Solution of P1.

1A

Tabular Analysis for Spanger’s Travel Agency, For The month Ended

April 30, 2020

Sr. Cash Accounts Supplie Equipmen Account Owner’ Owner’s Revenue Expense
s t s s s s
No Receivabl Drawing
. e Payable Capital s

1 1500 15000
0

2 -600 -600

3 -3000 3000

4 700 -700

5 -900 900

6 3000 7000 10000

7 -600 -600

8 -500 500

9 -2500 -2500

10 4000 -4000

1390 3000 900 3000 200 15000 -600 10000 -3800

0

20800 20800

Asset = Liabilities + Owners Equity

 Spanger’s Travel Agency

Income statement for the Month Ended April 30, 2020

Revenues 10000

Expenses

Rent 600

Advertising 700

Salaries 2500

Total 3800
Expenses

Net Income 6200

 Solution of P1.2A

SonyaJerds Law Office

Tabular Analysis for The month Ended April 30, 2020

Asset = Liabilities + Owners Equity

Sr Cas Accounts Supplie Equipme Account Owner’ Owner’s Revenue Expense

h s nt s s s s
No Receivabl Drawing
. e Payable Capital s

1 5000 1500 500 6000 4200 88000

2 1200 -1200

3 2800 -2800

4 4000 3500 7500

5 -400 20000 1600

6 -410 -4100
0

7 -700 -700

8 2000 200
0

9 270 -270

4200 3800 500 8000 200 3270 8800 -700 7500 -4370
0

16500 16500
 SonyaJerds Law Office

Income statement for the Month Ended August 30, 2020

Revenue 7500

Expenses

Salaries 2800

Rent 900

Advertising 400

Utility 270

Total Expenses 4370 -4370

Net Income 3130

 SonyaJerds Law Office

Owner’s Equity Statement For the month Ended August 30,2020

Owner’s Capital on July 31,2020 8800

Net income 3130

Total 11930

Owner’s Drawing -700

Owner’s Capital on August 30,2020 11230

SonyaJerds Law Office

 Balance Sheet -August 30,2020

Asset

Cash 4200

Account Receivable 3800

Supplies 500

Equipment 8000

Total Asset 16500

Liabilities and Owner’s Equity

Liabilities

Notes Payable 2000

Accounts Payable 3270

Owner’s Equity

Owner’s Capital

Total 16500
 Solution of P1.3A

Devine Design Co.

Income statement for the Month Ended June 30 , 2020

Revenues 6500

(-) Expenses

Advertising 500

Rent 1600

Gasoline 200

Utilities 150

Total Expenses 2450

Net Income 4050

Devine Design Co.

Owner’s Equity Statement For the month Ended June 30,2020

Owner’s Capital, June 1 12000

(+) Net Income 4050

16050

(-)Owner’s Drawing 1300

Owner’s Capital, June 30 14750

Devine Design Co.

Balance Sheet For the Month Ended June 30,2020

Assets

Cash 10150

Supplies 2000

Account Receivable 2800

Equipment 10000

Total Asset 24950

Liabilities and Owner’s Equity

Liabilities

Accounts Payable. 1200

Notes Payable 9000

Total Liabilities 10200

Owner’s Equity

Owner’s Capital, June 30 14750

Total Liabilities and Owner’s Equity 24950

Solution of P1.4A

Maisie Consulting

Tabular Analysis for The month Ended May 31, 2020

Asset = Liabilities + Owners Equity

Date Cash Accounts Suppli Equipme Accoun Owner Owner’ Revenu Expens
es nt ts ’s s es es
(May Receivabl
) e Payabl Capita Drawin
e l gs

