E2-1Name: SolutionEx:1Wainwright CorporationTrial
BalanceDateAccount Titles / ExplanationsDebitCreditCashAccounts
PayableCommon StockAccount
TitleDebitCredit1Cash300,0001300,00010,0002770,00090,0003300,0001Cash264,000Common
stock300,000855,0005,0005Accounts
Receivable65,0006,000620,000BInventory20,00070,0007Prepaid
Insurance6,0002Equipment40,000B264,000Equipment40,000Cash10,000Notes
PayableRetained EarningsAccumulated Depreciation1,000Notes
Payable30,000Accounts Receivable30,0002Accounts
Payable20,0004120,00055,0008Notes Payable30,000Common
Stock300,0003Inventory90,000B65,000Retained Earnings0.0Accounts
payable90,000SalesSales120,000Inventory120,0004Cost of Goods
Sold70,000390,00070,0004Rent Expense5,0004Accounts
receivable120,000Depreciation Expense1,000Cost of goods
sold70,000B20,000Total471,000471,000Sales revenue120,000Cost of
Goods SoldInventory70,000Prepaid Insurance470,00066,000
5Rent expense5,000Cash5,000Rent
ExpenseEquipment55,000240,0006Prepaid
insurance6,000Cash6,000Depreciation ExpenseAccumulated
Depreciation91,0007Accounts payable70,0001,0009Cash70,000
8Cash55,000Accounts receivable55,000
9Depreciation expense1,000Accumulated depreciation1,000
Check:757,000757,000
E2-4
Name: SolutionEx:4
DateAccount Titles / ExplanationsDebitCreditAccount:
CashAccount:
Sales1Cash500,000DateExplanationDebitCreditBalanceDateExplanationDebitCreditBalanceCommon
stock500,0001500,000500,0004280,000280,000240,000460,00056,000454,0002Furniture
and fixtures100,00063,000451,000Cash40,0007120,000331,000Account:
Cost of Goods SoldNotes
Payable60,000855,000386,000DateExplanationDebitCreditBalance5,000381,0004140,000140,000
3Inventory200,000Accounts payable200,000Account: Accounts
ReceivableAccount: Rent
ExpenseDateExplanationDebitCreditBalanceDateExplanationDebitCreditBalance4Accounts
receivable280,0004280,000280,00056,0006,000Cost of goods
sold140,000855,000225,000Sales
revenue280,000Inventory140,000Account: InventoryAccount: Insurance
ExpenseDateExplanationDebitCreditBalanceDateExplanationDebitCreditBalance5Rent
expense6,0003200,000200,00011250250Cash6,0004140,00060,000
6Prepaid insurance3,000Account: Prepaid InsuranceAccount:
Depreciation
ExpenseCash3,000DateExplanationDebitCreditBalanceDateExplanationDebitCreditBalance63,0003,000102,0002,000112502,7507Accounts
payable120,000Cash120,000Account: Furniture and
FixturesDateExplanationDebitCreditBalanceStridewell
Corporation8Cash55,0002100,000100,000Trial BalanceAccounts
receivable55,000Account TitleDebitCreditCash381,000Accounts
Receivable225,0009Retained earnings5,000Account: Accumulated
DepreciationInventory60,000Cash5,000DateExplanationDebitCreditBalancePrepaid
Insurance2,750102,0002,000Furniture and Fixtures100,000Accumulated
Depreciation2,00010Depreciation expense2,000Accounts
Payable80,000Accumulated depreciation2,000Notes
Payable60,000Account: Accounts PayableCommon
Stock500,000DateExplanationDebitCreditBalanceRetained
Earnings5,0000.011Insurance
expense2503200,000200,000Sales280,000Prepaid
insurance2507120,00080,000Cost of Goods Sold140,000$3,000 / 12
monthsRent Expense6,000Check:1,411,2501,411,250Insurance
Expense250Account: Notes PayableDepreciation
Expense2,000DateExplanationDebitCreditBalanceTotal922,000922,000260,00060,000
