The adjusted trial balance of Kobe Repairs on December 31, 2005, follows

Problem 4-3A Preparing trial balances, closing entries, and financial statements

The adjusted trial balance of Kobe Repairs on December 31, 2005, follows:

KOBE REPAIRS
Adjusted Trial Balance
December 31, 2005
No. Account Title Debit Credit
101 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,000
124 Office supplies . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
128 Prepaid insurance . . . . . . . . . . . . . . . . . . . . . . . 1,950
167 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000
168 Accumulated depreciation—Equipment . . . . . . . $ 4,000
201 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . 12,000
210 Wages payable . . . . . . . . . . . . . . . . . . . . . . . . . 500
301 S. Kobe, Capital . . . . . . . . . . . . . . . . . . . . . . . . . 40,000
302 S. Kobe, Withdrawals . . . . . . . . . . . . . . . . . . . . . 15,000
401 Repair fees earned . . . . . . . . . . . . . . . . . . . . . . 77,750
612 Depreciation expense—Equipment . . . . . . . . . . 4,000
623 Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . 36,500
637 Insurance expense . . . . . . . . . . . . . . . . . . . . . . . 700
640 Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . 9,600
650 Office supplies expense . . . . . . . . . . . . . . . . . . . 2,600
690 Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . 1,700
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $134,250 $134,250

Required
1. Prepare an income statement and a statement of owner’s equity for the year 2005, and a classified balance sheet at December 31, 2005. There are no owner investments in 2005.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for them.

Analysis Component
4. Assume for this part only that:
a. None of the $700 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period’s insurance protection.
b. There are no earned and unpaid wages at the end of the year. (Hint: Reverse the $500 wages payable accrual.) Describe the financial statement changes that would result from these two assumptions.

Check (1) Ending capital balance, $47,650
(2) P-C trial balance totals, $64,150

Click here for the solution: The adjusted trial balance of Kobe Repairs on December 31, 2005, follows

A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008

Exercise 22-19 (E22-19) (Error Analysis; Correcting Entries) A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008.

Dr. Cr.
Supplies on hand $ 2,700
Accrued salaries and wages $ 1,500
Interest receivable on investments 5,100
Prepaid insurance 90,000
Unearned rent –0–
Accrued interest payable 15,000

Additional adjusting data:
1. A physical count of supplies on hand on December 31, 2008, totaled $1,100.
2. Through oversight, the Accrued Salaries and Wages account was not changed during 2008. Accrued salaries and wages on December 31, 2008, amounted to $4,400.
3. The Interest Receivable on Investments account was also left unchanged during 2008. Accrued interest on investments amounts to $4,350 on December 31, 2008.
4. The unexpired portions of the insurance policies totaled $65,000 as of December 31, 2008.
5. $28,000 was received on January 1, 2008 for the rent of a building for both 2008 and 2009. The entire amount was credited to rental income.
6. Depreciation for the year was erroneously recorded as $5,000 rather than the correct figure of $50,000.
7. A further review of depreciation calculations of prior years revealed that depreciation of $7,200 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

Instructions
(a) Assuming that the books have not been closed, what are the adjusting entries necessary at December 31, 2008? (Ignore income tax considerations.)
(b) Assuming that the books have been closed, what are the adjusting entries necessary at December 31, 2008? (Ignore income tax considerations.)

Click here for the solution: A partial trial balance of Julie Hartsack Corporation is as follows on December 31, 2008

Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2007 (the end of its fiscal year)

P2-3A Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2007 (the end of its fiscal year).

BYTE REPAIR SERVICE, INC.
Trial Balance
December 31, 2007
Cash $8,000
Accounts Receivable 15,000
Parts Inventory 13,000
Prepaid Rent 3,000
Shop Equipment 21,000
Accounts Payable $19,000
Common Stock 30,000
Retained Earnings 11,000
$60,000 $60,000

Summarized transactions for January 2008 were as follows:
1. Advertising costs, paid in cash, $1,000.
2. Additional repair parts inventory acquired on account $4,000.
3. Miscellaneous expenses, paid in cash, $2,000.
4. Cash collected from customers in payment of accounts receivable $14,000.
5. Cash paid to creditors for accounts payable due $15,000.
6. Repair parts used during January $4,000. (Hint: Debit this to Repair Parts Expense.)
7. Repair services performed during January: for cash $6,000; on account $9,000.
8. Wages for January, paid in cash, $3,000.
9. Dividends paid in January were $3,000.