1 7000 7000

2 -900 -900
 3 800 800

5 -125 -125

9 4000 4000

12 -100 -1000
0

15 6400 6400

17 -250 -2500
0

20 -600 -600

23 4000 -4000

27 5000 500
0

29 4200 4200

30 -275 -275

1460 2400 800 4200 4400 500 7000 -1000 10400 -3800
0 0

22000 22000

Maisie Consulting

Asset on May 31,2020

Asset

Cash 14600

Account Receivable 2400

Supplies 800

Equipment 4200

Total 22000

Maisie Consulting

Income statement for the Month Ended May 31 , 2020

Revenues 10400

(-) Expenses

Rent 900

Advertising 125

Salaries 2500

Utilities 275

Total Expense -3800

Net Income 6600

Maisie Consulting

Balance Sheet For the Month Ended May 31,2020

Assets

Cash 14600
Supplies 2400

Account Receivable 800

Equipment 4200

Total Asset 22000

Liabilities and Owner’s Equity

Liabilities

Accounts Payable. 4400

Notes Payable 5000

Total Liabilities 9400

Owner’s Equity

Owner’s Capital, May 1 7000

Owner’s Drawing -1000

Revenue 10400

Expenses -3800

Owner’s Capital, May 31 12600

Total Liabilities and Owner’s Equity 22000

Solution of E1.13

Cheng Company

Balance Sheet

December 31, 2020

 Assets

Cash 15000

Supplies 6500

Account Receivable 8000

Equipment 46000

Total Assets 75500

Liabilities & Owner’s Equity

Liabilities

Accounts Payable 21000

Total Liabilities 21000

Owner’s Equity

Owner’s Capital 67500

Owner’s Drawing -13000

Owner’s Equity 54500

Total Liabilities & Owner’s Equity 75500

Solution of E1.14

(A)

Beuna Visit Park

Income Statement

For The Year ended On Dec 31, 2020

 Revenues

Camping Fees Revenues 140000

General Store Revenues 65000

Total Revenues 205000

Expenses

Total Expenses During 2020 -160000

Net Income 45000

(B)

