E2-18 (10-20 min.

Journal
Date Accounts and Explanations Debit Credit
Aug 1 Cash 60,000
Common Stock 60,000
Issued stock
2 Supplies 200
Accounts Payable 200
Purchased supplies on account
4 Building 50,000
Cash 50,000
Paid cash for a building
6 Cash 3,000
Service Revenue 3,000
Performed Services for cash
9 Accounts Payable 100
Cash 100
Paid cash on account
17 Accounts Receivable 2,100
Service Revenue 2,100
Performed service on account
23 Cash 1,200
Accounts Receivable 1,200
Received cash on account
31 Salary Expense 1,200
Rent Expense 500
Cash 1,700
Paid Cash Expenses
E2-19 (15-20 min.)

Cash Accounts Receivable

Aug. 1 60,000 Aug-04 50,000 Aug. 17 2,300 Aug. 23 1,200
Aug. 6 3,000 Aug-09 100
Aug. 23 1,200 Aug-31 1,700
Bal. 12,400 $- Bal. 1,100 $-

Supplies Building
Aug. 2 200 Aug. 4 $50,000

Bal. 200 $- Bal. 50,000 $-

Accounts Payable Common Stock

Aug. 9 100 8/2 $200 Aug. 1 60,000

$- Bal. 100 $- Bal. 60,000

Service Revenue Salary Expense

Aug. 6 3,000 Aug. 31 1,200
Aug. 17 2,100
$- Bal. 5,100 Bal. 1,200 $-

Rent Expense
Aug. 31 500

Bal. 500 $-
E2-19 Req. 2

Woodward Technology Solutions, Inc.

Trial Balance
August 31, 2007
Account Debit Credit
Cash $12,400
Accounts Receivable 900
Supplies 200
Building 50,000
Accounts Payable 100
Common Stock 60,000
Service Revenue 5,100
Salary Expense 1,200
Rent Expense 500
Total $65,200 $65,200
E2-16 (10-15 min.)

Journal
Date Accounts and Explanations Debit Credit
Dec 2 Utilities Expense 300
Cash 300

5 Equipment 2,000
Accounts Payable 2,000

10 Accounts Receivable 1,600

Service Revenue 1,600

12 Cash 7,000
Note Payable 7,000

19 Cash 29,000
Land 29,000

21 Supplies 600
Cash 600

27 Accounts Payable 2,000

Cash 2,000
E2-17 (10-15 min.)

Cash Accounts Receivable

12/1 $3,000 12/1 $300 12/10 $1,600
12/12 $7,000 12/21 $600
12/19 $29,000 12/27 $2,000
Bal. $36,100 $- Bal. $1,600 $-

Equipment Land
12/5 $2,000 12/1 $29,000 12/19 $29,000

Bal. $2,000 $- $- $-

Supplies Accounts Payable

12/21 $600 12/27 $2,000 12/5 $2,000

Bal. $600 $- $- $-

Notes Payable Common Stock

12/12 $7,000 12/1 $32,000

$- Bal. $7,000 $- Bal. $32,000

Service Revenue Utilities Expense

12/10 $1,600 12/2 $300

$- Bal. $1,600 Bal. $300 $-

Total Debits Total Credits

< Equal >
 < Equal >
$40,600 $40,600
P2-33A (45-60 min.)

Req. 1
Journal Page 3
Date Accounts and Explanations Post Ref Debit Credit
Feb 4 Cash 11 3,500
Accounts Receivable 12 3,500
Received on account
8 Accounts Receivable 12 7,000
Service Revenue 41 7,000
Performed services on account
13 Accounts Payable 21 1,000
Cash 11 1,000
Paid on account
18 Supplies 13 100
Accounts Payable 21 100
Purchased supplies on account
20 Dividends 32 1,200
Cash 11 1,200
Paid dividends
21 Paid deck for residence; not a transaction of the business

22 Cash 11 5,500
Service Revenue 41 5,500
Performed service for cash
28 Rent Expense 52 800
Cash 11 800
Paid Rent
28 Salary Expense 51 1,800
Cash 11 1,800
Paid employee salaries
Req. 2
Account Cash Account No. 11
Journal Balance
Date Item Ref Debit Credit Debit Credit
Jan 31 Bal √ 2,000
Feb 4 J.3 3,500 5,500 0
13 J.3 1,000 4,500 0
20 J.3 1,200 3,300 0
22 J.3 5,500 8,800 0
28 J.3 800 8,000 0
28 J.3 1,800 6,200 0

Account Accounts Receivable Account No. 12

Journal Balance
Date Item Ref Debit Credit Debit Credit
Jan. 31 Bal √ 9,500
Feb 4 J.3 3,500 6,000 0
8 J.3 7,000 13,000 0

Account Supplies Account No. 13

Journal Balance
Date Item Ref Debit Credit Debit Credit
Jan. 31 Bal √ 800
Feb 18 J.3 100 900 0

