Comprehensive Problem

Comprehensive Problem

GENERAL JOURNAL DATE Sep

ACCOUNT TITLES and EXPLANATION 1 Cash Anthony Ferrara Capital Investment made by the owner 1 Prepaid rent Cash Paid rent in advance

LP 1 30

6 1

DEBIT $ CREDIT $ 100,000 100,000

9,000 9,000 180,000

1 Rental Equipmnet Cash Notes Payable Purchased equipmnet on partail cash

10 1 20

4 Office supplies Accounts Payable Purchased office supplies on accounts

8 22

1,630

8 Cash

1 29

10,000

12 Salaries Expense Cash Paid salaries

60 1

3,600

15 Cash Accounts Receivable Rental Fee Earned Received cash in advance

1 4 50

5,300 800

17 Maintenance Expense Accounts payable Purchased rental parts on accounts

61 22

340

1 4

210

26 Salaries Expense Cash Paid salaries

60 1

3,600

27 Accounts Payable Cash

22 1

340

Unearned Rental Fees Received cash in advance

23 Cash Accounts Receivable Received cash on accounts

90,000 110,000

1,630

10,000

3,600

6,100

340

210

25 NO ENTRY

3,600

340

Paid cash on accounts 28 Anthony Ferrara Drawing Cash Withdrew Cash

35 1

2,000

7 1

2,700

30 Utilities expense Accounts payable Received a bill for utility

62 22

270

30 Cash

1 50

2,000

29 NO ENTRY 29 Unexpired Insurance Cash Purchased insurance policy

Rental fee Earned Received cash in advance

2,700

270

ADJUSTING ENTRIES DATE ACCOUNT TITLES and EXPLANATION 30-Sep (a) Rent Expense Prepaid Rent Adjusted the Monthly rent in rent expense

LP 63 6

DEBIT $ CREDIT $ 3,000 3,000

(b) Interest Expense Interest Payable Unrecorded expense being recorded

66 25

825

© Depreciation Expense: Rental Equipment Accumulated Depriciation:Rental Equip 180,000 1 1500 10 12 Recoded depreciation for rental equipment

65 12

1500

(d) Office Supplies Expense Office Supplies 1630-1500=530 Unrecorded Expense being recorded

64 8

530

(e) Unearned Rental Fees Rental fees Earned Part Of advances earned

29 50

4,840

(f) Accounts Receivable Rental Fee Earned 100*5=500 Unrecorded revenue being recorded

4 50

500

(g) Salaries Expense

60

900

825

1500

530

4,840

500

Salaries Payable unrecorded expense being recorded Tony's Rental Adjusted Trial Balance Sep 30, 20__ ACCOUNTS TITLE DEBIT $ Cash 32,720 Accounts Receivable 1,090 Prepaid Rent 6,000 Unexpired Insurance 2,700 Office Supplies 1100 Rental Equipment 180,000 Accumulated Depriciation:Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Unearned Rental Fee Anthony Ferrara Capital Anthony Ferrara Drawings 2,000 Rental fee earned Salaries Expense 8,100 Maintenance Expense 340 Utilities Expense 270 Rent Expense 3,000 Office Supplies Expense 530 Depriciation Expense: Rental Equipment 1,500 Interest Expense 825 Total 240,175

EXPENSES Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Exp Dep. Exp: Rental Eq Interest Expense Net Income Total

DEBIT Anthony Ferrara Drawing

Tony's Rental Income Statement Sep 30, 20__ $ REVENUES 8,100 Rental fee Earned 340 270 3,000 530 1,500 825 5,325 19,890 Tony's Rental Statement of owners Equity Sep 30, 20__ $ CREDIT 2,000 Anthony Ferrara capital

26

900

CREDIT $

1,500 110,000 1,900 825 900 5,160 100,000 19,890

240,175

$ 19,890

19,890

$ 100,000

Capital as on sep 30

103,325 Net Income 105,325

5,325 105,325

Tony's Rental Balance Sheet Sep 30, 20__ $ Liabilities+O' Equity 32,720 LIABILITIES 1,090 Accounts Payable 6,000 Interest Payable 2,700 Salary Payable 1,100 Notes Payable Unearned rent 178,500 Total Laibilities Owners Equity

ASSETS Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Acc Dep 180,000 -15,000

$ 1,900 825 900 110,000 5,160 118,785 103,325 Err:522

Anthony Ferrar Capital

Total Assets

Err:522

CLOSING ENTRIES DATE 30-Sep

ACCOUNT TITLES and EXPLANATION Rental Fee Earned Income Summary To Close revenues into income summary

LP 50 40

Income Summary Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Exp Dep. Exp: Rental Eq To close expenses into income summary

