need a lot of help with part 3 because i couldn't get the balance sheet at the end to equal / ill send my work too if it'd be easier to just revise

ASSIGNMENT 3: ACCOUNTING CYCLE PART I - The following are the account balances from the Adjusted Trial Balance of SGA Incorporated as of January 31, 2013. Cash Equipment Accumulated Depreciation: equip. Unearned Fees Interest Receivable Supplies Accounts Receivable Retained Earnings, Jan.1, 2013 Capital Stock 208,000 25,000 6,000 16,000 11,000 13,000 15,000 14,000 68,000 Rent Expense 5,000 Supplies Expense 9,000 Salaries Expense 4,000 Utilities Expense 5,000 Fees Earned 180,000 Depreciation expense 2, 000 Dividends 7,000 Accounts Payable 20,000 Use the above account balances and FIND: 3 points each NET INCOME___155,000 Fees earned: 180,000 Rent Expense 5,000 Supplies Expense 9,000 Salaries Expense 4,000 Utilities Expense 5,000 Depreciation expense 2, 000 = 155000 RETAINED EARNINGS as of January 31__162,000________ Retained Earnings, Jan.1, 2013 14,000 Add: Net Income Sub total Less: Dividends Retained Earnings as of Jan 31 155,000 169,000 7,000 162,000 TOTAL ASSETS__266,000_________ Cash Equipment Accumulated Depreciation: equip. Interest Receivable Supplies Accounts Receivable 208,000 25,000 6,000 11,000 13,000 15,000 TOTAL LIABILITIES____36,000________ Unearned Fees Accounts Payable 16,000 20,000 TOTAL STOCKHOLDERS' EQUITY______230,000_______ Capital Stock Retained Earnings as of Jan 31 68,000 162,000 PART II Indicate the best answer for each question in the space provided.(3 points each) ___B__ 1. A business purchases land and a building, giving in exchange a note payable for $75,000. This transaction: a. b. c. d. e. __E___ 2. increases owners' equity. increase total assets. decrease total liabilities. decreases owners' equity. none of the above Sunset Company sells land for cash at a price in excess of its cost. Which of the following is true as a result of this transaction? a. b. c. d. e. Cash is decreased. Decreases total liabilities. Total assets are unchanged. Owners' equity is decreased. none of the above _$1 MILLION____ 3. The owners' equity of Clean Air, Inc. is $400,000 on December 31, 2007, and is equal to two- fifth of total liabilities. What is the amount of total assets? $1,000,000 _A____ 4. During the current year, the assets of Vitamin Water increase by $73,000, and the liabilities increased by $34,000. As a result, owners' equity: a. b. c. d. e. increase by $39,000 during the year. increases by $73,000 during the year. increases by $107,000 during the year. increases by $34,000 during the year. none of the above ___$69,000__ 5. During 2007 the assets of Inspiring Sky increased by $30,000, and the liabilities increased by $15,000. If the owners' equity in Blue Sky is $84,000 at the end of 2007, the owners' equity at the beginning of 2007 must have been: $69,000 __D___6. Net income is best described as a. b. c. d. Cash receipts less cash payments made during a given accounting period. The increase in owners' equity resulting from profitable business operations during an accounting period. The increase in total assets over a given accounting period. Revenue earned during an accounting period, less any cash payments made during the period. _$21,000____7. As of January 30, the trial balance for Huffy Corporation shows revenue of $28,000 and expenses of $5,000. On January 31, the adjusting entry for $2,000 depreciation for January is made, and dividends of $2,000 are declared and distributed. Huffy Corporation's income statement for January reports net income of $21,000 . 28-5-2 ___$34,000__ 8. Husky Company's revenue for March is $75,000, but only $15,000 cash is collected. Expenses for March are $41,000, of which $28,000 is paid in cash. During March, additional capital stock is issued in exchange for $5,000 cash. Using the accrual basis of accounting, Husky Company's income statement for March reports 75K-41K=34K ___$100,000__ 9. Coco, Inc.'s retained earnings at the beginning of the year were $52,000. Net income for the year is $51,000, and dividends declared during the year are $5,000. If stockholders' equity at the end of the year is $198,000, what is the amount of capital stock at year-end? 52K+51K-5K=98KRE-198KSE=100K _$46,000____ 10. Sea Coast Potters purchased a kiln on February 1 for $48,000 which is guaranteed to have a useful life of 10 years. Assuming adjusting entries are prepared monthly, what is the book value of the kiln on June 30? _C____ 11. The adjusting entry to recognize interest owed by Tiger, Inc., to the bank for May was omitted in month-end procedures. As a result of this error, Tiger's a. b. c. d. e. May net income is understated and May 31 liabilities overstated. May expenses are overstated and May 31 assets overstated. May expenses are understated and May 31 owners' equity understated. May net income is overstated and May 31 liabilities overstated. none of the above __$62,570___ 12. Net income of Mustang Company was $60,000 before any year-end adjusting entries were made. The following adjustments are necessary: portion of fees collected in advance now earned, $3,400; interest accrued on a company savings account, $330; portion of insurance expiring, $500. Net income reported on the income statement for the current year should be . 