Test Bank: Financial Accounting Information for Decisions 7th Edition by Wild Solution Manual

For This And Any Other test Bnaks, slotion Manuals, Quizess, Exams And Assignments Contact us At whiperhills@gmail.com

Problem sET b

Problem 2-1B (90 minutes) Part 1

Part 1

a. Cash........................................................ 101 65,000

Office Equipment.................................... 163 5,750

Computer Equipment.............................. 164 30,000

Common Stock................................ 307 100,750

Owner invested cash and equipment for stock.

b. Land........................................................ 172 22,000

Cash................................................. 101 5,000

Notes Payable.................................. 250 17,000

Purchased land with cash and notes payable.

c. Building.................................................. 170 34,500

Cash................................................. 101 34,500

Purchased building.

d. Prepaid Insurance................................... 108 5,000

Cash................................................. 101 5,000

Purchased 24-month insurance policy.

e. Cash........................................................ 101 4,600

Fees Earned..................................... 402 4,600

Collected cash for completed work.

f. Computer Equipment.............................. 164 4,500

Cash................................................. 101 800

Notes Payable.................................. 250 3,700

Purchased equipment with cash and notes payable.

g. Accounts Receivable............................... 106 4,250

Fees Earned..................................... 402 4,250

Completed services for client.

h. Office Equipment.................................... 163 950

Accounts Payable............................ 201 950

Purchased equipment on credit.

Problem 2-1B (Part 1 Continued)

i. Accounts Receivable............................... 106 10,200

Fees Earned..................................... 402 10,200

Billed client for completed work.

j. Computer Rental Expense...................... 602 580

Accounts Payable............................ 201 580

Incurred computer rental expense.

k. Cash........................................................ 101 5,100

Accounts Receivable....................... 106 5,100

Collected cash on account.

l. Wages Expense....................................... 601 1,800

Cash................................................. 101 1,800

Paid assistant’s wages.

m. Accounts Payable................................... 201 950

Cash................................................. 101 950

Paid amount due on account.

n. Repairs Expense..................................... 604 608

Cash................................................. 101 608

Paid for repair of equipment.

o. Dividends................................................ 319 6,230

Cash................................................. 101 6,230

Paid cash for dividends.

p. Wages Expense....................................... 601 1,800

Cash................................................. 101 1,800

Paid assistant’s wages.

q. Advertising Expense............................... 603 750

Cash................................................. 101 750

Paid for advertising expense.

Problem 2-1B (Continued)

Part 2

Cash No. 101					Accounts Payable No. 201
Date	PR	Debit	Credit	Balance	Date	PR	Debit	Credit	Balance
(a)		65,000		65,000	(h)			950	950
(b)			5,000	60,000	(j)			580	1,530
(c)			34,500	25,500	(m)		950		580
(d)			5,000	20,500
(e)		4,600		25,100	Notes Payable No. 250
(f)			800	24,300	Date	PR	Debit	Credit	Balance
(k)		5,100		29,400	(b)			17,000	17,000
(l)			1,800	27,600	(f)			3,700	20,700
(m)			950	26,650
(n)			608	26,042
(o)			6,230	19,812	Common Stock No. 307
(p)			1,800	18,012	Date	PR	Debit	Credit	Balance
(q)			750	17,262	(a)			100,750	100,750

Accounts Receivable No. 106					Dividends No. 319
Date	PR	Debit	Credit	Balance	Date	PR	Debit	Credit	Balance
(g)		4,250		4,250	(o)		6,230		6,230
(i)		10,200		14,450
(k)			5,100	9,350	Fees Earned No. 402
					Date	PR	Debit	Credit	Balance
Prepaid Insurance No. 108					(e)			4,600	4,600
Date	PR	Debit	Credit	Balance	(g)			4,250	8,850
(d)		5,000		5,000	(i)			10,200	19,050

Office Equipment No. 163					Wages Expense No. 601
Date	PR	Debit	Credit	Balance	Date	PR	Debit	Credit	Balance
(a)		5,750		5,750	(l)		1,800		1,800
(h)		950		6,700	(p)		1,800		3,600

Computer Equipment No. 164					Computer Rental Expense No. 602
Date	PR	Debit	Credit	Balance	Date	PR	Debit	Credit	Balance
(a)		30,000		30,000	(j)		580		580
(f)		4,500		34,500

Building No. 170					Advertising Expense No. 603
Date	PR	Debit	Credit	Balance	Date	PR	Debit	Credit	Balance
(c)		34,500		34,500	(q)		750		750

Land No. 172					Repairs Expense No. 604
Date	PR	Debit	Credit	Balance	Date	PR	Debit	Credit	Balance
(b)		22,000		22,000	(n)		608		608

Problem 2-1B (Concluded)

Part 3

SOFTWORKS

Trial Balance

April 30

Debit Credit

Cash ............................................................ $ 17,262

Accounts receivable.................................... 9,350

Prepaid insurance........................................ 5,000

Office equipment......................................... 6,700

Computer equipment................................... 34,500

Building....................................................... 34,500

Land............................................................. 22,000

Accounts payable........................................ $ 580

Notes payable.............................................. 20,700

Common stock............................................. 100,750

Dividends..................................................... 6,230

Fees earned................................................. 19,050

Wages expense............................................ 3,600

Computer rental expense............................. 580

Advertising expense.................................... 750

Repairs expense.......................................... 608

Totals........................................................... $141,080 $141,080

Problem 2-2B (90 minutes)

Part 1

Nov. 1 Cash........................................................ 101 30,000

Office Equipment.................................... 163 15,000

Common Stock................................ 307 45,000

Owner invested cash and equipment for stock.

