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Problem 1
Account classifications include assets, liabilities, stockholders equity, dividends, revenues, and
expenses.
Account
Classificatio
ns
Accounts
Related Transactions
1.
Accounts
Receivable
Provide services on
account.
2.
Land
3.
Prepaid Rent
4.
5.
6.
7.
Accounts
Payable
Purchase materials on
account.
8.
Notes Payable
9.
Dividends
Distribute cash to
stockholders.
1
0.
Common Stock
Issue stock to
stockholders.
Required:
Indicate the account classification for each account name.
Problem 2
Tiffanys provides financial services related to investment selections, retirement planning, and
general insurance needs. For the current year, the company reports the following amounts:
Advertising Expense
Buildings
Salaries Expense
Accounts Payable
Cash
$ 31,200
108,000
67,800
6,300
6,400
Service Revenue
Interest Expense
Utilities Expense
Equipment
Notes Payable
$129,300
3,500
14,500
25,700
30,000
In addition, the company had common stock of $60,000 at the beginning of the year and issued
an additional $15,000 during the year. The company also had retained earnings of $20,000 at the
beginning of the year and paid dividends of $3,500.
Required:
Prepare the income statement, statement of stockholders equity, and balance sheet for Tiffanys.
Chapter 2 1 problem
Problem 1
Wolverine Incorporated had the following trial balance at the beginning of
April.
Account Title
Debits
Cash
Accounts receivable
Supplies
Equipment
Accounts payable
$ 2,800
900
3,600
9,100
Notes payable
Common stock
Retained earnings
Credit
s
$
2,200
3,600
9,000
1,600
Chapter 3 1 problem
Problem 1
Davids Services provides general home maintenance to customers. The companys fiscal yearend is December 31. The December 31, 2012, trial balance (before any adjusting entries) appears
below.
Accounts
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation
Accounts Payable
Salaries Payable
Utilities Payable
Interest Payable
Notes Payable
Common Stock
Retained Earnings
Dividends
Maintenance Revenue
Salaries Expense
Depreciation Expense
Insurance Expense
Supplies Expense
Utilities Expense
Interest Expense
Totals
Debits
$ 18,100
16,200
20,400
15,000
95,000
Credits
$ 27,200
10,500
-0-0-040,000
24,000
10,500
2,500
224,900
158,500
-0-0-011,400
-0$337,100
$337,100
Required:
Required:
Complete the following steps:
1. Enter the unadjusted balances from the trial balance into T-accounts.
2. Prepare the necessary adjusting entries on December 31, 2012.
3. Post the adjusting entries to the accounts.
4. Prepare an adjusted trial balance.
5. Prepare an income statement and a statement of shareholders equity for
the year ended December 31, 2012, and a classified balance sheet as of
December 31, 2012. Assume that no common stock is issued during the
year.
6. Record closing entries.
7. Post the closing entries to the accounts.
8. Prepare a post-closing trial balance.