Problem 04-04A KARISE REPAIRS Income Statement For the Year Ended December 31, 2013

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Student Name:
Class:
Problem 04-04A
KARISE REPAIRS
Income Statement
For the Year Ended December 31, 2013
Repair fees earned

$

$

Expenses:
Depreciation expense – Equipment
Wages expense
Insurance expense
Rent expense
Office supplies expense
Utilities expense
Total expenses
Net income

$

90,950

60,200
30,750

5,000
37,500
800
10,600
3,600
2,700

Correct!

KARISE REPAIRS
Statement of Owner’s Equity
For Year Ended December 31, 2013
C. Karise, Capital, January 1, 2013
Add: Net income

$

Less: Withdrawals
C. Karise, Capital, December 31, 2013

$

33,000
30,750
16,000
47,750
Correct!

KARISE REPAIRS
Balance Sheet
December 31, 2013
Assets
Current assets
Cash
Office supplies
Prepaid insurance
Total current assets
Plant assets
Equipment
Accumulated depreciation – Equipment
Total assets

$

14,000
1,300
2,050
$

17,350

$

5,000
62,350

50,000
67,350

Correct!

Liabilities
Current liabilities
Accounts payable
Wages payable
Total current liabilities

$

14,000
600
14,600

Equity
C. Karise, Capital
Total liabilities and equity

$

33,000
62,350
Correct!

KARISE REPAIRS
Work Sheet
For Year Ended December 31, 2013

No.
101
124
128
167
168
201
210
301
302
401
612
623
637
640
650
690
901

Account Title
Cash
Office supplies
Prepaid insurance
Equipment
Accumulated depreciation – Equipment
Accounts payable
Wages payable
C. Karise, Capital
C. Karise, Withdrawals
Repair fees earned
Depreciation expense – Equipment
Wages expense
Insurance expense
Rent expense
Office supplies expense
Utilities expense
Income summary
Totals

Adjusted
Trial Balance
Debit
Credit
14,000
1,300
2,050
50,000
5,000
14,000
600
33,000
16,000
90,950
5,000
37,500
800
10,600
3,600
2,700
143,550
143,550

(Jnl.)

Closing Entry Information
Debit
(Jnl.)

Credit

Post-Closing
Trial Balance
Debit
Credit

Student Name:
Class:
Problem 04-04A
KARISE REPAIRS
General Journal
Debit

(1)

(2)

(3)

(4)

Dec. 31, 2013
Closing entries:
Repair Fees Earned
Income Summary
To close the revenue account.
Income Summary
Depreciation Expense – Equipment
Wages Expense
Insurance Expense
Rent Expense
Office Supplies Expense
Utilities Expense
To close the expense accounts.

Credit

90,950
Correct!

90,950

60,200
Correct!

Income Summary
C. Karise, Capital
To close the Income Summary account.

Correct!

C. Karise, Capital
C. Karise, Withdrawals
To close the withdrawals account.

Correct!

5,000
37,500
800
10,600
3,600
2,700

30,750
33,000

16,000
16,000

Part 4: Assume for this part only:
(a) None of the $800 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.
Describe the financial statement changes that would result from these two assumptions.

Given Data P04-04A:
KARISE REPAIRS
Adjusted Trial Balance
December 31, 2013
101 Cash
124 Office supplies
128 Prepaid insurance
167 Equipment
168 Accumulated depreciation – Equipment
201 Accounts payable
210 Wages payable
301 C. Karise, Capital
302 C. Karise, Withdrawals
401 Repair fees earned
612 Depreciation expense-Equipment
623 Wages expense
637 Insurance expense
640 Rent expense
650 Office supplies expense
690 Utilities expense
Totals
Check figures:
(1) Ending capital balance
Net Income
(2) Post-closing trial balance totals

$

14,000
1,300
2,050
50,000
$

5,000
14,000
600
33,000

16,000
90,950

$

$
$
$

5,000
37,500
800
10,600
3,600
2,700
143,550 $

47,750
30,750
67,350

143,550

Student Name:
Class:
Problem 07-03A

Page 2
CHURCH COMPANY
Sales Journal
Inv.
No.
854
855
856
857
858

Date Account Debited
Mar. 2 Min Cho
3 Linda Witt
10 Jovita Albany
27 Jovita Albany
28 Linda Witt
31 Total

Acct. Rec. Debit
Sales Cr.
16,800
10,200
5,600
14,910
4,315
51,825
Correct!

