Exam 1

Prob #1

Pip’s Puppy Company

Trial Balance
31-Dec-24

Account Debit Credit

Cash $12,500.00
Accounts Receivabl $25,000.00
Inventory $30,000.00
Supplies $18,000.00
Prepaid Insurance $36,000.00
Land $50,000.00
Building $185,000.00
Accum Dep-Building $0.00
Equipment $110,000.00
Accum Dep-Equipment $0.00
Accounts Payable $109,500.00
Unearned Revenue $45,000.00
Interest Payable $0.00
Utility Payable $0.00
Mortgage Payable $150,000.00
Tara's Capital $150,000.00
Tara's Drawing $9,000.00
Service Revenue $90,000.00
Rent Expense $3,000.00
Salary Expene $15,000.00
Interest Expense $0.00
Dep. Expense-Buildi $0.00
Dep. Expense-Equi $0.00
Insurance Expense $0.00
Supplies Expense $0.00
Utility Expense $0.00

Prob #2

a. Keira invests $95,000 of her own cash in the company as a GIFT

b. Keira purchases $3,900 of Office Supplies and pays cash
c. Keira borrows $350,000 in Cash from the bank on a long-term Note Payable for 10 years.
d. Keira pays her Insurance in advance for 1 year of $18,000
e. Keira collects $25,000 in CASH in advance from a customer for services to be provided in the future.
f. Keira purchases a Equipment for $80,000 paying $20,000 in cash and the remaining balance of $60,000 on Accou
g. Keira earns $29,500 in Revenue on Account Receivable
h. Keira pays for $15,000 toward account payable transaction from transaction (f.)
i. Keira collects in Cash $9,000 of the Revenue she earned in transaction (g.)
j. Keira pays salaries of $5,550
k. Keira withdraws $1,250in cash for her personal use.

LEDGERS

Cash Keira's Capital

Debit Credit Debit
$95,000.00
$3,900.00
$350,000.00
$18,000.00 Office Supplies
$25,000.00 Debit
$20,000.00 $3,900.00
$15,000.00
$9,000.00
$5,550.00 Note Payable
$1,250.00 Debit
Balance:
$415,300.00

Prepaid Insurance Unearned Revenue

Debit Credit Debit
$18,000.00

Equipment Accounts Payable

Debit Credit Debit
$80,000.00
15000
Balance
Accounts Receivable
Debit Credit Salary Exepense
$29,500.00 Debit
$9,000.00 $5,550.00
Balance:
$20,500.00
Revenue
 Kiera's Drawing Debit
Debit Credit
$1,250.00

Prob #3

INCOME STATEMENT OWNER'S EQUITY

Revenue $268,000.00 Noelle's Capital
Expenses Net Income
Rent Expense $27,000.00 Noelle's Drawing
Salary Expense $71,000.00 Total
Utility Expense $6,400.00
Total Expenses $104,400.00
Net Income $163,600.00

BALANCE SHEET
ASSETS LIABILITIES + OWNER'S EQUITY
Cash $104,000 Accounts Payabl $35,000
Supplies $18,500 Unearned Reve $40,000
Prepaid Insurance $22,500 Bonds Payable $100,000
Land $45,000 Total Liabiliti $175,000
Buildings $150,000 Owner's Equit $330,000
Inventory $52,000
Equipment $140,000
Accounts Receivabl $55,000 Liabilities+Ne $505,000
Acumulated Deprecia ($60,000)
Acumulated Depreci ($22,000)
Total Assets= $505,000

Prob #4

JOURNAL
Account Name Debit Credit
Revenue $ 158,000.00
Income Summary $ 158,000.00
Income Summary $122,250.00
Salary Expense $ 35,000.00
Rent Expense $ 38,000.00
Insurance Expense $ 25,500.00
Tax Expense $ 23,750.00
Income Summary $ 35,750.00
Pip's Capital $ 35,750.00
Pip's Capital $25,000.00
Pip's Drawings $25,000.00
Totals $341,000.00 $341,000.00
 JOURNAL
Account Name Debit Credit
1. Service Revenue $31,500
Unearned Revenue $31,500
2. Supplies Expense $13,250
Supplies $13,250
3. Insurance Expense $18,000
Prepaid Insurance $18,000
Depriciation Expense $600
Acumulated Depreciation-Equipment $600
4. Utility Expense 4200
Utility Payable $4,200
5. Interest Expense $12,000
Interest Payable 12,000
6. Accounts Receivable $12,350
Unearned Revenue $12,350
7. Depreciation Expense-Building $27,000
Accum Dep-Building and Equipment $27,000
Totals $118,900 $118,900

yable for 10 years. b

s to be provided in the future. c

he remaining balance of $60,000 on Accounts Payable
d

g
LEDGERS
h
Keira's Capital
Credit i
$95,000.00
j

Office Supplies k
Credit

Note Payable
Credit
$350,000.00

Unearned Revenue
Credit
$25,000.00

Accounts Payable
Credit
$60,000.00

$45,000.00

Salary Exepense
Credit

Revenue
 Credit
$29,500.00

OWNER'S EQUITY
$191,400.00
$163,600.00
-$25,000.00
$330,000.00

SHEET

Pip's Capital
Debit Credit
$ 184,000.00
$ 35,750.00
$25,000.00
Total $194,750.00
 JOURNAL
Account Name Debit Credit
Cash $95,000.00
Keira's Capital $95,000.00
Office Supplies $3,900.00
Cash $3,900.00
Cash $350,000.00
 Note Payable $350,000.00
Prepaid Insurance $18,000.00
Cash $18,000.00
Cash $25,000.00
Unearned Revenue $25,000.00
Equipment $80,000.00
Cash $20,000.00
Accounts Payable $60,000.00
Accounts Receivable $29,500.00
Revenue $29,500.00
Accounts Payable $15,000.00
Cash $15,000.00
Cash $9,000.00
Accounts Receivable $9,000.00
Salary Expense $5,550.00
Cash $5,550.00
Keira's Drawing $1,250.00
Cash $1,250.00
Totals $632,200.00 $632,200.00

TRIAL BALANCE
Account Name Debit Credit
Cash $415,300.00
Accounts Receivable $20,500.00
Office Supplies $3,900.00
Prepaid Insurance $18,000.00
Equipment $80,000.00
Accounts Payable $45,000.00
Note Payable $350,000.00
Unearned Revenue $25,000.00
Keira's Capital $95,000.00
Keira's Drawing $1,250.00
Revenue $29,500.00
Salary Expense $5,550.00
Totals: $544,500.00 $544,500.00
Account Name Debit Credit

Cash $104,000.00
Accounts Receivable $55,000.00
Inventory $52,000.00
Prepaid Insurance $22,500.00
Supplies $18,500.00
Land $45,000.00
Building $150,000.00
Accum Dep-Blg $60,000.00
Equipment $140,000.00
Accum Dep-Equip $22,000.00
Accounts Payable $35,000.00
Unearned Revenue $40,000.00
Bonds Payable $100,000.00
Noelle’s Capital $191,400.00
Noelle’s Drawing $25,000.00
Revenue $268,000.00
Rent Expense $27,000.00
Salary Expense $71,000.00
Utility Expense $6,400.00

Total $716,400.00 $716,400.00