Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-03 PASTINA COMPANY General Journal Date (1) (2) (3)

(4) (5) (6) (7) (8) (9) Account Depreciation Expense Accumulated Depreciation Bad debt expense Allowance for uncollectable accts Wage expense Wages payable Interest expense Interest payable Interest receivable Interest revenue Prepaid insurance Insurance expense Supplies expense Supplies Sales revenue Unearned revenue Rent expense Prepaid rent Debit 10,000 2,500 2,500 1,500 1,500 1,500 1,500 1,333 1,333 3,750 3,750 700 700 2,000 2,000 1,000 1,000
- Correct! - Correct! - Correct! - Correct! - Correct! - Correct! - Correct! - Correct!

Credit 10,000
- Correct!

Given Data P02-03: PASTINA COMPANY Unadjusted Trial Balance December 31, 2011 Account Title Cash Accounts receivable Allowance for uncollectible accounts Supplies Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Wages payable Note payable Interest payable Unearned revenue Common stock Retained earnings Sales revenue Interest revenue Cost of goods sold Wage expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Bad debt expense Totals Additional information: Depreciation on equipment Accounts receivable outstanding Uncollectible Wages earned 12/16-12/31 Cash borrowed 10/1 Annual interest on note Principal due in Cash lent 3/1 due 2/28/12 Interest on note Insurance paid (2 years) Supplies on hand at 12/31 Customer paid for spaghetti to be delivered in January, 2012 Rent paid for December & January Debits 30,000 40,000 1,500 60,000 20,000 2,000 80,000 30,000 28,000 50,000 60,000 24,500 148,000 70,000 18,900 11,000 1,100 6,000 3,000 343,500 Credits

3,000

343,500

$ $ $ $ $

$ $ $ $ $

10,000 40,000 5,500 1,500 50,000 12% 10 years 20,000 8% 6,000 800 2,000 2,000

Rent per month

1,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-04 Requirement 3: PASTINA COMPANY Adjusted Trial Balance December 31, 2011 Account Title Cash Accounts receivable Allowance for uncollectible accounts Prepaid rent Prepaid insurance Supplies Inventory Note receivable Interest receivable Equipment Accumulated depreciation-equipment Accounts payable Wages payable Note payable Interest payable Unearned revenue Common stock Retained earnings Sales revenue Interest revenue Cost of goods sold Wage expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Bad debt expense Totals Debits 30,000 40,000 1,000 3,750 800 60,000 20,000 1,333 80,000 40,000 28,000 1,500 50,000 1,500 2,000 60,000 24,500 146,000 1,333 70,000 20,400 12,000 10,000 1,500 1,800 2,250 5,500 360,333
Correct!

Credits

5,500

360,333
Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-04 Requirement 4: PASTINA COMPANY Income Statement For the Year Ended December 31, 2011 Sales revenue Cost of goods sold Gross profit Operating expenses: Wages Rent Depreciation Supplies Insurance Bad debt Total operating expenses Operating Income Other income (expense): Interest revenue Interest expense Net income $ 146,000 70,000 76,000

20,400 12,000 10,000 1,800 2,250 5,500 51,950 24,050 1,333 1,500 $

(167) 23,883
Correct!

PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2011 Total Retained Shareholders' Earnings Equity $ 28,500 $ 88,500 23,883 23,883 (4,000) (4,000) $ 48,383 $ 108,383
Correct! Correct!

Balance at January 1, 2011 Issue of common stock Net income for 2011 Less: Dividends Balance at December 31, 2011

Common Stock $ 60,000 -

60,000
Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-04

PASTINA COMPANY Balance Sheet At December 31, 2011 Assets Current assets: Cash Accounts receivable Less: Allowance for uncollectible accounts Supplies Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance Total current assets Equipment Less: Accumulated depreciation Total assets

$ $ 40,000 5,500

30,000 34,500 800 60,000 20,000 1,333 1,000 3,750 151,383 40,000 191,383
Correct!

80,000 40,000 $

Liabilities and Shareholders' Equity Current liabilities Accounts payable Wages payable Note payable Interest payable Unearned revenue Total current liabilities Shareholders' equity: Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity

28,000 1,500 50,000 1,500 2,000 83,000

Correct!

