Scribd
Upload
111 views9 pages

Problem 3.10

Solved 'problem 3.10' for "Financial and Managerial Accounting -the basis for business decisions" by William, Haka, Bettner and Carcello.

Uploaded by

aimen.zulfiqar21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
111 views9 pages

Problem 3.10

Solved 'problem 3.10' for "Financial and Managerial Accounting -the basis for business decisions" by William, Haka, Bettner and Carcello.

Uploaded by

aimen.zulfiqar21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Trafflet Enterprises incorporated on May 3, 2011.

The company engaged in the following transactions during its first month of
May 3 Issued capital stock in exchange for $800,000 cash
May 4 Paid May office rent expense of $1,000
May 5 Purchased office supplies for $400 cash. The supplies will last for several months.
May 15 Purchased office equipment for $8,000 on account. The entire amount is due June 15.
May 18 Purchased a company car for $27,000. Paid $7,000 cash and issued a note payable for the remaining amount owed.
May 20 Billed clients $32,000 on account
May 26 Declared a $5,000 dividend.The entire amount will be distributed to shareholders on June 26.
May 29 Paid May utilities of $200
May 30 Received $30,000 from clients billed on May 20
May 31 Recorded and paid salary expense of $14,000
ctions during its first month of operations:

he remaining amount owed.


Titles LP
Cash 1110
Accounts Receivable 1120
Office Supplies 1130
Office Equipment 1210
Vehicles 1220
Notes Payable 2101
Accounts Payable 2102
Dividends Payable 2103
Dividends 2104
Capital Stock 3110
Retained Earnings 3120
Client Revenue 4110
Office Rent Expense 5110
Salary Expense 5120
Utilities Expense 5130
Date Accounts Titles LP Debit Credit Types Of Entries
3-May Cash 1110 800000 General Entries
Capital Stock 3110 800000 General Entries
4-May Office Rent Expense 5110 1000 General Entries
Cash 1110 1000 General Entries
5-May Office Supplies 1130 400 General Entries
Cash 1110 400 General Entries
15-May Office Equipment 1210 8000 General Entries
Accounts Payable 2102 8000 General Entries
18-May Vehicles 1220 27000 General Entries
Cash 1110 7000 General Entries
Notes Payable 2101 20000 General Entries
20-May Accounts Receivable 1120 32000 General Entries
Client Revenue 4110 32000 General Entries
26-May Dividends 2104 5000 General Entries
Dividends Payable 2103 5000 General Entries
29-May Utilities Expense 5130 200 General Entries
Cash 1110 200 General Entries
30-May Cash 1110 30000 General Entries
Accounts Receivable 1120 30000 General Entries
31-May Salary Expense 5120 14000 General Entries
Cash 1110 14000 General Entries
31-May Client Revenue 4110 32000 Closing Entries
Retained Earnings 3120 32000 Closing Entries
31-May Retained Earnings 3120 15200 Closing Entries
Office Rent Expense 5110 1000 Closing Entries
Salary Expense 5120 14000 Closing Entries
Utilities Expense 5130 200 Closing Entries
Types Of Entries - all -

Accounts Titles LP (empty)


Accounts Receivable 1120
Dividends 2104
Dividends Payable 2103
Accounts Payable 2102
Capital Stock 3110
Cash 1110
Client Revenue 4110
Notes Payable 2101
Office Equipment 1210
Office Rent Expense 5110
Office Supplies 1130
Retained Earnings 3120
Salary Expense 5120
Utilities Expense 5130
Vehicles 1220
Trafflet Enterprises
Balance Sheet
As on 31 May, 2011
Assets: Liabilities And Owner's Equity
Liabilities
Cash 807400 Notes Payable
Accounts Receivable 2000 Accounts Payable
Office Supplies 400 Dividends Payable
Office Equipment 8000
Vehicles 27000 Owners equity:
Capital Stock
Retained Earnings

Total Assets 844800 Total Liabilties And O.E


es And Owner's Equity

20000
8000
5000
33000

800000
11800
811800

abilties And O.E 844800


Trafflet Enterprises
Income Statement
At the end of month may,2011

Client Revenue 32000


Office Rent Expense 1000
Salary Expense 14000
Utilities Expense 200
16800
(-) Dividends 5000
Retained Earning 11800
Date Accounts Titles LP Debit Credit Types Of Entries
5/3/2023 Cash 1110 800000 General Entries
Cash 1110 14000 General Entries
### Cash 1110 30000 General Entries
Cash 1110 1000 General Entries
Cash 1110 200 General Entries
Cash 1110 400 General Entries
Cash 1110 7000 General Entries

Operating activities
sources:
Uses:

Investing Activities
Sorces:
uses:

Financing Activities
Sources:
Uses:

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy