Comprehensive Problem

GENERAL JOURNALDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $

Sep 1 Cash 1 100,000Anthony Ferrara Capital 30 100,000

Investment made by the owner

1 Prepaid rent 6 9,000Cash 1 9,000

Paid rent in advance180,000

1 Rental Equipmnet 10 90,000Cash 1 110,000Notes Payable 20

Purchased equipmnet on partail cash

4 Office supplies 8 1,630Accounts Payable 22 1,630

Purchased office supplies on accounts

8 Cash 1 10,000Unearned Rental Fees 29 10,000

Received cash in advance

12 Salaries Expense 60 3,600Cash 1 3,600

Paid salaries

15 Cash 1 5,300Accounts Receivable 4 800

Rental Fee Earned 50 6,100Received cash in advance

17 Maintenance Expense 61 340Accounts payable 22 340

Purchased rental parts on accounts

23 Cash 1 210Accounts Receivable 4 210

Received cash on accounts

25 NO ENTRY

26 Salaries Expense 60 3,600Cash 1 3,600

Paid salaries

27 Accounts Payable 22 340Cash 1 340

Paid cash on accounts

28 Anthony Ferrara Drawing 35 2,000Cash 1 2,000

Withdrew Cash

29 NO ENTRY

29 Unexpired Insurance 7 2,700Cash 1 2,700

Purchased insurance policy

30 Utilities expense 62 270Accounts payable 22 270

Received a bill for utility

30 Cash 1Rental fee Earned 50

Received cash in advance

ADJUSTING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep (a) Rent Expense 63 3,000

Prepaid Rent 6 3,000Adjusted the Monthly rent in rent expense

(b) Interest Expense 66 825Interest Payable 25 825

Unrecorded expense being recorded

© Depreciation Expense: Rental Equipment 65 1500Accumulated Depriciation:Rental Equip 12 1500

180,000 1 150010 12

Recoded depreciation for rental equipment

(d) Office Supplies Expense 64 530Office Supplies 8 530

1630-1500=530Unrecorded Expense being recorded

(e) Unearned Rental Fees 29 4,840Rental fees Earned 50 4,840

Part Of advances earned

(f) Accounts Receivable 4 500Rental Fee Earned 50 500

100*5=500Unrecorded revenue being recorded

(g) Salaries Expense 60 900

Salaries Payable 26 900unrecorded expense being recorded

Tony's RentalAdjusted Trial Balance

Sep 30, 20__ACCOUNTS TITLE DEBIT $ CREDIT $

Cash 32,720Accounts Receivable 1,090Prepaid Rent 6,000Unexpired Insurance 2,700Office Supplies 1100Rental Equipment 180,000Accumulated Depriciation:Rental Equipment 1,500Notes Payable 110,000Accounts Payable 1,900Interest Payable 825Salaries Payable 900Unearned Rental Fee 5,160Anthony Ferrara Capital 100,000Anthony Ferrara Drawings 2,000Rental fee earned 19,890Salaries Expense 8,100Maintenance Expense 340Utilities Expense 270Rent Expense 3,000Office Supplies Expense 530Depriciation Expense: Rental Equipment 1,500Interest Expense 825

Total 240,175 240,175

Tony's RentalIncome Statement

Sep 30, 20__EXPENSES $ REVENUES $

Salaries Expense 8,100 Rental fee Earned 19,890Maintenance Expense 340Utilities Expense 270Rent Expense 3,000Office Supplies Exp 530Dep. Exp: Rental Eq 1,500Interest Expense 825Net Income 5,325Total 19,890 19,890

Tony's RentalStatement of owners Equity

Sep 30, 20__DEBIT $ CREDIT $

Anthony Ferrara Drawing 2,000 Anthony Ferrara capital 100,000

Capital as on sep 30 103,325 Net Income 5,325105,325 105,325

Tony's RentalBalance SheetSep 30, 20__

ASSETS $ Liabilities+O' Equity $Cash 32,720 LIABILITIESAccounts Receivable 1,090 Accounts Payable 1,900Prepaid Rent 6,000 Interest Payable 825Unexpired Insurance 2,700 Salary Payable 900Office Supplies 1,100 Notes Payable 110,000Rental Equipment Unearned rent 5,160Acc Dep 180,000 178,500 Total Laibilities 118,785

-15,000 Owners EquityAnthony Ferrar Capital 103,325

Total Assets Err:522 Err:522

CLOSING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Rental Fee Earned 50 19,890

Income Summary 40 19,890To Close revenues into income summary

Income Summary 40 14,565Salaries Expense 60 8,100Maintenance Expense 61 340Utilities Expense 62 270Rent Expense 63 3,000Office Supplies Exp 64 530Dep. Exp: Rental Eq 65 1,500

