Debit + Cash Credit-

OB 900 Paid vendors 3400

Problem 4-1 Collected from 5350 Note payable 950
CB 1900
Total 6250 Total 6250

1(asset) dr. Prepaid rent 14340

cr. Cash 14340

2(liabillity) dr. Sales discounts and allowances 34150

cr. Provision for sales and expenses 34150

3(asset) dr. Interest receivable 35

(income statement revenue) cr. Interest income 35

4(income state dr. depriciation 13660

Problem 4-2 (reduced from BS for an asset) cr. Accumulated depriciation 13660

5 dr. Cash 2730

(liability) cr. Deferred revenues 2730

6(Income state dr. Stamp expense 100

(Asset) stamp inventory 72
cr. Cash 172

7(income state Bad debts 1350

(reduced from accounts receivablAllowance for doubtful debts 1350

Problem 4-3
Journal for Luft corporation
Account LF Debit Credit
Inventory 1300
Account payable 1300
Wages 730
Cash 730
Cash 1940
Sales 1940
accounts receivable 1810
Sales 1810
overhead and other expenses 900

a
 Cash 900
a
Cash 1510
Accounts receivable 1510
Accounts payable 1720
Cash 1720
Cash 650
deferred revenue 650
Cash 200
note payable 200
CGS 1280
inventory 1280
depriciation 300
Accumulated depriciation 300

Debit- Accounts payable Credit+

paid AP 1720 OB 3070
Inventory purchase 1300
CB 2650
Total 4370 Total 4370

Debit- Accu. depriciation Credit+

OB 2800
depriciation 300
CB 3100
Total 3100 Total 3100

Debit + Cash Credit-

OB 1440 wages 730
Sales 1940 overhead and other 900
AR 1510 AP 1720
Deferred reven 650
b
Note payable 200
CB 2390
Total 5740 Total 5740

Debit + Inventory Credit-

OB 1730 CGS 1280
Inventory purc 1300
CB 1750
Total 3030 Total 3030
 Debit- Owner's equity Credit+
Wages 730 OB 4990
overhead and o 900 Sales 1940
CGS 1280 Sales 1810
Depriciation 300
CB 5530
Total 8740 Total 8740

Debit- Deferred revenue Credit+

OB 650
c
CB 650
Total 650 Total 650

Balance sheet of LUFT Corporation

Assets Liabilties
Cash 2390 Accounts payable 2650
Accounts Recei 2460 Deferred revenue 650
d Doubtful dbts -70 Notes payable 800
Inventories 1750 Owners equity 5530
Fixed assets 6200
Accumulated de -3100
Total assets 9630 Total l,OE 9630

Income statement for LUFT corporation

Sales revenue 3750
CGS 1280
Gross margin 2470
e Expenses
Wages 730
Overgead an othe 900
Depriciation 300
Net income 540

Problem 4-4
Debit + Cash and equivalents Credit-
OB 119115
CB 119115
Total 119115 Total 119115
 Debit + Store equipment Credit-
OB 215000 Depriciation 12750
CB 202250
Total 215000 Total 215000

Debit + Supplies Inventory Credit-

OB 15475
CB 15475
Total 15475 Total 15475

Debit + Selling expense Credit-

CGS 24900
Transfer to IS 24900
Total 24900 Total 24900

Debit + Miscellaneous expenses Credit-

Cash 31000
a
Transfer to IS 31000
Total 31000 Total 31000

Debit + Interest Expense Credit-

Cash 9300
Notes payable 3730 Transfer to IS 13030
Total 13030 Total 13030

Debit- Accumulated depreciation on store Credit+

OB 37300
CB 50050 Depreciation 12750
Total 50050 Total 50050

Debit- Notes payable Credit+

OB 143000
CB 143000
Total 143000 Total 143000

Debit- Retained Earnings Credit+

OB 122375
CB 122375
Total 122375 Total 122375

Debit + Cost of goods sold Credit-

Merchandise In 302990
Transfer to IS 302990
 Total 302990 Total 302990

Debit + Expired insurance expense Credit-

Prepaid insuran 4660
Transfer to IS 4660
Total 4660 Total 4660

Debit + Accrued Sales Salaries Credit-

Prepaid insuran 3575
b
Transfer to IS 3575
Total 3575 Total 3575

Debit + Accrued Interest Credit-

Notes Payable 3730
Transfer to IS 3730
Total 3730 Total 3730

Debit + Interest receivable Credit-

Savings accoun 390
Transfer to IS 390
Total 390 Total 390

Depriciation on stor 12750

Supplies expense 10265
Misc. general expen 31000
Sales salaries 109325
c selling expense 24900
social security tax 9600
Interest expense 13030
transfer to RE #REF!
Total revenue #REF! Total expenses #REF!

