3rd EditionDennis G. Zill, Patrick D. Shanahan1,433 explanations
9th EditionJ. Douglas Faires, Richard L. Burden873 explanations
7th EditionDavid Burton776 explanations
2nd EditionRichard Hammack340 explanations
ACCOUNTINGThe ending balances in the general ledger accounts of Wilderness Rentals for the period ended May 31 follow.
$$
\begin{array}{llll}
\text{ } & \text{ } & \text{Debit} & \text{Credit}\\
\text{ } & \text{ } & \text{Balances} & \text{Balances}\\
\text{101} & \text{Cash in Bank} & \text{$\$ 5,814$} & \text{ }\\
\text{105} & \text{Accts. Rec. - Helen Katz} & \text{717} & \text{ }\\
\text{110} & \text{Accts. Rec. - Polk and Co.} & \text{590} & \text{ }\\
\text{115} & \text{Office Supplies} & \text{847} & \text{ }\\
\text{120} & \text{Office Equipment} & \text{$4,360$} & \text{ }\\
\text{125} & \text{Camping Equipment} & \text{$6,130$} & \text{ }\\
\text{201} & \text{Accts. Pay. - Adventure Equipment Inc.} & \text{ } & \text{$\$ 1,680$}\\
\text{203} & \text{Accts. Pay. - Digital Tech Computers} & \text{ } & \text{$3,554$}\\
\text{205} & \text{Accts. Pay. - Greg Mollaro} & \text{ } & \text{635}\\
\text{301} & \text{Ronald Hicks, Capital} & \text{ } & \text{$12,760$}\\
\text{305} & \text{Ronald Hicks, Withdrawals} & \text{1,200} & \text{ }\\
\text{310} & \text{Income Summary} & \text{\_\_\_} & \text{\_\_\_}\\
\text{401} & \text{Equipment Rental Revenue} & \text{ } & \text{9,716}\\
\text{501} & \text{Advertising Expense} & \text{$1,940$} & \text{ }\\
\text{505} & \text{Maintenance Expense} & \text{$1,083$} & \text{ }\\
\text{515} & \text{Rent Expense} & \text{$3,500$} & \text{ }\\
\text{525} & \text{Utilities Expense} & \text{$2,164$} & \text{ }\\
\end{array}
$$
Prepare a work sheet for the period ended May 31. 1. Write the heading on the work sheet. 2. List all of the accounts in the Account Name and Trial Balance sections. For each account, include the account number, name, and balance. 3. Total and rule the Trial Balance section. Do total debits equal total credits? If not, find and correct the problem before continuing. 4. Extend the appropriate amounts to the Balance Sheet section. 5. Extend the appropriate amounts to the Income Statement section. 6. Total the amount columns in the Income Statement and Balance Sheet sections. 7. Enter the amount of net income or net loss in the appropriate columns in the Income Statement and Balance Sheet sections. 8. Total and rule the Income Statement and Balance Sheet sections. Identify the permanent accounts on the work sheet that have normal debit balances. ACCOUNTINGLou James owns Lou’s Service Center, which uses the following accounts.
Cash, Accts. Pay.—OK Supplies, Advertising Expense, Accts. Rec.—C. Lord, (Lou James, Capital), Miscellaneous Expense, Supplies, (Lou James, Drawing), Rent Expense, Prepaid Insurance, Sales
Transactions:
June 2. Received cash from owner as an investment, $3,000.00. R1.
June 3. Paid cash for supplies,$950.00. C1.
1. Journalize each transaction completed during June of the current year. Source documents are abbreviated as follows: check, C; receipt, R.