To close expenses into income summary

INCOME SUMMARY14,565 19,890

Bal 5,325

DATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Income Summary 40 5,325

Anthony Ferrara Capital 30 5,325To Close Profit to capital account

Anthony Ferrara Capital 30 2,000Anthony Ferrara Drawing 35 2,000

To close drawing to capital

Tonys RentalAfter closing, Trial balanceSep 30, 20__

ACCOUNTS TITLE DEBIT $ CREDIT $Cash 32,720Accounts Receivable 1,090Prepaid Rent 6,000Unexpired Insurance 2,700Office Supplies 1100Rental Equipment 180,000Accumulated Depriciation:Rental Equipment 1,500Notes Payable 110,000Accounts Payable 1,900Interest Payable 825Salaries Payable 900Unearned Rental Fee 5,160Anthony Ferrara Capital 103,325

Total 223,610 223,610

Problem4-9

ADJUSTING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $

31-Jul (a) Film Rental Expense 15,200Prepaid film rental 15,200

Adjusted the Monthly rent in rent expense

(b) Depreciation Expense: Building 700Accumulated Depreciation: Building 700

168,000 1 70020 12

Recorded Depreciation for Building

© Depreciation Expense: Projection Equipment 600Accumulated Depriciation:Projection Eq 600

36,000 1 6005 12

Recoded depreciation for projection equipment

(d) Interst Expense 1,650Interest Payable 1,650

Unrecorded expense being recorded

(e) Unearned Admission Revenue 500Admission Revenue 500

Part of advances earned

(f) Concession Receivable 2,250Concession Revenue 2,250

Unrecorded revenue being recorded

(g) Salaries Expense 1,500Salaries Payable 1,500

unrecorded expense being recorded

Kent CinemaAdjusted Trial Balance

July 31, 19__ACCOUNTS TITLE DEBIT $ CREDIT $

Cash 20,000Concessions Receivable 2,250Prepaid Film Rental 16,000Land 80,000Building 168,000Accumulated Depriciation:Building 11,200Projection Equipment 36,000Accumulated Depriciation:Projection Equip 3,600Notes Payable 190,000Accounts Payable 4,400Interest Payable 1,650Salaries Payable 1,500Unearned Admission Revenue 500Li Trong Capital 103,400Li Trong Drawings 3,500Admission Revenue 37,400Concessions Revenue 2,250Salaries Expense 10,200Light & Power Expense 1,800Depriciation Expense: Building 700Depriciation Expense: Projection Equipment 600Film Rental Expense 15,200Interest Expense 1,650

Total 355,900 355,900

Kent CinemaIncome Statement

July 31, 19__EXPENSES $ REVENUES $

Salaries Expense 10,200 Admission Revenue 37,400Light & Power expense 1,800 Concession Revenue 2,250Dep exp: Building 700dep Exp: Projection Eq 600Film Rental expense 15,200Interest Expense 1,650Net Income 9,500Total 39,650 39,650

Kent CinemaStatement of owners equity

July 31, 19__DEBIT $ CREDIT $

Li Tong Drawing 3,500 Li Tong Capital 103,400Capital as on sep 30 109,400 Net Income 9,500

112,900 112,900

Kent CinemaBalance SheetJuly 31, 19__

ASSETS $ Liabilities+O' Equity $Cash 20,000 LIABILITIESConcessions receivable 2,250 Unearned admission 500Prepaid Film Rental 16,000 Interest Payable 1,650Land 80,000 Salary Payable 1,500Building Notes Payable 190,000Acc Dep 168,000 156,800 Accounts Payable 4,400

-11,200 Total Laibilities 198,050Projection equipment Owners EquityAcc Dep 36,000 Li Tong Capital 109,400

-3,600 32,400Total Assets 307,450 307,450

CLOSING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Admission Revenue 37,400

Concession Revenue 2,250Income Summary 39,650

To Close revenues into income summary

Income Summary 30,150Salaries Expense 10,200Light & Power Expense 1,800Depriciation Expense: Building 700Depriciation Expense: Projection Eq 600Film Rental Expense 15,200Interest Expense 1,650

