At the end of December, the general ledger for Job Connect showed the following account balances:

$$\begin{array}{ll} \mathbf{\text{General Ledger }} & \text{ } & \text{ } & \text{ }\\ \text{101 Cash in Bank} & \text{6,000} & \text{207 Accts. Pay. - Wildwood} & \text{ }\\ \text{105 Accts. Rec. -} & \text{ } & \text{Furniture Sales} & \text{$2,000$}\\ \text{CompuRite Systems} & \text{1,000} & \text{301 Richard Tang, Capital} & \text{$23,600$}\\ \text{110 Accts. Rec. $-$} & \text{ } & \text{302 Richard Tang,} & \text{ }\\ \text{Marquez Manufact.} & \text{500} & \text{Withdrawals} & \text{3,000}\\ \text{113 Accts. Rec. - Roaring} & \text{ } & \text{303 Income Summary} & \text{\_\_\_}\\ \text{Rivers Water Park} & \text{600} & \text{401 Placement Fees Revenue} & \text{6,900}\\ \text{115 Accts. Rec. $-$ M. Spencer} & \text{200} & \text{405 Technology Classes} & \text{ }\\ \text{130 Office Equipment} & \text{$7,000$} & \text{Revenue} & \text{$2,400$}\\ \text{135 Office Furniture} & \text{$5,000$} & \text{501 Advertising Expense} & \text{$3,000$}\\ \text{140 Computer Equipment} & \text{$8,500$} & \text{505 Maintenance Expense} & \text{800}\\ \text{201 Accts. Pay. - Micro} & \text{ } & \text{510 Miscellaneous Expense} & \text{800}\\ \text{Solutions Inc.} & \text{2,800} & \text{520 Rent Expense} & \text{$2,000$}\\ \text{205 Accts. Pay. - Vega} & \text{ } & \text{530 Utilities Expense} & \text{900}\\ \text{Internet Services} & \text{1,600} & \text{ } & \text{ }\\ \end{array}$$

Using the preceding account names and balances: 1. Prepare the six-column work sheet. The period covered is one month. 2. Prepare the financial statements. 3. Record the closing entries on page 28 of the general journal. 4. Post the closing entries. 5. Prepare a post-closing trial balance.

Richard Tang owns and operates a job placement service, Job Connect. The T accounts below summarize several business transactions for May. Use a form similar to the one presented below. For each of the 10 transactions: 1. Identify the account debited, and record the account name in the appropriate column. 2. Indicate whether the account debited is being increased or decreased. 3. Identify the account credited, and write the account name in the appropriate column. 4. Indicate whether the account credited is being increased or decreased. 5. Write a short description of the transaction.

$$\begin{matrix} \text{ } & \text{(1)} & \text{(2)} & \text{(3)} & \text{(4)} & \text{(5)}\\ \hline \text{Trans} & \text{Account} & \text{Increase (I)} & \text{Account} & \text{Increase (I)} & \text{Description}\\ \text{No.} & \text{Debited} & \text{or Decrease (D)} & \text{Credited} & \text{or Decrease (D)} & \text{ }\\ \hline \text{1} & \text{Cash in} & \text{I} & \text{Richard} & \text{I} & \text{Richard Tang}\\ \text{ } & \text{Bank} & \text{ } & \text{Tang,} & \text{ } & \text{invested}\\ \text{ } & \text{ } & \text{ } & \text{Capital} & \text{ } & \text{$\$ 15,000$ in}\\ \text{ } & \text{ } & \text{ } & \text{ } & \text{ } & \text{the business.}\\ \end{matrix}$$

$${\text{Cash in Bank}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(1) $15,000$} & \text{(4) $1,225$}\\ \text{(9) 225} & \text{(6) 900}\\ \text{ } & \text{(7) 995}\\ \text{ } & \text{(8) $2,000$}\\ \end{matrix}} \quad \quad {\text{Accounts Receivable}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(5) 225} & \text{(9) 225}\\ \end{matrix}}$$

$${\text{Office Equipment}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(2) 225} & \text{(5) 225}\\ \text{(3) 8,000} & \text{ }\\ \text{(4) 1,225} & \text{ }\\ \end{matrix}} \quad \quad {\text{Office Furniture}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(6) 900} & \text{ }\\ \text{(10) 145} & \text{ }\\ \end{matrix}}$$

$${\text{Computer Equipment}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$+$} & \text{$-$}\\ \text{(7) 995} & \text{ }\\ \end{matrix}} \quad \quad {\text{Accounts Payable}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$-$} & \text{$+$}\\ \text{(8) 2,000} & \text{(3) 8,000}\\ \text{ } & \text{(10) 145}\\ \end{matrix}}$$

$$\text{Richard Tang, Capital}\\ \begin{matrix} \hline \text{Debit} & \text{Credit}\\ \text{$-$} & \text{$+$}\\ \text{ } & \text{(1) 15,000}\\ \text{ } & \text{(2) 225}\\ \end{matrix}$$

The ledger accounts for Hot Suds Car Wash are shown in your working papers. Prepare a trial balance as of March 31 of the current year.

