Week 2 Homework ProblemsComplete the following Workbook Template Week 2 (attached file) Problems P3-2B and P3-5B from Chapter 3 are located under “Additional Exercises and Problems” on the Textboo
Week 2 Homework Template
Problem 3-2B: (a) Show the effects of each transaction on the accounting equation. Enter each amount in the proper column. Assume the note payable is to be repaid within the year.
REMEMBER: each transaction affects TWO accounts! Use the + or – signs to indicate whether the amount increased or decreased the account. Total up each account in the last line of the worksheet then “check” your work by totaling up Assets, Liabilities and Equity. Put each transaction on a separate line.
Remember the accounting equation: assets = liabilities + equity. Note any changes in Retained Earnings on the page below the worksheet.
(a) WALZ SERVICE INC.
Assets | = | Liabilities | + | Stockholders’ Equity | ||||||||||||||||||||||
| | Cash | + | Accounts Receivable | + | Supplies | + | Equipment | | Notes Payable | + | Accounts Payable | + | Common Stock | + | Retained Earnings | ||||||||||
Revenues | – | Expenses | – | Dividends | ||||||||||||||||||||||
June 1 | | | | | | | | | | | | | | | | | ||||||||||
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Totals | | | | | | | | | | | | | | | | | | | ||||||||
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$ | $ | | ||||||||||||||||||||||||
Total of All Columns under Assets | Total of All columns under Liabilities & Stockholder’s Equity | |
(a) Continued
Changes in Retained Earnings:
(b) Prepare an Income Statement for June
WALZ SERVICE INC. | |||
Income Statement | |||
For the Month Ended June, 30, 2014 | |||
Revenues | |||
Account title | Amount | ||
Expenses |
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Account title | Amount |
| |
Account title | Amount |
| |
Account title | Amount |
| |
Account title | Amount |
| |
Total expenses | Amount | ||
Net income | Amount |
(Part C is on the next page)(c) Prepare a Classified balance sheet at June 30, 2014 (Remember, assets and liabilities + equity MUST equal). If it doesn’t, there is an error somewhere).
WALZ SERVICE Inc. | ||
Balance Sheet | ||
June 30, 2014 | ||
Assets | ||
Current assets | ||
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Total current assets | Amount | |
Account title | Amount | |
Total assets | Amount | |
Liabilities and Stockholders’ Equity | ||
Current liabilities | ||
Account title | Amount | |
Account title | Amount | |
Total current liabilities | Amount | |
Stockholders’ equity |
| |
Account title | Amount | |
Account title | Amount | Amount |
Total liabilities and stockholders’ equity | Amount |
Problem 3-5B is on the next page.
(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).
Remember that every transaction affects TWO accounts!
Date | Account Titles and Explanation | Debit | Credit | |||
May 1 | | |||||
2 | ||||||
3 | ||||||
7 | ||||||
11 | ||||||
12 | ||||||
17 | ||||||
31 | ||||||
31 |
Part B is on the next page.PROBLEM 3-5B (Continued)
(b) Post the transactions to the ledger T Accounts
Be sure to post the amounts to the correct side of the T-Account!
Cash | |
Bal. |
Accounts Receivable | |
Bal. |
Supplies | |
Bal. |
Accounts Payable | |
| |
Bal. |
Unearned Service Revenue | |
| |
Bal. |
Common Stock | |
Bal. |
Service Revenue | |
Bal. |
Salaries and Wages Expense | |
Bal. |
Rent Expense | |
Bal. |
PROBLEM 3-5B (Continued) Prepare a Trial Balance on May 31, 2014.
(c) ROYCE CONSULTING
Trial Balance
May 31, 2014
Account Name | Debit | Credit | ||
Total |
E4-15. Answer questions A through D. Remember to show your calculations! (Add more space as necessary).
(E 4-19 is on the next page).E4-19. Prepare the closing entries at January 31, 2017.
(Enter all accounts for each transaction in one box. Dates have been provided).
Date | Account Titles and Explanation | Debit | Credit | |||
Jan 31 | | |||||
31 | ||||||
31 | ||||||
E4-14. Journalize (a) the July transactions and (b) adjusting entries that were made on July 31. Enter all accounts in one box. Dates have been provided.
Part A
Date | Account Titles and Explanation | Debit | Credit | |||
July 10 | | |||||
14 | ||||||
15 | ||||||
20 | ||||||
Part B
Date | Account Titles and Explanation | Debit | Credit | |||
July 10 | | |||||
14 | ||||||
15 | ||||||
20 | ||||||
E4-21 Prepare the adjusting entries that were made:
(a) Enter all accounts in one box. The dates have been included to help with formatting.
Date | Account Titles and Explanation | Debit | Credit | |||
Aug 31 | | |||||
31 | ||||||
31 | ||||||
31 | ||||||
31 | ||||||
31 | ||||||
E4-22 Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.
RYAN COMPANY | |||
Income Statement | |||
For the Month Ended August 31, 2017 | |||
Revenues | |||
Account title | Amount | ||
Account title | Amount | ||
Total Revenues | |||
Expenses |
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Account title | Amount |
| |
Account title | Amount |
| |
Account title | Amount |
| |
Account title | Amount |
| |
Account title | Amount |
| |
Total expenses | Amount | ||
Net income | Amount |
(Continued on next page)
RYAN COMPANY | |
Retained Earnings Statement | |
For the Month Ended August 31, 2017 | |
Retained earnings, September 1, 2016 | Amount |
Add: Account title | Amount |
Total | |
Less: Account title | Amount |
Retained earnings, August 31, 2017 | Total |
RYAN COMPANY | ||
Balance Sheet | ||
August 31, 2017 | ||
Assets | ||
Current assets | ||
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Total current assets | Amount | |
Account title | Amount | |
Total assets | Amount | |
Liabilities and Stockholders’ Equity | ||
Current liabilities | ||
Account title | Amount | |
Account title | Amount | |
Account title | Amount | |
Total current liabilities | Amount | |
Stockholders’ equity |
| |
Account title | Amount | |
Account title | Amount | Amount |
Total stockholder’s equity | ||
Total liabilities and stockholders’ equity | Amount |
Exercise 4-23 is on the next page
Exercise 4-23
(a) Prepare the closing entries for the temporary accounts at August 31. (Note, enter all accounts in one box. The dates have been included to help with formatting).
Date | Account Titles and Explanation | Debit | Credit | |||
Aug 31 | | |||||
31 | ||||||
31 | ||||||
31 | ||||||