P4.6 (LO 3) Horace Culpepper, CA, was retained by Pulsar Cable to prepare financial statements for April 2025. Horace accumulated all the ledger balances per Pulsar's records and found the following. Pulsar Cable Trial Balance April 30, 2025 Debit Credit Cash £ 4,100 Accounts Receivable Supplies 3,200 800 Equipment 10,800 Accumulated Depreciation-Equip. £ 1,350 Accounts Payable 2,100 Salaries and Wages Payable 700 Unearned Service Revenue 890 Share Capital-Ordinary Retained Earnings 10,100 2,800 Service Revenue 5,650 Salaries and Wages Expense 3,300 Advertising Expense 600 Miscellaneous Expense 290 Depreciation Expense 500 £23,590 £23,590 Horace Culpepper found the following errors. 1. Cash received from a customer on account was recorded as £950 instead of £590. 2. A payment of £75 for advertising expense was entered as a debit to Miscellaneous Expense £75 and a credit to Cash £75. 3. The first salary payment this month was for £1,900, which included £700 of salaries and wages payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense £1,900 and a credit to Cash £1,900. (No reversing entries were made on April 1.) 4. The purchase on account of a printer costing £310 was recorded as a debit to Supplies and a credit to Accounts Payable for £310. 5. A cash payment of repair expense on equipment for £96 was recorded as a debit to Equipment £69 and a credit to Cash £69. Instructions a. Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry. Items 4 and 5 occurred on April 30, 2025. b. Prepare a correct trial balance. b. Trial balance £22,890 Complete all steps in accounting cycle. ACR4.1 Jaden Li opened Kleene Window Washing on July 1, 2025. During July, the following transactions were completed. July 1 Shareholders invested NT$12,000 cash in the business in exchange for ordinary shares. 1 3 Purchased cleaning supplies for NT$900 on account. Purchased used truck for NT$8,000, paying NT$2,000 cash and the balance on account. 5 Paid NT$1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers NT$3,700 for cleaning services performed. 18 20 21 Paid NT$1,000 cash on amount owed on truck and NT$500 on amount owed on cleaning supplies. Paid NT$2,000 cash for employee salaries. Collected NT$1,600 cash from customers billed on July 12. 25 Billed customers NT$2,500 for cleaning services performed. 31 31 Paid NT$290 for maintenance of the truck during month. Declared and paid a NT$600 cash dividend. The chart of accounts for Kleene Window Washing contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Share Capital-Ordinary, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, and Salaries and Wages Expense. Instructions a. Journalize the July transactions. b. Post to the ledger accounts. (Use T-accounts.) c. Prepare a trial balance at July 31. d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at July 31 were NT$1,700. 2. Depreciation on equipment for the month was NT$180. 3. One-twelfth of the insurance expired. 4. A count shows NT$320 of cleaning supplies on hand at July 31. 5. Accrued but unpaid employee salaries were NT$400. e. Post adjusting entries to the T-accounts. 1. Prepare an adjusted trial balance. f. Cash NT$5,410 g. Prepare the income statement and a retained earnings statement for July and a classified statement of financial position at July 31. g. Tot assets NTS21,500 h. Journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at July 31. Complete all steps in accounting cycle. ACR4.2 Lars Linken opened Lars Cleaners on March 1, 2025. During March, the following transactions were completed. Mar. 1 Shareholders invested €15,000 cash in the business in exchange for ordinary shares. 1 Borrowed €6,000 cash by signing a 6-month, 6%, €6,000 note payable. Interest will be paid the first day of each subsequent month. Purchased used truck for €8,000 cash. 1 2 Paid €1,500 cash to cover rent from March 1 through May 31. 3 Paid €2,400 cash on a 6-month insurance policy effective March 1. 6 Purchased cleaning supplies for €2,000 on account. 14 Billed customers €3,700 for cleaning services performed. 18 Paid €500 on amount owed on cleaning supplies. 20 Paid €1,750 cash for employee salaries. 21 Collected €1,600 cash from customers billed on March 14. 28 Billed customers €4,200 for cleaning services performed. 31 31 Paid €350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). Declared and paid a €900 cash dividend. The chart of accounts for Lars Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Share Capital- Ordinary, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense. Instructions a. Journalize the March transactions. b. Post to the ledger accounts. (Use T-accounts.) c. Prepare a trial balance at March 31. d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at March 31 were €200. 2. Depreciation on equipment for the month was €250. 3. One-sixth of the insurance expired. 4. An inventory count shows €280 of cleaning supplies on hand at March 31. 5. Accrued but unpaid employee salaries were €1,080. 6. One month of the prepaid rent has expired. 7. One month of interest expense related to the note payable has accrued and will be paid April 1. (Hint: Use the formula from Illustration 3.18 to compute interest.) e. Post adjusting entries to the T-accounts. f. Prepare an adjusted trial balance. f. Tot adj. trial balance €31,960 g. Prepare the income statement and a retained earnings statement for March and a classified statement of financial position at March 31. g. Tot. assets €24,730 h. Journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at March 31. Journalize transactions and follow through accounting cycle to preparation of financial statements.