PR
√
√
√
√
√

COGS
Debit
Inv. Credit
8,400
5,800
2,900
7,220
3,280
27,600
Correct!
Page 2

CHURCH COMPANY
Purchases Journal

Date
Account
Mar. 1 Van Industries
3 Gabel Company
9 Office Equip./Spell Supply
14 The CD Company
16 Store Supplies/Gabel Co.
31 Totals

Inv.
Date
3/1
3/3
3/9
3/13
3/16

Terms
2/15, n/30
n/10, EOM
n/10, EOM
2/10, n/30
n/10, EOM

PR
√
√
163/√
√
125/√

Accounts
Payable
Credit
43,600
1,230
21,850
32,625
1,770
101,075
Correct!

Inventory
Debit
43,600
1,230
163
32,625
125
77,743
Try again!

Office
Supplies
Debit

Other
Accounts
Debit

21,687
1,645
23,332
Try again!

Page 2
CHURCH COMPANY
Cash Receipts Journal

Date Account Credited
Mar. 6 L.T. Notes Pay
12 Min Cho
13 Linda Witt
15 Sales
20 Jovita Albany
31 Sales
31 Totals

Explanation
Note to bank
Invoice, 3/2
Invoice, 3/3
Cash sales
Invoice, 3/10
Cash sales

PR
251
√
√
√
√
√

Cash
Debit

Sales
Discount
Debit

Accounts
Receivable
Credit

Sales
Credit

Other
Accounts
Credit

COGS
Debit
Inv. Credit

18,300

Page 2
CHURCH COMPANY
Cash Disbursements Journal

Date
Mar. 13
15
23
31
31

Check
No.
416
417
418
419

Payee

Van Industries
Payroll
The CD Co.
Payroll
Totals

Account
Debited
Van Industries
Sales Salaries Exp.
The CD Company
Sales Salaries Exp.

PR
√
621
√
621

Cash
Credit

Inventory
Credit

Other
Accts.
Debit

Accts.
Pay.
Debit

Student Name:
Class:
Problem 07-03A

Page 2
CHURCH COMPANY
General Journal

Date
Description
Mar. 17 Accounts Payable-The CD Co.
Inventory
Received a credit memo for returns.

PR
201/√
119

19 Accounts Payable-Spell Supply
Office Equipment
Received a credit memo for returns.

Debit

Credit

201/√
163

Account No.

101

CHURCH COMPANY
General Ledger
Cash
Date
Mar. 31
31

Explanation

PR
R2
D2

Debit

Accounts Receivable
Date
Mar. 31
31

Explanation

Account No.
PR
S2
R2

Debit

Inventory
PR

Debit

Explanation

Account No.
PR
P2

Debit

Store Supplies
Explanation

Explanation

PR
P2

Debit

Explanation

Credit

Account No.
PR
P2
G2

Debit

Accounts Payable
Date
Mar. 17
19
31
31

Credit

Account No.

Office Equipment
Date
Mar. 9
19

Credit

Balance

106
Balance

119
Balance

G2
P2
D2
S2
R2

Office Supplies

Date
Mar. 16

Credit

Account No.

Date
Explanation
Mar. 1 Beginning balance
17
31
31
31
31

Date
Mar. 31

Credit

Credit

Account No.
PR
G2
G2
P2
D2

Debit

Credit

124
Balance

125
Balance

163
Balance

201
Balance

Student Name:
Class:
Problem 07-03A
Long-Term Notes Payable
Date
Mar. 6

Explanation

Account No.
PR
R2

Debit

Z. CHURCH, Capital
Date
Explanation
Mar. 1 Beginning balance

Account No.
PR

Debit

Sales
Date
Mar. 31
31

Explanation

PR
S2
R2

Debit

Explanation

Explanation

PR
R2

Debit

Explanation

Credit

Account No.
PR
R2
S2

Debit

Sales Salaries Expense
Date
Mar. 15
31

Credit

Account No.