40 60 61 62 63 64 65

DEBIT $ CREDIT $ 19,890 19,890

14,565 8,100 340 270 3,000 530 1,500

INCOME SUMMARY Bal DATE 30-Sep

14,565 5,325

19,890

ACCOUNT TITLES and EXPLANATION Income Summary Anthony Ferrara Capital To Close Profit to capital account

LP 40 30

Anthony Ferrara Capital Anthony Ferrara Drawing To close drawing to capital

30 35

DEBIT $ CREDIT $ 5,325 5,325

2,000 2,000

Tonys Rental After closing, Trial balance Sep 30, 20__ ACCOUNTS TITLE DEBIT $ Cash 32,720 Accounts Receivable 1,090 Prepaid Rent 6,000 Unexpired Insurance 2,700 Office Supplies 1100 Rental Equipment 180,000 Accumulated Depriciation:Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Unearned Rental Fee Anthony Ferrara Capital Total 223,610

CREDIT $

1,500 110,000 1,900 825 900 5,160 103,325 223,610

Problem4-9

ADJUSTING ENTRIES DATE ACCOUNT TITLES and EXPLANATION 31-Jul (a) Film Rental Expense Prepaid film rental Adjusted the Monthly rent in rent expense

LP

DEBIT $ CREDIT $ 15,200 15,200

(b) Depreciation Expense: Building Accumulated Depreciation: Building 168,000 1 700 20 12 Recorded Depreciation for Building

700

© Depreciation Expense: Projection Equipment

600

700

600

Accumulated Depriciation:Projection Eq

36,000 1 600 5 12 Recoded depreciation for projection equipment (d) Interst Expense Interest Payable Unrecorded expense being recorded (e) Unearned Admission Revenue Admission Revenue Part of advances earned

1,650 1,650

500 500

(f) Concession Receivable Concession Revenue Unrecorded revenue being recorded

2,250

(g) Salaries Expense Salaries Payable unrecorded expense being recorded

1,500

2,250

1,500

Kent Cinema Adjusted Trial Balance July 31, 19__ ACCOUNTS TITLE DEBIT $ Cash 20,000 Concessions Receivable 2,250 Prepaid Film Rental 16,000 Land 80,000 Building 168,000 Accumulated Depriciation:Building Projection Equipment 36,000 Accumulated Depriciation:Projection Equip Notes Payable Accounts Payable Interest Payable Salaries Payable Unearned Admission Revenue Li Trong Capital Li Trong Drawings 3,500 Admission Revenue Concessions Revenue Salaries Expense 10,200 Light & Power Expense 1,800 Depriciation Expense: Building 700 Depriciation Expense: Projection Equipment 600 Film Rental Expense 15,200 Interest Expense 1,650 Total 355,900

EXPENSES Salaries Expense Light & Power expense Dep exp: Building dep Exp: Projection Eq Film Rental expense Interest Expense Net Income Total

Kent Cinema Income Statement July 31, 19__ $ REVENUES 10,200 Admission Revenue 1,800 Concession Revenue 700 600 15,200 1,650 9,500 39,650

CREDIT $

11,200 3,600 190,000 4,400 1,650 1,500 500 103,400 37,400 2,250

355,900

$ 37,400 2,250

39,650

Kent Cinema Statement of owners equity July 31, 19__ $ CREDIT 3,500 Li Tong Capital 109,400 Net Income 112,900

DEBIT Li Tong Drawing

Capital as on sep 30

$ 103,400 9,500 112,900

Kent Cinema Balance Sheet July 31, 19__ $ Liabilities+O' Equity 20,000 LIABILITIES 2,250 Unearned admission 16,000 Interest Payable 80,000 Salary Payable Notes Payable 156,800 Accounts Payable Total Laibilities Owners Equity

ASSETS Cash Concessions receivable Prepaid Film Rental Land Building Acc Dep 168,000 -11,200 Projection equipment Acc Dep 36,000 -3,600 Total Assets

$ 500 1,650 1,500 190,000 4,400 198,050 109,400

Li Tong Capital

32,400 307,450

307,450

CLOSING ENTRIES DATE 30-Sep

ACCOUNT TITLES and EXPLANATION Admission Revenue Concession Revenue Income Summary To Close revenues into income summary

LP

Income Summary Salaries Expense Light & Power Expense Depriciation Expense: Building Depriciation Expense: Projection Eq Film Rental Expense Interest Expense To close expenses into income summary

DEBIT $ CREDIT $ 37,400 2,250 39,650

30,150 10,200 1,800 700 600 15,200 1,650

INCOME SUMMARY Bal DATE 30-Sep

30,150 9,500

ACCOUNT TITLES and EXPLANATION Income Summary Li Tong Capital

39,650

DEBIT $ CREDIT $ 9,500 9,500

To Close Profit to capital account Li Tong Drawing Li Tong Capital To close drawing to capital