Beuna Visit Park

Balance Sheet

Dec 31, 2020

Assets

Cash 23000

Accounts Receivable 17500

Equipment 115500

Total Assets 156000

Liabilities & Owner’s Equity

Liabilities

Accounts Payable 11000

Notes Payable 60000

Total Liabilities 71000

 Owner’s Equity

Owner’s Equity 85000

Total Liabilities & Owner’s Equity 156000

Solution of P2.1A

General journal

Date Account Titles and Re Debit Credi

Explanation f t

01-Ma Cash 2000

r 0

Owner’s Capital 20000

03-Ma Cash 15000

r

Land 1200
0

Shed 2000

Equipment 1000

05-Ma Advertising expense 900

r

Cash 900

06-Ma Prepaid Insurance 600

r
 Cash 600

10-Ma Equipment 1050

r

Account payable 1050

18-Ma Service Revenue 1100

r

Cash 1100

19-Ma Sells Revenue 1500

r

Cash 1500

25-Ma Owner’s Withdrawal 800

r

Cash 800

30-Ma Salary Expense 250

r

Cash 250

Cash 1050

Account payable 1050

 Solution of P2.1A

General journal

Date Account Titles and Re Debit Credi

Explanation f t

01-Ma Cash 2000

r 0

Owner’s Capital 20000

03-Ma Cash 15000

r

Land 1200
0

Shed 2000

Equipment 1000

05-Ma Advertising expense 900

r

Cash 900

06-Ma Prepaid Insurance 600

r

Cash 600
10-Ma Equipment 1050
r

Account payable 1050

18-Ma Service Revenue 1100

r

Cash 1100

19-Ma Sells Revenue 1500

r

Cash 1500

25-Ma Owner’s Withdrawal 800

r

Cash 800

30-Ma Salary Expense 250

r

Cash 250

Cash 1050

Account payable 1050

 Solution of P2.2A
(A)
General Journal

Date Accounts titles and Re Debit Credi

Explanation f t

01-Ap Cash 2000

r 0

Owner’s Capital 20000

No Transaction

02-Ap Rent Expense 1500

r

Cash 1500
03-Ap Supplies 4000
r

Accounts Payable 4000

10-Ap Accounts Receivable 5100

r

Revenues 5100

11-Apr Cash 1000

Unearned Revenue 1000

20-Ap Cash 2100
r

Revenues 2100

30-Ap Salary Expense 2800

r

Cash 2800

30-Ap Account Payable 2600

r

Cash 2600

(B)
Cash

Date Explanatio Referenc debit credi Balanc

n e t e

01-Ap 2000 20000

r 0

02-Ap 1500 18500

r

11-Apr 1000 19500

20-Ap 2100 21600

r
30-Ap 2800 18800
r

30-Ap 2600 16200

r

Owner’s Capital

Date Explanatio Referenc Debi Credi Balanc

n e t t e

01-Ap 20000 20000

r

Rent Expense

Date Explanatio Referenc Debi Credi Balanc

n e t t e

02-Ap 1500 1500

r

Supplies

Date Explanatio Referenc Debi Credi Balanc

n e t t e

03-Ap 4000 4000

r
 Accounts Payable

Date Explanatio Referenc Debi Credi Balanc

n e t t e

03-Ap 4000 4000

r

30-Ap 2600 1400

r

Accounts Receivable

Date Explanatio Referenc Debi Credi Balanc

n e t t e

10-Ap 5100 5100

r

Revenues

Date Explanatio Referenc Debi Credi Balanc

n e t t e

10-Ap 5100 5100

r

20-Ap 2100 7200

r

Unearned Revenues
Date Explanatio Referenc Debi Credi Balanc
n e t t e

11-Ap 1000 1000

r

Salary Expenses

Date Explanatio Referenc Debi Credi Balanc

n e t t e

30-Ap 2800 2800

r

(c)

