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Hercules Poirpt PDF
Hercules Poirpt PDF
, SA
Worksheet
For the Quarter Ended March 31, 2017
Statement of
Adjusted Income Financial
Account Titles Trial Balance Adjustments Trial Balance Statement Position
SOLUTIONS TO PROBLEMS
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 11,410 11,410 11,410
Accounts Receivable 5,920 (e) 1,080 7,000 7,000
Supplies 1,250 (a) 750 500 500
Prepaid Insurance 2,400 (d) 600 1,800 1,800
Equipment 15,000 15,000 15,000
PROBLEM 4-1A
Notes Payable 10,000 10,000 10,000
Accounts Payable 7,350 7,350 7,350
Share Capital—Ordinary 14,000 14,000 14,000
Dividends 600 600 600
Service Revenue 10,200 (e) 1,080 11,280 11,280
Salaries and Wages
Expense 2,240 2,240 2,240
Travel Expense 1,300 1,300 1,300
Rent Expense 1,200 1,200 1,200
Miscellaneous Expense 230 230 230
Totals 41,550 41,550
Supplies Expense (a) 750 750 750
Depreciation Expense (b) 680 680 680
Accumulated
Depreciation—Equipment (b) 680 680 680
Interest Expense (c) 300 300 300
Interest Payable (c) 300 300 300
Insurance Expense (d) 600 600 600
Totals 3,410 3,410 43,610 43,610 7,300 11,280 36,310 32,330
Net Income 3,980 3,980
Totals 11,280 11,280 36,310 36,310
Key: (a) Supplies Used; (b) Depreciation Expensed; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue
Earned but unbilled.
PROBLEM 4-1A (Continued)
Revenues
Service revenue ............................................... 11,280
Expenses
Salaries and wages expense .......................... 2,240
Travel expense ................................................. 1,300
Rent expense ................................................... 1,200
Depreciation expense ..................................... 680
Insurance expense .......................................... 600
Supplies expense ............................................ 750
Interest expense .............................................. 300
Miscellaneous expense ................................... 230
Total expenses ......................................... 7,300
Net income ............................................................... 3,980
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PROBLEM 4-1A (Continued)
Assets
Property, plant, and equipment
Equipment ...................................................... 15,000
Less: Accumulated depreciation—
equipment................................................ 680 14,320
Current assets
Prepaid insurance .......................................... 1,800
Supplies .......................................................... 500
Accounts receivable ...................................... 7,000
Cash................................................................. 11,410 20,710
Total assets ............................................................ 35,030
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PROBLEM 4-1A (Continued)
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