XACC 280 Financial Accounting: Concepts and Principles

Appendix G
Answer Key
Students must complete all six tabs of Appendix G. Refer to the answers to the Comprehensive Problem taken from p. 482 (Ch. 4) of the Online
Solutions Manual.
Part A
Date
July

1
1

3
5
12
18
20
21

25
31

General Journal
Account Titles and Explanation
Cash...............................................................................
Common Stock................................................
Equipment.....................................................................
Cash.................................................................
Accounts Payable...........................................
Cleaning Supplies.........................................................
Accounts Payable...........................................
Prepaid Insurance.........................................................
Cash.................................................................
Accounts Receivable....................................................
Service Revenue.............................................
Accounts Payable.........................................................
Cash.................................................................
Salaries Expense...........................................................
Cash.................................................................
Cash...............................................................................
.......................................................................................
Accounts Receivable......................................
Accounts Receivable....................................................
Service Revenue.............................................
Gas & Oil Expense........................................................
Cash.................................................................

Ref.
101
311
157
101
201
128
201
130
101
112
400
201
101
726
101
101
112
112
400
633
101

Debit
14,000

J1
Credit
14,000

10,000
3,000
7,000
800
800
1,800
1,800
3,800
3,800
1,400
1,400
1,600
1,600
1,400
1,400
1,500
1,500
400
400

XACC 280 Financial Accounting: Concepts and Principles

31

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

332

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

101

600
600

Parts B & C
JULIES MAIDS CLEANING SERVICE INC.
Worksheet
For the Month Ended July 31, 2008

Account
Cash
Accounts Receivable
Cleaning Supplies
Prepaid Insurance
Equipment

Unadjusted
Trial Balance
Debit
Credit

6,600
3,900

800

Totals
Depreciation Expense

(d)
700
(c)
150

600

6,600
5,200

100

100

1,650

1,650

10,000

10,000

5,300

(a)

1,300

400

25,700

6,400
14,000

600

1600

Balance Sheet
& Statement
of Owner's Equity
Debit
Credit

6,400
14,000

(e)
500

(b)
200

600
6,600

6,600

400
2,100

400
2,100

200

200

25,700
(b)
200

Accum. Depr.Equipment
Insurance Expense
Cleaning Supplies Expense

Income
Statement
Debit
Credit

6,600
5,200

6,400
14,000

Service Revenue

Salaries Expense

1,300

10,000

Common Stock

Gas & Oil Expenses

(a)

1,800

Accounts Payable
Dividends

Adjustments
Debit
Credit

Adjusted
Trial Balance
Debit
Credit

(c)
150
(d)

200

150
700

200
150
700

XACC 280 Financial Accounting: Concepts and Principles

700
(e)

Salaries Payable
Totals
Net Income
Totals

2,850

500
2,850

500
27,700

27,700

3,550

6,600

24,150

500
21,100

3,050
6,600

6,600

24,150

3,050
24,150

Key: (a) Service Revenue; (b) Depreciation Expense; (c) Insurance Expired; (d) Cleaning Supplies Used; (e) Unpaid Salaries.

XACC 280 Financial Accounting: Concepts and Principles

Parts A, E, & F
Cash
Date
July

Explanation

No. 101

Ref.

Debit

J1

14,000

J1

3,000

11,000

J1

1,800

9,200

18

J1

1,400

7,800

20

J1

1,600

6,200

21

J1

31

J1

400

7,200

31

J1

600

6,600

July

Explanation

No. 112
Debit

12

J1

3,800

21

J1

25

J1

1,500

3,900

J2

1,300

5,200

Adjusting

Date

Explanation
3
31

Ref.
J1

Adjusting

Explanation
5
31

Adjusting

Debit

July

Explanation
1

J2

July

Explanation
31

Adjusting

Debit

J1

1,800

J2

Balance
800

Credit

100

Balance
1,800

150

1,650

No. 157

Ref.

Debit

J1

10,000

J2

2,400

No. 130

Ref.

Ref.

Credit
700

Accumulated DepreciationEquipment
Date

3,800

800

Equipment
Date

Balance

No. 128

Prepaid Insurance
Date

Credit
1,400

Cleaning Supplies

July

7,600

Ref.

31

July

Balance
14,000

1,400

Accounts Receivable
Date

Credit

Debit

Credit

Balance
10,000

No. 158
Credit
200

Balance
200

XACC 280 Financial Accounting: Concepts and Principles

Accounts Payable
Date
July

Explanation

Ref.

No. 201
Debit

J1

7,000

7,000

J1

800

7,800

18

J1

Date

1,400

Explanation
31

Adjusting

Ref.

Date

Explanation

Debit

J2

Ref.

Debit

J1

July

Explanation

Ref.

500

500

Credit

Balance

14,000

14,000

Debit

Credit

1
Closing

J3

31

Closing

J3

Explanation
31
31

3,050
600

Ref.
J1

Closing

Explanation

Debit

2,450

Credit

600

J3

Ref.

