Brief Exercise 5.

5 Income Summary
Dr ($) Cr ($)
Date Details Dr ($) Cr ($) 18,700 19,800
00-00-0000 Service Revenue 19,800 1,100
Income Summary 19,800

Date Details Dr ($) Cr ($)

00-00-0000 Income Summary 18,700
Supplies Exp 525
Rent Exp 3,660
Dep Exp: Building 1,200
Salaries Exp 12,700
Income Tax Exp 615

Date Details Dr ($) Cr ($) Retained Earnings

00-00-0000 Income Summary 1,100 Dr ($) Cr ($)
Retained Earnings 1,100 600 1,100
500

Date Details Dr ($) Cr ($)

00-00-0000 Retained Earnings 600
Dividends 600
Income Summary
Dr ($) Cr ($)
1,100 1,100
0
 Brief Exercise 5.6

Date Details Dr ($) Cr ($) Income Summary

00-00-0000 Consulting fee earned 26,000 Dr ($)
Interest revenue 300 34,700
Income Summary 26,300 8,400

Date Details Dr ($) Cr ($)

00-00-0000 Income Summary 34,700
Insurance Exp 1,900
Rent Exp 10,800
Dep Exp: Office Equipment 5,600
Salaries Exp 16,400

Date Details Dr ($) Cr ($) Retained Earnings

00-00-0000 Retained Earning 8,400 Dr ($)
Income Summary 8,400 8,400
400
Date Details Dr ($) Cr ($) 8,800
00-00-0000 Retained Earning 400
Dividends 400
Income Summary
Cr ($)
26,300

Retained Earnings
Cr ($)
 Exercise 5.2
Tutors for rent, Inc Tutors for rent, Inc
Adjusted Trial Balance Income Statement
31-Dec-11 For the year ended on 31-Dec-2011
Accounts Dr ($) Cr ($)
Cash 91,100 Revenues:
Accounts Receivable 4,500 Tutoring revenue earned
Supplies 300
Equipment 12,000 Expenses:
Acc Dep: Equipment 5,000 Salary exp
Accounts Payable 1,500 Supply exp
Income Tax Payable 3,500 Advertising exp
Capital Stock 25,000 Dep exp: Equipment
Retained Earnings 45,000 Total expenses
Dividends 2,000 Earnings before tax
Tutoring revenue earned 96,000 Income Tax exp
Salary expense 52,000 Net income
Supply expense 1,200
Advertising expense 300
Dep Exp: Equipment 1,000
Income Tax Expense 11,600
Total 176,000 176,000
ors for rent, Inc Tutors for rent, Inc
ome Statement Statement of Retained earning
r ended on 31-Dec-2011 For the year ended on 31-Dec-2011
$
Retained Earnings beginning of the year 45,000
96,000 Add: Net income 29,900
Less: Dividends 2,000
Retained Earnings at the end of the year 72,900
52,000
1,200
300
1,000
54,500
41,500
11,600
29,900
 Tutors for rent, Inc
Statement of Balance sheet
As on 31-Dec-2011
Assets $ Liabilities & Equity $
Cash 91,100 Liabilities
Accounts Receivable 4,500 Accounts Payable 1,500
Supplies 300 Income Tax Payable 3,500
Equipment 12,000 Total Liabilities 5,000
Less: Acc Dep: Equipment 5,000 7,000 Equity
Capital Stock 25,000
Retained Earnings 72,900
Total Equity 97,900
Total Assets 102,900 Total Liabilities & Equity 102,900
 Exercise 5.5 Date
Wilderness Guide Services, INC 31-Dec
Adjusted Trial Balance
31-Dec-11
Accounts Dr ($) Cr ($) Date
Cash 12,200 31-Dec
Accounts Receivable 31,000
Camping Supplies 7,900
Unexpired Insurance 2,400
Equipment 70,000
Acc. Dep (Eq) 60,000
Notes Payable 18,000
Accounts Payable 9,500
Capital Stock 25,000 Date
Retained Earnings 15,000 31-Dec
Dividends 1,000
Guide revenue earned 102,000
Salary exp 87,500 Date
Camping Supplies Exp 1,200 31-Dec
Insurance Exp 9,600
Depreciation Exp (Eq) 5,000
Interest Exp 1,700
Total 229,500 229,500
Details Dr ($) Cr ($)
Guide revenue earned 102,000
Income Summary 102,000

Details Dr ($) Cr ($) Income Summary

Income Summary 105,000 Dr ($) Cr ($)
Salary exp 87,500 105,000 102,000
Camping Supplies Exp 1,200 3,000
Insurance Exp 9,600
Depreciation Exp (Eq) 5,000
Interest Exp 1,700

Details Dr ($) Cr ($)