60K +3.4K -330 -500 _D____ 13. Retained earnings represent: a. b. c. d. __B___ 14 Cash available for dividends. The amount initially invested in the business by stockholders. Cash available for expansion and growth. Income which has been reinvested in the business rather than distributed as dividends to stockholders. The term revenue can best be described as the: a. b. c. selling price of goods and services rendered to customers during a given accounting period. cash received from selling goods and serving customers during a given accounting period. net increase in owners' equity during a given period. d. __C___ 15. \"bottom line\" in the income statement. The accountant for the Sun Rise Company forgot to make an adjusting entry to record depreciation for the current year. The effect of this error would be: a. b. c. d. an overstatement of net income and an understatement of assets. an overstatement of assets offset by an understatement of owners' equity. an overstatement of assets, net income, and owners' equity. an overstatement of assets and of net income and an understatement of owners' equity. PART III (40 POINTS) This is the problem that we have used as a demonstration in our lessons. The following is the postclosing trial balance showing the account balances as of April 30, 2004. Spring Garden Lawn Care Incorporated entered into the following transactions during the month of May. Transactions for the month of May 1. Purchased office supplies on credit, $600. 2. Provided lawn care services to clients and received $16,000 in cash. 3. Provided lawn care services to clients on credit. Fees of $8,000 will be received in June. 4. Received $3,000 in cash from several clients in advance for services to be rendered in the future. 5. Paid $1,200 in cash for May advertising. 6. Paid $5,700 in cash for employee wages. Instructions 1. Record the May transactions into a journal. 2. Post the transactions to T ledger accounts(Note: When you are posting transactions to the ledgers, make sure you start with account balances from postclosing trial balance. For example: What would happen to cash balance if you were to post $5000 debit? The cash balance would be: 25,300 +5,000=$30, 300) 3. Prepare a trial balance. 4. Make adjusting entries for the following: A1mount of office supplies left as of May 31 is $700 A2$1,700 of the unearned fees earned as of May 31 A3Expired insurance for the month A4Expired rent for the month A5Depreciation of the building for the month 5. Post the adjusting entries to appropriate ledgers. 6. Prepare adjusted trial balance. 7. Prepare income statement, statement of retained earnings, and balance sheet. Note: Use the demonstration problem format as shown for Spring Garden Lawn Care Incorporated in LESSONS 2 and 3. Make sure EACH transaction NUMBERED. Spring Garden Lawn Care Incorporated PostClosing Trial Balance As of April 30, 20XX Accounts Cash Accounts Receivable Office Supplies Prepaid Insurance Prepaid Rent Office Building Accumulated Depreciation Accounts Payable Unearned Fees Capital Stock Retained Earnings Debits 25,300 11,300 500 3,300 46,000 80,000 Credits $400 2,000 1,500 150,000 12,500 Spring Garden Lawn Care Incorparated Journal for month of May Aaccount Debit Credit office supplies account 600 Account payable 600 :purchases of office supplies cash account 16,000 Lawn care services account 16,000 : cash payment for services account recievable 8000 Lawn care services account 8000 : lawn services cash account 3,000 accruals account 3,000 : prepeaid services advertising account 1,200 Cash account 1,200 : cash payment for advertising salary expense 5,700 . Cash account 5,700 : cash payment ro employees total 34500 34500 cash beg bal 25,300 advertise lawn care 16,000 wages accrual acct. 3,000 unearned fee 200 end bal 44,500 end bal end bal cash beg bal lawn care accrual account 3000 cash 3000 unearned fee beg bal 1700 cash 1700 advertising 1,200 end bal 1200 accounts recievable 11,300 8,000 end bal 19300 rent expense prepaid rent 5,750 end bal 5750 beg bal 1,200 5,700 office supplies beg bal 500 office expense 400 accounts payables 600 end bal 700 1100 1100 37,600 37600 3,000 3000 1500 200 1700 1200 1200 19,300 19300 lawn care services account cash 16,000 end bal 24000 acct. recievable 8,000 24000 24,000 office expense office supplies 400 end bal 400 400 400 cash bal c/d salary expense 5,700 end bal 5700 5,700 5700 accounts payable beg bal 2000 2,600 office surplies 600 2600 2,600 5750 5750 insurance expense prepaid insurance 413 end bal 413 413 413 prepaid insurance 3,300 insurance expense 413 end bal 2887 3300 3300 prepaid rent 46,000 rent end bal 46000 5750 40250 46000 beg bal spring garden Lawn Care Incorparated trial balance for month of May ACCOUNT DEBIT CREDIT cash 37,400 office supplies 1,100 accrual account 3000 lawn services 24,000 advertising 1200 salary expense 5,700 accounts recievable 19,300 prepaid insurance 3,300 prepaid rent 46,000 accumulated depreciation 400 accounts payable 2600 unearned fee 1500 capital stock 150,000 retained earnings 12,500 office building 80,000 total 194,000 194000 spring garden Lawn Care Incorparated adjusted trial balance for month of May ACCOUNT DEBIT CREDIT cash 37,600 office supplies 700 accrual account 3000 lawn services 24,000 advertising 1200 salary expense 5,700 accounts recievable 19,300 prepaid insurance 2,887 prepaid rent 40,250 accumulated dep. 400 accounts payable 2600 unearned fee 1,700 capital stock 150,000 retained earnings 12,500 office building 80,000 Office expense 400 rent expense 5750 insurance expense 413 total 194,200 194200 Spring Garden Lawn Care Incorparated Income Statement For the month of May,2004 $ $ Revenue: Fees Earned expenses: rent insurance adm. Office expenses advertising salary expense Net Income 27,000 5750 413 400 1200 5,700 Spring Garden Lawn Care Incorparated Statement of Retained Earnings For the month of May,2004 Beg. Retained Earning 12,500 add: Net Income 13537 sub: dividends 0 26,037 spring garden Lawn Care Incorparated Balance Sheet As of May 31, 2004 non current assets cost office building 80,000 accumlated dep: office building Current assets accounts recievable 19,300 prepaid insurance 2,887 prepaid rent 40,250 cash account 37,600 total assets current liabilities accrual account accounts payable total liabaites retained earnings capital stock total se and libailties 27,000 500 179537 3000 2600 5600 26,037 150,000 181637