60,000 48,383 $ 108,383 - Correct! 191,383

Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-04 Requirement 5: PASTINA COMPANY General Journal Account Closing entries at December 31, 2011 Sales revenue Interest revenue Income summary Income summary Cost of goods sold Wage expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Bad debt expense Income summary Retained earnings Debit 146,000 1,333 147,333 - Correct! 123,450 - Correct! 70,000 20,400 12,000 10,000 1,500 1,800 2,250 5,500 23,883 23,883 - Correct! Credit

Requirement 6: PASTINA COMPANY Post-Closing Trial Balance For the Year Ended December 31, 2011 Account Title Cash Accounts receivable Allowance for uncollectible accounts Prepaid rent Prepaid insurance Supplies Inventory Note receivable Interest receivable Equipment Accumulated depreciation-equipment Accounts payable Wages payable Note payable Interest payable Unearned revenue Common stock Retained earnings Totals Debits 30,000 40,000 1,000 3,750 800 60,000 20,000 1,333 80,000 40,000 28,000 1,500 50,000 1,500 2,000 60,000 48,383 236,883
Correct!

Credits

5,500

236,883
Correct!

Given Data P02-04: PASTINA COMPANY Unadjusted Trial Balance December 31, 2011 Account Title Cash Accounts receivable Allowance for uncollectible accounts Supplies Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Wages payable Note payable Interest payable Unearned revenue Common stock Retained earnings Sales revenue Interest revenue Cost of goods sold Wage expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Bad debt expense Totals Additional information: Depreciation on equipment Accounts receivable outstanding Uncollectible Wages earned 12/16-12/31 Cash borrowed 10/1 Annual interest on note Principal due in Cash lent 3/1 due 2/28/12 Interest on note Insurance paid (2 years) Supplies on hand at 12/31 Customer paid for spaghetti to be delivered in January, 2012 Rent paid for December & January Rent per month Debits 30,000 40,000 1,500 60,000 20,000 2,000 80,000 30,000 28,000 50,000 60,000 24,500 148,000 70,000 18,900 11,000 1,100 6,000 3,000 343,500 Credits

3,000

343,500

$ $ $ $ $

$ $ $ $ $ $

10,000 40,000 5,500 1,500 50,000 12% 10 years 20,000 8% 6,000 800 2,000 2,000 1,000

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-06 Requirement 2: KARLIN COMPANY General Journal Date (a) Account Cash Accounts receivable Service revenue Cash Accounts receivable Cash Common stock Salaries expense Salaries payable Cash Miscellaneous expenses Cash Equipment Cash Retained earnings Cash Debit 70,000 30,000 27,300 27,300 - Correct! 10,000 10,000 - Correct! 41,000 9,000 50,000 - Correct! 24,000 24,000 - Correct! 15,000 15,000 - Correct! 2,500 2,500 - Correct! Credit

100,000 - Correct!

(b) (c) (d)

(e) (f) (g)

Requirement 4: KARLIN COMPANY Unadjusted Trial Balance Account Title Cash Accounts receivable Allowance for uncollectible accounts Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Totals Debits 45,800 17,700 35,000 6,000 50,000 7,000 100,000 41,000 24,000 163,500
Correct!

Credits

500

163,500
Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-06 Requirement 5: KARLIN COMPANY General Journal Account Salaries expense Salaries payable Depreciation expense Accumulated depreciation Bad debt expense Allowance for uncollectible accounts Debit 1,000 2,000 2,000 - Correct! 1,000 1,000 - Correct! Credit 1,000 - Correct!

Requirement 6: KARLIN COMPANY Adjusted Trial Balance Account Title Cash Accounts receivable Allowance for uncollectible accounts Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Bad debt expense Totals Debits 45,800 17,700 35,000 8,000 1,000 50,000 7,000 100,000 42,000 24,000 2,000 1,000 167,500
Correct!

Credits

1,500

167,500
Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-06 Requirement 7: KARLIN COMPANY Income Statement For the Year Ended December 31, 2011 Service revenue Operating Expenses: Salaries Miscellaneous Depreciation Bad debt Total operating expenses Net income $ 100,000

42,000 24,000 2,000 1,000 $ 69,000 31,000

Correct!

KARLIN COMPANY Balance Sheet At December 31, 2011 Assets Current assets Cash Accounts receivable Less: Allow. for uncollectible accounts Total current assets Property and equipment Equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity Current liabilities Salaries payable Total current liabilities Shareholders' equity Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $ $ 17,700 (1,500) 45,800 16,200 62,000

35,000 (8,000) $

27,000 89,000
Correct!

1,000 1,000
Correct!

