1. Jackson Services had the following accounts and balances at December 31: Account Debit Credit Cash $ 20,000 Accounts Receivable 6,000 Prepaid Insurance 1,500 Supplies 5,000 Accounts Payable $ 500 R. Jackson, Capital 16,200 R. Jackson, Withdrawals 1,000 Service Revenue 20,000 Utilities Expense 2,000 Salaries Expense 1,200 Totals $ 36,700 $ 36,700 1. Determine the amount of Net Income and be sure to show all of your work. 2. Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. 1. 2. 3. 4. 5. Accounts Payable Accounts Receivable Cash Consulting Fees Earned Office Supplies Office Supplies Expense 7. 8. 9. 10. 11. 12. Telephone Expense Unearned Revenue Miley Block, Capital Miley Block, Withdrawals Insurance Expense Prepaid Insurance 6. Debit Credit 2 4 Example: Completed consulting work for a client who will pay at a later date. A. Received cash in advance from a customer for designing a building B. Purchased office supplies on credit. C. Paid for the supplies purchased in B. D. Received the telephone bill of the business and immediately paid it. E Paid for a 3-year insurance policy 3. Based on the following trial balance for Barry's Automotive Shop, prepare an income statement, statement of owner's equity, and a balance sheet. Barry made no additional investments in the company during the year. Barry's Automotive Shop Trial Balance December 31 Cash Accounts receivable Supplies Repair shop equipment Service truck Accounts payable Barry, Capital Barry, Withdrawals Service revenue Supplies expense Rent expense Utilities expense Gas expense Wages expense Totals $ 12,500 1,500 500 27,000 33,000 $2,600 38,525 36,000 125,000 3,425 18,000 5,000 7,200 22,000 $166,125 $166,125 4. The balances for the accounts of Milo's Management Co. for the year ended December 31 are shown below. Each account shown had a normal balance. Accounts Payable..... Accounts Receivable... Cash.. Office Supplies. Building.. Supplies Expense.. D. Milo, Capital... Management Revenue. $ 6,500 Wages Expense... 7,000 Rent Expense.. ? Land... 1,200 Unearned Management Fees 125,000 D. Milo, Withdrawals 21,500 118,700 175,000 36,000 6,000 50,000 4,000 48,000 Calculate the correct balance for Cash and prepare a trial balance. 5. Larry Matt completed these transactions during December of the current year: 2 Dec. 1 Began a financial services practice by investing $15,000 cash and office equipment with a $5,000 value. Purchased $1,200 of office equipment on credit. 3 Purchased $300 of office supplies on credit. Completed work for a client and immediately received payment of 4 $900 cash. 8 Completed work for Precept Paper Co. on credit, $1,700. 10 Paid for the supplies purchased on credit on December 3. 14 Paid for the annual $960 premium on an insurance policy. 18 Received payment in full from Precept Paper Co. for the work completed on December 8. 27 Larry withdrew $650 cash from the business to pay personal expenses. 30 Paid $175 cash for the December utility bills. Received $2,000 in advance from a client for services to be 30 performed next year. Prepare general journal entries to record these transactions 1. Jackson Services had the following accounts and balances at December 31: Account Debit Credit Cash $ 20,000 Accounts Receivable 6,000 Prepaid Insurance 1,500 Supplies 5,000 Accounts Payable $ 500 R. Jackson, Capital 16,200 R. Jackson, Withdrawals 1,000 Service Revenue 20,000 Utilities Expense 2,000 Salaries Expense 1,200 Totals $ 36,700 $ 36,700 1. Determine the amount of Net Income and be sure to show all of your work. 2. Miley Block is a building consultant. Shown below are (a) several accounts in her ledger with each account preceded by an identification number, and (b) several transactions completed by Block. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction. 1. 2. 3. 4. 5. Accounts Payable Accounts Receivable Cash Consulting Fees Earned Office Supplies Office Supplies Expense 7. 8. 9. 10. 11. 12. Telephone Expense Unearned Revenue Miley Block, Capital Miley Block, Withdrawals Insurance Expense Prepaid Insurance 6. Debit Credit 2 4 Example: Completed consulting work for a client who will pay at a later date. A. Received cash in advance from a customer for designing a building B. Purchased office supplies on credit. C. Paid for the supplies purchased in B. D. Received the telephone bill of the business and immediately paid it. E Paid for a 3-year insurance policy 3. Based on the following trial balance for Barry's Automotive Shop, prepare an income statement, statement of owner's equity, and a balance sheet. Barry made no additional investments in the company during the year. Barry's Automotive Shop Trial Balance December 31 Cash Accounts receivable Supplies Repair shop equipment Service truck Accounts payable Barry, Capital Barry, Withdrawals Service revenue Supplies expense Rent expense Utilities expense Gas expense Wages expense Totals $ 12,500 1,500 500 27,000 33,000 $2,600 38,525 36,000 125,000 3,425 18,000 5,000 7,200 22,000 $166,125 $166,125 4. The balances for the accounts of Milo's Management Co. for the year ended December 31 are shown below. Each account shown had a normal balance. Accounts Payable..... Accounts Receivable... Cash.. Office Supplies. Building.. Supplies Expense.. D. Milo, Capital... Management Revenue. $ 6,500 Wages Expense... 7,000 Rent Expense.. ? Land... 1,200 Unearned Management Fees 125,000 D. Milo, Withdrawals 21,500 118,700 175,000 36,000 6,000 50,000 4,000 48,000 Calculate the correct balance for Cash and prepare a trial balance. 5. Larry Matt completed these transactions during December of the current year: 2 Dec. 1 Began a financial services practice by investing $15,000 cash and office equipment with a $5,000 value. Purchased $1,200 of office equipment on credit. 3 Purchased $300 of office supplies on credit. Completed work for a client and immediately received payment of 4 $900 cash. 8 Completed work for Precept Paper Co. on credit, $1,700. 10 Paid for the supplies purchased on credit on December 3. 14 Paid for the annual $960 premium on an insurance policy. 18 Received payment in full from Precept Paper Co. for the work completed on December 8. 27 Larry withdrew $650 cash from the business to pay personal expenses. 30 Paid $175 cash for the December utility bills. Received $2,000 in advance from a client for services to be 30 performed next year. Prepare general journal entries to record these transactions