ACCOUNT3
a., e. & f.
|
Assets |
= |
Stockholders’ Equity |
|||||
|
Cash |
|
Accounts Rec. |
|
Retained Earnings |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
b. & g. NC = Net Change in Cash
|
Davos Company Effect of Transactions on the Financial Statements for 2016 and 2017 |
||||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
|
|
Assets |
= |
Liab. |
+ |
Stockholders’ Equity |
|
Rev. |
|
Exp. |
= |
Net Inc. |
|
Cash Flows |
|
||||
|
|
No. |
|
Cash |
+ |
Acct. Rec. |
= |
|
+ |
Comm. Stock |
+ |
Retained Earnings |
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. |
|
NA |
|
160,000 |
|
NA |
|
NA |
|
160,000 |
|
160,000 |
|
NA |
|
160,000 |
|
NA |
|
|
|
2. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bal. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bal. |
|
160,000 |
+ |
-0- |
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXERCISE 3-9A (cont.)
c.
d.
e.
f.
g.
h.
EXERCISE 3-10A
a. b. & e.
|
Assets |
= |
Liabilities |
+ |
Stockholders’ Equity |
|||
|
Accounts Rec. |
|
Accounts Pay. |
|
Retained Earnings |
|||
|
Debit |
Credit |
|
Debit |
Credit |
|
Debit |
Credit |
|
a1 25,000 |
|
|
|
|
|
cl 2,550 |
cl 25,000 |
|
Bal. 25,000 |
|
|
|
|
|
|
Bal. 22,450 |
|
|
|
|
|
|
|
|
|
|
Supplies |
|
|
|
|
Service Revenue |
||
|
Debit |
Credit |
|
|
|
|
Debit |
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXERCISE 3-10A (cont.)
c. NC = Net Change in Cash
|
Chase Architectural Services Effect of Transactions on the Financial Statements for 2016 |
||||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
|
|
Assets |
= |
Liab. |
+ |
Stockholders’ Equity |
|
Rev. |
|
Exp. |
= |
Net Inc. |
|
Cash Flows |
|
||||
|
|
No. |
|
Accts. Rec. |
+ |
Supplies |
= |
Accts. Pay. |
+ |
Common Stock |
+ |
Retained Earnings |
|
|
|
|
|
|
|
|
|
|
|
a1. |
|
25,000 |
|
NA |
|
NA |
|
NA |
|
25,000 |
|
25,000 |
|
NA |
|
25,000 |
|
NA |
|
|
|
a2. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
b. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bal. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d.
EXERCISE 3-10A (cont.)
e.
|
General Journal |
|||
|
|
|
|
|
|
Date |
Account Titles |
Debit |
Credit |
|
|
|
|
|
|
|
Closing Entries |
|
|
|
|
|
|
|
|
Dec. 31 |
Service Revenue |
|
|
|
|
Retained Earnings |
|
|
|
|
|
|
|
|
Dec. 31 |
Retained Earnings |
|
|
|
|
Supplies Expense |
|
|
|
|
|
|
|
|
Chase Architectural Services Post-Closing Trial Balance December 31, 2016 |
||||
|
|
|
|
|
|
|
Account Titles |
|
Debit |
|
Credit |
|
|
|
|
|
|
|
Accounts Receivable |
|
|
|
|
|
Supplies |
|
|
|
|
|
Accounts Payable |
|
|
|
|
|
Retained Earnings |
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
|
|
|
|
|
|
EXERCISE 3-15A
a. & b.
|
Cherokee Company Journal Entries for 2016 |
|||
|
|
|
|
|
|
Date |
Account Titles |
Debit |
Credit |
|
|
|
|
|
|
a. 3/1 |
Prepaid Rent (Lease) |
|
|
|
|
Cash |
|
|
|
|
|
|
|
|
b. 12/31 |
Rent Expense |
|
|
|
|
Prepaid Rent |
|
|
|
|
|
|
|
c. NC = Net Change in Cash
|
Cherokee Company Horizontal Statements Model |
||||||||||||||||||
|
|
||||||||||||||||||
|
|
Assets |
|
Liab. |
= |
Stockholders’ Equity |
|
Income Statement |
|
Statement of |
|
||||||||
|
|
Cash |
+ |
Prepaid Rent |
= |
|
|
Comm. Stock |
+ |
Retained Earn. |
|
Rev. |
|
Exp. |
= |
Net Inc. |
|
Cash Flows |
|
|
1. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adj |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bal. |
118,000 |
+ |
10,000 |
= |
NA |
= |
80,000 |
+ |
48,000 |
|
98,000 |
|
50,000 |
= |
48,000 |
|
118,000 NC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXERCISE 3-15A (cont.)
d. Revenue $
Expense ()
Net Income $
Cash Flows From Operating Activities:
Cash Received from Revenue $
Cash Payment for Expense ()
Net Cash Flow from Operating Activities $
e.
