Week 2 Homework Template

Problem 3-2B: (a) Show the effects of each transaction on the accounting equation. Enter each amount in the proper column. Assume the note payable is to be repaid within the year.

REMEMBER: each transaction affects TWO accounts! Use the + or – signs to indicate whether the amount increased or decreased the account. Total up each account in the last line of the worksheet then “check” your work by totaling up Assets, Liabilities and Equity. Put each transaction on a separate line.

Remember the accounting equation: assets = liabilities + equity. Note any changes in Retained Earnings on the page below the worksheet.

(a) WALZ SERVICE INC.

    Assets  =   Liabilities +   Stockholders’ Equity

Date Cash

  • Accounts Receivable + Supplies + Equipment
    = Notes Payable + Accounts Payable + Common Stock + Retained Earnings
    Revenues – Expenses – Dividends
    June 1

Totals

            $  $  
    Total of All Columns under Assets   Total of All columns under Liabilities & Stockholder’s Equity   

(a) Continued

Changes in Retained Earnings:

(b) Prepare an Income Statement for June

WALZ SERVICE INC.
Income Statement
For the Month Ended June, 30, 2014
Revenues
Account title Amount
Expenses
Account title Amount
Account title Amount
Account title Amount
Account title Amount
Total expenses Amount
Net income Amount

(Part C is on the next page)
(c) Prepare a Classified balance sheet at June 30, 2014 (Remember, assets and liabilities + equity MUST equal). If it doesn’t, there is an error somewhere).

WALZ SERVICE Inc.
Balance Sheet
June 30, 2014

Assets
Current assets
Account title Amount
Account title Amount
Account title Amount
Total current assets Amount
Account title Amount
Total assets Amount

Liabilities and Stockholders’ Equity
Current liabilities
Account title Amount
Account title Amount
Total current liabilities Amount
Stockholders’ equity
Account title Amount
Account title Amount Amount
Total liabilities and stockholders’ equity Amount

Problem 3-5B is on the next page.

(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).

Remember that every transaction affects TWO accounts!

Date Account Titles and Explanation Debit Credit
May 1

    2                       

    3                       

    7                       

    11                      

    12                      

    17                      

31                      

31                      

Part B is on the next page.
PROBLEM 3-5B (Continued)

(b) Post the transactions to the ledger T Accounts
Be sure to post the amounts to the correct side of the T-Account!

Cash

Bal.

Accounts Receivable

Bal.

Supplies

Bal.

Accounts Payable

Bal. 

Unearned Service Revenue

Bal.

Common Stock

 Bal.

Service Revenue

 Bal.

Salaries and Wages Expense

Bal.

Rent Expense

Bal.

PROBLEM 3-5B (Continued) Prepare a Trial Balance on May 31, 2014.

(c) ROYCE CONSULTING
Trial Balance
May 31, 2014

Account Name Debit Credit

Total

E4-13. Answer questions A through D. Remember to show your calculations! (Add more space as necessary).

(E 4-14 is on the next page).
E4-14. Prepare the closing entries at January 31, 2014.
(Enter all accounts for each transaction in one box. Dates have been provided).

Date Account Titles and Explanation Debit Credit
Jan 31

    31                      

    31                      

E4-15. Journalize (a) the July transactions and (b) adjusting entries that were made on July 31. Enter all accounts in one box. Dates have been provided.

Part A

Date Account Titles and Explanation Debit Credit
July 10

    14                      

    15                      

    20                      

Part B

Date Account Titles and Explanation Debit Credit
July 10

    14                      

    15                      

    20                      

E4-16 Prepare the adjusting entries that were made:

(a) Enter all accounts in one box. The dates have been included to help with formatting.

Date Account Titles and Explanation Debit Credit
Aug 31

    31                      

    31                      

    31                      

    31                      

    31                      

E4-17 Prepare the income statement and retained earnings statements for the year and the classified balance sheet at August 31.

BERE COMPANY
Income Statement
For the Month Ended August 31, 2014
Revenues
Account title Amount
Account title Amount
Total Revenues
Expenses
Account title Amount
Account title Amount
Account title Amount
Account title Amount
Account title Amount
Total expenses Amount
Net income Amount

(Continued on next page)

BERE COMPANY
Retained Earnings Statement
For the Month Ended August 31, 2014
Retained earnings, September 1, 2011 Amount
Add: Account title Amount
Total
Less: Account title Amount
Retained earnings, August 31, 2012 Total

BERE COMPANY
Balance Sheet
August 31, 2014

Assets
Current assets
Account title Amount
Account title Amount
Account title Amount
Account title Amount
Total current assets Amount
Account title Amount
Total assets Amount

Liabilities and Stockholders’ Equity
Current liabilities
Account title Amount
Account title Amount
Account title Amount
Total current liabilities Amount
Stockholders’ equity
Account title Amount
Account title Amount Amount
Total stockholder’s equity
Total liabilities and stockholders’ equity Amount

Exercise 4-18 is on the next page

Exercise 4-18

(a) Prepare the closing entries for the temporary accounts at August 31. (Note, enter all accounts in one box. The dates have been included to help with formatting).

Date Account Titles and Explanation Debit Credit
Aug 31

    31                      

    31                      

    31                      

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