P1-3B

(a) Prepare an income statement and a retained for the month of June and a statement of financial position at
June 30, 2017

Angelic Cosmetics Co. Ltd

Income Statement
For the Month Ended June 30, 2017
Revenue
¥ 5,500
Service revenue
Expense
Advertising expense ¥ 500
Rent expense ¥ 1,800
Gasoline expense ¥ 600
Utilities expense ¥ 400
Total expense ¥ 3,300
Net Income ¥ 2,200

Angelic Cosmetics Co. Ltd

Retained Earnings Statement
For the Month Ended June 30, 2017
Retained earnings, June 1 ¥ 0
Add : Net income ¥ 2,200
¥ 2,200
Less : Dividend ¥ 900
Retained earnings, June 30 ¥ 1,300

Angelic Cosmetics Co. Ltd

Statement of Financial Position
For the Month Ended June 30, 2017
Assets
Equipment ¥25,000
Supplies ¥ 2,000
Account receivable ¥ 4,000
Cash ¥10,000
Total assets ¥41,000

Equity and Liabilities

Equity
Share Capital-ordinary ¥25,000
Retained earnings ¥ 1,300 ¥26,300
Liabilities
Notes payable ¥13,000
Accounts payable ¥ 1,700 ¥14,700
¥41,000
 (b) Prepare an income statement and a retained earning statement for June assuming the following data are
not included above : (1) ¥800,000 worth of service were performed and billed but not collected at June 30,
and (2) ¥100,000 of gasoline expense was incurred but not paid

Angelic Cosmetics Co. Ltd

Income Statement
For the Month Ended June 30, 2017
Revenue
Service revenue ¥ 5,500
Worth of Service ¥ 800
Total revenue ¥ 6,300
Expense
Advertising expense ¥ 500
Rent expense ¥ 1,800
Gasoline expense ¥ 700
Utilities expense ¥ 400
Total expense ¥ 3,400
Net Income ¥ 2,900
Angelic Cosmetics Co. Ltd
Retained Earnings Statement
For the Month Ended June 30, 2017
Retained Earning, June 1 ¥ 0
Add : Net Income ¥ 2,900
¥ 2,900
Less : Dividend ¥ 900
Retained Earning, June 30 ¥ 2,000
 P1-4B

(a) Show the effect of the previous transaction on the accounting equation using the following format.
Include margin explanation for any changes in the Retained Earnings account in you analysis

Assets Liabilities Equity

Date = +
Cash + Account + Supplies + Equipment Notes + Account Share + Retained Earnings
Receiveable Payable Payable Capital
Rev - Exp - Div
1 8000 8000 Issued
Shares
2 -800 -800 Rent
Expense
3 500 500

5 -50 -50 Advertisi

Expense
9 3000 3000 Service
Revenue
12 -700 -700 Dividend

15 3300 3300 Service

Revenue
17 -2100 -2100 Salary/W
es Expen
20 -500 -500

23 2000 -2000

26 5000 5000

29 2300 2300

30 -150 -150 Utilities.

Expense
13700 1300 500 2300 5000 2300 8000 6300 -3100 -700

17800 = 17800
(b) Prepare an income statement for the month of May

PAULIS CONSULTING Ltd.

Income Statement
For the Month Ended May 31, 2017

Revenue

Service Revenue € 6.300

Expenses

Rent Expense € 800

Advertising Expense 50

Salary Expense 2100

Utilities Expense 150

Total Expenses 3100

Net Income € 3200

PAULIS CONSULTING Ltd.

Retained Earnings Statement
For the Month Ended May 31, 2017

Retained Earnings, June 1 € 0

Add : Net Income 3200

3200

Less : Dividends 700

Retained Earnings, June 30 € 2500

(c) Prepare a statement of financial position at May 31, 2017

 AULIS CONSULTING Ltd.
Statement of Financial Position
May 31, 2017

Assets

Cash € 13700

Account Receivable 1300

Supplies 500

Equipment 2300

Total Assets € 17800

Equity and Liabilities

Equity

Share Capital € 8000

Retained Earnings 2500 € 10500

Liabilities

Notes Payable 5000

Account Payable 2300 7300

Total Equity and Liabilities € 17800

P1-5B

(a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets – Liabilities = Equity = £28,000. )