Account: Common
StockDateExplanationDebitCreditBalance1500,000500,000
Account: Retained
EarningsDateExplanationDebitCreditBalance95,000(5,000)
E12
Name: Ex:12Ex: 2-12DateAccount Titles /
ExplanationsDebitCredit12/31/13Sales revenue750,000Interest
revenue3,000Income summary753,000
12/31/13Income summary576,000Cost of goods sold420,000Salaries
expense100,000Rent expense15,000Depreciation expense30,000Interest
expense5,000Insurance expense6,000
12/31/13Income summary177,000Retained
earnings177,000$753,000-576,000
P2-2
Name: 2
2013Account Titles / ExplanationsDebitCreditAccount:
CashAccount: Sales
revenue1/1Cash100,000DateExplanationDebitCreditBalanceDateExplanationDebitCreditBalanceCommon
stock100,0001/1100,000100,0001/1012,00012,0001/42,40097,6001/2210,00022,0001/1530,000127,6001/2Inventory
35,0001/206,000121,600Accounts
payable35,0001/2210,000131,600Account: Cost of Goods
Sold1/2415,000116,600DateExplanationDebitCreditBalance1/266,000122,6001/107,0007,0001/4Prepaid
insurance
2,4001/281,000121,6001/226,00013,000Cash2,4001/304,000117,600
Account: Accounts ReceivableAccount: Wage Expense1/10Accounts
receivable12,000DateExplanationDebitCreditBalanceDateExplanationDebitCreditBalanceCost
of goods sold7,0001/1012,00012,0001/206,0006,000Sales
revenue12,0001/266,0006,000Inventory7,000
Account: InventoryAccount: Utilities
Expense1/15Cash30,000DateExplanationDebitCreditBalanceDateExplanationDebitCreditBalanceNotes
payable30,0001/235,00035,0001/281,0001,0001/107,00028,0001/226,00022,0001/20Wage
expense6,000Cash6,000Account: Prepaid InsuranceAccount: Rent
ExpenseDateExplanationDebitCreditBalanceDateExplanationDebitCreditBalance1/42,4002,4001/302,0002,0001/22Cash10,000Cost
of goods sold6,000Sales revenue10,000Inventory6,000Account: Prepaid
RentDateExplanationDebitCreditBalanceStridewell
Corporation1/302,0002,000Trial Balance1/24Accounts
payable15,000Account TitleDebitCreditCash15,000Cash117,600Accounts
Receivable6,000Account: Accounts
PayableInventory22,0001/26Cash6,000DateExplanationDebitCreditBalancePrepaid
Insurance2,400Accounts receivable6,0001/235,00035,000Prepaid
Rent2,0001/2415,00020,000Accounts Payable20,000Notes
Payable30,0001/28Utilities expense1,000Common
Stock100,000Cash1,000Account: Notes PayableRetained
Earnings0.0DateExplanationDebitCreditBalanceSales22,0001/1530,00030,000Cost
of Goods Sold13,0001/30Prepaid rent2,000Wage Expense6,000Rent
expense2,000Utilities Expense1,000Cash4,000Rent
Expense2,000Account: Common
StockTotal172,000172,000Check:234,400234,400DateExplanationDebitCreditBalance1/1100,000100,000
Account: Retained EarningsDateExplanationDebitCreditBalance
P2-3Name: SolutionDate:Prob:3
DateAccount Titles / ExplanationsDebitCredit1Depreciation
expense10,000Accumulated depreciation10,000
2Wage expense1,500Wages payable1,500
3Interest expense1,500Interest payable1,500$50,000 * 12% *
3/124Interest receivable1,333Interest revenue1,333$20,000 * 8% *
10/125Prepaid insurance3,750Insurance expense3,750$6,000 *
15/246Supplies expense700Supplies700$1,500-8007Sales
revenue2,000Unearned revenue2,000
8Rent expense1,000Prepaid expense1,000
Check:21,78321,783
P2-7Name: SolutionDate:Prob:7
DateAccount Titles / ExplanationsDebitCredit1Interest