Vera Ernst’s Dentistry

Trial Balance

April 30,2020

Accounts Titles Debit Credi

t

Cash 1620
0
Supplies 4000

Accounts 5100
Receivable

Accounts Payable 1400

Unearned 1000
Revenue

Owner’s Capital 20000

Revenue 7200

Rent Expense 1500

Salary Expense 2800

Total 2960 29600

0
 Solution of P2.3A
(A)
General Journal

Date Account Titles and Re Debit Credi

Explanation f t

01-Ma Cash 4000

y 0

Owner’s Capital 40000

02-Ma No Transaction
y

03-Ma Prepaid Rent 2400

y 0

Cash 24000

04-Ma Equipment 3000

y 0

Cash 10000

Account Payable 20000

05-Ma Prepaid Insurance 1800

y

Cash 1800

06-ma Supplies 420

y
 Cash 420

07-Ma Supplies 1500

y

Account payable 1500

08-Ma Cash 8000

y

Account Receivable 1200

0

Revenues 20000

09-Ma Account Payable 400

y

Cash 400

10-Ma Cash 3000

y

Account Receivable 3000

11-Ma Utilities Expense 380

y

Account Payable 380

12-Ma Salaries Expense 6100

y

Cash 6100
 (B)
Cash

Date Explanatio Referenc Debit Credi Balanc

n e t e

01-Ma 4000 40000

y 0

03-ma 24000 16000

y

04-Ma 10000 6000

y

05-Ma 1800 4200

y

06-Ma 420 3780

y

08-Ma 8000 11780

y

09-Ma 400 11380

y

10-Ma 3000 14380

y

12-Ma 6100 8280

y
 Owner’s Capital

Date Explanatio Referenc Debi Credi Balanc

n e t t e

01-Ma 40000 40000

y

Prepaid rent

Date Explanatio Referenc Debit Credi Balanc

n e t e

03-Ma 2400 24000

y 0

Equipment

Date Explanatio Referenc Debit Credi Balanc

n e t e

04-Ma 3000 30000

y 0

Accounts Payable

Date Explanatio Referenc Debi Credi Balanc

n e t t e
04-Ma 20000 20000
y

07-Ma 1500 21500

y

09-Ma 400 21100

y

11-Ma 380 21480

y

Accounts Receivable

Date Explanatio Referenc Debit Credi Balanc

n e t e

08-Ma 1200 12000

y 0

10-Ma 3000 9000

y

Prepaid Insurance

Date Explanatio Referenc Debi Credi Balanc

n e t t e

05-Ma 1800 1800

y
 Supplies

Date Explanatio Referenc Debi Credi Balanc

n e t t e

06-Ma 420 420

y

07-Ma 1500 1920

y

Revenues

Date Explanatio Referenc Debi Credi Balanc

n e t t e

08-Ma 20000 20000

y

Utilities Expense

Date Explanatio Referenc Debi Credi Balanc

n e t t e

11-Ma 380 380

y

Salary Expense
Date Explanatio Referenc Debi Credi Balanc
n e t t e

12-Ma 6100 6100

y

(C)

Maquoketa Service
Trial Balance
May 30,2020

Account titles Debit Credi

t
Cash 8280
Equipment 3000
0
Supplies 1920
Account 9000
Receivable
Prepaid Rent 2400
0
Prepaid Insurance 1800
Account Payable 21480
Owner’s capital 40000
Revenues 20000
Utilities expense 380
Salary Expense 6100
Total 8148 81480
0

P2.5 A a)
Cash
 Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 3000

Land
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 24000

Buildings
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 10000

Equipment
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 10000
 Account Payable
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 7000

Owners Capital
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 40000

b)
General Journal
Date Particulars Ref Debit Credit
01-Mar Cash ✓ 3000
Land 24000
Building 10000
Equipment 10000
Account Payable 7000
Owners Capital 40000
02-Mar Rent Expense ✓ 3500
Cash 1500
Account Payable 2000
03-Mar No Transaction ✓
09-Mar Cash ✓ 4300
 Service Revenue 4300
10-Mar Account Payable ✓ 2100
Cash 2100
11-Mar No Transaction ✓
Advertising
12-Mar Expense ✓ 900
Cash 900
20-Mar Service Revenue ✓ 5000
Cash 5000
20-Mar Rent Expense ✓ 2000
Cash 2000
20-Mar Rent Expense ✓ 2000
Cash 2000
31-Mar Salaries Expense ✓ 3100
Cash 3100
Rent Revenue ✓ 900
Cash 450
Account Payable 450
Cash ✓ 9000
Service Revenue 9000

c)
Cash
 Balanc
Date Particular Ref Debit Credit e
01-Mar ✓ 3000 3000
02-Mar 1500 1500
09-Mar 4300 5800
10-Mar 2100 3700
12-Mar 900 4600
20-Mar 5000 9600
20-Mar 2000 7600
31-Mar 3100 4500
31-Mar 450 4050
31-Mar 9000 11250

Land
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 24000 24000

Building
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 10000 10000

Equipment
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 10000 10000

Account Payable
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 7000 7000
 02-Mar 2000 9000
10-Mar 2100 6900
31-Mar 450 7350

Owners Capital
Balanc
Date Particulars Ref Debit Credit e
01-Mar ✓ 40000 40000

Rent Expense
Balanc
Date Particulars Ref Debit Credit e
02-Mar ✓ 3500 3500
20-Mar 2000 5500

Service Revenue
Balanc
Date Particulars Ref Debit Credit e
09-Mar ✓ 4300 4300
20-Mar 5000 9300
31-Mar 9000 18300