John Paul George Ringo

Company Company Company Company
(a) £28,000 (d) £40,000 (g) £129,000 (j) £ 40,000
(b) £95,000 (e) £38,000 (h) £ 80,000 (k) £225,000
(c) £ 4,000 (f) £10,000 (i) £408,000 (l) £460,000

(b) Prepare the retained earnings statement for John Ltd. Assume beginning retained earnings was £0

JOHN COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2017
Retained earning, January 1 £ 0
Add : Net Income £15,000

Less : Dividends £ 7,000

Retained earning, December 31 £ 8,000

(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship
of the retained earnings statement to the income statement and statement of financial position

Keterkaitan antara laporan laba ditahan dengan laporan keuangan lainnya berasal dari laba bersih yang
dilaporkan di laporan laba rugi , dan saldo akhir yang dilaporkan di laporan laba ditahan
 P2-3B
(a) Prepare journal entries to record each of the events listed (Omit Explanation)

Trans. Account Titles Ref Debit Credit

1. Cash 101 50,000
Share Capital—Ordinary 311 50,000
(shareholders investment exchange)

2. No entry—Not a transaction.

3. Prepaid Rent 131 24,000

Cash (paid one year rent) 101 24,000

4. Equipment 157 30,000

Cash 101 6,000
Accounts Payable (purchased 24,000
equipment)

5. Prepaid Insurance 130 1,800

Cash (paid 1 year insurance) 101 1,800

6. Supplies 940
Cash (purchased basic office supplies) 101 940

7. Supplies 106 1,300

Accounts Payable (purchased more 201 1,300
supplies)

8. Cash 5,000
Accounts Receivable 112 13,000
Service Revenue 400 18,000

9. Accounts Payable 201 400

Cash(paid to suppliers) 101 400

10. Cash (receive from customers in payment) 101 3,000

Accounts Receivable 112 3,000
11. Utilities Expense 260
Accounts Payable(paid utility bills) 201 260
12. Salaries and Wages Expense 726 5,600
5,600
Cash 101
 (b) Post the journal entries to T-accounts
Cash
Debet Credit (9) 400
(1) 50,000 (11) 260
(3) 24,000 25,160
(4) 6,000
(5) 1,800
(6) 940 Share Capital—Ordinary
(8) 5,000 (1) 50,000
(9) 400 50,000
(10) 3,000
(12) 5,600
19,260 Service Revenue
(8) 18,000
18,000
Accounts Receivable
(8) 13,000
(10) 3,000
Salaries and Wages Expense
10,000
(12) 5,600
5,600
Supplies
(6) 940
Utilities Expense
(7) 1,300
(11) 260
2,240
260

Prepaid Insurance
(5) 1,800
1,800

Prepaid Rent
(3) 24,000
24,000

Equipment
(4) 30,000
30,000
Accounts Payable
Debet Credit
(4) 24,000
(7) 1,300
 (c) Prepare a Trial Balance as of May 31, 2017
RICHARDSON SERVICES LTD
Trial Balance
May 31, 2017
Debit Credit
Cash £19,260
Account Receivable £10,000
Supplies £ 2,240
Prepaid Insurance £ 1,800
Prepaid Rent £24,000
Equipment £30,000
Account Payable £25,160
Share Capital-Ordinary £50,000
Service Revenue £18,000
Salaries and Wages Expense £ 5,600
Utilities Expense £ 260
£93,160 £93,160

P2-4B

Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction
described and compare it to the mistake made.)

MUELLER SE
Trial Balance
Juni 30, 2017
Debit Credit
Cash [€ 3,840 + (€ 750 - € 570)] € 4,020
Accounts Receivable [€ 2,898 - (€ 750 - € 570)] € 2,718
Supplies [€ 800 - € 620] € 180
Equipment [€ 3000 + € 620] € 3,620
Accounts Payable [ € 2,666 - € 309 - € 390] € 1,967
Unearned Service Revenue € 2,200
Share Capital-Ordinary € 9,000
Dividends [€ 800 + € 600] € 1,400
Service Revenue [ € 2,380 + (€ 890 - € 89)] € 3,181
Salaries and Wages Expense [€ 3,400 + € 700 - € 600] € 3,500
Utilities Expense € 910
€16,348 €16,348
P2-5B

