Prepare a trial balance as of april 30

E2-18A (book/static)

The following selected events were experienced by either Knox Eldercare​ Services, Inc., a​ corporation, or Steve​ Knox, the major stockholder.

a.

Sold land and received cash of​ $69,000 (the land was carried on the​ company's books at​ $69,000).

b.

Received​ $15,400 cash from customers on account.

c.

Made cash purchase of land for a building site for the​ business, $89,000.

d.

Borrowed​ $62,000 from the bank for use in the business.

e.

Knox used personal funds to purchase a​ flat-screen TV for his home.

f.

Purchased medical equipment and signed a​ $90,000 promissory note in payment.

g.

Purchased office supplies on account for​ $1,200.

h.

Received​ $12,000 cash and issued stock to a stockholder.

i.

Paid​ $400 cash on accounts payable.

j.

The business paid Knox a cash dividend of​ $4,000.

Requirement

1.

State whether each event​ (1) increased,​ (2) decreased, or​ (3) had no effect on the total assets of the business. Identify any specific asset affected.

State whether each event​ (1) increased,​ (2) decreased, or​ (3) had no effect on the total assets of the business. Identify any specific asset affected. If no​ effect, indicate the reason.

Account affected or why

Trans.

Asset effect

assets are not affected

a.

E2-22A (book/static)

The first seven transactions of Fournier

​Advertising, Inc., have been posted to the​ company's accounts:

Cash

Supplies

Land

Equipment

(1)

8,900

(4)

12,000

(3)

1,000

(5)

75

(4)

36,000

(7)

3,700

(2)

10,000

(6)

300

(5)

75

(7)

3,700

Accounts Payable

Note Payable

Common Stock

(6)

300

(3)

1,000

(2)

10,000

(1)

8,900

(4)

24,000

Requirement

1.

Prepare the journal entries that served as the sources for the seven transactions. Include an explanation for each entry. As

Fournier

moves into the next​ period, how much cash does the business​ have? How much does

Fournier

owe in total​ liabilities?

Begin by recording the journal​ entries; start with transaction​ (1). ​(Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Journal Entry

Accounts and Explanations

Debit

Credit

1.

--------------

--------------

E2-23A (book/static)

The accounts of

Custom Patio

​Service, Inc., follow with their normal balances at April​ 30,

2016

.

The accounts are listed in no particular order.

Account

Balance

Account

Balance

Dividends . . . . . . . . . . . . . . . . . . .

$3,400

Common stock . . . . . . . . . .

$16,800

Utilities expense . . . . . . . . . . . . .

2,200

Accounts payable . . . . . . .

4,900

Accounts receivable . . . . . . . . . .

5,100

Service revenue . . . . . . . . .

21,100

Delivery expense . . . . . . . . . . . .

600

Equipment . . . . . . . . . . . . .

30,400

Retained earnings . . . . . . . . . . . .

2,400

Note payable . . . . . . . . . . .

24,000

Salary expense . . . . . . . . . . . . . .

8,800

Cash . . . . . . . . . . . . . . . . . .

18,700

Read the requirements

1) Prepare the​ company's trial balance at April​ 30,

2016, listing accounts in proper sequence. For​ example, Accounts Receivable comes before Equipment. List the expense with the largest balance​ first, the expense with the next largest balance​ second, and so on.

2) Prepare the financial statement for the month ended April​ 30,

2016, that will tell the company the results of operations for the month.

Requirement 1. Prepare the​ company's trial balance at April​ 30,

2016, listing accounts in proper sequence. For​ example, Accounts Receivable comes before Equipment. List the expense with the largest balance​ first, the expense with the next largest balance​ second, and so on.

Select the accounts that will be listed on the trial​ balance; enter the account balances and finally total the debits and

​credits. Remember to list the accounts in the proper sequence​;​ assets first, then liabilities followed by ​stockholders'

equity​ (including revenue and expense​ accounts). List the expenses last with the​ largest balance first, the expense with the next largest balance​ second, and so on.

Custom Patio Service, Inc.

Trial Balance

April 30, 2016

Account

Debit

Credit

Total

---------------

E2-24A (book/static)

The trial balance of Harper, ​Inc., at September​ 30, 2016 does not​ balance:

Cash . . . . . . . . . . . . . . . . . . . . . . . .

$14,500

Accounts receivable . . . . . . . . . . . .

12,600

Inventory . . . . . . . . . . . . . . . . . . . .

16,800

Supplies . . . . . . . . . . . . . . . . . . . . .

200

Land . . . . . . . . . . . . . . . . . . . . . . . .

50,000

Accounts payable . . . . . . . .

$12,000

Common stock . . . . . . . . . . . . . . . .

47,100

Sales revenue . . . . . . . . . . . . . . . .

40,000

Salary expense . . . . . . . . . . . . . . .

2,400

Rent expense . . . . . . . . . . . . . . . . .

900

Utilities expense . . . . . . . . . . . . . . .

800

Total . . . . . . . . . . . . . . . . . . . . . . . .

$98,200

$99,100

The accounting records hold the following​ errors:

A. Recorded a $ 500 cash revenue transaction by debiting Accounts Receivable. The credit entry was correct.

B. Posted a $ 3,000 credit to Accounts Payable as $ 300

C. Did not record utilities expense or the related account payable in the amount of $ 240.

D. Understated Common Stock by $100.

E. Omitted Insurance Expense of $ 3,700 from the trial balance.

Requirement

1. Prepare the correct trial balance at September​ 30,

2016, complete with a heading. Journal entries are not required.

A correct trial balance will start with the appropriate header. Then enter the correct account balances after you adjust for the errors found in the investigation. Total the debits and credits.

Harper, Inc.

Trial Balance

September 30, 2016

Account

Debit

Credit

Cash

Accounts receivable

Inventory

Supplies

Land

Accounts payable

Common stock

Sales revenue

Insurance expense

Salary expense

Utilities expense

Rent expense

Total

E2-25A (book/static)

Review the following transactions.

A. Leigh Hampton opened a law firm by investing $ 22,500 cash and office furniture wiith a fair value of $ 9,000. Organized as a professional​ corporation, the business issued common stock to

Hampton.

B. Paid monthly rent of $ 1,600.

C. Purchased office supplies on​ account, $ 1,400.

D. Paid​ employees' salaries of $ 3,300.

E. Paid $ 850 of the accounts payable created in transaction c.

F. Performed legal service on​ account, $ 10,100.

G. Declared and paid dividends of $ 2,300.

Requirement

1. Record the transactions directly in the​ T-accounts without using a journal. Use the letters to identify the transactions. (Select the​ "Bal" label on the normal balance side of the account and enter the ending​ balances.)

Cash

Common Stock

Accounts Receivable

Dividends

Office Supplies

Service Revenue

Office Furniture

Salary Expense

Accounts Payable

Rent Expense