The work sheet for River’s Edge Canoe & Kayak is included in your working papers. The trial balance is complete, and all of the adjustments except the one required for uncollectible accounts have been entered. 1. Record the adjustment for uncollectible accounts expense in the Adjustments section of the work sheet. Uncollectible accounts are estimated to be 1.5 percent of net sales. Label the adjustment (a). 2. Complete the work sheet. 3. Prepare an income statement, a statement of retained earnings, and a balance sheet. 4. Record the adjusting entries on page 18 of the general journal. 5. Post the adjusting entries. Record and post the closing entries.

The general ledger for Hot Suds Car Wash shows the following account balances on May 31, the end of the period.

$$\begin{array}{lll} \text{101} & \text{Cash in Bank} & \text{$\$ 9,400$}\\ \text{105} & \text{Accts. Rec. - Linda Brown} & \text{429}\\ \text{110} & \text{Accts. Rec. - Valley Auto} & \text{372}\\ \text{115} & \text{Detailing Supplies} & \text{694}\\ \text{120} & \text{Detergent Supplies} & \text{418}\\ \text{125} & \text{Office Equipment} & \text{$15,195$}\\ \text{130} & \text{Office Furniture} & \text{$2,029$}\\ \text{135} & \text{Car Wash Equipment} & \text{$7,486$}\\ \text{201} & \text{Accts. Pay. - Allen Vacuum Systems} & \text{$4,346$}\\ \text{205} & \text{Accts. Pay. - O'Brian's Office Supply} & \text{$2,730$}\\ \text{301} & \text{Regina Delgado, Capital} & \text{$26,530$}\\ \text{305} & \text{Regina Delgado, Withdrawals} & \text{$2,500$}\\ \text{310} & \text{Income Summary} & \text{ }\\ \text{401} & \text{Wash Revenue} & \text{$7,957$}\\ \text{405} & \text{Wax Revenue} & \text{$5,329$}\\ \text{410} & \text{Interior Detailing Revenue} & \text{$2,970$}\\ \text{501} & \text{Advertising Expense} & \text{$1,940$}\\ \text{505} & \text{Equipment Rental Expense} & \text{$3,836$}\\ \text{510} & \text{Maintenance Expense} & \text{$1,424$}\\ \text{520} & \text{Rent Expense} & \text{$3,500$}\\ \text{530} & \text{Utilities Expense} & \text{639}\\ \end{array}$$

Prepare a work sheet for Hot Suds Car Wash in your working papers. Identify the temporary accounts on the work sheet that have normal credit balances.

The general ledger accounts and balances for Kits & Pups Grooming follow. $$ \begin{array}{ll} \mathbf{\text{General Ledger}} & \text{ }\\ \text{101 Cash in Bank} & \text{$\$ 4,296$}\\ \text{105 Accts. Rec. - Juan Alvarez} & \text{$1,528$}\\ \text{110 Accts. Rec. - Nathan Carlsbad} & \text{904}\\ \text{115 Accts. Rec. - Martha Giles} & \text{$1,219$}\\ \text{120 Grooming Supplies} & \text{$1,368$}\\ \text{125 Office Equipment} & \text{$8,467$}\\ \text{130 Office Furniture} & \text{$3,396$}\\ \text{135 Computer Equipment} & \text{$2,730$}\\ \text{140 Grooming Equipment} & \text{$1,974$}\\ \text{145 Kennel Equipment} & \text{$7,412$}\\ \text{201 Accts. Pay. - Able Store Equipment} & \text{$3,876$}\\ \text{205 Accts. Pay. - Dogs & - Cats Inc.} & \text{$2,746$}\\ \text{207 Accts. Pay. - Pet Gourmet} & \text{$1,281$}\\ \text{301 Abe Shultz, Capital} & \text{$30,928$}\\ \text{305 Abe Shultz, Withdrawals} & \text{$1,900$}\\ \text{310 Income Summary} & \text{\_\_\_}\\ \text{401 Boarding Revenue} & \text{$11,989$}\\ \text{405 Grooming Revenue} & \text{$4,420$}\\ \text{501 Advertising Expense} & \text{$3,934$}\\ \text{505 Equipment Repair Expense} & \text{943}\\ \text{510 Maintenance Expense} & \text{$2,483$}\\ \text{520 Rent Expense} & \text{$8,850$}\\ \text{530 Utilities Expense} & \text{$3,836$}\\ \end{array} $$ 1. Prepare a work sheet for the month ended September 30, 20--. 2. Prepare an income statement for the period. 3. Prepare a statement of changes in owner’s equity. Abe Shultz made an additional investment of $2,500 during the period. 4. Prepare a balance sheet in report form.