Kent Cinema After closing, trail Balance July 31, 19__ ACCOUNTS TITLE DEBIT $ Cash 20,000 Concessions Receivable 2,250 Prepaid Film Rental 16,000 Land 80,000 Building 168,000 Accumulated Depriciation:Building Projection Equipment 36,000 Accumulated Depriciation:Projection Equip Notes Payable Accounts Payable Interest Payable Salaries Payable Unearned Admission Revenue Li Trong Capital Total 322,250

3,500 3,500

CREDIT $

11,200 3,600 190,000 4,400 1,650 1,500 500 109,400 322,250

Problem4-10

ADJUSTING ENTRIES DATE ACCOUNT TITLES and EXPLANATION 30-Jun (a) Depriciation Expense: Aircraft Accumulated Depreciation: Aircraft 1.2m 1 10,000 10 12 Recorded Depreciation for aircraft (b) Unearned Passenger revenue Passenger revenue Part of advances earned © Salaries Expense

LP

DEBIT $ CREDIT $ 10,000 10,000

38,650 38,650

3,300 3,300

Salaries payable

unrecorded expense being recorded (d) Interst Expense Interest Payable Unrecorded expense being recorded

5,000

(e) Accounts receivable Freight Revenue Unrecorded revenue being recorded

4,600

(f) Rent expense Prepaid rent Advances rent transferred to expense account

4,800

(g) Insurance Expense Unexpired Insurance unrecorded expense being recorded

2,100

5,000

4,600

4,800

2,100

Island Hopper Adjusted Trial Balance 30-Jun-97 ACCOUNTS TITLE DEBIT $ Cash 23,600 Accounts Receivable 11,800 Prepaid Rent 4,800 Unexpired Insurnace 18,900 Aircraft 1,200,000 Accumulated Depriciation:Aircraft Notes Payable Interest Payable Salaries Payable Unearned Passenger Revenue Mary Earhart Capital Mary Earhart Drawing 7,000 Freight Revenue Passenger Revenue Salaries Expense 70,000 Fuel Expense 53,800 Depriciation Expense: Aircraft 10,000 Maintenance expense 12,900 Rent Expense 4,800 Insurance Expense 2,100 Interest Expense 5,000 Total 1,424,700

EXPENSES Salaries Expense Fuel Expense Maintenance Expense Rent Expense Insurance Expense Dep. Exp: Aircraft

Island Hopper Income Statement 30-Jun-97 $ REVENUES 70,000 Freight Revenue 53,800 Passenger Revenue 12,900 4,800 2,100 10,000

CREDIT $

390,000 600,000 5,000 3,300 21,350 230,850 135,550 38,650

1,424,700

$ 135,550 38,650

Interest Expense Net Income Total

5,000 15,600 174,200

174,200

Island Hopper Statement Of owners equity 30-Jun-97 $ CREDIT 7,000 Mary Earhart Capital 239,450 Net Income 246,450

DEBIT Mary Earhart Drawing

Capital as on sep 30

$ 230,850 15,600 246,450

Island Hopper Balance Sheet 30-Jun-97 $ Liabilities+O' Equity 23,600 LIABILITIES 11,800 Unearned passenger 4,800 Interest Payable 18,900 Salary Payable Notes Payable 810,000 Total Laibilities Owners Equity

ASSETS Cash Accounts Receivable Prepaid Rent Unexpired Insurance Aircraft Acc Dep 1,200,000 -390,000

21,350 5,000 3,300 600,000 629,650 239,450

Mary Earhart Capital

Total Assets

$

869,100

869,100

CLOSING ENTRIES DATE 30-Sep

ACCOUNT TITLES and EXPLANATION Freight Revenue Passenger Revenue Income Summary To Close revenues into income summary Income Summary Salaries Expense Fuel Expense Depriciation Expense: Aircraft Maintenance expense Rent Expense Insurance Expense Interest Expense To close expenses into income summary

Bal

DEBIT $ CREDIT $ 135,550 38,650 174,200

158,600 70,000 53,800 10,000 12,900 4,800 2,100 5,000

INCOME SUMMARY 158,600 15,600

LP

174,200

DATE 30-Sep

ACCOUNT TITLES and EXPLANATION Income Summary Mary Earhart Capital To Close Profit to capital account Mary Earhart Drawing Mary Earhart Capital To close drawing to capital

Island Hopper After closing Trial Balance 30-Jun-97 ACCOUNTS TITLE DEBIT $ Cash 23,600 Accounts Receivable 11,800 Prepaid Rent 4,800 Unexpired Insurnace 18,900 Aircraft 1,200,000 Accumulated Depriciation:Aircraft Notes Payable Interest Payable Salaries Payable Unearned Passenger Revenue Mary Earhart Capital Total 1,259,100

DEBIT $ CREDIT $ 15,600 15,600

7,000 7,000

CREDIT $

390,000 600,000 5,000 3,300 21,350 239,450 1,259,100