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Balance sheet Accounts
Cash Accounts receivable
__________________________ __________________________
1/1 Bal. 30,000 1/1 Bal. 15,000
a. 70,000 50,000 d. a. 30,000 27,300 b.
b. 27,300 24,000 e.
c. 10,000 15,000 f.
2,500 g.
_______________ _______________
12/31 Bal. 45,800 12/31 Bal. 17,700
Equipment Allow. for uncollectible accounts
__________________________ __________________________
1/1 Bal. 20,000 500 1/1 Bal.
f. 15,000 1,000 Adjusting
_______________ _______________
Bal. 35,000 1,500 12/31 Bal.
Accumulated depreciation Salaries payable
__________________________ __________________________
6,000 1/1 Bal. 9,000 1/1 Bal.
2,000 Adjusting d. 9,000 1,000 Adjusting
_______________ _______________
8,000 12/31 Bal. 1,000 12/31 Bal.
Common stock Retained earnings
__________________________ __________________________
40,000 1/1 Bal. 9,500 1/1 Bal.
10,000 c. g. 2,500
_______________ _______________
50,000 12/31 Bal. 7,000 12/31 Bal.
Problem 2-6 (continued)
InCOME STATEMENT Accounts
Service revenue Miscellaneous expenses
__________________________ __________________________
0 1/1 Bal. 1/1 Bal. 0
100,000 a. e. 24,000
_______________ _______________
100,000 12/31 Bal. 12/31 Bal. 24,000
Depreciation expense Bad debt expense
__________________________ __________________________
1/1 Bal. 0 1/1 Bal. 0
Adjusting 2,000 Adjusting 1,000
_______________ _______________
12/31 Bal. 2,000 12/31 Bal. 1,000
Salaries expense
__________________________
1/1 Bal. 0
d. 41,000
Adjusting 1,000
_______________
12/31 Bal. 42,000
Problem 2-6 (continued)
Requirement 6
| Account Title | Debits | Credits | ||
| Cash | 45,800 | |||
| Accounts receivable | 17,700 | |||
| Allowance for uncollectible accounts | 1,500 | |||
| Equipment | 35,000 | |||
| Accumulated depreciation | 8,000 | |||
| Salaries payable | 1,000 | |||
| Common stock | 50,000 | |||
| Retained earnings | 7,000 | |||
| Service revenue | 100,000 | |||
| Salaries expense | 42,000 | |||
| Miscellaneous expenses | 24,000 | |||
| Depreciation expense | 2,000 | |||
| Bad debt expense | 1,000 | ______ | ||
| Totals | 167,500 | 167,500 | ||
Requirement 7
| KARLIN COMPANY | ||||
| Income Statement | ||||
| For the Year Ended December 31, 2011 | ||||
| Service revenue ....................................... | $100,000 | |||
| Operating expenses: | ||||
| Salaries ............................................... | $42,000 | |||
| Miscellaneous ..................................... | 24,000 | |||
| Depreciation ....................................... | 2,000 | |||
| Bad debt ............................................. | 1,000 | |||
| Total operating expenses ...... | 69,000 | |||
| Net income .............................................. | $ 31,000 | |||
Problem 2-6 (continued)
| KARLIN COMPANY | |||||
| Balance Sheet | |||||
| At December 31, 2011 | |||||
| Assets | |||||
| Current assets: | |||||
| Cash ....................................................... | $45,800 | ||||
| Accounts receivable ............................... | $17,700 | ||||
| Less: Allowance for uncollectible accounts | (1,500) | 16,200 | |||
| Total current assets ............................ | 62,000 | ||||
| Property and equipment: | |||||
| Equipment ............................................. | 35,000 | ||||
| Less: Accumulated depreciation ............. | (8,000) | 27,000 | |||
| Total assets ....................................... | $89,000 | ||||
| Liabilities and Shareholders' Equity | |||||
| Current liabilities: | |||||
| Salaries payable ..................................... | $ 1,000 | ||||
| Total current liabilities ....................... | 1,000 | ||||
| Shareholders’ equity: | |||||
| Common stock ....................................... | $50,000 | ||||
| Retained earnings ................................... | 38,000* | ||||
| Total shareholders’ equity ................. | 88,000 | ||||
| Total liabilities and shareholders’ equity | $89,000 | ||||
*Beginning balance of $9,500 plus net income of $31,000 less dividends of $2,500.
Problem 2-6 (continued)
Requirement 8
December 31, 2011
Service revenue......................................................... 100,000
Income summary................................................... 100,000
Income summary....................................................... 69,000
Salaries expense.................................................... 42,000
Miscellaneous expenses......................................... 24,000
Depreciation expense............................................ 2,000
Bad debt expense.................................................. 1,000
Income summary....................................................... 31,000
Retained earnings.................................................. 31,000
Problem 2-6 (continued)
Balance sheet Accounts
Cash Accounts receivable
__________________________ __________________________
1/1 Bal. 30,000 1/1 Bal. 15,000
a. 70,000 50,000 d. a. 30,000 27,300 b.
b. 27,300 24,000 e.
c. 10,000 15,000 f.
2,500 g.
_______________ _______________
12/31 Bal. 45,800 12/31 Bal. 17,700
Equipment Allow. for uncollectible accounts
__________________________ __________________________
1/1 Bal. 20,000 500 1/1 Bal.
f. 15,000 1,000 Adjusting
_______________ _______________
Bal. 35,000 1,500 12/31 Bal.
Accumulated depreciation Salaries payable
__________________________ __________________________
6,000 1/1 Bal. 9,000 1/1 Bal.
2,000 Adjusting d. 9,000 1,000 Adjusting
_______________ _______________
8,000 12/31 Bal. 1,000 12/31 Bal.
Common stock Retained earnings
__________________________ __________________________
40,000 1/1 Bal. 9,500 1/1 Bal.
10,000 c. g. 2,500
31,000 Closing
_______________ _______________
50,000 12/31 Bal. 38,000 12/31 Bal.
Problem 2-6 (continued)
InCOME STATEMENT Accounts
Service revenue Miscellaneous expenses
__________________________ __________________________
0 1/1 Bal. 1/1 Bal. 0
100,000 a. e. 24,000
Closing 100,000 24,000 Closing
_______________ _______________
0 12/31 Bal. 12/31 Bal. 0
Depreciation expense Bad debt expense
__________________________ __________________________
1/1 Bal. 0 1/1 Bal. 0
Adjusting 2,000 Adjusting 1,000
2,000 Closing 1,000 Closing
_______________ _______________
12/31 Bal. 0 12/31 Bal. 0
Date: 2015-12-11; view: 1495
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