| Cash Accounts receivable__________________________ __________________________
Bal. 30,000 Bal. 40,000
_______________ _______________
12/31 Bal. 30,000 12/31 Bal. 40,000
Prepaid rent Allowance for uncollectible accounts
__________________________ __________________________
Bal. 2,000 3,000 Bal.
1,000 9. 2,500 2.
_______________ _______________
Bal. 1,000 5,500 12/31 Bal.
Prepaid insurance Supplies
__________________________ __________________________
Bal. 0 Bal. 1,500
6. 3,750 700 7.
_______________ _______________
12/31 Bal. 3,750 12/31 Bal. 800
Inventory Note receivable
__________________________ __________________________
Bal. 60,000 Bal. 20,000
_______________ _______________
12/31 Bal. 60,000 12/31 Bal. 20,000
Equipment Interest receivable
__________________________ __________________________
Bal. 80,000 Bal. 0
5. 1,333
_______________ _______________
12/31 Bal. 80,000 12/31 Bal. 1,333
Problem 2-4 (continued)
Accumulated depreciation Accounts payable
__________________________ __________________________
30,000 Bal. 28,000 Bal.
10,000 1.
_______________ _______________
40,000 12/31 Bal. 28,000 12/31 Bal.
Wages payable Note payable
__________________________ __________________________
0 Bal. 50,000 Bal.
1,500 3.
_______________ _______________
1,500 12/31 Bal. 50,000 12/31 Bal.
Interest payable Unearned revenue
__________________________ __________________________
0 Bal. 0 Bal.
1,500 4. 2,000 8.
_______________ _______________
1,500 12/31 Bal. 2,000 12/31 Bal.
Common stock Retained earnings
__________________________ __________________________
60,000 Bal. 24,500 Bal.
_______________ _______________
60,000 12/31 Bal. 24,500 12/31 Bal.
Problem 2-4 (continued)
InCOME STATEMENT Accounts
Sales revenue Interest revenue
__________________________ __________________________
148,000 Bal. 0 Bal.
8. 2,000 1,333 5.
_______________ _______________
146,000 12/31 Bal. 1,333 12/31 Bal.
Cost of goods sold Wage expense
__________________________ __________________________
Bal. 70,000 Bal. 18,900
3. 1,500
_______________ _______________
12/31 Bal. 70,000 12/31 Bal. 20,400
Rent expense Depreciation expense
__________________________ __________________________
Bal. 11,000 Bal. 0
9. 1,000 1. 10,000
_______________ _______________
12/31 Bal. 12,000 12/31 Bal. 10,000
Interest expense Supplies expense
__________________________ __________________________
Bal. 0 Bal. 1,100
4. 1,500 7. 700
_______________ _______________
12/31 Bal. 1,500 12/31 Bal. 1,800
Insurance expense Bad debt expense
__________________________ __________________________
Bal. 6,000 Bal. 3,000
3,750 6. 2. 2,500
_______________ _______________
12/31 Bal. 2,250 12/31 Bal. 5,500
Problem 2-4 (continued)
Requirement 3
|
|
|
|
| Account Title
| Debits
| | Credits
|
| Cash
| 30,000
|
|
|
| Accounts receivable
| 40,000
|
|
|
| Allowance for uncollectible accounts
|
|
| 5,500
|
| Prepaid rent
| 1,000
|
|
|
| Prepaid insurance
| 3,750
|
|
|
| Supplies
|
|
|
|
| Inventory
| 60,000
|
|
|
| Note receivable
| 20,000
|
|
|
| Interest receivable
| 1,333
|
|
|
| Equipment
| 80,000
|
|
|
| Accumulated depreciation-equipment
|
|
| 40,000
|
| Accounts payable
|
|
| 28,000
|
| Wages payable
|
|
| 1,500
|
| Note payable
|
|
| 50,000
|
| Interest payable
|
|
| 1,500
|
| Unearned revenue
|
|
| 2,000
|
| Common stock
|
|
| 60,000
|
| Retained earnings
|
|
| 24,500
|
| Sales revenue
|
|
| 146,000
|
| Interest revenue
|
|
| 1,333
|
| Cost of goods sold
| 70,000
|
|
|
| Wage expense
| 20,400
|
|
|
| Rent expense
| 12,000
|
|
|
| Depreciation expense
| 10,000
|
|
|
| Interest expense
| 1,500
|
|
|
| Supplies expense
| 1,800
|
|
|
| Insurance expense
| 2,250
|
|
|
| Bad debt expense
| 5,500
|
| ______
|
| Totals
| 360,333
|
| 360,333
|
|
|
|
|
|
|
Problem 2-4 (continued)
Requirement 4
|
|
|
| PASTINA COMPANY
|
|
| | Income Statement
|
|
| | For the Year Ended December 31, 2011
|
|
| |
|
|
|
| Sales revenue .........................................
