ACCOUNT3
feliciafeci
Templates3.docxa., e. & f.
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Assets |
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Stockholders’ Equity |
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Cash |
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Accounts Rec. |
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Retained Earnings |
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b. & g. NC = Net Change in Cash
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Davos Company Effect of Transactions on the Financial Statements for 2016 and 2017 |
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Assets |
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Liab. |
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Stockholders’ Equity |
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Rev. |
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Exp. |
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Net Inc. |
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Cash Flows |
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No. |
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Cash |
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Acct. Rec. |
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Comm. Stock |
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Retained Earnings |
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2016 |
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1. |
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NA |
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160,000 |
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NA |
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NA |
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160,000 |
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160,000 |
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NA |
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160,000 |
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NA |
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2. |
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Bal. |
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2017 |
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3. |
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Bal. |
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160,000 |
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-0- |
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EXERCISE 3-9A (cont.)
c.
d.
e.
f.
g.
h.
EXERCISE 3-10A
a. b. & e.
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Assets |
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Liabilities |
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Stockholders’ Equity |
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Accounts Rec. |
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Accounts Pay. |
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Retained Earnings |
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Debit |
Credit |
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Debit |
Credit |
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Debit |
Credit |
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a1 25,000 |
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cl 2,550 |
cl 25,000 |
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Bal. 25,000 |
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Bal. 22,450 |
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Supplies |
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Service Revenue |
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Debit |
Credit |
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Debit |
Credit |
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EXERCISE 3-10A (cont.)
c. NC = Net Change in Cash
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Chase Architectural Services Effect of Transactions on the Financial Statements for 2016 |
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Assets |
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Liab. |
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Stockholders’ Equity |
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Rev. |
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Exp. |
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Net Inc. |
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Cash Flows |
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No. |
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Accts. Rec. |
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Supplies |
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Accts. Pay. |
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Common Stock |
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Retained Earnings |
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a1. |
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25,000 |
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NA |
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NA |
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NA |
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25,000 |
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25,000 |
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NA |
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25,000 |
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NA |
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a2. |
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b. |
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Bal. |
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d.
EXERCISE 3-10A (cont.)
e.
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General Journal |
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Date |
Account Titles |
Debit |
Credit |
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Closing Entries |
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Dec. 31 |
Service Revenue |
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Retained Earnings |
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Dec. 31 |
Retained Earnings |
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Supplies Expense |
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Chase Architectural Services Post-Closing Trial Balance December 31, 2016 |
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Account Titles |
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Debit |
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Credit |
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Accounts Receivable |
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Supplies |
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Accounts Payable |
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Retained Earnings |
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Totals |
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EXERCISE 3-15A
a. & b.
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Cherokee Company Journal Entries for 2016 |
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Date |
Account Titles |
Debit |
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a. 3/1 |
Prepaid Rent (Lease) |
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Cash |
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b. 12/31 |
Rent Expense |
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Prepaid Rent |
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c. NC = Net Change in Cash
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Cherokee Company Horizontal Statements Model |
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Assets |
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Liab. |
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Stockholders’ Equity |
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Income Statement |
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Statement of |
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Cash |
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Prepaid Rent |
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Comm. Stock |
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Retained Earn. |
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Rev. |
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Exp. |
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Net Inc. |
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Cash Flows |
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1. |
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2. |
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3. |
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Bal. |
118,000 |
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10,000 |
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NA |
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80,000 |
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48,000 |
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98,000 |
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50,000 |
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48,000 |
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118,000 NC |
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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.
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Closing Entries |
Debit |
Credit |
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1. |
Service Revenue |
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Retained Earnings |
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2. |
Retained Earnings |
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Operating Expense |
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Rent Expense |
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Salaries Expense |
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Supplies Expense |
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3. |
Retained Earnings |
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Dividends |
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b.
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Retained Earnings, 2016 |
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Beginning Retained Earnings |
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Add: Revenue |
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Less: Expenses |
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Less: Dividends |
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Ending Retained Earnings |
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PROBLEM 3-31A
Corrections:
Corrected Trial Balance:
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Ricardo Company Trial Balance As of April 30, 2016 |
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Account Titles |
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Debit |
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Credit |
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Cash |
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Accounts Receivable |
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Supplies |
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Prepaid Insurance |
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Land |
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Accounts Payable |
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Common Stock |
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Retained Earnings |
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Dividends |
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Service Revenue |
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Rent Expense ($9,600 + $500) |
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Salaries Expense ($31,500 $500) |
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Operating Expense |
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Totals |
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$197,710 |
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$197,710 |
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EXERCISE 4-17A
a.
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Junker’s Stash Financial Statements Model |
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Event No. |
Cash |
+ |
Accts. Rec |
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Inv. |
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Land |
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Common Stock |
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Retained Earnings |
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Rev./ Gain |
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Exp./Loss |
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Net Inc. |
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Cash Flow |
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Bal. |
80,000 |
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NA |
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15,000 |
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11,000 |
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70,000 |
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36,000 |
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n/a |
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n/a |
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n/a |
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n/a |
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1 |
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2. |
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3a. |
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3b. |
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4a. |
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4b. |
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5. |
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6a.* |
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6b. |
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7. |
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8 |
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Bal. |
79,801 |
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-0- |
+ |
44,350 |
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-0- |
= |
70,000 |
+ |
54,151 |
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69,201 |
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51,050 |
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18,151 |
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NC (199) |
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EXERCISE 4-17A (cont.)
b.
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Junker’s Stash Calculation of Net Sales For the Year Ended December 31, 2016 |
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Sales |
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Less: Sales Returns |
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Less: Sales Discounts |
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Net Sales |
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c.
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Junkers’ Stash Income Statement For the Year Ended December 31, 2016 |
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Net Sales |
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100.0% |
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Cost of Goods Sold* |
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58.7 |
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Gross Margin |
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41.3 |
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Operating Expenses |
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Selling and Adm. Expenses |
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9.9 |
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Transportation-Out |
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2.4 |
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Total Operating Expenses |
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12.3 |
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Operating Income |
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29.0 |
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Non-Operating Items |
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Loss on Sale of Land |
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2.7 |
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Net Income |
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$18,151 |
26.3 |
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EXERCISE 4-17A (cont.)
d.
e.
