Question
Homework Assignment: The first part of the assignment for this week will be an exercise to match various accounts with their appropriate classification. All accounts
Homework Assignment: The first part of the assignment for this week will be an exercise to match various accounts with their appropriate classification. All accounts in this assignment have been discussed already in previous lecture notes. Refer back to them if you need to refresh your understanding of these accounts.
The second part of the assignment for this week will be to take the accounts listed alphabetically in a trial balance and prepare the financial statements. The accounts listed include the ones used in previous homework assignments. Notice a separate account has been listed for Gilligan, Withdrawals. This is related to Transaction O of the assignment for Week 2.
Do NOT worry about format and formalities (dollar signs, double underscores, etc.). Just place the accounts in the correct financial statement in the same format as the Lecture Notes. Since many of the mistakes noted in the past include leaving out accounts and using accounts twice, my advice is for you to cut and paste from the trial balance to the financial statements. Then review to see whether you used all the accounts or not. If some are still there, they need to go somewhere. By cutting items from the list you should avoid using an account twice.
Match each of the following accounts with their appropriate category listed below by placing the correct answer in the space provided.
A. Asset | D. Revenue (as part of equity) |
B. Liability | E. Expense (as part of equity) |
C. Equity (not a revenue or expense) |
|
| Gilligan, Capital |
| Accounts Receivable |
| Supplies Expense |
| Accounts Payable |
| Wages Expense |
| Prepaid Rent |
| Interest Revenue |
| Supplies |
| Unearned Revenue |
| Service Fees Earned |
| Rent Expense |
| Wages Payable |
| Prepaid Insurance |
| Office Equipment |
| Interest Receivable |
Use the following alphabetical list of accounts to prepare the financial statements below. Type in the accounts where they should appear in the appropriate financial statement below. Include amounts for Net Income on the Income Statement; Ending Capital Balance on the Statement of Owners Equity; Total Assets; and Total Liabilities and Equity on the Balance Sheet.
| Accounts payable | 5,000 |
| Prepaid rent | 4,000 |
| Accounts receivable | 25,000 |
| Rent expense | 8,000 |
| Cash | 2,000 |
| Service fee revenues | 80,000 |
| Gilligan, Capital | 27,000 |
| Supplies | 6,000 |
| Gilligan, Withdrawals | 5,000 |
| Supplies expense | 4,000 |
| Interest receivable | 1,000 |
| Wages expense | 40,000 |
| Interest revenue | 1,000 |
| Wages payable | 2,000 |
| Office equipment | 20,000 |
|
|
|
Income Statement |
|
Statement of Owners Equity |
|
Balance Sheet | |
Assets | Liabilities and Equity |
|
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