2 Prepaid Rent........................................... 131 4,500

Cash................................................. 101 4,500

Prepaid six months’ rent.

4 Office Equipment.................................... 163 2,500

Office Supplies....................................... 124 600

Accounts Payable............................ 201 3,100

Purchased equipment and supplies on credit.

8 Cash........................................................ 101 3,400

Services Revenue............................ 403 3,400

Received cash for services.

12 Accounts Receivable............................... 106 10,200

Services Revenue............................ 403 10,200

Billed client for completed work.

13 Accounts Payable................................... 201 3,100

Cash................................................. 101 3,100

Paid balance due on account.

19 Prepaid Insurance................................... 128 1,800

Cash................................................. 101 1,800

Paid premium for 24 months of insurance.

22 Cash........................................................ 101 5,200

Accounts Receivable....................... 106 5,200

Collected part of amount owed by client.

24 Accounts Receivable............................... 106 1,750

Services Revenue............................ 403 1,750

Billed client for completed work.

28 Dividends................................................ 319 5,300

Cash................................................. 101 5,300

Paid cash for dividends.

29 Office Supplies....................................... 124 249

Accounts Payable............................ 201 249

Purchased supplies on account.

30 Utilities Expense..................................... 690 831

Cash................................................. 101 831

Paid monthly utility bill.

Problem 2-2B (Continued)

Part 2

Cash						Acct. No. 101
Date		Explanation	PR	Debit	Credit		Balance
Nov.	1		G1	30,000			30,000
	2		G1		4,500		25,500
	8		G1	3,400			28,900
	13		G1		3,100		25,800
	19		G1		1,800		24,000
	22		G1	5,200			29,200
	28		G1		5,300		23,900
	30		G1		831		23,069

Accounts Receivable					Acct. No. 106
Date		Explanation	PR	Debit	Credit		Balance
Nov.	12		G1	10,200			10,200
	22		G1		5,200		5,000
	24		G1	1,750			6,750

Office Supplies					Acct. No. 124
Date		Explanation	PR	Debit	Credit		Balance
Nov.	4		G1	600			600
	29		G1	249			849

Prepaid Insurance					Acct. No. 128
Date		Explanation	PR	Debit	Credit		Balance
Nov.	19		G1	1,800			1,800

Prepaid Rent					Acct. No. 131
Date		Explanation	PR	Debit	Credit		Balance
Nov.	2		G1	4,500			4,500

Office Equipment					Acct. No. 163
Date		Explanation	PR	Debit	Credit		Balance
Nov.	1		G1	15,000			15,000
	4		G1	2,500			17,500

Accounts Payable					Acct. No. 201
Date		Explanation	PR	Debit	Credit		Balance
Nov.	4		G1		3,100		3,100
	13		G1	3,100			0
	29		G1		249		249

Problem 2-2B (Continued)

Common Stock					Acct. No. 307
Date		Explanation	PR	Debit	Credit	Balance
Nov.	1		G1		45,000	45,000

Dividends					Acct. No. 319
Date		Explanation	PR	Debit	Credit	Balance
Nov.	28		G1	5,300		5,300

Services Revenue					Acct. No. 403
Date		Explanation	PR	Debit	Credit	Balance
Nov.	8		G1		3,400	3,400
	12		G1		10,200	13,600
	24		G1		1,750	15,350

Utilities Expense					Acct. No. 690
Date		Explanation	PR	Debit	Credit	Balance
Nov.	30		G1	831		831

Part 3

ZUCKER MANAGEMENT SERVICES

Trial Balance

November 30

Debit Credit

Cash............................................................... $23,069

Accounts receivable....................................... 6,750

Office supplies............................................... 849

Prepaid insurance.......................................... 1,800

Prepaid rent................................................... 4,500

Office equipment............................................ 17,500

Accounts payable........................................... $ 249

Common stock............................................... 45,000

Dividends....................................................... 5,300

Services revenue............................................ 15,350

Utilities expense............................................. 831

Totals............................................................. $60,599 $60,599

Problem 2-3B (90 minutes)

Part 1

Sept. 1 Cash........................................................ 101 38,000

Office Equipment.................................... 163 15,000

Common Stock................................ 307 53,000

Owner invested in the business for stock.

2 Prepaid Rent........................................... 131 9,000

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

Prepaid twelve months’ rent.

4 Office Equipment.................................... 163 8,000

Office Supplies....................................... 124 2,400

Accounts Payable............................ 201 10,400

Purchased equipment and supplies on credit.

8 Cash........................................................ 101 3,280

Service Fees Earned........................ 401 3,280

Received cash for services.

