Ch. 2, Problem A, p.

45

ASSETS LIABILITIES
Date Cash A/R N/R Ofc. Supplies F&F Ofc. Equip. A/P N/P
1-Dec 200,000
1-Dec (16,400)
1-Dec (15,500) 15,500
1-Dec (40,000) 80,000 40,000
2-Dec (12,500) 12,500
2-Dec 5,600
3-Dec (4,000)
4-Dec 38,000
8-Dec 20,000
10-Dec 12,000
15-Dec (16,500)
15-Dec (10,000)
18-Dec 15,000 15,000
20-Dec 32,000 32,000
31-Dec (3,000)
31-Dec (14,250)
31-Dec (4,000) (4,000)
31-Dec 12,800 (12,800)
Totals 102,250 25,200 12,000 15,500 27,500 112,000 51,000 32,000

ASSETS = LIAB. + O/E

294,450 = 103,000 + 191,450

Virgie Litton, CPA Acctg Firm Virgie Litton, CPA Acctg Firm
Income Statement Capital Statement
For the month ended Dec. 31, 200E For the month ended Dec. 31, 200E

Professional Fees 55,600 V. Litton, Capital, Dec. 1

Less: Expenses Add: Net Profit/Income
Rent Expense 16,400 Total
Light & Water Exp. 4,000 Less: V. Litton, Drawing
Salaries Expense 30,750 V. Litton, Capital, Dec. 31
Taxes & Licenses 3,000 54,150
Net Profit/Income 1,450

Virgie Litton, CPA Acctg Firm

Statement of Financial Position
Dec. 31, 200E

ASSETS LIABILITIES & OWNER'S EQUITY

Current Assets Current Liab.
Cash 102,250 Accounts Payable 51,000
Accounts Receivable 25,200 Notes Payable 32,000
Notes Receivable 12,000 Non-Current Liab.
Office Supplies 15,500 154,950 Loan Payable 20,000
Total Liabilities 103,000
Non-Current Assets
Furniture & Fixtures 27,500 V. Litton, Capital 191,450
Office Equipment 112,000 139,500
TOTAL ASSETS 294,450 TOTAL LIAB. & O/E 294,450
 LIABILITIES V. Litton Explanation
Loans Pay. Capital to Changes in Capital
200,000 Investment
(16,400) Rent Expense

5,600 Professional Fees

(4,000) Light & Water Expenses
38,000 Professional Fees
20,000
12,000 Professional Fees
(16,500) Salaries Expense
(10,000) V. Litton, Drawing

(3,000) Taxes & Licenses

(14,250) Salaries Expense

20,000 191,450

on, CPA Acctg Firm

onth ended Dec. 31, 200E

Capital, Dec. 1 200,000

Profit/Income 1,450
201,450
tton, Drawing 10,000
Capital, Dec. 31 191,450
Ch. 2, Problem C, p. 48

ASSETS LIABILITIES

Date Cash A/R N/R Supplies Tools F & F Ofc. Equip.

Balances, 7/31 49,330 12,600 68,000
1-Aug 100,000 8,150
1-Aug 4,000
2-Aug 36,800
6-Aug (16,500)
15-Aug (12,680)
16-Aug 10,000
16-Aug (3,000)
18-Aug 6,000 (6,000)
20-Aug 50,000
31-Aug (36,000)
31-Aug (36,660)
31-Aug 2,125
31-Aug (2,500)
51,990 43,400 10,000 2,125 8,150 68,000 50,000

ASSETS = LIAB. + O/E

2,383,665 = 2,130,125 253,540
 Explanation to Changes in Capital
Accts. Notes Mortgage E. Mabilis,
Delivery Trucks Payable Payable Payable Capital
2,150,000 2,114,000 165,930
108,150 Additional Investments
4,000 Rental Income
36,800 Trucking Service Fees
(16,500) Repairs Expenses
(12,680) Gas & Oil Expenses
10,000 Trucking Service Fees
(3,000) Gas & Oil Expenses

50,000
(36,000)
(36,660) Salaries Expense
2,125
(2,500) E. Mabilis Drawing
2,150,000 2,125 50,000 2,078,000 253,540
Ch. 4:

Unadjusted Trial Balance Adjustments Adjusted Trial Balance

Debit Credit Debit Credit Debit

Cash 37,500
Accts. Receivable 28,000
Notes Receivable 1,000
Furniture & Fixture 34,500
Photocopying Equip. 220,000
Accounts Payable 26,500
Loan Payable 58,000
Note Payable 3,000
Bugoy, Capital 200,000
Bugoy, Drawing 5,000
Service Income 150,000
Rental Income 8,000 8.) 1,000
Salaries Expense 32,000
Supplies Expense 60,000 4.) 12,400
Utilities Expense 10,000
Advertising Expense 15,500 7.) 1,500
Miscellaneous Expen 2,000
445,500 445,500
Impairment Loss 1.) 500
Allowance for Impairment Loss 1.) 500
Depreciation - F & F 2.) 1,200
Acc. Depreciation - F & F 2.) 1,200
Depreciation -Photo. Eq. 3.) 22,000
Acc. Depreciation- Photo. Eq. 3.) 22,000
Supplies 4.) 12,400
Interest Receivable 5.) 20
Interest Income 5.) 20
Interest Expense 6.) 80
Interest Payable 6.) 80
Prepaid Advertising 7.) 1,500
Unearned Rental Income 8.) 1,000
38,700 38,700
Adjusted Trial Balance Income Statement Statement of Fin. Position

Credit Debit Credit Debit Credit

C.1.
1.) Impairment Loss 500
Allowance for Impairment Loss 500

2.) Depreciation 1200

Acc. Depreciation- F & F 1200

3.) Depreciation 22000

Acc. Depreciation- Photo. Eq. 22000

4.) Supplies 12400

Supplies Expense 12400

5.) Interest Receivable 20

Interest Income 20

6.) Interest Expense 80

Interest Payable 80

7.) Prepaid Advertising 1500

Advertising Expense 1500

8.) Rental Income 1000

Unearned Rental Income 1000