Week Two Homework Problems
Week 2 – Assignment
Week Two Homework Problems
Complete the following Workbook Template Week Two. Problems P3-2B and P3-5B from Chapter 3 are located under “Additional Exercises and Problems” on the Textbook Student Companion Site. Problems E4-15, E4-19, E4-14, E4-21, E4-22, and E4-23 are at the end of Chapter 4 of your text. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit.
Carefully review the Grading Rubric (Links to an external site.)Links to an external site. for the criteria that will be used to evaluate your assignment.
Week 2 Homework Template
Problem 3-2B: (a) Show the effects of each transaction on the accounting equation. Enter each amount in the proper column. Assume the note payable is to be repaid within the year.
REMEMBER: each transaction affects TWO accounts! Use the + or – signs to indicate whether the amount increased or decreased the account. Total up each account in the last line of the worksheet then “check” your work by totaling up Assets, Liabilities and Equity. Put each transaction on a separate line.
Remember the accounting equation: assets = liabilities + equity.Note any changes in Retained Earnings on the page below the worksheet.
(a) WALZ SERVICE INC.
Assets
=
Liabilities
+
Stockholders’ Equity
Date
Cash
+
Accounts Receivable
+
Supplies
+
Equipment
=
Notes Payable
+
Accounts Payable
+
Common Stock
+
Retained Earnings
Revenues
–
Expenses
–
Dividends
June 1
Totals
$
$
Total of All Columns under Assets
Total of All columns under Liabilities & Stockholder’s Equity
(a) Continued
Changes in Retained Earnings:
(b) Prepare an Income Statement for June
WALZ SERVICE INC.
Income Statement
For the Month Ended June, 30, 2014
Revenues
Account title
Amount
Expenses
Account title
Amount
Account title
Amount
Account title
Amount
Account title
Amount
Total expenses
Amount
Net income
Amount
(Part C is on the next page)
(c) Prepare a Classified balance sheet at June 30, 2014(Remember, assets and liabilities + equity MUST equal). If it doesn’t, there is an error somewhere).
WALZ SERVICE Inc.
Balance Sheet
June 30, 2014
Assets
Current assets
Account title
Amount
Account title
Amount
Account title
Amount
Total current assets
Amount
Account title
Amount
Total assets
Amount
Liabilities and Stockholders’ Equity
Current liabilities
Account title
Amount
Account title
Amount
Total current liabilities
Amount
Stockholders’ equity
Account title
Amount
Account title
Amount
Amount
Total liabilities and stockholders’ equity
Amount
Problem 3-5B is on the next page.
(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).
Remember that every transaction affects TWO accounts!
Date
Account Titles and Explanation
Debit
Credit
May 1
2
3
7
11
12
17
31
31
Part B is on the next page.
PROBLEM 3-5B (Continued)
(b) Post the transactions to the ledger T Accounts
Be sure to post the amounts to the correct side of the T-Account!
Cash
Bal.
Accounts Receivable
Bal.
Supplies
Bal.
Accounts Payable
Bal.
Unearned Service Revenue
Bal.
Common Stock
Bal.
Service Revenue
Bal.
Salaries and Wages Expense
Bal.
Rent Expense
Bal.
PROBLEM 3-5B (Continued) Prepare a Trial Balance on May 31, 2014.
(c) ROYCE CONSULTING
Trial Balance
May 31, 2014
Account Name
Debit
Credit
Total
E4-15. Answer questions A through D. Remember to show your calculations! (Add more space as necessary).
(E 4-19 is on the next page).
E4-19. Prepare the closing entries at January 31, 2017.
(Enter all accounts for each transaction in one box. Dates have been provided).
Date
Account Titles and Explanation
Debit
Credit
Jan 31
31
31
E4-14. Journalize (a) the July transactions and (b) adjusting entries that were made on July 31. Enter all accounts in one box. Dates have been provided.
Part A
Date
Account Titles and Explanation
Debit
Credit
July 10
14
15