|
| $146,000
|
| Cost of goods sold .................................
| | 70,000
|
| Gross profit ...........................................
|
| 76,000
|
|
|
|
|
| Operating expenses:
|
|
|
| Wages..................................................
| $20,400
|
|
| Rent ....................................................
| 12,000
|
|
| Depreciation........................................
| 10,000
|
|
| Supplies ..............................................
| 1,800
|
|
| Insurance ............................................
| 2,250
|
|
| Bad debt .............................................
| 5,500
|
|
| Total operating expenses ............
| | 51,950
|
| Operating income
|
| 24,050
|
| Other income (expense):
|
| |
| Interest revenue ..................................
| 1,333
|
|
| Interest expense .................................
| (1,500)
| (167)
|
| Net income .............................................
|
| $ 23,883
|
|
|
|
|
| | | | | | | | | |
Problem 2-4 (continued)
PASTINA COMPANY
Statement of Shareholders' Equity
For the Year Ended December 31, 2011
Total
Common Retained Shareholders’
Stock Earnings Equity
Balance at January 1, 2011 $60,000 $28,500 $ 88,500
Issue of common stock - 0 - - 0 -
Net income for 2011 23,883 23,883
Less: Dividends ______ (4,000) (4,000)
Balance at December 31, 2011 $60,000$48,383$108,383
Problem 2-4 (continued)
|
|
|
| PASTINA COMPANY
| Balance Sheet
| At December 31, 2011
| |
|
|
| Assets
|
|
|
|
|
|
|
| Current assets:
|
|
|
| Cash .......................................................
|
| $ 30,000
|
| Accounts receivable ...............................
| $40,000
|
|
| Less: Allowance for uncollectible accounts
| (5,500)
| 34,500
|
| Supplies .................................................
|
|
|
| Inventory ...............................................
|
| 60,000
|
| Note receivable .......................................
|
| 20,000
|
| Interest receivable ..................................
|
| 1,333
|
| Prepaid rent ...........................................
|
| 1,000
|
| Prepaid insurance ...................................
|
| 3,750
|
| Total current assets ............................
|
| 151,383
|
|
|
|
|
| Equipment ................................................
| 80,000
|
|
| Less: Accumulated depreciation .............
| (40,000)
| 40,000
|
| Total assets ......................................
|
| $191,383
|
|
|
|
|
| Liabilities and Shareholders' Equity
|
|
|
|
| Current liabilities
|
|
|
| Accounts payable ....................................
|
| $ 28,000
|
| Wages payable ........................................
|
| 1,500
|
| Note payable ..........................................
Interest payable ......................................
|
| 50,000
1,500
|
| Unearned revenue ...................................
|
| 2,000
|
| Total current liabilities .........................
|
| 83,000
|
|
|
|
|
| Shareholders’ equity:
|
|
|
| Common stock ........................................
| $60,000
|
|
| Retained earnings ....................................
| 48,383
|
|
| Total shareholders’ equity ...................
|
| 108,383
|
| Total liabilities and shareholders’ equity
|
| $191,383
|
| | | | | | | Problem 2-4 (continued)
Requirement 5
December 31, 2011
Sales revenue............................................................. 146,000
Interest revenue......................................................... 1,333
Income summary................................................... 147,333
Income summary....................................................... 123,450
Cost of goods sold................................................. 70,000
Wage expense........................................................ 20,400
Rent expense......................................................... 12,000
Depreciation expense............................................ 10,000
Interest expense..................................................... 1,500
Supplies expense .................................................. 1,800
Insurance expense................................................. 2,250
Bad debt expense.................................................. 5,500
Income summary ($147,333 - 123,450)........................... 23,883
Retained earnings.................................................. 23,883
Problem 2-4 (continued)
Sales revenue Interest revenue
__________________________ __________________________
148,000 Bal. 0 Bal.
8. 2,000 1,333 5.
Closing 146,000 Closing 1,333
_______________ _______________
0 12/31 Bal. 0 12/31 Bal.
Cost of goods sold Wage expense
__________________________ __________________________
Bal. 70,000 Bal. 18,900
3. 1,500
70,000 Closing 20,400 Closing
_______________ _______________
12/31 Bal. 0 12/31 Bal. 0
Date: 2015-12-11; view: 1543
|