100,000 shares .....
Additional paid-in capital .............................................
Total contributed capital .....................................
Retained Earnings .............................................................
Total stockholders' equity ...................................
Total liabilities and stockholders' equity .............
100,000
10,000
110,000
165,100
275,100
$375,700
AP5-1. (continued)
Req. 2
Store equipment
Net book value (sometimes called book value or carrying value) is the amount of cost
less any contra accounts (offsets).
AP5-2.
Req. 1
MESA INDUSTRIES
Balance Sheet
December 31, 2012
Stockholders' Equity
Common stock (par $15, 8,500 shares outstanding)
(8,500 x $15) ...............................................................
Additional paid-in capital
[$9,000 + (1,500 shares x $11 = $16,500)] ...................
Retained earnings
[$48,000 + $46,000 - (7,000 shares x $1 = $7,000)] ....
Total stockholders' equity ...........................................
Req. 2
$127,500
25,500
87,000
$240,000
39,000
22,500
16,500