Ex 2.

Dixie Transportation Service

Balance Sheet
28th Febraury, 2011
Assets Amount - $ Liabilities and Owners equity
Cash 69,000 Notes Payable
Accounts Receivable 70,000 Accounts Payable
Supplies 14,000 Total Liabilities
Land 70,000 Owners Equity
Building 80,000 Capital Stock
Automobiles 165,000 Retained Earnings
Total Assets 468,000 Total Liab + OE

Current Assets have a life of one year or one operating cycle. They are listed in the order of
liquity. Liquidity means that can be converted into cash easily.

Cash
Notes Receivable
Accounts Receivable
Supplies
Inventory
Prepaid Expenses

Ex. 2.5 Assets Liabilites + Owners Equity

a 578,000 342,000 + 236,000

b 1,112,500 562,500 + 570,000
c 307,500 120,300 + 187,200
 2.6

Assets
a I
b D - I
Amount - $ C D
288,000 I
26,000 D D
314,000 E D (1000) - I (1500)
F I
92,000 G I
62,000 H I-D
468,000 I I-D

e listed in the order of

h easily. 2.7

A Purchased an asset on account/ credit

b Paid an accounts payable
c Sold a land for cash / accounts receivable
d Additional investment by owner
e Bought an asset on partial payment

5 = 3 + _____________
 2.8

Liabilities Owners Equity

I NA
NA NA
D NA
I NA
D NA
NA I (500)
I NA
NA I
NA NA
NA NA

ount/ credit

unts receivable
owner
payment
 Fellingham Software company

Balance Sheet
Date
Assets Amount $ Liab. + OE

Total Assets Total Liab

Owner's Equity
Sole proprietorship Spencer's Capital
Total Assets 850,000
Spencer's Capital
Partnership Yato's Capital
Partner's Capital

Shareholders' Capital stock

Corporation 10,000 shares @25
Retained Earnings
Total Owner's Equity
Amount $

460,000

390,000
850,000
195,000
195,000
390,000

250,000
140,000
390,000
 General Journal
Date Account Title and Explanation Debit
Oct-01 Cash 200,000
Capital Stock
Additional capital invested in business

4 Dignostic Equipment 75,000

Cash
Notes Payable
Purchased equipment on partial payment

12 Accounts Payble - Zeller 9,000

Cash
Paid Accounts payable to Zeller

19 Surgical Supplies 2,600

Accounts Payable
Purchased supplies on account.

25 Cash 24,000
Accounts Receivable
Collected cash from Health One Insurance

30 Dividend 300,000
Cash
 Paid dividend to shareholders

Ex.3.3
Date Account Explanation Debit
Jan-18 Cash 30,000
Capital Stock
Invested capital in business

22 Cash 20,000
Notes Payable
Borrowed money from bank

23 Advertisement Expense 100

Cash
Paid cash for radio advertisement

25 Cash 1,000
Services Revenue
Provided services for cash

26 Accounts Receivables 2,000

Services Revenue
Earned revenue on account

31 Cash 800
 Accounts Receivable
Collected cash for accounts receivables.
 Ex. 3.5
Credit Jackson's Corporation
Statement of Retained Earnings
200,000 Jan 31, 2024
Opening Balance 75,000
Add Reveunes 100,000
175,000
25,000 Less Expenses 60,000
50,000 115,000
Less Dividend 5,000
Ending Balance of Retained E. 110,000

9,000

2,600

24,000

300,000
Credit

30,000

20,000

100

1,000

2,000
800
 Ex. 3.3 T Account Form
Cash
Date Account Explanation Amount Date Account Explanation
Nov-01 120,000 Nov-08
25
30
Balance
120,000
Nov-30 Balance 73,000

Vehicles
Date Account Explanation Amount Date Account Explanation
Nov-30 9,400 Balance
9,400
Nov-30 9,400

Notes Payable
Date Account Explanation Amount Date Account Explanation
Nov-25 12,000 Nov-08
30 Balance 91,000 30
103,000
Nov-30 Balance

Accounts Payable
Date Account Explanation Amount Date Account Explanation
Nov-21 480 Nov-15
30 Balance 2,720
3,200
Nov-30 Balance

Office Equipment
Date Account Explanation Amount Date Account Explanation
Nov-15 3,200 Nov-21
30 30 Balance
3,200
Nov-30 Balance 2,720
 Avenson Insurance Company
Trial Balance
Amount Nov 30 , 2024
33,600 Account Titles Debit
12,000 Cash 73,000
1,400 Land 70,000
73,000 Building 58,600
120,000 Office Equipment 2,720
Vehicles 9,400
Notes Payable
Accounts Payable
Amount Capital Stock
9,400 Total 213,720
9,400