P4.6 (LO 3) Horace Culpepper, CA, was retained by Pulsar Cable to prepare financial statements for April 2025. Horace accumulated all the ledger balances per Pulsar's records and found the following. Pulsar Cable Trial Balance April 30, 2025 Debit Credit Cash £ 4,100 Accounts Receivable Supplies 3,200 800 Equipment 10,800 Accumulated Depreciation-Equip. £ 1,350 Accounts Payable 2,100 Salaries and Wages Payable 700 Unearned Service Revenue 890 Share Capital-Ordinary Retained Earnings 10,100 2,800 Service Revenue 5,650 Salaries and Wages Expense 3,300 Advertising Expense 600 Miscellaneous Expense 290 Depreciation Expense 500 £23,590 £23,590 Horace Culpepper found the following errors. 1. Cash received from a customer on account was recorded as £950 instead of £590. 2. A payment of £75 for advertising expense was entered as a debit to Miscellaneous Expense £75 and a credit to Cash £75. 3. The first salary payment this month was for £1,900, which included £700 of salaries and wages payable on March 31. The payment was recorded as a debit to Salaries and Wages Expense £1,900 and a credit to Cash £1,900. (No reversing entries were made on April 1.) 4. The purchase on account of a printer costing £310 was recorded as a debit to Supplies and a credit to Accounts Payable for £310. 5. A cash payment of repair expense on equipment for £96 was recorded as a debit to Equipment £69 and a credit to Cash £69. Instructions a. Prepare an analysis of each error showing (1) the incorrect entry, (2) the correct entry, and (3) the correcting entry. Items 4 and 5 occurred on April 30, 2025. b. Prepare a correct trial balance. b. Trial balance £22,890 Complete all steps in accounting cycle. ACR4.1 Jaden Li opened Kleene Window Washing on July 1, 2025. During July, the following transactions were completed. July 1 Shareholders invested NT$12,000 cash in the business in exchange for ordinary shares. 1 3 Purchased cleaning supplies for NT$900 on account. Purchased used truck for NT$8,000, paying NT$2,000 cash and the balance on account. 5 Paid NT$1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers NT$3,700 for cleaning services performed. 18 20 21 Paid NT$1,000 cash on amount owed on truck and NT$500 on amount owed on cleaning supplies. Paid NT$2,000 cash for employee salaries. Collected NT$1,600 cash from customers billed on July 12. 25 Billed customers NT$2,500 for cleaning services performed. 31 31 Paid NT$290 for maintenance of the truck during month. Declared and paid a NT$600 cash dividend. The chart of accounts for Kleene Window Washing contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Share Capital-Ordinary, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, and Salaries and Wages Expense. Instructions a. Journalize the July transactions. b. Post to the ledger accounts. (Use T-accounts.) c. Prepare a trial balance at July 31. d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at July 31 were NT$1,700. 2. Depreciation on equipment for the month was NT$180. 3. One-twelfth of the insurance expired. 4. A count shows NT$320 of cleaning supplies on hand at July 31. 5. Accrued but unpaid employee salaries were NT$400. e. Post adjusting entries to the T-accounts. 1. Prepare an adjusted trial balance. f. Cash NT$5,410 g. Prepare the income statement and a retained earnings statement for July and a classified statement of financial position at July 31. g. Tot assets NTS21,500 h. Journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at July 31. Complete all steps in accounting cycle. ACR4.2 Lars Linken opened Lars Cleaners on March 1, 2025. During March, the following transactions were completed. Mar. 1 Shareholders invested €15,000 cash in the business in exchange for ordinary shares. 1 Borrowed €6,000 cash by signing a 6-month, 6%, €6,000 note payable. Interest will be paid the first day of each subsequent month. Purchased used truck for €8,000 cash. 1 2 Paid €1,500 cash to cover rent from March 1 through May 31. 3 Paid €2,400 cash on a 6-month insurance policy effective March 1. 6 Purchased cleaning supplies for €2,000 on account. 14 Billed customers €3,700 for cleaning services performed. 18 Paid €500 on amount owed on cleaning supplies. 20 Paid €1,750 cash for employee salaries. 21 Collected €1,600 cash from customers billed on March 14. 28 Billed customers €4,200 for cleaning services performed. 31 31 Paid €350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). Declared and paid a €900 cash dividend. The chart of accounts for Lars Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Salaries and Wages Payable, Notes Payable, Interest Payable, Share Capital- Ordinary, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Rent Expense, and Interest Expense. Instructions a. Journalize the March transactions. b. Post to the ledger accounts. (Use T-accounts.) c. Prepare a trial balance at March 31. d. Journalize the following adjustments. 1. Services performed but unbilled and uncollected at March 31 were €200. 2. Depreciation on equipment for the month was €250. 3. One-sixth of the insurance expired. 4. An inventory count shows €280 of cleaning supplies on hand at March 31. 5. Accrued but unpaid employee salaries were €1,080. 6. One month of the prepaid rent has expired. 7. One month of interest expense related to the note payable has accrued and will be paid April 1. (Hint: Use the formula from Illustration 3.18 to compute interest.) e. Post adjusting entries to the T-accounts. f. Prepare an adjusted trial balance. f. Tot adj. trial balance €31,960 g. Prepare the income statement and a retained earnings statement for March and a classified statement of financial position at March 31. g. Tot. assets €24,730 h. Journalize and post closing entries and complete the closing process. i. Prepare a post-closing trial balance at March 31. Journalize transactions and follow through accounting cycle to preparation of financial statements.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...

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