50,000 38,000 $ 88,000 - Correct! 89,000

Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-06 Requirement 8: KARLIN COMPANY General Journal Account Closing entries at December 31, 2011 Service revenue Income summary Income summary Salaries expense Miscellaneous expenses Depreciation expense Bad debt expense Income summary Retained earnings Debit 100,000 100,000 - Correct! 69,000 - Correct! 42,000 24,000 2,000 1,000 31,000 31,000 - Correct! Credit

Requirement 9: KARLIN COMPANY Post-Closing Trial Balance Account Title Cash Accounts receivable Allowance for uncollectible accounts Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Totals Debits 45,800 17,700 35,000 8,000 1,000 50,000 38,000 98,500
Correct!

Credits 1,500

98,500
Correct!

Given Data P02-06: KARLIN COMPANY General Ledger January 1, 2011 Account Title Cash Accounts receivable Allowance for uncollectible accounts Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Additional information: (a) Sales of services Sales of services on credit (b) A/R collected (c) Shares issued for cash (d) Salaries paid Amount for salaries payable (e) Paid miscellaneous expenses (f) Purchased equipment (g) Cash dividends paid Year-end accrued salaries Depreciation on equipment Uncollectible accounts estimate Debits 30,000 15,000 20,000 6,000 9,000 40,000 9,500 65,000 Credits

500

65,000

$ $ $ $ $ $ $ $ $ $ $ $

100,000 30,000 27,300 10,000 50,000 9,000 24,000 15,000 2,500 1,000 2,000 1,500

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-09 Requirement 2: BAGLEY CONSULTING COMPANY General Journal Date (a) (b) (c) (d) (e) (f) Account Depreciation expense Accumulated depreciation-buildings Depreciation expense Accumulated depreciation-equipment Insurance expense Prepaid insurance Bad debt expense Allowance for uncollectible accounts Salaries expense Salaries payable Rent revenue Unearned rent revenue Debit 1,000 10,000 10,000 - Correct! 1,500 1,500 - Correct! 850 850 - Correct! 1,500 1,500 - Correct! 1,200 1,200 - Correct! Credit 1,000 - Correct!

Requirement 3: BAGLEY CONSULTING COMPANY Adjusted Trial Balance Account Title Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Sales revenue Interest revenue Rent revenue Salaries expense Bad debt expense Depreciation expense Insurance expense Utility expense Maintenance expense Totals Debits 8,000 9,000 1,500 200,000 50,000 21,000 100,000 50,000 35,000 1,500 1,200 200,000 56,450 90,000 3,000 6,300 38,500 850 11,000 1,500 30,000 15,000 465,350 Credits

900

465,350

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-09

Correct! Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-09 Requirement 4: BAGLEY CONSULTING COMPANY General Journal Account Closing entries at December 31, 2011 Sales revenue Interest revenue Rent revenue Income summary Income summary Salaries expense Bad debt expense Depreciation expense Insurance expense Utility expense Maintenance expense Income summary Retained earnings Debit 90,000 3,000 6,300 99,300 - Correct! 96,850 - Correct! 38,500 850 11,000 1,500 30,000 15,000 2,450 2,450 - Correct! Credit

Requirement 5: BAGLEY CONSULTING COMPANY Post-Closing Trial Balance Account Title Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Unearned revenue Common stock Retained earnings Totals Debits 8,000 9,000 1,500 200,000 50,000 21,000 100,000 50,000 35,000 1,500 1,200 200,000 58,900 368,500
Correct!

Credits

900

368,500
Correct!

Given Data P02-09: BAGLEY CONSULTING COMPANY Unadjusted Trial Balance December 31, 2011 Account Title Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Unearned rent revenue Common stock Retained earnings Sales revenue Interest revenue Rent revenue Salaries expense Bad debt expense Depreciation expense Insurance expense Utility expense Maintenance expense Totals Additional information: Estimated useful life of buildings Salvage value of buildings Annual equipment depreciation as a percentage of original cost Prepaid insurance expired during the year Uncollectible accounts as a percentage of accounts receivable Accrued salaries at year-end Unearned rent revenue at year-end Debits 8,000 9,000 3,000 200,000 50,000 20,000 100,000 40,000 35,000 200,000 56,450 90,000 3,000 7,500 37,000 30,000 15,000 452,000 Credits