Balance Sheet
Assets Liabilities
Current Assets: Current Liabilities:
Cash and Other 119115 Accounts Payable 118180
Merchendise In 397690 Notes Payable 143000
Supplies Invent 5210 Acrued Interest 3730
Prepaid Insuran 33590 Accrued Sales salari 3575
d Interest Reciev 390 Total Current Liabilti 268485
Amount Recieva 162500 Long term Liabilties 0
Total Current A 718495 Owner's Equity
Non Current Assets: Retained Earnings 314960
d

Store Equipmen 215000 Common Stock 300000

Less Accumulat 50050 Total Owner's Equity 614960
Total Non Currr 164950
Total Assets 883445 Total Liabilites & Ow 883445
Debit + Accounts Receivable Credit- Debit + Inventory Credit-
OB 3000 Collected fro 5350 OB 5700 CGS 4150
Sales reve 6350 Inventory 2350
CB 4000 CB 3900
Total 9350 Total 9350 Total 8050 Total 8050

beginning 1730
purchases 1300
ending inv 1750
CGS #NAME?
Debit + Accounts Receivable Credit-
OB 2160 Collection AR 1510
Sales reve 1810
CB 2460
Total 3970 Total 3970

Debit- Allowance for DD Credit+

OB 70
CB 70
Total 70 Total 70

Debit + Fixed assets Credit-

OB 6200

CB 6200
Total 6200 Total 6200

Debit- Notes payable Credit+

OB 600
Cash 200
CB 800
Total 800 Total 800
Debit- Deferred revenue Credit+
OB 650
CB 650
Total 650 Total 650

Debit + Accounts Receivable Credit-

OB 162500
CB 162500
Total 162500 Total 162500
Debit + Merchandise Inventory Credit-
OB 700680 Sales 302990
CB 397690
Total 700680 Total 700680

Debit + Prepaid insurance Credit-

OB 38250 Expired insur 4660
CB 33590
Total 38250 Total 38250

Debit + Sales salaries Credit-

Wages 105750
salaries ea 3575 Transfer to IS 109325
Total 109325 Total 109325

Debit + Sales Discounts Credit-

Cash 6220
Transfer to IS 6220
Total 6220 Total 6220

Debit + Social security tax expenseCredit-

Cash 9600
Transfer to IS 9600
Total 9600 Total 9600

Debit- Accounts payable Credit+

OB 118180
CB 118180
Total 118180 Total 118180

Debit- Common stock Credit+

OB 300000
CB 300000
Total 300000 Total 300000

Debit- Sales revenues Credit+

Cash 716935
Transfer to 716935
Total 716935 Total 716935
Debit - Accounts payable Credit + Debit - Notes payable Credit +
Paid vendo 3400 OB 3600 Paid of 950 OB 950
Inventory 2350
CB 2550 CB 0
Total 5950 Total 5950 Total 950 Total 950
Debit- Bank loan payable Credit+ Debit- Proprieties capital Credit+
OB 0 OB 0
Cash 100000 Cash 65000
CB 100000 CB 65000
Total 100000 Total 100000 Total 65000 Total 65000

Debit- Rent expense Credit+ Debit+ Merchandise inventory Credit-

Cash 1485 OB 0 CGS 38140
Transfer to 1485 Accounts P 137500
Total 1485 Total 1485 Accounts P 49940 CB 149300
Total 187440 Total 187440
Debit- Accounts payable Credit+
Cash 96195 OB 0 Debit+ Furniture &Fixtures Credit-
Merchandise 137500 OB 0
Merchandise 49940 Cash 15500
Utilities 226 Accounts P 1100
CB 92571 Furniture and 1100 Cash 660 CB 17260
Total 188766 Total 188766 Total 17260 Total 17260

Debit+ Advertisement expense Credit- Debit+ Wages Expense Credit-

Cash 1320 Cash 935
Transfer to IS 1320 Cash 688
Total 1320 Total 1320 Accrued W 440 Transfer to IS 2063
Total 2063 Total 2063
Debit+ Office supplies expense Credit-
Cash 1100 Debit+ Utilities expense Credit-
Transfer to IS 1100 Cash 275
Total 1100 Total 1100 Cash 226 Transfer to IS 501
Total 501 Total 501
Debit- Sales Credit+
Cash 38000 Debit+ Accounts Receivable Credit-
Accounts Rec 14850 Sales 14850 Cash 3614
Transfer to 52850 CB 11236
Total 52850 Total 52850 Total 14850 Total 14850

Debit+ Cost of Sales Credit- Debit- Accrued Wages Credit+

Merchandis 38140 OB 0
Transfer to IS 38140 CB 440 Wages expens 440
Total 38140 Total 38140 Total 440 Total 440

