Generally Accepted Accounting Principles and Stockholders Equity
SOLUTIONS TO EXERCISES
EXERCISE 4-1
BRISCOE COMPANY
Worksheet
For the Month Ended June 30, 2008
Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,320 2,320 2,320
Accounts
Receivable 2,440 2,440 2,440
Supplies 1,880 1,580 300 300
Accounts Payable 1,120 1,120 1,120
Unearned
Revenue 240 140 100 100
Common Stock 3,600 3,600 3,600
Service Revenue 2,400 140 2,540 2,540
Salaries Expense 560 280 840 840
Miscellaneous
Expense 160 160 160
Totals 7,360 7,360
Supplies Expense 1,580 1,580 1,580
Salaries Payable 280 280 280
Totals 2,000 2,000 7,640 7,640 2,580 2,540 5,060 5,100
Net Loss
40 40
Totals
2,580 2,580 5,100 5,100
© 2009
For Instructor Use Only
4-11
EXERCISE 4-2
GOODE COMPANY
(Partial) Worksheet
For the Month Ended April 30, 2008
Adjusted
Income
Trial Balance
Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
Cash 13,752
13,752
Accounts Receivable 7,840
7,840
Prepaid Rent 2,280
2,280
Equipment 23,050
23,050
Accum. Depreciation 4,921
4,921
Notes Payable 5,700
5,700
Accounts Payable 5,672
5,672
Common Stock 25,000
25,000
Retained Earnings 5,960
5,960
Dividends 3,650
3,650
Service Revenue 15,590 15,590
Salaries Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 671 671
Interest Expense 57 57
Interest Payable 57 57
Totals 62,900 62,900 12,328 15,590 50,572 47,310
Net Income
3,262 3,262
Totals
15,590 15,590 50,572 50,572
© 2009
For Instructor Use Only
4-12
EXERCISE 4-3
GOODE COMPANY
Income Statement
For the Month Ended April 30, 2008
Revenues
Service revenue ................................................................. $15,590
Expenses
Salaries expense
EXERCISE 4-1
BRISCOE COMPANY
Worksheet
For the Month Ended June 30, 2008
Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,320 2,320 2,320
Accounts
Receivable 2,440 2,440 2,440
Supplies 1,880 1,580 300 300
Accounts Payable 1,120 1,120 1,120
Unearned
Revenue 240 140 100 100
Common Stock 3,600 3,600 3,600
Service Revenue 2,400 140 2,540 2,540
Salaries Expense 560 280 840 840
Miscellaneous
Expense 160 160 160
Totals 7,360 7,360
Supplies Expense 1,580 1,580 1,580
Salaries Payable 280 280 280
Totals 2,000 2,000 7,640 7,640 2,580 2,540 5,060 5,100
Net Loss
40 40
Totals
2,580 2,580 5,100 5,100
© 2009
For Instructor Use Only
4-11
EXERCISE 4-2
GOODE COMPANY
(Partial) Worksheet
For the Month Ended April 30, 2008
Adjusted
Income
Trial Balance
Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr.
Cash 13,752
13,752
Accounts Receivable 7,840
7,840
Prepaid Rent 2,280
2,280
Equipment 23,050
23,050
Accum. Depreciation 4,921
4,921
Notes Payable 5,700
5,700
Accounts Payable 5,672
5,672
Common Stock 25,000
25,000
Retained Earnings 5,960
5,960
Dividends 3,650
3,650
Service Revenue 15,590 15,590
Salaries Expense 10,840 10,840
Rent Expense 760 760
Depreciation Expense 671 671
Interest Expense 57 57
Interest Payable 57 57
Totals 62,900 62,900 12,328 15,590 50,572 47,310
Net Income
3,262 3,262
Totals
15,590 15,590 50,572 50,572
© 2009
For Instructor Use Only
4-12
EXERCISE 4-3
GOODE COMPANY
Income Statement
For the Month Ended April 30, 2008
Revenues
Service revenue ................................................................. $15,590
Expenses
Salaries expense