"Week 2 I)Frontier Park was started on April 1 by C.J Mendez and associates. The following selected events and transactions occurred during April. April 1 Stockholders invested $40,000 cash in the business in exchange for common stock. 4 Purchased land costing $30,000 for cash. 8 Incurred advertising expense of $1,800 on account. 11 Paid salaries to employee $1,500. 12 Hired park manager at a salary of $4,000 per month, effective May 1. 13 Paid $1,500 cash for a one ?year insurance policy. 17 Declared and paid a $1,000 cash dividend. 20 Received $5,700 in cash for admission fees. 25 Sold 100 coupon books for $25 each.Each book contains 10 coupons that entitle the holder to 1 admission per park. 30 Received $8,900 in cash admission fees. 30 Paid $900 on balance owed for advertisiing incurred on April 8. Mendez uses the following account: Cash;Prepaid Insurance;Land;Accounts payable;Unearned Admissions Revenue; Common Stock;Dividends; Admission Revenue; Advertising Expense; and Salaries Expense. II) Jane Kent is a Licensed CPA. During the first month of operations of her business, Jane Kent Inc, the following events and transactions occurred. May 1 Stockholders invested $25,000 cash in exchange for comon stock. 2 Hired a secretary-receptionist at a salary of $2,000 per month. 3 Purchased $2,500 of supplies on acount from Read Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,100 for services provided. 12 Received $3,500 advance on a management consulting engagement . 17 Received cash of $1,200 for services completed for H. Arnold Co. 31 Paid Secretary-receptionist $2,000 salry for the month. 31 Paid 40% of balance due Read Supply Company. Jane uses the following chart accounts: No. 101 Cash, Mo. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No.311 Common Stock, No. 400 Service Revenue, no. 726 Salaries Expense, and No. 729, Rent Expense. Instructions (a) Journalize the transactions. (b) Post to the lefger accounts (c) Prepare a trial balance on May 31,2008. III)Tony Masasi started his own consulting firm, Masasi Company, Inc, on June 1 2008.The trial balance at June 30 is shown on page 129. MASASI COMPANY, INC Trial Balance June 30,2008 Account Number Debit Credit 101 Cash 7,150 112 Accounts Receivable 6000 126 Supplies 2000 130 Prepaid Insurance 3000 157 Office Equipent 15000 201 Accounts Payable 4500 209 Unearned Revenue 4000 311 Common Stock 21750 400 Service Revenue 7900 726 Salaries Expense 4000 729 Rent Expense 1000 38,150 38,150 In addition to those accounts listed on the trial balance , the chart of accounts for Masasi Company, Inc. also contains the following account numbers: No. 158 Accumulated Depreciation ?Office Equipment, No. 212 Salaries Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, no 722 Insurance Expense, and No. 732 Utilities Expense. Other Data: 1. Supplies on hand at June 30 are $600 2. A utility I bill for 4150 has not been recorded and will not be paid until next month. 3. The Insurance policy is for a year. 4. $2,500 of unearned service revenue has been earned at the end of the month. 5. Salaries of $2,000 are accrued at June 30. 6. The office equipment has 5-year life with no slavage value. It is being deperciated at $250 per month for 60 moths. 7. Invoicees representing $1,000 of services performed during the month have been recorded as of June 30. Instructions a)Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal. b) Post the adjusting entries to the ledger accounts. Enter the total from the trial balane as beginning account balances and place a check mark in the posting reference clumn c)Prepare an adjusted trial balance at June 30,2008. IV) NEOSHO RIVER RESORT, INC. Trial Balance August 31,2008 Account Number Debit Credit 101 Cash $19,600 126 Supplies 3330 130 Prepaid Insurance 6000 140 Land 25000 143 Cottages 125000 149 Furniture 26000 201 Accounts Payable $6,500 208 Unearned Rent 7400 275 Mortgage Payable 80000 311 Common Stock 100000 332 Dividends 5000 429 Rent Revenue 80000 622 Repair Expense 3600 726 Salaries Expense 51000 732 Utilities Expense 9400 273,900 273,900 In addition to those accounts listed on the trial balance, the chart of accounts for Neosho River Resort also contains the following accounts and account numbers: No.112 Accounts Receivable, No. 144 Accumulated Depreciation-Cottages, no. 150 accumulated Depreciation-Furniture, No.212 Salaries payable, No 230 Interest Payable, No. 320 Retained Earnings, No.620 Depreciation Expense-Cottages No. 621 Depreciation Expense-Furniture , No.631 Supplies Expense , No 718 Interest Expense, and No. 722 Insurance Expense. Other Data: 1.Insurance expires the rate of $400 per month. 