ch03 Part3

EXERCISE 3-2 (1015 minutes)
Wanda Landowska Company

Trial Balance
April 30, 2014
Debit
Cash ....................................................................... $ 4,800
Accounts Receivable ............................................
2,750
Prepaid Insurance ($700 + $100) ..........................
800
Equipment..............................................................
8,000
Accounts Payable ($4,500 $100) .......................
Property Taxes Payable ........................................
Owners Capital ($11,200 + $1,500) ...........................
Owners Drawing....................................................
1,500
Service Revenue....................................................
Salaries and Wages Expense ...............................
4,200
Advertising Expense ($1,100 + $300) ...................
1,400
Property Tax Expense ($800 + $100) ....................
900
$24,350
Credit
$ 4,400
560
12,700
6,690
$24,350

The ledger accounts are reproduced below, and corrections are shown in
the accounts.
Bal.
(1)
Cash
5,912 (4)
450
190
Accounts Receivable
Bal.
5,240 (1)
450
Bal.
Supplies
2,967
Copyright 2013 John Wiley & Sons, Inc.
Accounts Payable
Bal.
7,044
Common Stock
Bal.
8,000
Retained Earnings
Bal.
2,000
Kieso, Intermediate Accounting, 15/e, Solutions Manual
(For Instructor Use Only)
3-13
EXERCISE 3-3 (Continued)
Bal.
(2)
Equipment
6,100
3,200
Bal.
Service Revenue
Bal.
(3)
(5)
5,200
2,025
80
Office Expense
4,320 (2)
3,200
Blues Traveler Corporation

Trial Balance (corrected)
April 30, 2014
Debit
Cash ...................................................................... $ 6,172
Accounts Receivable ...........................................
4,790
Supplies ................................................................
2,967
Equipment .............................................................
9,300
Accounts Payable.................................................
Common Stock .....................................................
Retained Earnings ................................................
Service Revenue ...................................................
Office Expense .....................................................
1,120
$24,349
3-14
Credit
$ 7,044
8,000
2,000
7,305
$24,349

Watteau Co.
Trial Balance
June 30, 2014
Debit
Cash ($2,870 + $180 $65 $65) ..................................... $ 2,920
Accounts Receivable ($3,231 $180) ..............................
3,051
Supplies ($800 $500) ......................................................
300
Equipment ($3,800 + $500) ...............................................
4,300
Accounts Payable ($2,666 $206 $260)........................
Unearned Service Revenue ($1,200 $325) ....................
Common Stock ..................................................................
Dividends ...........................................................................
575
Retained Earnings .............................................................
Service Revenue ($2,380 + $801 + $325)..........................
Salaries and Wages Expense ($3,400 + $670 $575) .....
3,495
Office Expense ..................................................................
940
$15,581
Credit
$ 2,200
875
6,000
3,000
3,506
$15,581

1.
2.
3.
4.
5.
Depreciation Expense ($250 X 3) .............................

Accumulated DepreciationEquipment ..........
750
Unearned Rent Revenue ($9,300 X 1/3)....................

Rent Revenue .....................................................
3,100
Interest Expense........................................................
Interest Payable .................................................
500
Supplies Expense......................................................
Supplies ($2,800 $850) ....................................
1,950
Insurance Expense ($300 X 3) ..................................

Prepaid Insurance ..............................................
900
750
3,100
500
1,950
900
3-15

1.
2.
3.
4.
5.
Accounts Receivable .....................................................

Service Revenue .....................................................
750
Utilities Expenses ...........................................................

Accounts Payable ...................................................
520
Depreciation Expense ....................................................

Accumulated Depreciation Equipment ...............
400
Interest Expense .............................................................

Interest Payable.......................................................
500
Insurance Expense ($12,000 X 1/12) .............................

Prepaid Insurance ...................................................
1,000
Supplies Expense ($1,600 $500) .................................

