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Chapter 4 Math For Practice

Chapter 4 Math For Practice

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A.S.M. Yusuf
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95 views3 pages

Chapter 4 Math For Practice

Chapter 4 Math For Practice

Uploaded by

A.S.M. Yusuf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

2. The following trial balance and the additional data are for Florida Time- Share Property
Management Company.

Florida Time-Share Property Management Company


Trial Balance
December 31, 2012
Account Title Debit ($) Credit ($)
Cash 424,000
Prepaid Rent 28,800
Prepaid Insurance 7,680
Supplies on Hand 2,400
Office Equipment 24,000
Accumulated Depreciation- Office Equipment 5,760
Automobiles 64,000
Accumulated Depreciation- Automobiles 16,000
Accounts Payable 2,880
Unearned Management Fees 12,480
Capital Stock 360,000
Retained Earnings, January 1, 2012 120,640
Dividends 28,000
Commissions Revenue 260,000
Management Fee Revenue 19,200
Salaries Expense 199,840
Advertising Expense 2,400
Gas & Oil Expense 14,240
Miscellaneous Expense 1,600
Total 796,960 796,960

Adjustment Data:
1. Insurance expense for the year, $3,840.
2. Rent expense for the year, $19,200.
3. Depreciation expense- Office equipment, $2,880, and Automobiles, $12,800.
4. Salaried earned but unpaid at December 31, $26,640.
5. Supplies on hand at December 31, $1,000.
6. The unearned management fees were received and recorded on November 1, 2012. The
advance payment covered six months management of an apartment building.

Instructions:
i. Prepare & complete the worksheet.
ii. Prepare Income Statement and Balance Sheet as of December 31, 2012.
3. Nassa River Resort Opened the business on June 1 with eight air-conditioned units. Its trial
balance before the adjustment on August 31 is as follows:
Account Title Debit Credit
Cash 19,600
Supplies 3,300
Prepaid insurance 6,000
Land 25,000
Cottages 125,000
Furniture 26,000
Accounts payable 6,500
Unearned rent 7,400
Mortgage payable 80,000
P. Harder, Capital 100,000
P. Harder, Drawings 5,000
Rent revenue 80,000
Repair expenses 3,600
Salaries expenses 51,000
Utilities expenses 9,400
Total $273,900 $273,900

Other Data:
a. Insurance expires at the rate of $ 400 per month.
b. A count on August 31 shows $ 600 of supplies on hand.
c. Annual depreciation is $ 6,000 on cottages and $ 2,000 on furniture
d. Unearned rent of $ 4,100 was earned prior to August 31.
e. Salaries of $ 400 was unpaid at August 31.
f. Rentals of $ 1,000 were due from tenants at August 31 (use Accounts Receivables)
Instructions:
i. Prepare & complete the worksheet.
ii. Prepare Income Statement and Balance Sheet as of August 31.

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