Instructions
(a) Prepare journal entries to record each of the January transactions.
(b) Open T accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2008. Post the journal entries to the accounts in the ledger.
(c) Prepare a trial balance as of January 31, 2008.

Click here for the solution: Jack Shellenkamp owns and manages a computer repair service, which had the following trial balance on December 31, 2007

The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below

E3-13 The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below.

GARCIA COMPANY
Trial Balance
August 31, 2008
Before Adjustment After Adjustment
Dr. Cr. Dr. Cr.
Cash $10,400 $10,400
Accounts Receivable 8,800 9,800
Office Supplies 2,300 700
Prepaid Insurance 4,000 2,500
Office Equipment 14,000 14,000
Accumulated Depreciation–Office Equipment $3,600 $4,500
Accounts Payable 5,800 5,800
Salaries Payable -0- 1,100
Unearned Rent 1,500 600
Common Stock 10,000 10,000
Retained Earnings 5,600 5,600
Service Revenue 34,000 35,000
Rent Revenue 11,000 11,900
Salaries Expense 17,000 18,100
Office Supplies Expense -0- 1,600
Rent Expense 15,000 15,000
Insurance Expense -0- 1,500
Depreciation Expense -0- 900
$71,500 $71,500 $74,500 $74,500

Instructions
Prepare the adjusting entries that were made.

Click here for the solution: The trial balances before and after adjustment for Garcia Company at the end of its fiscal year is presented below

This is the trial balance of Mimosa Company on September 30

P3-6A This is the trial balance of Mimosa Company on September 30.

MIMOSA COMPANY
Trial Balance
September 30, 2012
Debit Credit
Cash $ 8,200
Accounts Receivable 2,600
Supplies 2,100
Equipment 8,000
Accounts Payable $ 4,800
Unearned Service Revenue 1,100
Common Stock 15,000
$20,900 $20,900

The October transactions were as follows.
Oct. 5 Received $1,300 in cash from customers for accounts receivable due.
10 Billed customers for services performed $5,100.
15 Paid employee salaries $1,200.
17 Performed $600 of services for customers who paid in advance in August.
20 Paid $1,900 to creditors for accounts payable due.
29 Paid a $300 cash dividend.
31 Paid utilities $400.

Instructions
(a) Prepare a general ledger using T accounts. Enter the opening balances in the ledger accounts as of October 1. Provision should be made for these additional accounts: Dividends, Service Revenue, Salaries and Wages Expense, and Utilities Expense.
(b) Journalize the transactions, including explanations.
(c) Post to the ledger accounts.
(d) Prepare a trial balance on October 31, 2012.

Click here for the solution: This is the trial balance of Mimosa Company on September 30

The trial balance columns of the worksheet for Briscoe Company at June 30, 2008, are below

E4-1 The trial balance columns of the worksheet for Briscoe Company at June 30, 2008, are below.

Other data:
A physical count reveals $300 of supplies on hand.
$100 of the unearned revenue is still unearned at month-end.
Accrued salaries are $280.

Instructions
Complete the worksheet

Click here for the solution: The trial balance columns of the worksheet for Briscoe Company at June 30, 2008, are below

Emil Skoda Company had the following adjusted trial balance

E4-7 Emil Skoda Company had the following adjusted trial balance.

EMIL SKODA COMPANY
Adjusted Trial Balance
June 30, 2008

Adjusted Trial Balance
Account Titles Debits Credits
Cash $3,712
Accounts Receivable 3,904
Supplies 480
Accounts Payable $1,792
Unearned Revenue 160
Common Stock 5,000
Retained Earnings 760
Dividends 300
Service Revenue 4,064
Salaries Expense 1,344
Miscellaneous Expense 256
Supplies Expense 2,228
Salaries Payable 448
$12,224 $12,224

Instructions
(a) Prepare closing entries at June 30, 2008.
(b) Prepare a post-closing trial balance.

Click here for the solution: Emil Skoda Company had the following adjusted trial balance

The following is a December 31, 2011, post-closing trial balance for the Vosburgh Electronics Corporation

P 3-6 Balance sheet preparation; disclosures

The following is a December 31, 2011, post-closing trial balance for the Vosburgh Electronics Corporation.