Amount
95,000
8,000
103,000
91,000

Amount
 3,200

3,200
2,720

Amount
480
2,720
3,200
ny Avenson Insurance Company
Trial Balance
Nov 30 , 2024
Credit Account Titles Debit Credit
Cash 73,000
Land 70,000
Building 58,600
Office Equipment 2,720
Vehicles 9,400
91,000 Notes Payable 91,000
2,720 Accounts Payable 2,720
120,000 Capital Stock 120,000
213,720 Services Revenue 80,000
Fees Revenue 2,000
Salaries Expense 25,000
Utilities Expense 12,000
Legal Expense 5,000
B. Ex. 3.2, 3.3, 3.4, 3.5, 3.7, 3.8 Ex. 3.7 Income Statement
Ex. 3.3, 3.4, 3.5, 3.7, 3.8, 3.10 Revenues -' Expenses
1 Wages Exp.
2 Cons. Revenue
3
4
5 Repair Expn.
6
7
8
atement Balance Sheet
=' NI Assets ='

A/R
Cash
Office Supplies
Cash
Cash 100 - I/ A/R 100 -D
Tools 1000 - I/ Cash 200 -D
Cash
Balance Sheet
Liabilities +' O.E.
Wages Payable

Dividend
A/P v

Notes Payable 800 - I

A/P
 General Journal
Date Account Explanation Debit
Nov-01Unexpired Insurance 3,000
Cash
Paid 6 months insurance

Nov-30Insurance Expense 500

Unexpired Insurance

Tompee Insurance
Date Account Explanation Debit
Nov-01Cash 3,000
Unearned Insurance
Recived 6 months insurance in advance

Nov-30Unearned Revenue 500

Insurance Earned

Date-4.2 Account Explanation Debit

Feb-01 Prepaid Rent 525
Cash
Paid 3 months rent in advance
 Feb-28 Rent Expense 175
Prepaid Rent
Charged charged for Feb

Watson Storage
Date Account Explanation Debit
Feb-01 Cash 525
Unearned Rent
Received 3 months Rent in Advance

Feb-28 Unearned Rent 175

Rent Revenue Earned
Charged rent income for Feb

4.3
Suppplies Expense 1,100
Supplies
Supplies charged to expense for the month

4.4 Depreciation Expense - Equip 750

Accumulated Depreciation - Equip
Charged depreciation for the month
 4.5 Services Revenue Receivable - 4067 85
Services Revenue Receivable - 3940 75
Services Revenue Receivable - 1852 90
Services Revenue Earned

4.6Unearned Revenue 29,000

Revenue Earned

4.7 Dec 31 Salaries Expense 175,000

Salaries Payable
Salaries Charged for the month

Jan-15 Salaries Payable 175,000

Cash

Salaries Expense 180,000

Cash

Instead we pass one Compound entry

Salaries Payable 175,000
Salaries Expense 180,000
Cash
 Ledger Accounts
Credit Unexpired Insurance
Nov-01 3,000 Nov-30 500 1
3,000 Bal 2,500 2
3,000 3,000 3
Nov-30 2,500 4
5
500 6

Credit

3,000

500

Credit

525
 175

Credit

525

175

Supplies
Op-bal 900Exp 1,100
Purchase 600
1,100 1500
400

Equip 72,000
750 life 8 years 96 month
Dep Exp 750/ month
 250

Unearned 32,000
29,000 earned 29,000

175,000

175,000

180,000

355,000
 Income Statement Ba
Revenues -' Expenses =' Net Income Assets
N/A Inc. Dec. Dec.
N/A Inc. Dec. N/A
Inc. N/A Inc. Inc.
N/A Inc. Dec. N/A
N/A Inc. Dec. Dec.
Inc. N/A Inc. N/A
 Balance Sheet
=' Liabilities +' Owners Equity Date
N/A Dec. 1
Inc. Dec.
n/A Inc.
Inc. Dec. 2
N/A Dec.
Dec. Inc.
3

6
 General Journal
Account Explanation Debit
Depreciation Expense - Equip
Accumulated Depreciation - Equip

Interest Expense
Interest Payable

Revenue Receivable
Revenue Earned

Salaries Expense
Salaries Payable

Insurance Expense
Prepaid Insurance

Unearned Revenue
Revenue Earned
 Assignment No. 3 - Chapter 4 B-Ex. 4.1- 4.8 - Exerci
Credit 4.9, 4.10, 4.11, Problems - 4.3 A, 4.4