To close expenses into income summary

INCOME SUMMARY30,150 39,650

Bal 9,500

DATE ACCOUNT TITLES and EXPLANATION DEBIT $ CREDIT $30-Sep Income Summary 9,500

Li Tong Capital 9,500

To Close Profit to capital account

Li Tong Drawing 3,500Li Tong Capital 3,500

To close drawing to capital

Kent CinemaAfter closing, trail Balance

July 31, 19__ACCOUNTS TITLE DEBIT $ CREDIT $

Cash 20,000Concessions Receivable 2,250Prepaid Film Rental 16,000Land 80,000Building 168,000Accumulated Depriciation:Building 11,200Projection Equipment 36,000Accumulated Depriciation:Projection Equip 3,600Notes Payable 190,000Accounts Payable 4,400Interest Payable 1,650Salaries Payable 1,500Unearned Admission Revenue 500Li Trong Capital 109,400

Total 322,250 322,250

Problem4-10

ADJUSTING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $

30-Jun (a) Depriciation Expense: Aircraft 10,000Accumulated Depreciation: Aircraft 10,000

1.2m 1 10,00010 12

Recorded Depreciation for aircraft

(b) Unearned Passenger revenue 38,650Passenger revenue 38,650

Part of advances earned

© Salaries Expense 3,300Salaries payable 3,300unrecorded expense being recorded

(d) Interst Expense 5,000Interest Payable 5,000

Unrecorded expense being recorded

(e) Accounts receivable 4,600Freight Revenue 4,600

Unrecorded revenue being recorded

(f) Rent expense 4,800Prepaid rent 4,800

Advances rent transferred to expense account

(g) Insurance Expense 2,100Unexpired Insurance 2,100

unrecorded expense being recorded

Island HopperAdjusted Trial Balance

30-Jun-97ACCOUNTS TITLE DEBIT $ CREDIT $

Cash 23,600Accounts Receivable 11,800Prepaid Rent 4,800Unexpired Insurnace 18,900Aircraft 1,200,000Accumulated Depriciation:Aircraft 390,000Notes Payable 600,000Interest Payable 5,000Salaries Payable 3,300Unearned Passenger Revenue 21,350Mary Earhart Capital 230,850Mary Earhart Drawing 7,000Freight Revenue 135,550Passenger Revenue 38,650Salaries Expense 70,000Fuel Expense 53,800Depriciation Expense: Aircraft 10,000Maintenance expense 12,900Rent Expense 4,800Insurance Expense 2,100Interest Expense 5,000

Total 1,424,700 1,424,700

Island HopperIncome Statement

30-Jun-97EXPENSES $ REVENUES $

Salaries Expense 70,000 Freight Revenue 135,550Fuel Expense 53,800 Passenger Revenue 38,650Maintenance Expense 12,900Rent Expense 4,800Insurance Expense 2,100Dep. Exp: Aircraft 10,000

Interest Expense 5,000Net Income 15,600Total 174,200 174,200

Island HopperStatement Of owners equity

30-Jun-97DEBIT $ CREDIT $

Mary Earhart Drawing 7,000 Mary Earhart Capital 230,850Capital as on sep 30 239,450 Net Income 15,600

246,450 246,450

Island HopperBalance Sheet

30-Jun-97ASSETS $ Liabilities+O' Equity $

Cash 23,600 LIABILITIESAccounts Receivable 11,800 Unearned passenger 21,350Prepaid Rent 4,800 Interest Payable 5,000Unexpired Insurance 18,900 Salary Payable 3,300Aircraft Notes Payable 600,000Acc Dep 1,200,000 810,000 Total Laibilities 629,650

-390,000 Owners EquityMary Earhart Capital 239,450

Total Assets 869,100 869,100

CLOSING ENTRIESDATE ACCOUNT TITLES and EXPLANATION LP DEBIT $ CREDIT $30-Sep Freight Revenue 135,550

Passenger Revenue 38,650Income Summary 174,200

To Close revenues into income summary

Income Summary 158,600Salaries Expense 70,000Fuel Expense 53,800Depriciation Expense: Aircraft 10,000Maintenance expense 12,900Rent Expense 4,800Insurance Expense 2,100Interest Expense 5,000

To close expenses into income summary

INCOME SUMMARY158,600 174,200

Bal 15,600

DATE ACCOUNT TITLES and EXPLANATION DEBIT $ CREDIT $30-Sep Income Summary 15,600

Mary Earhart Capital 15,600To Close Profit to capital account

Mary Earhart Drawing 7,000Mary Earhart Capital 7,000

To close drawing to capital

Island HopperAfter closing Trial Balance

30-Jun-97ACCOUNTS TITLE DEBIT $ CREDIT $

Cash 23,600Accounts Receivable 11,800Prepaid Rent 4,800Unexpired Insurnace 18,900Aircraft 1,200,000Accumulated Depriciation:Aircraft 390,000Notes Payable 600,000Interest Payable 5,000Salaries Payable 3,300Unearned Passenger Revenue 21,350Mary Earhart Capital 239,450

Total 1,259,100 1,259,100