Retained Earning 3,000
Income Summary 3,000

Details Dr ($) Cr ($) Retained Earning

Retained Earning 1,000 Dr ($) Cr ($)
Devidend 1,000 3,000 15,000
1,000
4,000 15,000
11,000
 Exercise 5.7 Date
31-Dec
GERDES PSYCHOLOGICAL SERVICES, INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2011 Date
$ 31-Dec
Revenue:
Counseling revenue 225,000
Expenses:
Advertising exp 1,800
Salaries exp 94,000
Office supplies exp 1,200
Utilities exp 850
Malpractice insurance exp 6,000
Office rent exp 24,000
Continuing education exp 2,650
Depreciation exp: Fixture 4,500
Miscellaneous exp 6,000
Income tax exp 29,400 170,400 Date
Net income 54,600 31-Dec

Date
31-Dec
Details Dr ($) Cr ($) Income Summary
Counseling revenue 225,000 Dr ($) Cr ($)
Income Summary 225,000 170,400 225,000
54,600
Details Dr ($) Cr ($)
Income Summary 170,400
Advertising exp 1,800
Salaries exp 94,000
Office supplies exp 1,200
Utilities exp 850
Malpractice insurance exp 6,000
Office rent exp 24,000
Continuing education exp 2,650
Depreciation exp: Fixture 4,500
Miscellaneous exp 6,000
Income tax exp 29,400

Details Dr ($) Cr ($) Retained Earning

Income Summary 54,600 Dr ($) Cr ($)
Retained Earning 54,600 6,000 54,600
48,600
Details Dr ($) Cr ($)
Retained Earning 6,000
Devidend 6,000
 GERDES PSYCHOLOGICAL SERVICES, INC.
Statement of Retained Earnings
FOR THE YEAR ENDED DECEMBER 31, 2011

Retained Earnings beginning of the year 92,000

Add: Net income 54,600
Less: Dividends 6,000
Retained Earnings at the end of the year 140,600
 Problem 5.2 A
LAWN PRIDE, INC.
ADJUSTED TRIAL BALANCE
31-Dec-11
Accounts Dr ($) Cr ($)
Cash 58,525
Accounts receivable 4,800
Unexpired insurance 8,000
Prepaid rent 3,000
Supplies 1,075
Trucks 150,000
Acc Dep: Trucks 120,000
Mowing equipment 20,000
Acc Dep: Mowing equipment 12,000
Accounts payable 1,500
Notes payable 50,000
Salaries payable 900
Interest payable 150
Income tax payable 1,050
Unearned mowing revenue 900
Capital stock 20,000
Retained earning 30,000
Dividends 5,000
Mowing revenue earned 170,000
Insurane exp 2,400
Office rent exp 36,000
Supplies exp 5,200
Salary exp 60,000
Depreciation expense: trucks 30,000
Depreciation expense: mowing equipment 4,000
Repair and maintenance exp 3,000
Fuel exp 1,500
Miscellaneous exp 5,000
Interest exp 3,000
Income tax exp 6,000
Total 406,500 406,500
 LAWN PRIDE, INC.
Income Statement
For the year ended on 31-Dec-2011
$
Revenues:
Mowing revenue earned 170,000

Expenses:
Insurane exp 2,400
Office rent exp 36,000
Supplies exp 5,200
Salary exp 60,000
Depreciation expense: trucks 30,000
Depreciation expense: mowing equipment 4,000
Repair and maintenance exp 3,000
Fuel exp 1,500
Miscellaneous exp 5,000
Interest exp 3,000

Total expenses 150,100

Earnings before tax 19,900
Income Tax exp 6,000
Net income 13,900
 LAWN PRIDE, INC. LAWN
Statement of Retained Earnings Bala
FOR THE YEAR ENDED DECEMBER 31, 2011 As on
Assets
Retained Earnings beginning of the year 30,000 Cash
Add: Net income 13,900 Accounts Receivable
Less: Dividends 5,000 Unexpired insurance
Retained Earnings at the end of the year 38,900 Prepaid rent
Supplies
Trucks
Less: Acc Dep Trucks
Mowing equipment
Less: Acc Dep Mowing Eq

Total
 LAWN PRIDE, INC.
Balance Sheet
As on 31-Dec-2011
Assets $ Liabilities & Equity $
58,525 Liabilities
4,800 Accounts payable 1,500
8,000 Notes payable 50,000
3,000 Salaries payable 900
1,075 Interest payable 150
150,000 Income tax payable 1,050
120,000 30,000 Unearned mowing reven 900
20,000 Total Liabilities 54,500
12,000 8,000 Equity
Capital Stock 20,000
Retained Earnings 38,900
Total Stockholder's Equity 58,900
113,400 Total Liabilities & Equity 113,400