Cost of Goods Sold
Date
Mar. 31
31

Credit

Account No.

Sales Discounts
Date
Mar. 31

Credit

Credit

Account No.
PR
D2
D2

Debit

251
Balance

301
Balance

413
Balance

415
Balance

502
Balance

621

Credit

Balance

Debit

Credit

Balance

Debit

Credit

Balance

Debit

Credit

Balance

CHURCH COMPANY
Accounts Receivable Ledger
Jovita Albany
Date
Mar. 10
20
27

Explanation

PR
S2
R2
S2
Min Cho

Date
Mar. 2
12

Explanation

PR
S2
R2
Linda Witt

Date
Mar. 3
13
28

Explanation

PR
S2
R2
S2

Student Name:
Class:
Problem 07-03A
CHURCH COMPANY
Accounts Payable Ledger
The CD Company
Date
Mar. 14
17
23

Explanation

PR
P2
G2
D2

Debit

Credit

Balance

Debit

Credit

Balance

Debit

Credit

Balance

Debit

Credit

Balance

Debit

Credit

Gabel Company
Date
Mar. 3
16

Explanation

PR
P2
P2
Spell Supply

Date
Mar. 9
19

Explanation

PR
P2
G2
Van Industries

Date
Mar. 1
13

Explanation

PR
P2
D2

CHURCH COMPANY
Trial Balance
March 31

Cash
Accounts receivable
Inventory
Office supplies
Store supplies
Office equipment
Accounts payable
Long-term notes payable
Z. Church, Capital
Sales
Sales discounts
Cost of goods sold
Sales salaries expense
Totals

CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany
Linda Witt
Total accounts receivable

CHURCH COMPANY
Schedule of Accounts Payable
March 31
Gabel Company
Spell Supply
Total accounts payable

Given Data P07-03A:
CHURCH COMPANY

Date Description
Mar. 1 Received merchandise and invoice
2 Merchandise sold (cost $8,400)
3 Purchased office supplies
3 Merchandise sold (cost $5,800)
6 Borrowed on long-term note payable
9 Purchased office equipment
10 Sold merchandise (cost $2,900)
12 Received payment less discount
13 Paid invoice less discount
13 Received payment less discount
14 Purchase merchandise
15 Check issued for sales salaries
15 Cash sales for first half of month (cost $20,210)
16 Purchased store supplies
17 Received credit memo on returned merchandise.
19 Received credit memo on returned office equipment
20 Received payment less discount
23 Paid invoice less discount and credit memo
27 Merchandise sold (cost $7,220)
28 Merchandise sold (cost $3,280)
31 Check issued for sales salaries
31 Cash sales for second half of month (cost $16,820)

Name
Van Industries
Min Cho
Gabel Company
Linda Witt
Federal Bank
Spell Supply
Jovita Albany
Min Cho
Van Industries
Linda Witt
CD Company
Payroll
Gabel Company
CD Company
Spell Supply
Jovita Albany
CD Company
Jovita Albany
Linda Witt
Payroll

Additional information:
March 1 beginning balance for inventory
March 1 beginning balance for Z. CHURCH, Capital

$
$

10,000
10,000

Check figure:
Trial balance totals

$

232,905

Inv. No.
or Date
Mar. 1
854
Mar. 3
855
Mar. 9
856
854
Mar. 1
855
Mar. 13
Mar. 15

Check
No.

416

n/10 EOM
2/10, n/30
2/10, n/30
2/10, n/30
2/10, n/30
2/10, n/30

417

Mar. 16

856
Mar. 13
857
858
Mar. 31

Terms
2/15, n/30
2/10, n/30
n/10 EOM
2/10, n/30

n/10 EOM

418

419

2/10, n/30
2/10, n/30
2/10, n/30
2/10, n/30

Amount
43,600
16,800
1,230
10,200
82,000
21,850
5,600

32,625
18,300
34,680
1,770
2,425
630

14,910
4,315
18,300
30,180

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