Advertising
Expense
Balanc
Date Particulars Ref Debit Credit e
12-Mar ✓ 900 900

Salaries Expense
Balanc
Date Particulars Ref Debit Credit e
 31-Mar ✓ 3100 3100

Balanc
Date Particulars Ref Debit Credit e
31-Mar ✓ 900 900

d)
Traial Balance
Particulars Ref Debit Credit
Cash 11250
Land ✓ 24000
Building 10000
Equipment 10000
Account Payable 7350
Owners Capital 40000
Rent Expense 5500
Service Recevable 18300
Advertising
Expense 900
Salaries Expense 3100
Rent Expense 900

Total = 65650 65650

E 2.16 :

Promt Delivary Service

Trial Balance

31 July,2020

Account titles Debit Credit

Cash

Account receivable 7640

Equipment 45,360

Prepaid Insurance 1968

Account Payable 8394

Note Payable 17,000

Salaries & Wages 815

Expenses

Owners Capital 38,000

Owner’s drawing 700

Service Revenue 10,610

Gasoline Expense 758

Utilities Expense 523

Maintain Repair Expense 961

Salaries & wages Expense 4,428

Total 62,338 74,819

We know the debit must be equal to the credit .So the cash should be (74,819 - 62,338)
= 12,481
2.17

Beyers Security Company

General Trial Balance

Date Particulars Ref Debit Credit

Oct -1 Cash 66000

Owner’s Capital 66000

Oct 2 No Transaction

Oct 4 Rent Expense 2000

Cash 2000

Oct 7 Equipment 18000

Cash 4000

Balance on
account payable
14000

Oct 8 Advertising 500

expense

Cash
500

Oct 10 Repair expense 390

Account 390
Payable

Oct 12 Account 3200

Receivable

Revenue
3200

Oct 16 Supplies 410

Account 410
Payable
Oct 21 Account 14000
Payable
14000
Cash

Oct 24 Utility Expense 148

Cash 148

Oct 27 Cash 3200

Account
Receivable
3200

Oct 31 Salaries & 5100

wages
Expenses

Cash 5100

Total 112948 112948

Cas
h
Balanc
Date Particular Ref Debit Credit e
Oct-1 ✓ 66000 66000
Oct-4 2000 64000
Oct-7 4000 60000
Oct-8 500 59500
Oct-21 14000 45500
Oct-24 148 45352
Oct-27 3200 48552
Oct-31 5100 43452

Account
receivable
Balanc
Date Particular Ref Debit Credit e
Oct-12 ✓ 3200 3200
Oct-22 3200 0
 Supplie
s
Balanc
Date Particular Ref Debit Credit e
Oct-16 ✓ 410 410

Equipment
Balanc
Date Particular Ref Debit Credit e
Oct-7 ✓ 18000 18000

Owners Capital
Balanc
Date Particular Ref Debit Credit e
Oct-1 ✓ 66000 66000

Account
Payable
Balanc
Date Particular Ref Debit Credit e
Oct-7 ✓ 14000 14000
Oct-10 390 14390
Oct-16 410 14800
Oct-21 14000
 Revenu
e
Balanc
Date Particular Ref Debit Credit e
Oct-12 ✓ 3200 3200

Advertising
Expense
Balanc
Date Particular Ref Debit Credit e
Oct-8 ✓ 500 500

Rent
expense
Balanc
Date Particular Ref Debit Credit e
Oct-10 ✓ 2000 2000

Repair
Expense
Balanc
Date Particular Ref Debit Credit e
Oct-10 ✓ 390 390

Utility
Expense
Balanc
Date Particular Ref Debit Credit e
Oct-24 ✓ 148 148
 Salaries & wages
Expenses
Balanc
Date Particular Ref Debit Credit e
Oct-8 ✓ 5100 5100

