sady's solutions practice exercise

8/22/2019 Sady's Solutions Practice Exercise

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General Journal

Date Debit Credit

a. Supplies expense 700.00Suupplies 700.00

b. Depreciation expense:furn. 300.00

Accumulate Depreciation: furn. 300.00

Depreciation expense: Equip 375.00

Accumulate Depreciation : Equip 375.00

c. Interest expense 800.00

Interest payable 800.00

d. Insurance expense 220.00

Prepaid insurance 220.00

e. Uneraned revenue 700.00

Service revenue 700.00

f. Salaries expense 500.00

Salaries payable 500.00

General Ledger

Date Details Debit Credit Balance

2003 Cash A/c1-Dec Opening Balance 14,200.00 14,200.00

Accounts receivable A/c

1-Dec Opening Balance 4,400.00 4,400.00

Supplies A/c


a Supplies expense 700.00 700.00

Supplies expense a/c

a Supplies 700.00 700.00

30-Dec Income summary 700.00 -

Prepaid Insurance A/c

1-Dec Opening balance 1,300.00 1,300.00

d Insurance expense 220.00 1,080.00

Insurance expense A/c

For the quarter ended December 30, 2003


Sady's Solutions

Account title & Details

Adjusting Entries

Sady's Solutions


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d Prepaid insurance 220.00 220.00

Income summary 220.00 -

Equipment A/c


Furniture A/c1-Dec Opening balance 8,000.00 8,000.00

Investmrnt A/c


Notes Payable A/c


Accounts payable A/c


Unearned revenue A/c


e Service revenue 700.00 900.00

Service revenue A/c


e Unearned revenue 700.00 16,500.00

Common stock A/c


Dividends A/c


Retained earnings 1,200.00 -

Salaries expense A/c


f Salaries payable 500.00 2,800.00

30-Dec Income summary 2,800.00 -

Salaries payable A/c

f Salaries expense 500.00 500.00

Miscellaneous expense A/c

1-Dec Opening balance 450.00 450.00


Travel expense A/c


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1-Dec Opening balance 550.00 550.00


Rent expense A/c


30-Dec Income summary 1,000.00 -

Depreciation expense A/c: Furn.

b Accumulated depreciation: Furni 300.00 300.00


Accumulated depreciation A/c :Furn

Depreciation expense: Furn 300.00 300.00

Depreciation expense A/c: Equip

b Accumulated depreciation: Equip 375.00 375.00


Accumulated depreciation A/c: Equip

b Depreciation expense: Equip 375.00 375.00

Interest expense A/c

c. Interest payable 800.00 800.00


Interest payable A/c

c Interest expense 800.00 800.00

Retained earnings A/c

30-Dec Income summary 9,305.00 9,305.00

30-Dec Dividends 1,200.00 8,105.00

Income summary A/c

30-Dec Service revenue 16,500.00 16,500.00

30-Dec Supplies expense 700.00

Insurance expense 220.00

Salaries expense 2,800.00

Miscellaneous expense 450.00

Travel expense 550.00

rent expense 1,000.00

Depreciation Exp: Furniture 300.00

Depreciation Exp: Equipment 375.00

Interest expense 800.00 9,305.00

Retained earnings 9,305.00 -


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Adjusted trial balnce

Account titles Debit Credit

Cash 14,200.00

Accounts receivable 4,400.00

Supplies 700.00

Supplies expense 700.00

Prepaid insurance 1,080.00Insurance expense 220.00

Equipment 30,000.00

Furniture 8,000.00

Investment 15,000.00

Notes payable 40,000.00

Accounts payable 2,400.00

Uneraned revenue 900.00

Service revenue 16,500.00

Common stock 20,000.00

Dividends 1,200.00

Salaries expense 2,800.00


Miscellaneous expense 450.00

Travel expense 550.00

Rent expense 1,000.00

Depreciation expense: Furn 300.00

Accumlated depreciation :fur 300.00

Depreciation expense: Equip 375.00

Accumulated depreciation :Equip 375.00

Interest expense 800.00

Interest payable 800Total 81,775.00 81,775.00


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Sady's Solutions

Revenues:

Servcie revenue 16,500.00

Less expenses:

Supplies 700.00

Insurance 220.00

Salaries 2,800.00

Miscellaneous 450.00

Travel 550.00

Rent 1,000.00

Depreciation expense: Furn 300.00

Depreciation expense Equip 375.00

Interest 800.00

Total expenses 7,195.00

Net income 9,305.00

Retained earnings Statement

Retained earnings Sept 30, 2003 -

Add net income 9,305.00

9,305.00

Less dividends 1,200.00

Retained earnings Dec 30, 2003 8,105.00

Balance Sheet

Assets

Current assest:

Cash 14,200.00

Accounts receivable 4,400.00

Supplies 700.00

Prepaid insurance 1,080.00

Total current assets 20,380.00

Long term investment:

Investment in Homez Dev Group 15,000.00

Property Plant & Equipment

Equipment 30000

Less accumulated depreciation 375 29,625.00

Furniture 8000

Income Statement



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lessaccumulated depreciation 300 7,700.00

Total property , plant & equipment 37,325.00

Total assest 72,705.00

Liabilities & Stockholders equity

Current liabilities:Notes payable (Due, first quartr 2004) 5,000.00





Total current liabilities 9,600.00

Long term liabilities

Notes payable ( Due in excess of a year) 35,000.00

Stockholders equity

Common Stock 20,000.00

Retained earnings 8,105.00

Total stockholders equity 28,105.00

Total liabilities & stockholders equity 72,705.00

General Journal

Date Account titles & Details Debit Credit

2003 Closing entries

30-Dec Service revenue 16,500.00Income summary 16,500.00

To close off revenues for the quarter

Income summary 7,195.00

Supplies expense 700.00

Insurance 220.00

Salaries 2,800.00

Miscellaneous 450.00

Travel 550.00

Rent 1,000.00

Depreciation:Fur 300.00

Depreciation: Equip 375.00

Interest 800.00

To close off expenses for the period

Income summary 9,305.00


To close off net income to retained earnings


Dividends 1,200.00


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To close off dividents to Retained earnings

Post Closing Trial Balance

Account titles Debit Credit

Cash 14,200.00

Accounts receivable 4,400.00Supplies 700.00

Prepaid insurance 1,080.00

Equipment 30,000.00

Furniture 8,000.00

Investment 15,000.00

Notes payable 40,000.00



Common stock 20,000.00

salaries payable 500.00

Accumulated depreciation:Fur 300.00

Accumulatedepreciation: Equip 375.00



Total 73,380.00 73,380.00

sady's solutions practice exercise

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