50

452,000

50 years 10% 1,500 10% 1,500 1,200

$ $

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-13

EXCALIBUR CORPORATION Worksheet December 31, 2011 Unadjusted Account title Debt Cash Accounts receivable Allowance for uncollectible accts Supplies Prepaid rent Inventory Equipment Accumulated depreciation - equip. Accounts payable Wages payable Note payable Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Interest expense Wage expenses Rent expense Supplies expense Utility expense Bad debt expense Depreciation expense Net Income Totals 345,150 Correct! 345,150 Correct! 13,925 Correct! 13,925 Correct! 357,575 Correct! 357,575 Correct! 95,000 32,350 14,000 2,000 6,000 550 9,375 1,000 1,500 1,000 500 65,000 75,000 10,000 26,000 3,000 30,000 80,000 16,050 180,000 95,000 1,000 33,850 13,000 1,500 6,000 550 9,375 1,000 1,500 9,375 23,300 32,500 100 500 1,000 550 500 1,000 65,000 75,000 19,375 26,000 4,500 30,000 1,000 80,000 16,050 180,000 95,000 1,000 33,850 13,000 1,500 6,000 550 9,375 19,725 180,000 Correct! 180,000 Correct! 180,000 Trial Balance Credit Adjusting Entries Debit Credit Debit 23,300 32,500 650 Adjusted Trial Balance Credit Income Statement Debit Credit

Bala

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-13

EXCALIBUR CORPORATION Income Statement For the Year Ended December 31, 2011 Sales revenue Cost of goods sold Gross profit Other expenses: Wages Rent Supplies Utility Bad debt Depreciation Total operating expenses Operating income Other Expense: Interest Net income $ 180,000 95,000 85,000

33,850 13,000 1,500 6,000 550 9,375 64,275 20,725 1,000 19,725 Correct!

EXCALIBUR CORPORATION Statement of Shareholders' Equity For the Year Ended December 31, 2011 Total Shareholders' Equity $ 102,050 19,725 (6,000) 115,775 Correct!

Balance at January 1, 2011 Issue of Common stock Net income for 2011 Less: Dividends Balance at December 31, 2011

Common Stock $ 80,000 -

Retained Earnings $ 22,050

80,000 Correct!

19,725 (6,000) 35,775 $ Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-13

EXCALIBUR CORPORATION Balance Sheet At December 31, 2011 Assets Current assets: Cash Accounts receivable Less: Allowance for uncollectible accounts Supplies Prepaid rent Inventory Total current assets Equipment Less: Accumulated depreciation Total assets

$ $ 32,500 650

23,300 31,850 500 1,000 65,000 121,650

75,000 19,375 $

55,625 177,275 Correct!

Liabilities and Shareholders' Equity Current liabilities: Accounts payable Wages payable Note payable Interest payable Total current liabilities Shareholders' equity: Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $ 26,000 4,500 30,000 1,000 61,500 Correct!

80,000 35,775 $ 115,775 - Correct! 177,275 Correct!

Student Name: Instructor Class: McGraw-Hill/Irwin Problem 02-13

EXCALIBUR CORPORATION General Journal Account Closing entries at December 31, 2011 Sales revenue Income summary Income summary Cost of goods sold Interest expense Wage expense Rent expense Supplies expense Utility expense Bad debt expense Depreciation expense Income summary Retained earnings Debit 180,000 180,000 - Correct! 160,275 - Correct! 95,000 1,000 33,850 13,000 1,500 6,000 550 9,375 19,725 19,725 - Correct! Credit

IBUR CORPORATION Worksheet

ecember 31, 2011

Balance Sheet Debit 23,300 32,500 650 500 1,000 65,000 75,000 19,375 26,000 4,500 30,000 1,000 80,000 16,050 Credit

19,725 197,300 Correct! 197,300 Correct!

Given Data P02-13: EXCALIBUR CORPORATION Unadjusted Trial Balance December 31, 2011 Account Title Cash Accounts receivable Allowance for uncollectible accounts Supplies Prepaid rent Inventory Equipment Accumulated depreciation - equipment Accounts payable Wages payable Note payable Common stock Retained earnings Sales revenue Cost of goods sold Interest expense Wage expense Rent expense Supplies expense Utility expense Bad debt expense Totals Additional. information: Useful life of equipment purchased in 2009 Salvage value of equipment Accrued wages, year-end Percentage of A/R uncollectible Cash borrowed, 9/1 Principal due in Annual interest rate Supplies on hand at year-end Prepaid rent, year-end Cash dividends paid during the year Debits 23,300 32,500 0 0 65,000 75,000 10,000 26,000 3,000 30,000 80,000 16,050 180,000 95,000 0 32,350 14,000 2,000 6,000 0 345,150 Credits

100

345,150

$ $ $

$ $ $

8 years 4,500 2% 30,000 10 years 10% 500 1,000 6,000