Beyers Security Company

Trial Balance

Oct 31 2020

Account titles Debit Credit

Cash 43452

Account receivable 0

Equipment 18000

Supplies 410

Account Payable 800

Owners Capital 66000

Revenue 3200

Rent Expense 32000

Advertising Expense 500

Repair Expense 390

Utilities Expense 148

Salaries & Wages Expense 5100

Total 70,000 70,000

Solution of P3.1A
Krause Consulting
Journal Adjusting

Date Account Title and Re Debi Credi Math

Explanation f t t

May 31, Supplies Exp. 900 -

2020
Supplies 900

May 31, Utility Expense 250 -

2020
Account Payable 250

May 31, Insurance Exp. 150 3600/24

2020
Prepaid Insurance 150

May 31, Unearned Service Revenue 1600 2000-400

2020
Service Revenue 1600

May 31, Salaries and Wages Expense 1104 (920x2/5)

2020 x3
Salaries and Wages 1104
Payable

May 31, Depreciation Exp. 190 -

2020
Accumulated 190
Depreciation
May 31, Accounts Receivable 1700 -
2020
Service Revenue 1700

Solution of P3.2A
Hank’s Hotel
 Journal Adjusting

Date Account Title and Re Debi Credi Math

Explanation f t t

May 31, Insurance Exp. 200 2400/12

2020
Prepaid Insurance 200

May 31, Supplies Exp. 1330 2080-1330

2020
Supplies 1330

May 31, Depreciation Exp. 425 (3600/12)

2020
Accumulated 425 + (1500/12)
Depreciation

May 31, Interest Expense 200 (40000x6%)/1

2020 2
Interest Payable 200

May 31, Unearned Service Revenue 2200 3300x2/3

2020
Service Revenue 2200

May 31, Salaries and Wages Expense 750 -

2020
Salaries and Wages 750
Payable

Solution of E3.5

Devin Wolf Company

 Journal Adjusting

Date Account Title and Re Debi Credi Math

Explanation f t t

Dec-31, Interest Expense 300 {(10000x9)

2020 x4%}/12
Interest Payable 300

Dec-31, Supplies Expense 1550 24500-900

2020
Supplies 1550

Dec-31, Depreciation Expense 1000 -

2020
Accumulated 1000
Depreciation

Dec-31, Insurance Expense 1225 (2100/12) x7

2020
Prepaid Insurance 1225

Dec-31, Unearned Service Revenue 8000 32000/4

2020
Service Revenue 8000

Dec-31, Accounts Receivable 4200 -

2020
Revenue 4200

Dec-31, Salaries Exp. 5400 (9000/5) x3

2020
Salaries Payable 5400
 Solution of E3.6

Mendoza Company
Journal Adjusting

Date Account Title and Credit

Explanation

Dec- Accounts Receivable

31,
2020

Revenue 3000

Dec- Supplies Expense

31,
2020

Supplies 300

Dec- Utility Exp.

31,
2020

Utility payable 552

Dec- Unearned Service

31, Revenue
2020

Service 260
Revenue
 Dec- Salaries Exp.
31,
2020

Salaries 800
payable

Dec- Insurance Expense

31,
2020

Prepaid 350
Insurance

Solution of E3.7

Passehl Rental Agency

Journal Adjusting

Date Account Title and Re Debi Credi Math

Explanation f t t
March-31, Depreciation Exp. 1200 400x3
2020
Accumulated 1200
Depreciation

March-31, Unearned Service Revenue 3400 10200/3

2020
Service Revenue 3400

March-31, Interest Expense 500 -

2020
Interest Payable 500

March-31, Supplies Exp. 2050 2800-75

2020 0
Supplies 2050

March-31, Insurance Exp. 900 300x3

2020
Prepaid Insurance 900

Solution of E3.8

Mendoza Company
Journal Adjusting

Date Account Title and Credit

Explanation
Dec- Accounts Receivable
31,
2020

Revenue 785

Dec- Utility Exp.

31,
2020

Utility payable 650

Dec- Depreciation exp.

31,
2020

Accumulated 400
Depreciation
Dec-3 Interest Exp.
1,
2020

Interest payable 500

Dec- Insurance Expense

31,
2020

Prepaid 2000
Insurance

Dec- Supplies Expense

31,
2020

Supplies 1200