Steps of Accounting Cycle

1. Pass entries in general journal
2. Post the entries in ledger accounts
3. Balance the ledger accounts
4. Prepare Trial Balance
5. Pass adjusting entries in general journal
6. Post adjusting entries in ledger accounts
7. Balance the ledger accounts
8. Prepare adjusted trial balance
9. Prepare Income Statement
10. Prepare Statement of Retained Earnings
11. Prepare Balance Sheet
12. Pass Closing Entries
13. Post the Closing entires in ledger accounts
14. Balance the ledger accounts
15. Prepare after closing trial balance
Ex. 4.1- 4.8 - Exercises 4.2, 4.5, 4.7, 4.4 A
oblems - 4.3 A, 4.4A 1

nting Cycle

ts 3

ngs 4

ounts
5

6
7

9
Account Explanation
Film Rental Expense
Prepaid Film Rental
Charged Film rental for August

Depreciation Expense - building

Accumulated Depreciation - Building
Charging depreciation for building for August

Depreciation Expense - Fixture & Equip

Accumulated Depreciation - Fixture &
Charging depreciation for building for August

Interest Expense
Interest Payable
Charging interest on N/P for August

Unearned Admissions Revenue

Admissions Revenue Earned
Charging Admissions Revenue

Concession Revenue Receivable

Concession Revenue Earned
Charging Concession Reveue earned but not received

Salaries Expense
Salaries Payable
Charging salaries for the month of August

Income Tax Expense

Income Tax Payable
Charging income tax expense for August
Debit Credit
15,200
15,200

700
700

600
600

1,500
1,500

500
500

2,250
2,250
1,700
1,700

4,200
4,200
 Campus Theater
Trial Balance
For the month ended August 31, 2015
Accounts Debit
Cash 20,000
Prepaid Film Rental 31200
Land 120,000
Building 168000
Acc. Dep Building
Fixtures and Equipment 36000
Acc. Dep Fixture and Equipment
Notes Payable
Accounts Payable
Unearned Admissions Reveune YMCA
Income Tax Payable
Capital Stock
Retained Earnings
Dividends 15000
Admissions Revenues Earned YMCA
Concessions Revenue
Salaries Expense 68500
Film Rental Expense 94500
Utilities Expense 9500
Depreciation Expense - building 4900
Depreciation Expense - Fixture and Equip 4200
Interest Expense 10500
Income Tax Expense 40000
Interest Payable
Concession Revenue Receivable
Salaries Payable
622,300
 Adjustments Adjusted Trial Balance
15
Credit Debit Credit Debit
20000
15200 16000
120000
168000
14000 700
36000
12000 600
180,000
4400
1000 500
4740 4200
40000
46610
15000
305200 500
14350 2250
1700 70200
15200 109700
9500
 700 5600
600 4800
1500 12000
4200 44200
1500
2250 2250
1700
622300 26650 26650 633250
 Campus Theater
sted Trial Balance Income Statement
For the month ended August 2015
Credit Revenues
Admissions Revenue Earned YMCA
Concessions Revenue

Expenses
14700 Salaries Expense
Film Rental Expense
12600 Utilities Expense
180000 Dep. Expense Building
4400 Dep. Fixture and Equip
500 Interest Expense
8940 Income Tax Expense
40000 Net Income
46610

305700 Campus Theater

16600 Statement of Retained Earnings
For the month ended August 2015
Opening Balance of RE
Add Net Income
 Less Dividend
Ending Balance of RE

1500

1700
633250
ater
ment
August 2015

305700
16600
322300

70200
109700
9500
5600
4800
12000
44200 256000
66300

us Theater
Retained Earnings
ended August 2015
46610
66300
112910
15000
97910
 Campus Theater
Balance Sheet
As At August 31, 2015
Assets
Cash 20000
Prepaid Film Rental 16000
Concessions Revenue Receivable 2250
Land 120000
Building 168000
Less Accumulated Depreciation 14700 153300
Fixture and Equipment 36000
Less Accumulated Depreciation 12600 23400
Total Assets 334950

Liabilities
Notes Payable 180000
Accounts Payable 4400
Unearned Admissions Rev. YMCA 500
Income Tax Payable 8940
Interest Payable 1500
Salaries Payable 1700
Total Liabilities 197040
Owner's Equity
Capital Stock 40000
Retained Earnings 97910
137910
Total Liabilities and Equity 334950