Supplies ...................................................................
1,100
750
520
400
500
1,000
1,100

(a)
Ending balance of supplies

Add: Adjusting entry
Deduct: Purchases
Beginning balance of supplies
(b)
Total prepaid insurance

Amount used (6 X $400)
Present balance
$700
950
850
$800
$4,800
2,400
$2,400
($400 X 12)
The policy was purchased six months ago (August 1, 2013)

(c)
The entry in January to record salary and wages expense was

Salaries and Wages Expense ..............................
Salaries and Wages Payable ...............................
Cash ................................................................
3-16
1,800
700
2,500
EXERCISE 3-7 (Continued)

The T account for salaries payable is
Salaries and Wages Payable
Paid
700 Beg. Bal.
?
January
End Bal.
800
The beginning balance is therefore
(d)
Ending balance of salaries and wages payable

Plus: Reduction of salaries and wages payable
Beginning balance of salaries and wages payable
$ 800
700
$1,500
Service revenue
Cash received
Unearned revenue reduced
$2,000
1,600
$ 400
Ending unearned revenue January 31, 2014

Plus: Unearned revenue reduced
Beginning unearned revenue December 31, 2013
$ 750
400
$1,150

1.
2.
3.
4.
Salaries and Wages Expense .........................................

Salaries and Wages Payable ...................................
1,900
Utilities Expense..............................................................
Accounts Payable ....................................................
600
Interest Expense ($30,000 X 8% X 1/12) .........................

Interest Payable .......................................................
200
Telephone and Internet Expense ...................................

Accounts Payable ....................................................
117
1,900
600
200
117
3-17

(a)
10/15
10/17
10/20
(b)
10/31
10/31
10/31
10/31
3-18
Salaries and Wages Expense...........................

Cash ...........................................................
(To record payment of October 15
payroll)
800
Accounts Receivable ........................................

Service Revenue ........................................
(To record revenue for services
performed for which payment has
not yet been received)
2,400
Cash ...................................................................
Unearned Service Revenue ......................
(To record receipt of cash for
services not yet performed)
650
Supplies Expense .............................................

Supplies .....................................................
(To record the use of supplies during
October)
470
Accounts Receivable ........................................

Service Revenue ........................................
(To record revenue for services
performed for which payment has
not yet been received)
1,650
Salaries and Wages Expense...........................

Salaries and Wages Payable ....................
(To record liability for accrued payroll)
600
Unearned Service Revenue ..............................

Service Revenue ........................................
(To reduce the Unearned Service
Revenue account for service that
has been performed)
400
800
2,400
650
470
1,650
600
400

ch03 Part3

Uploaded by

Copyright:

Available Formats

ch03 Part3

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

ch03 Part3

Uploaded by

Copyright:

Available Formats

What are the steps to correct a trial balance?

What are the steps to correct a trial balance?

What adjusting entries are presented?

What adjusting entries are presented?

EXERCISE 3-2 (1015 minutes)

Wanda Landowska Company

EXERCISE 3-3 (1520 minutes)

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

(For Instructor Use Only)

EXERCISE 3-3 (Continued)

Blues Traveler Corporation

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

(For Instructor Use Only)

EXERCISE 3-4 (1015 minutes)

EXERCISE 3-5 (1015 minutes)

Depreciation Expense ($250 X 3) .............................

Unearned Rent Revenue ($9,300 X 1/3)....................

Insurance Expense ($300 X 3) ..................................

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

(For Instructor Use Only)

EXERCISE 3-6 (1015 minutes)

Accounts Receivable .....................................................

Utilities Expenses ...........................................................

Depreciation Expense ....................................................

Interest Expense .............................................................

Insurance Expense ($12,000 X 1/12) .............................

Supplies Expense ($1,600 $500) .................................

EXERCISE 3-7 (1520 minutes)

Ending balance of supplies

Total prepaid insurance

The policy was purchased six months ago (August 1, 2013)

The entry in January to record salary and wages expense was

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

(For Instructor Use Only)

EXERCISE 3-7 (Continued)

Ending balance of salaries and wages payable

Ending unearned revenue January 31, 2014

EXERCISE 3-8 (1015 minutes)

Salaries and Wages Expense .........................................

Interest Expense ($30,000 X 8% X 1/12) .........................

Telephone and Internet Expense ...................................

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

(For Instructor Use Only)

EXERCISE 3-9 (1520 minutes)

Salaries and Wages Expense...........................

Accounts Receivable ........................................

Supplies Expense .............................................

Accounts Receivable ........................................

Salaries and Wages Expense...........................

Unearned Service Revenue ..............................

Copyright 2013 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 15/e, Solutions Manual

(For Instructor Use Only)

You might also like