2.A count on August 31 shows $600 of supplies on hand. 3.Annual depreciation is $6,000 on cottages and $2400 on furniture 4.Uneraned rent of $4100 was earned prior to august 31. 5.Salaries of $400 were unpaid at August 31.(Use Accounts Receivable.) 7.The mortagage interest rate is 9% per year(The mortgage was taken out on august 1.) Instructions (a) Journalize the adjusting entries onaugust 31 for the 3-month period June 1-August 31 (b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries (Use J1 as the posting reference) (c) Prepare an adjusted trial balance on August 31. (d) Prepare an income statement and retained earnings statement for the 3 months ending August 31 and a balance sheet as of August 31. Week 3 1)Thomas Magnum began operations as a private investigator on January 1, 2008 . The trail balance columns of the worksheet for Thomas Magnum, P.I at March 31 are as follows. THOMAS MAGNUM, P.I., INC Work Sheet For the Quarter Ended March 31, 2008 TRIAL BALANCE Account Titles Dr. Cr. 11400 Cash 5620 Accounts Receivable 1050 Supplies 2400 Prepaid Insurance 30000 Equipment Notes Payable 10000 Accounts Payable 12350 Common stock 20000 Dividends 600 Service Revenue 13620 Salaries Expense 2200 Travel Expense 1300 Rent Expense 1200 Miscellaneous Expense 200 55,970 55970 Other data: 1. Supplies on hand total $380. 2. Depreciation is $1,000 per quarter. 3. Interest accrued on 6-month note payable, issued January 1, $300. 4. Insurance expires at the rate of $200 per month. 5. Services provided but unbilled at March 31 total $530. Instructions (a) Enter the trial balance on a worksheet and complete the worksheet. Prepare an income statement and a retained earnings statement for the quarter and classified balance sheet at March 31. Additional common stock was issued during the quarter ended March 31, 2008. (b) Journalize the adjusting entries from the adjustments columns of the worksheet. (c) Journalize the adjusting entries from the adjustments columns of the worksheet. (d) Journalize the closing entries from the financial statement columns of the worksheet. ii) II) The adjusted trial balance columns of the worksheet for Porter Company are as follows. PORTER COMPANY Worksheet For the Year Ended December 31, 2008 Adjusted Trial Balance Account No. Account Titles Dr. Cr. 101 Cash 4400 112 Accounts Receivable 44000 126 Supplies 130 Prepaid Insurance 151 Office Equipment 152 Accumulated Depreciation-Office Equipment 20000 200 Notes Payable 20000 201 Accounts Payable 8000 212 Salaries Payable 2600 230 Interest Payable 1000 311 Common Stock 30000 320 Retained Earnings 6000 332 Dividends 12000 400 Service Revenue 77800 610 Advertising Expense 12,000 631 Supplies Expense 3700 711 Depreciation Expense 8000 722 Insurance Expense 4000 726 Salaries Expense 39000 905 Interest Expense 1000 Totals 165400 165400 Instructions a)Complete the worksheet by extending the balances to the financial statement columns.(Net income $10,100) b)Prepare an income statement, a retained earnings statement, and a classified balance sheet.(Current assets $41700 Current liabilities $21,600). $10,000 of the notes payable become due in 2009.No additional issuance of common stock occurred during 2008. c)Prepare the closing entries. Use JI4 for the journal page. d)Post the closing entries. Use the three column form of account. Income Summary is account No. 350. e)Prepare a post closing-trial balance.(Post ?closing trial balance $85,700). iii)The completed financial statement columns of the worksheet for Woods Company Inc. are shown below: WOODS COMPANY, INC Worksheet For the Year Ended December 31,2008 Income Statement Balance Sheet Account No. Account Titles Dr. Cr. Dr. Cr. 101 Cash 8200 112 Accounts Receivable 7500 130 Prepaid Insurance 1800 157 Equipment 28000 167 Accumulated Depreciation 8600 201 Accounts Payable 11700 212 Salaries payable 3000 311 Common stock 20000 320 Retained Earnings 14000 332 Dividends 400 Service Revenue 44000 7200 622 Repair Expense 5400 711 Depreciation Expense 2800 722 Insurance Expense 1200 726 Salaries Expense 35200 732 Utilities Expense 4000 Totals 48600 44000 52700 57300 Net Loss 4600 4600 48600 48600 57300 57300 Instructions a) Prepare an income statement, a retained earnings statement, and classified balance sheet. No additional common stock was issued during 2008. b) Prepare the closing entries c) Post the closing entries and rule and balance the accounts . Use T accounts, Income Summary is account No.350. d) Prepare a post-closing trial balance.
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