EXERCISE 3-17A
a.
|
|
Closing Entries |
Debit |
Credit |
|
1. |
Service Revenue |
|
|
|
|
Retained Earnings |
|
|
|
|
|
|
|
|
2. |
Retained Earnings |
|
|
|
|
Operating Expense |
|
|
|
|
Rent Expense |
|
|
|
|
Salaries Expense |
|
|
|
|
Supplies Expense |
|
|
|
|
|
|
|
|
3. |
Retained Earnings |
|
|
|
|
Dividends |
|
|
|
|
|
|
|
b.
|
Retained Earnings, 2016 |
|
|
Beginning Retained Earnings |
|
|
Add: Revenue |
|
|
Less: Expenses |
|
|
Less: Dividends |
|
|
Ending Retained Earnings |
|
|
|
|
|
|
|
PROBLEM 3-31A
Corrections:
Corrected Trial Balance:
|
Ricardo Company Trial Balance As of April 30, 2016 |
||||
|
|
|
|
|
|
|
Account Titles |
|
Debit |
|
Credit |
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
Accounts Receivable |
|
|
|
|
|
Supplies |
|
|
|
|
|
Prepaid Insurance |
|
|
|
|
|
Land |
|
|
|
|
|
Accounts Payable |
|
|
|
|
|
Common Stock |
|
|
|
|
|
Retained Earnings |
|
|
|
|
|
Dividends |
|
|
|
|
|
Service Revenue |
|
|
|
|
|
Rent Expense ($9,600 + $500) |
|
|
|
|
|
Salaries Expense ($31,500 $500) |
|
|
|
|
|
Operating Expense |
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
$197,710 |
|
$197,710 |
|
|
|
|
|
|
EXERCISE 4-17A
a.
|
Junker’s Stash Financial Statements Model |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Event No. |
Cash |
+ |
Accts. Rec |
+ |
Inv. |
+ |
Land |
= |
Common Stock |
+ |
Retained Earnings |
|
Rev./ Gain |
─ |
Exp./Loss |
= |
Net Inc. |
|
Cash Flow |
|
Bal. |
80,000 |
+ |
NA |
+ |
15,000 |
+ |
11,000 |
= |
70,000 |
+ |
36,000 |
|
n/a |
─ |
n/a |
= |
n/a |
|
n/a |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3b. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4a. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4b. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6a.* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6b. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bal. |
79,801 |
+ |
-0- |
+ |
44,350 |
+ |
-0- |
= |
70,000 |
+ |
54,151 |
|
69,201 |
─ |
51,050 |
= |
18,151 |
|
NC (199) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXERCISE 4-17A (cont.)
b.
|
Junker’s Stash Calculation of Net Sales For the Year Ended December 31, 2016 |
|||
|
|
|
|
|
|
|
Sales |
|
|
|
|
Less: Sales Returns |
|
|
|
|
Less: Sales Discounts |
|
|
|
|
Net Sales |
|
|
|
|
|
|
|
c.
|
Junkers’ Stash Income Statement For the Year Ended December 31, 2016 |
|||||
|
|
|
|
|
|
|
|
|
Net Sales |
|
|
100.0% |
|
|
|
Cost of Goods Sold* |
|
|
58.7 |
|
|
|
Gross Margin |
|
|
41.3 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
Selling and Adm. Expenses |
|
|
9.9 |
|
|
|
Transportation-Out |
|
|
2.4 |
|
|
|
Total Operating Expenses |
|
|
12.3 |
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
29.0 |
|
|
|
|
|
|
|
|
|
|
Non-Operating Items |
|
|
|
|
|
|
Loss on Sale of Land |
|
|
2.7 |
|
|
|
Net Income |
|
$18,151 |
26.3 |
|
|
|
|
|
|
|
|
EXERCISE 4-17A (cont.)
d.
e.