Financial Accounting 7

th
Edition

Textbook Solution Guide






Chapter 3

Problem 3-6A Solis Company - FREE Tutorial

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Background: We received this question from an ACC 290 Week 2 student. In this
tutorial, we are going to prepare journal entries, T-Accounts, and a trial balance for Solis
Company. Lets do it step by step.

Part 1 Enter Opening Balances for the T-Accounts

Opening Balance
Amount

Debit Credit
Cash 19200
Accounts Receivable 2600
Supplies 2100
Equipment 8000
Accounts Payable 4800
Unearned Service
Revenue
1100
Common Stock 15000
Retained Earnings 11000


Part 2 Journalize the Transactions

Journal Entries
Date Account Debit Credit
5-Oct Cash 1300
Accounts Receivable 1300

10-Oct Accounts Receivable 5100
Service Revenue 5100

15-Oct Salaries 1200
Cash 1200

17-Oct Cash 600
Service Revenue 600

20-Oct Accounts Payable 1900
Cash 1900

29-Oct Dividends 300
Cash 300

31-Oct Utilities Expense 400
Cash 400




Part 3 Adjust T-Accounts

Cash
Date Debit Date Credit
1-Oct 19200 15-Oct 1200
5-Oct 1300 20-Oct 1900
17-Oct 600 29-Oct 300
31-Oct 400
Bal 17300

Accounts Receivable
Date Debit Date Credit
1-Oct 2600 5-Oct 1300
10-Oct 5100
Bal 6400

Supplies
Date Debit Date Credit
1-Oct 2100
Bal 2100

Equipment
Date Debit Date Credit
1-Oct 8000
Bal 8000

Accounts Payable
Date Debit Date Credit
20-Oct 1900 1-Oct 4800
Bal 2900

Unearned Service Revenue
Date Debit Date Credit
1-Oct 1100
Bal 1100

Common Stock
Date Debit Date Credit
1-Oct 15000
Bal 15000

Retained Earnings
Date Debit Date Credit
1-Oct 11000
Bal 11000

Dividends
Date Debit Date Credit
29-Oct 300
Bal 300


Service Revenue
Date Debit Date Credit
10-Oct 5100
17-Oct 600
Bal 5700

Salaries and Wages Expense
Date Debit Date Credit
15-Oct 1200
Bal 1200

Utilities Expense
Date Debit Date Credit
31-Oct 400
Bal 400

Part 4 Prepare the Trial Balance

SOLIS COMPANY - Trial Balance 10-31-2014
Account Debit Credit
Cash 17300
Accounts Receivable 6400
Supplies 2100
Equipment 8000
Accounts Payable 2900
Unearned Service Revenue 1100
Common Stock 15000
Retained Earnings 11000
Dividends 300
Service Revenue 5700
Salaries and Wages Expense 1200
Utilities Expense 400
35,700 35,700





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