The CEO of newly formed Targus company printed a copy of the company's general ledger prior to a recent plane flight. She setteled into seat 7A nect to where you were sitting. Once airborne, she removed the printed "GL" from her brief case and began examing the report. Unfortunatley, she realized that her printer had run out of ink on the very last page. She is frustrated because she is not able to determine the company's exact profitabilty to date. and is on her way to a shareholder meeting where she is to issue a report on the company's progress. She happened to note that you were studying an accounting book and asked if you might help her.

Prepare a trial balance from the general ledger, determine the missing amount for salaries expense, and determinethe company's profit for its first month. Use this information to andwer the questions on the worksheet.

Problem Worksheet The CEO of newly formed Targus Company printed a copy of the company's e d ger prior to a recent plane fight she settled into a A next to where you were sitting Once w omeshe moved the printed "GL from her briefcase and began examining the report. Unfortunately, shered that he had run out of ink on the very Last page. She is frustrated because she is not able to determine the company's exact profitability to date and is on her way to a shareholder meeting where she is to report on the company's progress She happened to note that you were studying an accounting book and asked if you might help her termine the mount or expense and determine Prepare a balance from the general ledger the company's profit for its first month Debit Credit Balance 2 50,000 0 CASH Date 02-Jan-08 03-Jan-08 10-Jan-08 14-Jan-08 18-Jan-08 21-Jan-08 26-Jan-08 31-Jan-08 Description Balance forward Journal Page 1 Journal Page 1 Journal Page 1 Journal Page 2 Journal Page 2 Journal Page 2 Journal Page 2 of 40.000 0 75,000 15,000 0 4,000 3 000 250000 175.000 160.000 200,000 196,000 193,000 219.000 IACCOUNTS RECEIVABLE Date Description 02-Jan-08 Balance forward 06-Jan-08 Journal Page 1 18-Jan-08 Journal Page 2 Debit Credit Balance 00 5 5.0000 55,000 of 40,000 15,000 ILAND Date Description Debit Credit Balance 1102 Jan-08 10 Jan-08 Balance forward Journal Page 1 olo 5.000 7 75.000 Debit Credit Balance SALARIES PAYABLE Date Description 02-Jan-08 Balance forward 31 Jan 08 Journal Page 2 ol ol 1 8.000 18.000 Debit Credit Balance CAPITAL STOCK Date Description 02-Jan-08 Balance forward 03-Jan-08 Journal Page 1 0 OD 250.000 250,000 Description Debit Credit Balance REVENUES Date 02-Jan-08 06-Jan-08 31-Jan-08 55 000 55,000 Journal Page 1 Journal Page 2 81.000 Credit Balance SUPPLIES EXPENSE Date Description 02-Jan-08 26-Jan-08 Journal Page 2 Debit 0 3,000 0 0 3,000 Credit Balance ILUTILITIES EXPENSE Date Description 02-Jan-08 1121-Jan-08 Journal Page 2 Debit 0 4.000 Debit Balance SALARIES EXPENSE Date Description 02-Jan-08 14 Jan 08 Journal Page 1 31-Jan 08 Journal Page 2 15,000 Problem Worksheet Credits Debits 219,000 Cash Accounts receivable Land Salaries payable Capital stock Revenues Supplies expense Utilities expense Salaries expense 219,000