Account Land Account No. 14

Journal Balance
Date Item Ref Debit Credit Debit Credit
Jan. 31 Bal √ 18,600
Account Accounts Payable Account No. 21
Journal Balance
Date Item Ref Debit Credit Debit Credit
Jan. 31 Bal √ 3,000
Feb 13 J.3 1,000 - 2,000
18 J.3 100 - 2,100

Account Common Stock Account No. 31

Journal Balance
Date Item Ref Debit Credit Debit Credit
Jan 31 Bal √ 27,900

Account Dividends Account No. 32

Journal Balance
Date Item Ref Debit Credit Debit Credit
Feb 20 J.3 1,200 1,200 0
0

Account Service Revenue Account No. 41

Journal Balance
Date Item Ref Debit Credit Debit Credit
Feb 8 J.3 7,000 - 7,000
22 J.3 5,500 - 12,500
 Account Salary Expense Account No. 51
Journal Balance
Date Item Ref Debit Credit Debit Credit
Feb. 28 J.3 1,800 1,800 -

Account Rent Expense Account No. 52

Journal Balance
Date Item Ref Debit Credit Debit Credit
Feb. 28 J.3 800 800 -
0

Req. 3 John Hilton, CPA, PC

Trial Balance
February 28, 2007
Acct No. Account Debit Credit
11 Cash $6,200
12 Accounts Receivable 13,000
13 Supplies 900
14 Land 18,600
21 Accounts Payable 2,100
31 Common Stock 27,900
32 Dividends 1,200
41 Service Revenue 12,500
51 Salary Expense 1,800
52 Rent Expense 800
Total $42,500 $42,500
P2-44 (20-30 min.)

Reqs. 1 and 3

Cash Accounts Receivable

Dec. 2 $10,000 Dec. 2 $500 Dec. 9 $1,700
Dec. 18 $800 Dec. 3 $2,000
Dec. 12 $200
Bal. $8,100 $- Bal. $1,700 $-

Supplies Equipment
Dec. 5 $300 Dec. 3 $2,000

Bal. $300 $- Bal. $2,000 $-

Furniture Accounts Payable

Dec. 4 $3,600 Dec. 4 $3,600
Dec. 5 $300
Bal. $3,600 $- $- Bal. $3,900

Common Stock Dividends

Dec. 2 $10,000

$- Bal. $10,000 $- $-

Service Revenue Rent Expense

Dec. 9 $1,700 Dec. 2 $500
Dec. 18 $800
$- Bal. $2,500 Bal. $500 $-

Utilities Expense Salary Expense

Dec. 12 $200

Bal. $200 $- $- $-
Req. 2
Journal Page 3
Date Accounts and Explanations Post Ref Debit Credit
Dec. 2 Cash 10,000
Common Stock 10,000

2 Rent Expense 500

Cash 500

3 Equipment 2,000
Cash 2,000

4 Furniture 3,600
Accounts Payable 3,600

5 Supplies 300
Accounts Payable 300

9 Accounts Receivable 1,700

Service Revenue 1,700

12 Utilities Expense 200

Cash 200

18 Cash 800
Service Revenue 800
Req. 4 Redmon Consulting, Inc.
Trial Balance
December 31, 20XX
Account Debit Credit
Cash $8,100
Accounts Receivable 1,700
Supplies 300
Equipment 2,000
Furniture 3,600
Accounts Payable 3,900
Common Stock 10,000
Dividends 0
Service Revenue 2,500
Rent Expense 500
Utilities Expense 200
Salary Expense 0
Total $16,400 $16,400
Decision Case 1

Reqs. 1 and 3

Cash Accounts Receivable

a) $10,000 b) $300 e) $10,000 f) $1,200
f) $1,200 d) $2,500
Bal. $8,400 $- Bal. $8,800 $-

Supplies
b) $300

Bal. $300 $-

Accounts Payable Common Stock

c) $700 a) $10,000

$- Bal. $700 $- Bal. $10,000

Service Revenue Salary Expense

e) $8,800 d) $1,400

$- Bal. $8,800 Bal. $1,400 $-

Rent Expense Advertising Expense

d) $1,100 c) $700

Bal. $1,100 $- Bal. $700 $-

Req. 3 A-Plus Travel Planners, Inc.
Trial Balance
June 30, 2009
Account Debit Credit
Cash $8,400
Accounts Receivable 7,600
Supplies 300
Accounts Payable 700
Common Stock 10,000
Service Revenue 8,800
Salary Expense 1,400
Rent Expense 1,100
Advertising Expense 700
Total $19,500 $19,500
Req. 4
A-Plus Travel Planners, Inc.
Income Statement
Month Ended June 30, 2009
Revenue:
Service Revenue $8,800
Expenses:
Salary Expense $1,400
Rent Expense $1,100
Advertising Expense $700

` Total expenses 3,200

Net income $5,600

Recommendation: Discontinue the business, because net income falls

below the target amount.