
1.
Pass necessary journal entries to record the transactions.
1.

Explanation of Solution
Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.
Accounting rules for Journal entries:
- To record increase balance of account: Debit assets, expenses, losses and credit liabilities, capital, revenue and gains.
- To record decrease balance of account: Credit assets, expenses, losses and debit liabilities, capital, revenue and gains.
Pass necessary journal entries to record the transactions.
Table (2)
Table (2)
2.
Prepare T accounts using the
2.

Explanation of Solution
Prepare T accounts using the trial balance information and an adjusted trial balance.
Cash | ||
Beginning balance 570 | ||
| ||
f.2 3 | e. 4 | |
Ending balance 666 |
Table (3)
Beginning balance 373 |
| |
Ending balance 370 |
Table (3)
Allowance for doubtful accounts | ||
Balance 570 | ||
b 3 | c 6 | |
Balance 21 |
Table (3)
Inventories | ||
Beginning balance 539 |
| |
Ending balance 370 |
Table (4)
Prepaid Expenses | ||
Beginning balance 59 | ||
Ending balance 59 |
Table (5)
Land | ||
Beginning balance 22 | ||
Ending balance 22 |
Table (6)
Building | ||
Beginning balance 189 | ||
Ending balance 189 |
Table (7)
Equipment | ||
Beginning balance 360
| f.2. 20 | |
Ending balance 354 |
Table (8)
Balance 222 | ||
f.1. 4 | ||
f.2 16 | h. 21 | |
Balance 231 |
Table (9)
Software | ||
Beginning balance 90 |
| |
Ending balance 60 |
Table (10)
Patents | ||
Beginning balance 1 | ||
Ending balance 1 |
Table (11)
Beginning balance 161 | ||
Ending balance 161 |
Table (12)
Accounts Payable | ||
Balance 252 | ||
e. 10 | ||
Balance 262 |
Table (13)
Accrued Liabilities | ||
Balance 182 | ||
Balance 182 |
Table (14)
Income Tax Payable | ||
Balance 16 | ||
i. 33 | ||
Balance 49 |
Table (15)
Long term Debt | ||
Balance 49 | ||
Balance 49 |
Table (16)
Common Stock | ||
Balance 3 | ||
Balance 3 |
Table (17)
Additional paid in capital | ||
Balance 243 | ||
Balance 243 |
Table (18)
Balance 1,107 | ||
Balance 1,107 |
Table (19)
Sales Revenue | ||
Balance 2,847 a. 100 | ||
Balance 2,587 |
Table (20)
Credit Card Discounts | ||
Beginning balance 53
| ||
Ending balance 56 |
Table (21)
Cost of sales | ||
Beginning balance 1,306 d. 169 | ||
Ending balance 1,475 |
Table (22)
Advertising Expense | ||
Beginning balance 145 | ||
Ending balance 145 |
Table (23)
Utilities Expense | ||
Beginning balance 85 | ||
Ending balance 85 |
Table (24)
Wages Expense | ||
Beginning balance 625 | ||
Ending balance 625 |
Table (25)
Depreciation Expense | ||
Beginning balance 0 f.1. 4 h. 21 | ||
Ending balance 25 |
Table (26)
Amortisation Expense | ||
Beginning balance 0 g. 30 | ||
Ending balance 30 |
Table (27)
Interest Expense | ||
Beginning balance 1 | ||
Ending balance 1 |
Table (28)
Beginning balance 0 C 6 | ||
Ending balance 6 |
Table (28)
Loss of sale of equipment | ||
Beginning balance 0 f.2. 1 | ||
Ending balance 1 |
Table (29)
Income Tax Expense | ||
Beginning balance 0 f.2. 33 | ||
Ending balance 33 |
Table (30)
Table (31)
3.
Prepare an income statement, statement of
3.

Explanation of Solution
Prepare an income statement for OS Inc.
Table (32)
Prepare a statement of stockholders’ equity for OS Inc.
Table (33)
Prepare a balance sheet for OS Inc.
Table (34)
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Chapter 8 Solutions
FINANCIAL ACCOUNTING (LL)-W/CONNECT
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