EXERCISE 3-4
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Unearned revenue.
Accrued expense.
Accrued expense.
Accrued revenue.
Prepaid expense.
Unearned revenue.
Accrued revenue.
Prepaid expense.
Prepaid expense.
Prepaid expense.
Accrued expense.
EXERCISE 3-5
1.
2.
3.
4.
5.
6.
7.
Interest Expense .....................................................
Interest Payable
($10,000 X 12% X 4/12) .................................
400
Supplies Expense ...................................................
Supplies ($2,450 – $900) ..................................
1,550
Depreciation Expense ............................................
Accumulated Depreciation—Equipment ........
1,000
Insurance Expense .................................................
Prepaid Insurance
($2,100 X 7/12) ...............................................
1,225
Unearned Service Revenue ....................................
Service Revenue
($30,000 X 1/4) ...............................................
7,500
Accounts Receivable ..............................................
Service Revenue ..............................................
4,200
Salaries and Wages Expense.................................
Salaries and Wages Payable
($9,000 X 3/5) .................................................
5,400
400
1,550
1,000
1,225
7,500
4,200
5,400
EXERCISE 3-7
1.
2.
3.
4.
5.
Mar. 31
31
31
31
31
Depreciation Expense ($400 X 3) .................
Accumulated Depreciation—
Equipment ..........................................
1,200
Unearned Rent Revenue ...............................
Rent Revenue ($10,200 X 1/3) ...............
3,400
Interest Expense ...........................................
Interest Payable .....................................
500
Supplies Expense .........................................
Supplies ($2,800 – $900) .......................
1,900
Insurance Expense ($200 X 3) ......................
Prepaid Insurance .................................
600
Supplies Expense .........................................
Supplies ($2,500 – $500) .......................
2,000
Insurance Expense .......................................
Prepaid Insurance .................................
100
Depreciation Expense ...................................
Accumulated Depreciation—
Equipment ..........................................
50
Unearned Service Revenue ..........................
Service Revenue ....................................
600
Accounts Receivable ....................................
Service Revenue ....................................
300
1,200
3,400
500
1,900
600
EXERCISE 3-9
1.
2.
3.
4.
5.
6.
7.
Oct. 31
31
31
31
31
Oct. 31
31
2,000
100
50
600
300
Interest Expense .....................................
Interest Payable ...............................
95
Salaries and Wages Expense .................
Salaries and Wages Payable...........
1,625
95
1,625
EXERCISE 3-14
FRINZI COMPANY
Income Statement
For the Year Ended August 31, 2015
Revenues
Service revenue ........................................................
Rent revenue ............................................................
Total revenues ..................................................
Expenses
Salaries and wages expense ...................................
Rent expense ............................................................
Insurance expense ...................................................
Supplies expense .....................................................
Depreciation expense ..............................................
Total expenses ..................................................
Net income .......................................................................
$36,000
11,900
$47,900
18,100
15,000
1,500
1,400
900
36,900
$11,000
FRINZI COMPANY
Retained Earnings Statement
For the Year Ended August 31, 2015
Retained earnings, September 1, 2014 ..........................................
Add: Net income ...........................................................................
Retained earnings, August 31, 2015 ..............................................
$ 3,600
11,000
$14,600
FRINZI COMPANY
Balance Sheet
August 31, 2015
Assets
Cash ..................................................................................
Accounts receivable ........................................................
Supplies ...........................................................................
Prepaid insurance ............................................................
Equipment ........................................................................
Less: Accum. depreciation—equipment .......................
Total assets .......................................................
$10,400
10,800
900
2,500
$14,000
4,500
9,500
$34,100
Liabilities and Stockholders’ Equity
Liabilities
Accounts payable....................................................
Salaries and wages payable ...................................
Unearned rent revenue ...........................................
Total liabilities ..................................................
Stockholders’ equity
Common stock ........................................................
Retained earnings ...................................................
Total liabilities and Stockholders’ equity.......
$ 5,800
1,100
600
$ 7,500
12,000
14,600
26,600
$34,100