Debit+ Insurance expense Credit-

Cash 193 Debit+ Prepaid insurance Credit-
Transfer to IS 193 Cash 2310 Insurance exp 193
Total 193 Total 193 CB 2117
Total 2310 Total 2310
Debit+ Interest Expense Credit-
Interest Pa 1250 Debit- Interest Payable Credit+
Transfer to IS 1250 Interest epens 1250
Total 1250 Total 1250 CB 1250
Total 1250 Total 1250
Income statement for PC Depot for September
Revenue Expenses Balance sheet for PC Depot as of Sept 30
Sales 52850 Rent 1485 Assets Liabilities
CGS -38140 Depreciation 144 Cash 84661 Bank loan Paya 100000
Advertisemen 1320 Prepaid ren 1485 Propreitors cap 65000
Wages Expen 2063 Merchandis 149300 Accounts paya 92571
Office supplie 1100 Furniture a 17260 Interest Payabl 1250
Utilities 501 Accumulate -144 Retained Earni 6654
Insurance 193 Accounts R 11236 Accrued Wage 440
Interest 1250 Prepaid In 2117
Retained earn 6654 Total asset 265915 Total L+OE 265915
Total reve 14710 Total expens 14710
Debit+ Cash Credit-
OB 165000 Rent expense 1485
Sales 38000 Furniture and f 15500
Credit cus 3614 Advertising exp 1320
Wages expense 935
Office supplies 1100
Utilities 275
Merchandise sup 96195
Wages expense 688
Rent expense 1485
Insurance 2310
Furniture and f 660
CB 84661
Total 206614 Total 206614

Debit+ Prepaid rent Credit-

Cash 1485
CB 1485
Total 1485 Total 1485

Debit- Accumulated depreciation Credit+

Furniture and f 144
CB 144
Total 144 Total 144

Debit+ Depreciation Credit-

Cash 144
Transfer to IS 144
Total 144 Total 144
 INCOME STATEMENT
Expense Revenue

COGS 604783 sales revenue 985360

supplies inventory 13603
insurance exp 7125
Bank chs 750
sale salaries 49480
Selling Expense 10880
mis gen exp 18930
Interest exp 7965
social sec exp 3400
depreciation 10139
727055

proft 258305
Total 985360 Total 985360

Cash Account payable

Debit Credit Debit Credit
OB $88,860 Bank service $750 OB

CB $88,970
CB $88,110 $88,970
$88,860 $88,860

Merchandise inventory Supplies Inventory

Debit Credit Debit Credit
Supplies
OB $9,03,130 cost of goods$6,04,783 OB $17,480 expense
CB $2,98,347
$9,03,130 $9,03,130 CB
$17,480

Store equipment Supplies expense

Debit Credit Debit Credit
OB $70,970 Supplies in$13,603 Transfer
CB $70,970 to IS
Case 4-2 $70,970 $70,970 $13,603
Case 4-2

Insurance expense
Prepaid insurance Debit Credit
Debit Credit Prepaid in $7,125 Transfer
OB $12,430 Insurance ex $7,125 to IS

CB $5,305 $7,125
$12,430 $12,430

Sales discount
Debit Credit
Miscellaneous general expense Debit give $3,340 Transfer
Debit Credit to IS
Debit given $18,930 Transfer to $18,930 $3,340
IS
$18,930 $18,930
Note payable
Debit Credit
Interest expense OB
Debit Credit
Debit given $7,100 $7,965 CB $88,500
Accrued expe $865 Transfer to $88,500
IS
$7,965 $7,965
Accrued expense
Debit Credit
Cost of goods sold OB
Debit Credit Interest e
Merchandise $6,04,783 Transfer to $6,04,783 Sales salar
inventory IS CB $3,205
$6,04,783 $6,04,783 $3,205

Selling expense
Debit Credit
Retained earnings Debit give $10,880 Transfer
Debit Credit to IS
OB $33,500 $10,880
From
income $2,58,305
CB $2,91,805 statement
$2,91,805 $2,91,805
 BALANCESHEET
ASSET
CA
cash 88110
prepaid ins 5305

acc receiva 127430

merc inven 298347
supply inv 3877 523069

NCA
store equip 70970
acc dep -21559 49411

Total Assets 572480

payable Account receivable

Credit Debit Credit
$88,970 OB $1,27,430

CB $1,27,430
$88,970 $1,27,430 $1,27,430

nventory Sales salaries

Credit Debit Credit

$13,603 Debit given $47,140 Transfer $49,480

Accrued expen$2,340 to IS
$3,877
$17,480 $49,480 $49,480

expense Depreciation
Credit Debit Credit
$13,603 Accumulated $10,139 Transfer $10,139
depreciation to IS
$13,603 $10,139 $10,139
expense Accumulated depreciation
Credit Debit Credit
$7,125 OB $11,420
Depreciati $10,139
CB $21,559
$7,125 $21,559 $21,559

count Tax expense

Credit Debit Credit
$3,340 Debit given $3,400 Transfer $3,400
to IS
$3,340 $3,400 $3,400

yable Common stock

Credit Debit Credit
$88,500 OB $1,00,000

CB $1,00,000
$88,500 $1,00,000 $1,00,000

expense Sales
Credit Debit Credit
$0 Credit give$9,88,700
$865
Transfer to IS
$2,340 $9,88,700

$3,205 $9,88,700 $9,88,700

xpense Bank service charge

Credit Debit Credit
$10,880 Cash $750 Transfer $750
to IS
$10,880 $750 $750
BALANCESHEET
LIABILITY
CL
note payab 88500
acc payabl 88970
int acc 865
acc salarie 2340
180675
NCL

owners fund
owners equ 100000
retained ea 33500
add. Retain 258305 391805

Total L+OE 572480