(a) & (c)

Cash No. 101

Date Explanation Ref. Debit Credit Balance
2017
Mar. 1 Balance 7,000
2 J1 1,000 6,000
9 J1 4,000 10,000
10 J1 4,100 5,900
12 J1 450 5,450
20 J1 4,400 9,850
20 J1 2,400 7,450
31 J1 2,500 4,950
31 J1 225 5,175
31 J1 9,000 14,175

Accounts Receivable No. 112

Date Explanation Ref. Debit Credit Balance
2017
Mar. 31 J1 225 225
Land No. 140
Date Explanation Ref. Debit Credit Balance
2017
Mar. 1 Balance 22,000
Buildings No. 145
Date Explanation Ref. Debit Credit Balance
2017
Mar. 1 Balance 10,000
Equipment No. 157
Date Explanation Ref. Debit Credit Balance
2017
Mar. 1 Balance 8,000
PROBLEM 2-5B (Continued)

Accounts Payable No. 201

Date Explanation Ref. Debit Credit Balance
2017
Mar. 1 Balance 7,000
2 J1 2,500 9,500
10 J1 4,100 5,400

Share Capital—Ordinary No. 311

Date Explanation Ref. Debit Credit Balance
2017
Mar. 1 Balance 40,000

Service Revenue No. 400

Date Explanation Ref. Debit Credit Balance
2017
Mar. 9 J1 4,000 4,000
20 J1 4,400 8,400
31 J1 9,000 17,400

Rent Revenue No. 429

Date Explanation Ref. Debit Credit Balance
2017
Mar. 31 J1 450 450

Advertising Expense No. 610

Date Explanation Ref. Debit Credit Balance
2017
Mar. 12 J1 450 450
PROBLEM 2-5B (Continued)

Salaries and Wages Expense No. 726

Date Explanation Ref. Debit Credit Balance
2017
Mar. 31 J1 2,500 2,500

Rent Expense No. 729

Date Explanation Ref. Debit Credit Balance
2017
Mar. 2 J1 3,500 3,500
20 J1 2,400 5,900

(b)
J1
Date Account Titles and Explanation Ref. Debit Credit
2017
Mar. 2 Rent Expense............................................................. 729 3,500
Accounts Payable .......................................... 201 2,500
Cash ............................................................... 101 1,000
(Rented films for cash and
on account)

3 No entry.

9 Cash 101 4,000

...................................................................................
...................................................................................
Service Revenue ............................................ 400 4,000
(Received cash for services
performed)

10 Accounts Payable (£2,500 + £1,600) ................................ 201 4,100

Cash ............................................................... 101 4,100
(Paid creditors on account)

11 No entry.
 12 Advertising Expense .................................................. 610 450
Cash ............................................................... 101 450
(Paid advertising expense)

PROBLEM 2-5B (Continued)

Date Account Titles and Explanation Ref. Debit Credit

20 Cash ........................................................................... 101 4,400
Service Revenue ............................................ 400 4,400
(Received cash for services
performed)

20 Rent Expense ............................................................. 729 2,400

Cash ............................................................... 101 2,400
(Paid film rental)

31 Salaries and Wages Expense ..................................... 726 2,500

Cash ............................................................... 101 2,500
(Paid salaries)

31 Cash ........................................................................... 101 225

Accounts Receivable .................................................. 112 225
Rent Revenue ................................................ 429 450
(15% X £3,000)
(Received cash and balance
on account for concession
revenue)

31 Cash ........................................................................... 101 9,000

Service Revenue ............................................ 400 9,000
(Received cash for services
performed)
PROBLEM 2-5B (Continued)

(d) WILSON THEATER LTD

Trial Balance
March 31, 2017

Debit Credit
Cash .......................................................................................... £14,175
Accounts Receivable ................................................................ 225
Land.......................................................................................... 22,000
Buildings ................................................................................... 10,000
Equipment................................................................................ 8,000
Accounts Payable ..................................................................... £ 5,400
Share Capital—Ordinary ........................................................... 40,000
Service Revenue ....................................................................... 17,400
Rent Revenue ........................................................................... 450
Advertising Expense ................................................................. 450
Salaries and Wages Expense .................................................... 2,500
Rent Expense ........................................................................... 5,900
£63,250 £63,250