Text Book Financial Accounting: Tools for Business Decision Making, 7th Edition

| June 2, 2016

Question
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)
Assets

Date

Cash

Liabilit +
i
e
s
Accounts
+ Receivable +

WALZ SERVICE INC.

=

Stockholders Equity

Supplies

+

Equipme
nt

=

Notes
Payable

+

Accounts
Common
Payable +
Stock

Retained Earnings
Revenues

June 1

Totals
+

Expenses

Div

$
$
Total
of All
Colu
mns
under
Assets

Total
of All
colum
ns
under
Liabil
ities
&
Stock
holder
s
Equit
y

(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
Expenses
Account title
Account title
Account title
Account title
Total expenses
Net income

Amount
Amount
Amount
Amount
Amount
Amount
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 doesnt, there is an error somewhere).
WALZ SERVICE Inc.
Balance Sheet
June 30, 2014
Assets
Current assets
Account title
Account title
Account title
Total current assets
Account title
Total assets

Amount
Amount
Amount
Amount
Amount
Amount

Liabilities and Stockholders Equity
Current liabilities
Account title
Account title
Total current liabilities
Stockholders equity
Account title
Account title
Total liabilities and stockholders equity

Amount
Amount
Amount
Amount
Amount

Amount
Amount

Problem 3-5B is on the next page.

3-4

Copyright © 2011 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 6/e, Solutions Manual(For Instructor Use Only)

(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!
Account Titles and Explanation

Date
May

1

2
3
7
11
12
17
31
31

Debit

Credit

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!
Salaries and Wages Expense
Cash
Bal.
Bal.
Rent Expense
Accounts Receivable
Bal.
Bal.

Supplies
Bal.

Accounts Payable
Bal.

Unearned Service Revenue
Bal.

Common Stock
Bal.

Service Revenue
Bal.

3-6

Copyright © 2011 John Wiley & Sons, Inc.Kimmel, Financial Accounting, 6/e, Solutions Manual(For Instructor Use Only)

PROBLEM 3-5B (Continued) Prepare a Trial Balance on May 31, 2014.
(c)

Account Name

ROYCE CONSULTING
Trial Balance
May 31, 2014
Debit

Total

E4-13. Answer questions A through D. Remember to show your calculations! (Add more
space as necessary).

Credit

(E 4-14 is on the next page).E4-14. Prepare the closing entries at January 31, 2014.
(Enter all accounts for each transaction in one box. Dates have been provided).
Account Titles and Explanation

Date
Jan

Debit

Credit

31
31
31

E4-15. 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
Account Titles and Explanation

July

Debit

Credit

Account Titles and Explanation

Date

Debit

Credit

10
14
15
20

Part B

July

10
14
15
20

E4-16 Prepare the adjusting entries that were made:
(a) Enter all accounts in one box. The dates have been included to help with formatting.
Account Titles and Explanation

Date
Aug

Debit

Credit

31

31
31
31
31
31

E4-17 Prepare the income statement and retained earnings statements for the year and the
classified balance sheet at August 31.
BERE COMPANY
Income Statement
For the Month Ended August 31, 2014
Revenues
Account title
Account title
Total Revenues
Expenses
Account title
Account title
Account title
Account title
Account title
Total expenses
Net income
(Continued on next page)

Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount

BERE COMPANY
Retained Earnings Statement
For the Month Ended August 31, 2014
Retained earnings, September 1, 2011
Add: Account title
Less: Account title
Retained earnings, August 31, 2012

Amount
Amount
Total
Amount
Total

BERE COMPANY
Balance Sheet
August 31, 2014
Assets
Current assets
Account title
Account title
Account title
Account title
Total current assets
Account title
Total assets

Amount
Amount
Amount
Amount
Amount
Amount
Amount

Liabilities and Stockholders Equity
Current liabilities
Account title
Account title
Account title
Total current liabilities
Stockholders equity
Account title
Account title
Total stockholders equity
Total liabilities and stockholders equity
Exercise 4-18 is on the next page

Amount
Amount
Amount
Amount
Amount
Amount

Amount
Amount

Exercise 4-18
(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).
Account Titles and Explanation

Date
Aug

31
31
31
31

Debit

Credit

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