Account Title Debits Credits
Cash $ 68,000
Short-term investments 184,000
Accounts receivable 124,600
Long-term investments 35,800
Inventories 215,900
Loans to employees 40,700
Prepaid expenses (for 2012) 16,600
Land 299,000
Building 1,564,000
Machinery and equipment 652,000
Patent 115,000
Franchise 56,000
Note receivable 285,000
Interest receivable 12,300
Accumulated depreciation — building $ 607,000
Accumulated depreciation — equipment 201,000
Accounts payable 188,200
Dividends payable (payable on 1/16/12) 24,000
Interest payable 14,700
Taxes payable 39,200
Unearned revenue 43,000
Notes payable 273,000
Allowance for uncollectible accounts 6,500
Common stock 2,000,000
Retained earnings 272,300
Totals $ 3,668,900 $ 3,668,900

Additional information:
1. The common stock represents 1 million shares of no par stock authorized, 500,000 shares issued and outstanding.
2. The loans to employees are due on June 30, 2012.
3. The note receivable is due in installments of $50,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of marketable equity securities that the company plans to sell in 2012 and $50,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2012. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.
5. Unearned revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2012, the remainder in 2013.
6. Notes payable consists of two notes, one for $100,000 due on January 15, 2013, and another for $200,000 due on June 30, 2014.

Required:
1. Prepare a classified balance sheet for Vosburgh at December 31, 2011.
2. Identify the items that would require additional disclosure, either on the face of the balance sheet or in a disclosure note.


Click here for the solution: The following is a December 31, 2011, post-closing trial balance for the Vosburgh Electronics Corporation

The following trial balance was taken from the records of Wheaton Manufacturing Company at the beginning of 2012

11-18A The following trial balance was taken from the records of Wheaton Manufacturing Company at the beginning of 2012.

Cash 9,400
Raw Material inventory $750
Work in process inventory $1,200
Finished goods inventory $2,100
Property, plant, and equip.$7,500
Accumulated depreciation $3,000
Common Stocks $7,800
Retained earnings $10,150
Total $20,950 $20,950

a. Open T-accounts with the beginning balance shown from the list above and record all transactions for the year including closing entries in the t-account
b. Prepare a schedule of cost of goods manufactured and sold, and income statement, and balance sheet.
1. Wheaton Purchased $5,700 of direct raw materials and $300 of indirect raw material on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,400 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand.
2. By the end of the year, $5,250 of the accounts payable had been paid in cash
3. During the year. direct labor amounted to 950 hours recorded in the wages payable account at $10.50 per hour
4. By the end of the year $9,000 of wages payable had been in cash
5. At the beginning of the year, the company expected overhead cost for the period to be $6,300 and 1,000 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which as indicated in event 3 amounted to 950 for the year.
6. Selling and administrative expense for the year amounted to $900 paid in cash
7. Utilities and rent for production facilities amounted to $4,650 paid in cash
8. Depreciation on the plant and equip. used in production amounted to $1,500
9. There was $12,000 of goods completed during the year
10. There was $12,750 of finished goods inventory sold for $18,000 cash
11. A count of the production supplies revealed a balance of $89 on hand at the end of the year
12. Any over or under-applied overhead is considered to be insignificant.


Click here for the solution: The following trial balance was taken from the records of Wheaton Manufacturing Company at the beginning of 2012

This is the trial balance of Slocombe Company on September 30

P3-6A This is the trial balance of Slocombe Company on September 30.

SLOCOMBE COMPANY
Trial Balance
September 30, 2010
Debit Credit
Cash $8,300
Accounts Receivable 2,600
Supplies 2,100
Equipment 8,000
Accounts Payable $ 5,100
Unearned Revenue 900
Common Stock 15,000
$21,000 $21,000

The October transactions were as follows.
Oct. 5 Received $1,300 in cash from customers for accounts receivable due.
10 Billed customers for services performed $5,100.
15 Paid employee salaries $1,400.
17 Performed $600 of services for customers who paid in advance in August.
20 Paid $1,500 to creditors for accounts payable due.
29 Paid a $300 cash dividend.
31 Paid utilities $500.

Hint: Journalize transactions, post, and prepare a trial balance.

Instructions
(a) Prepare a general ledger using T accounts. Enter the opening balances in the ledger accounts as of October 1. Provision should be made for these additional accounts: Dividends, Service Revenue, Salaries Expense, and Utilities Expense.
(b) Journalize the transactions, including explanations.
(c) Post to the ledger accounts.
(d) Prepare a trial balance on October 31, 2010.

Check:
Cash $ 5,900
Tot. trial balance $24,600

Click here for the solution: This is the trial balance of Slocombe Company on September 30