receivable600Interest revenue600$10,000 * 12% * 1/22Depreciation
expense6,000Accumulated depreciation6,000$30,000 * 1/53Unearned
revenue2,000Rent revenue2,000$6,000 * 2/64Prepaid
insurance1,500Insurance expense1,500$2,400 * 15/245Interest
expense600Interest payable600$20,000 * 12% * 3/126Supplies
expense1,100Supplies1,100$1,800-700Check:11,80011,800IncomeOver /
(Under)Adjustments to revenues:Interest revenue -
understatement$(600)Rent revenue - understatement(2,000)(2,600)
Adjustments to expenses:Insurance expense -
overstatement1,500Depreciation - understatement(6,000)Interest
expense - understatement(600)Supplies expense -
understatement(1,100)(6,200)Overstatement of net income$3,600
P2-13Name:SolutionExcalibur CorporationUnadjusted Trial
BalanceAdjusting EntriesAdjusted Trial BalanceIncome
StatementBalance SheetDecember 31,
2013DebitCreditDebitCreditDebitCreditDebitCreditDebitCreditCash23,30023,30023,300Accounts
receivable32,50032,50032,500Inventory65,00065,00065,000Supplies0.0500500500Prepaid
rent0.01,0001,0001,000Equipment75,00075,00075,000Accumulated
depreciation - Equipment10,0009,37519,37519,375Accounts
payable26,10026,10026,100Wages payable3,0001,5004,5004,500Notes
payable30,00030,00030,000Interest payable0.01,0001,0001,000Common
stock80,00080,00080,000Retained earnings16,05016,05016,050Sales
revenue180,000180,000180,000Cost of goods
sold95,00095,00095,000Wage expense32,3501,50033,85033,850Rent
expense14,0001,00013,00013,000Supplies
expense2,0005001,5001,500Depreciation
expense0.09,3759,3759,375Utility expense6,0006,0006,000Interest
expense0.01,0001,0001,000Totals345,150345,15013,37513,375357,025357,025159,725180,000197,300177,025Net
income20,27520,275180,000180,000197,300197,300
Excalibur CorporationExcalibur CorporationIncome
StatementBalance SheetFor the Year Ended December 31, 3013December
31, 2013
Sales revenue$180,000Current assets:Cost of goods
sold95,000Cash$23,300Gross profit85,000Accounts
receivable32,500Inventory65,000Operating
expenses:Supplies500Wages33,850Prepaid rent1,000Rent13,000Total
current assets122,300Supplies expense1,500Depreciation
expense9,375Property and equipment:Utility
expense6,000Equipment75,000Total operating expenses63,725Less:
Accumulated depreciation19,375Operating income21,275Total property
and equipment55,625Other expenses:Total assets$177,925Interest
expense1,000Net income$20,275Current liabilities:Accounts
payable$26,100Wages payable4,500Notes payable30,000Interest
payable1,000Total current liabilities61,600
Shareholders' equity:Common stock80,000Retained
earnings36,325Total shareholders' equity116,325Total liabilities
& shareholders' equity$177,925
Excalibur CorporationStatement of Shareholders' EquityDecember
31, 2013TotalCommonRetainedShareholders' StockEarningsEquityBalance
at January 1, 2013$80,000$22,050$102,050Common stock issuance0.0Net
income20,27520,275Dividends(6,000)(6,000)Balance at December 31,
2103$80,000$36,325$116,325
2013Account Titles / ExplanationsDebitCredit31-DecSales
revenue180,000Income summary180,000
31-DecIncome summary159,725Cost of goods sold95,000Wage
expense33,850Rent expense13,000Supplies expense1,500Depreciation
expense9,375Utility expense6,000Interest expense1,000
31-DecIncome summary20,275Retained earnings20,275
