Week 2 Homework Problems

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Problem 3-2B: (a) Show the effects of each transaction on the accounting equation. Enter each amount in the proper column. Assume the note payable is to be repaid within the year.

REMEMBER: each transaction affects TWO accounts! Use the + or – signs to indicate whether the amount increased or decreased the account. Total up each account in the last line of the worksheet then “check” your work by totaling up Assets, Liabilities and Equity. Put each transaction on a separate line.

Remember the accounting equation: assets = liabilities + equity. Note any changes in Retained Earnings on the page below the worksheet.

(a) WALZ SERVICE INC.

Assets

=

Liabilities

Stockholders’ Equity

Date

Cash

+

Accounts Receivable

Supplies

Equipment

Notes Payable

Accounts Payable

Common Stock

Retained Earnings

Revenues

–

Expenses

–

Dividends

June 1

Totals

Total of All Columns under Assets

Total of All columns under Liabilities & Stockholder’s Equity

(a) Continued

Changes in Retained Earnings:

(b) Prepare an Income Statement for June

WALZ SERVICE INC.
Income Statement
For the Month Ended June, 30, 2014
Revenues
Account title	Amount
Expenses
Account title	Amount
Account title	Amount
Account title	Amount
Account title	Amount
Total expenses	Amount
Net income	Amount

(Part C is on the next page) (c) Prepare a Classified balance sheet at June 30, 2014 (Remember, assets and liabilities + equity MUST equal). If it doesn’t, there is an error somewhere).

WALZ SERVICE Inc.
Balance Sheet
June 30, 2014

Assets
Current assets
Account title	Amount
Account title	Amount
Account title	Amount
Total current assets	Amount
Account title	Amount
Total assets	Amount

Liabilities and Stockholders’ Equity
Current liabilities
Account title	Amount
Account title	Amount
Total current liabilities	Amount
Stockholders’ equity
Account title	Amount
Account title	Amount	Amount
Total liabilities and stockholders’ equity	Amount

Problem 3-5B is on the next page.

(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).

Remember that every transaction affects TWO accounts!

Date	Account Titles and Explanation	Debit	Credit
May 1

2

3

7

11

12

17

31

31

Part B is on the next page. PROBLEM 3-5B (Continued)

(b) Post the transactions to the ledger T Accounts

Be sure to post the amounts to the correct side of the T-Account!

Cash

Bal.

Accounts Receivable

Bal.

Supplies

Bal.

Accounts Payable

	Bal.

Unearned Service Revenue

	Bal.

Common Stock

	Bal.

Service Revenue

	Bal.

Salaries and Wages Expense

Bal.

Rent Expense

Bal.

PROBLEM 3-5B (Continued) Prepare a Trial Balance on May 31, 2014.

Trial Balance

May 31, 2014

Account Name	Debit	Credit









Total

E4-15. Answer questions A through D. Remember to show your calculations! (Add more space as necessary).

(E 4-19 is on the next page). E4-19. Prepare the closing entries at January 31, 2017.

(Enter all accounts for each transaction in one box. Dates have been provided).

Date	Account Titles and Explanation	Debit	Credit
Jan 31

31

31

E4-14. Journalize (a) the July transactions and (b) adjusting entries that were made on July 31. Enter all accounts in one box. Dates have been provided.

Part A

Date	Account Titles and Explanation	Debit	Credit
July 10

14

15

20

Part B

Date	Account Titles and Explanation	Debit	Credit
July 10

14

15

20

E4-21 Prepare the adjusting entries that were made:

(a) Enter all accounts in one box. The dates have been included to help with formatting.

Date	Account Titles and Explanation	Debit	Credit
Aug 31

31

31

31

31

31

E4-22 Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.

RYAN COMPANY
Income Statement
For the Month Ended August 31, 2017
Revenues
Account title	Amount
Account title	Amount
Total Revenues
Expenses
Account title	Amount
Account title	Amount
Account title	Amount
Account title	Amount
Account title	Amount
Total expenses	Amount
Net income	Amount

(Continued on next page)

RYAN COMPANY
Retained Earnings Statement
For the Month Ended August 31, 2017
Retained earnings, September 1, 2016	Amount
Add: Account title	Amount
	Total
Less: Account title	Amount
Retained earnings, August 31, 2017	Total

RYAN COMPANY
Balance Sheet
August 31, 2017

Assets
Current assets
Account title	Amount
Account title	Amount
Account title	Amount
Account title	Amount
Total current assets	Amount
Account title	Amount
Total assets	Amount

Liabilities and Stockholders’ Equity
Current liabilities
Account title	Amount
Account title	Amount
Account title	Amount
Total current liabilities	Amount
Stockholders’ equity
Account title	Amount
Account title	Amount	Amount
Total stockholder’s equity
Total liabilities and stockholders’ equity	Amount

Exercise 4-23 is on the next page

Exercise 4-23

(a) Prepare the closing entries for the temporary accounts at August 31. (Note, enter all accounts in one box. The dates have been included to help with formatting).

Date	Account Titles and Explanation	Debit	Credit
Aug 31

31

31

31