Key Accounting Principles Volume 1, 4th Edition - Textbook - page 386

Appendix I Review Exercise Solutions
386
Chapter 2 Review Exercise—Solutions
T-account Worksheet
Style House
Balance Sheet
As at March 31, 2016
ASSETS (what we own) LIABILITIES (what we owe)
Opening
Balance
Opening
Balance
ACCOUNTS RECEIVABLE
PREPAID MAINTENANCE
+ –
+ –
INCREASE DECREASE
INCREASE DECREASE
CASH ACCOUNTS PAYBLE
SERVICE REVENUE
ADVERTISING EXPENSE
INTEREST EXPENSE
RENT EXPENSE
SALARIES EXPENSE
TELEPHONE EXPENSE
UNEARNED REVENUE
JONES, CAPITAL
+ – + –
+ –
+ –
+ –
+ –
+ –
+ –
+ –
+ –
INCREASE DECREASE DECREASE INCREASE
DECREASE INCREASE
INCREASE DECREASE
INCREASE DECREASE
INCREASE DECREASE
INCREASE DECREASE
INCREASE DECREASE
DECREASE INCREASE
DECREASE INCREASE
Opening
Balance
Opening
Balance
Opening
Balance
Opening
Balance
LESS EXPENSES
Total Revenue
Less: Total Expenses
Equals ( ) Net Income Loss
12,000
8,000
100
1.
6.
14.
2.
3.
4.
5.
7.
10.
11.
12.
8,000
333
50
600
4,000
2,000
1,000
3,000
$3,000
$ ,4 117
$400
400 13.
600 5.
$600
Opening
Balance
EQUIPMENT + –
INCREASE DECREASE
8,000 2.
$20,000
$12,000
1,000 11. 8.
9.
250
800
$5,000
14. 100
333 3. 1. 12,000
BANK LOAN + –
DECREASE INCREASE
Opening
Balance
JONES, DRAWINGS – +
INCREASE DECREASE
$ ,5 050
$100
$11,667
3,000 12.
$10,000
$3,000
$10,000
6.
13.
8,000
400
$ ,8 400
9. 300
$300
4. 50
$50
10. 2,000
$2,000
7. 4,000
$4,000
250
$250
TRAVEL EXPENSE + –
INCREASE DECREASE
9. 500
$500
8.
$ ,25 117
16,817
8,300
$25,117
$
,
$ ,
8,400
7 100
1 300
Total Assets
Total Liabilities
Net Worth*
*Ending Owner’s Equity Balance = Begining Owner’s Equity Balance + Owner’s Contributions + Net Income (Loss)
- Owner’s Withdrawals
$8,300 = $10,000 + $0 + $1,300 - $3,000
Style House
Income Statement
For the Month Ended March 31, 2016