3,050

No. 332
Balance
600
600

Income Summary
Date

Balance
-0-

31

Date

July

Balance

No. 320

Dividends

July

Credit

No. 311

Retained Earnings
Date

6,400
No. 212

Common Stock

July

Balance

Salaries Payable

July

Credit

No. 350
Debit

Credit

Balance

6,600

6,600

31

Closing

J3

31

Closing

J3

3,550

3,050

31

Closing

J3

3,050

XACC 280 Financial Accounting: Concepts and Principles

Service Revenue
Date
July

Explanation

Ref.

No. 400
Debit

J1

3,800

3,800

25

J1

1,500

5,300

1,300

6,600

31

Adjusting

J2

31

Closing

J3

Date

Explanation
31
31

6,600

Ref.

Debit

J1
Closing

Date

Explanation
31

Adjusting

J2

31

Closing

J3

July

Explanation

Ref.

31

Adjusting

J2

31

Closing

J3

July

Explanation

Ref.

31

Adjusting

J2

31

Closing

J3

Debit

July

Explanation
20

Credit

700

Balance
700

700

No. 711
Debit

Credit

200

Balance
200

200

No. 722
Debit

Credit

150

Balance
150

150

Salaries Expense
Date

No. 634

Insurance Expense
Date

Balance
400

400

Depreciation Expense
Date

Credit

400

J3

Ref.

0
No. 633

Cleaning Supplies Expense

July

Balance

12

Gas & Oil Expense

July

Credit

No. 726

Ref.

Debit

J1

1,600

1,600

500

2,100

31

Adjusting

J2

31

Closing

J3

Credit

2,100

Balance

XACC 280 Financial Accounting: Concepts and Principles

Part D
JULIES MAIDS CLEANING SERVICE INC.
Income Statement
For the Month Ended July 31, 2008

Revenues
Service revenue..............................................................................
$6,600
Expenses
Salaries expense............................................................................

$2,100

Cleaning supplies expense............................................................

700

Gas & oil expense..........................................................................

400

Depreciation expense....................................................................

200

Insurance expense.........................................................................

150

Total expenses.....................................................................
3,550
Net income ..............................................................................................
$3,050

JULIES MAIDS CLEANING SERVICE INC.

Retained Earnings Statement
For the Month Ended July 31, 2008

Retained earnings, July 1.........................................................................

0
Add: Net income.....................................................................................
3,050

3,050
Less: Dividends.......................................................................................
600
Retained earnings, July 31.......................................................................
$2,450

XACC 280 Financial Accounting: Concepts and Principles

JULIES MAIDS CLEANING SERVICE INC.

Balance Sheet
July 31, 2008

Assets
Current assets
Cash ................................................................................................

$ 6,600

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

5,200

Cleaning supplies.............................................................................

100

Prepaid insurance.............................................................................

1,650

Total current assets...............................................................

$13,550
Capital assets
Equipment.........................................................................................

10,000

Less: Accumulated depreciation....................................................

200

9,800
Total assets............................................................................
$23,350
Liabilities and Stockholders Equity
Current liabilities
Accounts payable.............................................................................

$ 6,400

Salaries payable................................................................................

500

Total current liabilities...........................................................

$6,900
Stockholders equity
Common stock..................................................................................

14,000

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

2,450

Total stockholders equity.....................................................

16,450
Total liabilities and stockholders equity.................................
$23,350

XACC 280 Financial Accounting: Concepts and Principles

Parts E & F
General Journal
Date
July 31

31

J2

Account Titles and Explanation

Ref.

Debit

Accounts Receivable..................................................

112

1,300

Service Revenue............................................

400

Depreciation Expense................................................

711

Credit
1,300

200

Accumulated Depreciation

31

31

31

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

158

Insurance Expense.....................................................

722

Prepaid Insurance..........................................

130

Cleaning Supplies Expense.......................................

634

Cleaning Supplies..........................................

128

Salaries Expense........................................................

726

Salaries Payable.............................................

212

200
150
150
700
700
500
500

General Journal
Date
July 31

31

31

31

J3

Account Titles and Explanation

Ref.

Debit

Credit

Service Revenue.........................................................

400

6,600

Income Summary...........................................

350

Income Summary........................................................

350

Salaries Expense...........................................

726

2,100

Depreciation Expense....................................

711

200

Insurance Expense........................................

722

150

Cleaning Supplies Expense...........................

634

700

Gas & Oil Expense.........................................

633

400

Income Summary........................................................

350

Retained Earnings..........................................

320

Retained Earnings......................................................

320

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

332

6,600
3,550

3,050
3,050
600
600

XACC 280 Financial Accounting: Concepts and Principles

Part G
JULIES MAIDS CLEANING SERVICE INC.
Post-Closing Trial Balance
July 31, 2008

Debit
Cash.....................................................................................................

$ 6,600

Accounts Receivable..........................................................................

5,200

Cleaning Supplies...............................................................................

100

Prepaid Insurance...............................................................................

1,650

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

10,000

Accumulated DepreciationEquipment............................................

Credit

200
Accounts Payable...............................................................................
6,400
Salaries Payable..................................................................................

500

Common Stock....................................................................................
14,000
Retained Earnings...............................................................................
2,450
$23,550
$23,550