12 Accounts Receivable............................... 106 15,400

Service Fees Earned........................ 401 15,400

Billed client for completed work.

13 Accounts Payable................................... 201 10,400

Cash................................................. 101 10,400

Paid balance due on account.

19 Prepaid Insurance................................... 128 1,900

Cash................................................. 101 1,900

Paid premium for insurance.

22 Cash........................................................ 101 7,700

Accounts Receivable....................... 106 7,700

Collected part of amount owed by client.

24 Accounts Receivable.............................. 106 2,100

Service Fees Earned........................ 401 2,100

Billed client for completed work.

28 Dividends................................................ 319 5,300

Cash................................................. 101 5,300

Paid cash for dividends.

29 Office Supplies....................................... 124 550

Accounts Payable............................ 201 550

Purchased supplies on account.

30 Utilities Expense..................................... 690 860

Cash................................................. 101 860

Paid monthly utility bill.

Problem 2-3B (Continued)

Part 2

Cash

Acct. No. 101

Date

Explanation

Debit

Credit

Balance

Sept.

38,000

9,000

29,000

3,280

32,280

10,400

21,880

1,900

19,980

7,700

27,680

5,300

22,380

860

21,520

Accounts Receivable

Acct. No. 106

Date

Explanation

Debit

Credit

Balance

Sept.

15,400

7,700

2,100

9,800

Office Supplies

Acct. No. 124

Date

Explanation

Debit

Credit

Balance

Sept.

2,400

550

2,950

Prepaid Insurance

Acct. No. 128

Date

Explanation

Debit

Credit

Balance

Sept.

1,900

Prepaid Rent

Acct. No. 131

Date

Explanation

Debit

Credit

Balance

Sept.

9,000

Office Equipment

Acct. No. 163

Date

Explanation

Debit

Credit

Balance

Sept.

15,000

8,000

23,000

Problem 2-3B (Continued)

Accounts Payable							Acct. No. 201
Date		Explanation	PR	Debit	Credit				Balance
Sept.	4		G1		10,400				10,400
	13		G1	10,400					0
	29		G1		550				550

Common Stock								Acct. No. 307
Date		Explanation	PR	Debit	Credit				Balance
Sept.	1		G1		53,000				53,000

Dividends						Acct. No. 319
Date		Explanation	PR	Debit	Credit				Balance
Sept.	28		G1	5,300					5,300

Service Fees Earned						Acct. No. 401
Date		Explanation	PR	Debit	Credit			Balance
Sept.	8		G1		3,280			3,280
	12		G1		15,400			18,680
	24		G1		2,100			20,780

		Utilities Expense					Acct. No. 690
Date		Explanation	PR	Debit	Credit			Balance
Sept.	30		G1	860				860

Problem 2-3B (Concluded)

Part 3

HuMBLE Management Services

Trial Balance

September 30

Debit Credit

Cash............................................................... $21,520

Accounts receivable....................................... 9,800

Office supplies............................................... 2,950

Prepaid insurance.......................................... 1,900

Prepaid rent................................................... 9,000

Office equipment............................................ 23,000

Accounts payable........................................... $ 550

Common stock............................................... 53,000

Dividends....................................................... 5,300

Service fees earned........................................ 20,780

Utilities expense............................................. 860 .

Totals ............................................................ $74,330 $74,330

Problem 2-4B (60 minutes)

Part 1

TAMA CO.

Balance Sheet

December 31, 2012

*Assets*			*Liabilities*
Cash..........................		$ 20,000	Accounts payable.......................................................	$ 4,000
Accounts receivable. ..................................		35,000
Office supplies..........		8,000
Office equipment......		40,000	*Equity*
Machinery.................		28,500	Total equity................................................................	127,500
	Total assets..............	$131,500	Total liabilities & equity.............................................	$131,500

TAMA CO.

Balance Sheet

December 31, 2013

*Assets*			*Liabilities*
Cash..........................		$ 5,000	Accounts payable.......................................................		$ 12,000
Accounts receivable..		25,000	Note payable...............................................................		250,000
Office supplies..........		13,500	Total liabilities...........................................................		262,000
Office equipment......		40,000
Machinery.................		28,500
Building....................		250,000	*Equity*
Land..........................		50,000	Total equity................................................................		150,000
	Total assets..............	$412,000		Total liabilities & equity.............................................	$412,000

Part 2

Calculation of 2013 net income:

Equity, December 31, 2012.......................................................... $127,500

Equity, December 31, 2013.......................................................... (150,000)

Increase in equity during 2013.................................................... $ 22,500

Owner investment during 2013................................................... $ 15,000

2013 Net income.......................................................................... ?

Dividends during 2013 ($250 x 12).............................................. (3,000)

Increase in equity during 2013.................................................... $ 22,500

Therefore, 2013 income must equal ($22,500+ $3,000- $15,000) = $ 10,500

Part 3

Debt ratio = $262,000 / $412,000 = 63.6%

Test Bank

Tuesday, 1 November 2016

Financial Accounting Information for Decisions 7th Edition by Wild Solution Manual

For This And Any Other test Bnaks, slotion Manuals, Quizess, Exams And Assignments Contact us At whiperhills@gmail.com

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