The chart of accounts for Outback Guide Service follows.

$$\begin{array}{ll} \mathbf{\text{General Ledger }} & \text{ }\\ \text{101 Cash in Bank} & \text{301 Juanita Ortega, Capital}\\ \text{115 Accts. Rec. - Podaski} & \text{302 Juanita Ortega, Withdrawals}\\ \text{Systems Inc.} & \text{401 Guide Service Revenue}\\ \text{140 Computer Equipment} & \text{501 Advertising Expense}\\ \text{145 Hiking Equipment} & \text{ }\\ \text{150 Rafting Equipment} & \text{ }\\ \text{205 Accts. Pay. - Peak Equipment Inc.} & \text{ }\\ \text{207 Accts. Pay. - Premier Processors} & \text{ }\\ \end{array}$$

1. In your working papers, open an account in the general ledger for each account in the chart of accounts. 2. Record the following transactions on page 1 of the general journal. 3. Post each journal entry to the appropriate accounts in the ledger. 4. Prove the ledger by preparing a trial balance.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \text{Mar. 1} & \text{Invested \$20,000 in cash and transferred rafting equipment }\\ \text{ } & \text{valued at \$5,000 to the business, Memorandum 35.}\\ \text{3} & \text{Purchased \$600 in hiking equipment on account from Peak}\\ \text{ } & \text{Equipment Inc., Invoice 101.}\\ \text{5} & \text{Bought a \$2,800 computer from Premier Processors and agreed}\\ \text{ } & \text{to pay for it within 60 days, Invoice 616.}\\ \text{7} & \text{Deposited \$700 cash received from clients, Receipts 310–315.}\\ \text{9} & \text{Paid \$400 to the Daily Courier for an ad, Check 652.}\\ \text{12} & \text{Sent a bill for \$900 to Podaski Systems Inc. for conducting a}\\ \text{ } & \text{group rafting trip for them, Sales Invoice 352.}\\ \text{15} & \text{Juanita Ortega wrote a check for \$800 for personal use, Check 653.}\\ \text{18} & \text{Paid Premier Processors \$1,400 to apply on account, Check 654.}\\ \text{22} & \text{Received \$900 from Podaski Systems Inc. in full payment for}\\ \text{ } & \text{the amount owed, Receipt 316.}\\ \text{27} & \text{Bought a \$500 television ad with LIVE TV, Check 655.}\\ \text{28} & \text{Paid Peak Equipment Inc. \$600 by writing Check 656. }\\ \end{array}$$

Calculate the total change in accounts payable.

Showbiz Video completed the following payroll transactions during the first two weeks of December. Showbiz Video pays its employees on a biweekly basis (every two weeks). In your working papers: 1. Record the December 13 transactions on page 38 in the general journal. 2. Post both payroll entries to the appropriate general ledger accounts. 3. Journalize and post the December 16 transactions. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \text{Dec. 13} & \text{Wrote Check 2206 to pay the payroll of \$3,840.58 (gross}\\ \text{ } & \text{earnings) for the pay period ending December 13. The}\\ \text{ } & \text{following amounts were withheld: FICA taxes, \$238.12 for}\\ \text{ } & \text{social security and \$55.69 for Medicare; employees’ federal}\\ \text{ } & \text{income taxes, \$639.00; employees’ state income taxes, \$96.02;}\\ \text{ } & \text{insurance premium, \$21.00; U.S. savings bonds, \$20.00.}\\ \text{13} & \text{Recorded the employer’s payroll taxes (FICA tax rates, 6.2\\% for}\\ \text{ } & \text{social security and 1.45\\% for Medicare; federal unemployment}\\ \text{ } & \text{tax rate, 0.8%; state unemployment tax rate, 5.4%). No}\\ \text{ } & \text{employee has reached the maximum taxable amount.}\\ \text{16} & \text{Paid the amounts owed to the federal government for }\\ \text{ } & \text{employees’ federal income taxes and FICA taxes, Check 2215. }\\ \text{16} & \text{Purchased U.S. savings bonds for employees for \$100.00, }\\ \text{ } & \text{Check 2216. }\\ \text{16} & \text{Paid \$148.00 to American Insurance Company for employees’}\\ \text{ } & \text{insurance, Check 2217.}\\ \end{array} $$ Identify the payroll accounts that have a balance after entries have been posted.

In your working papers, record the following transactions of Alpine Ski Shop on page 2 of the general journal. Use the following accounts:

$$\begin{array}{ll} \text{General Ledger} & \text{ }\\ \text{Cash in Bank} & \text{Sales Tax Payable}\\ \text{Accounts Receivable} & \text{Accounts Payable}\\ \text{Merchandise Inventory} & \text{Sales}\\ \text{ } & \text{Sales Returns and Allowances}\\ \text{Accounts Receivable Subsidiary Ledger} & \text{ }\\ \text{Palmer, James} & \text{ }\\ \text{Rodriguez, Anna} & \text{ }\\ \end{array}$$

$$\begin{array}{ll} \text{Date} & \text{Transactions}\\ \hline \text{Sept. 1} & \text{Sold \$300 in merchandise plus sales tax of \$18 on account to James Palmer,}\\ \text{ } & \text{Sales Slip 101.}\\ \text{4} & \text{Sold \$600 in merchandise plus \$36 sales tax to Anna Rodriguez on account, }\\ \text{ } & \text{Sales Slip 102.}\\ \text{7} & \text{Issued Credit Memorandum 15 to James Palmer for the return of \$300 in}\\ \text{ } & \text{merchandise plus sales tax of \$18.}\\ \text{19} & \text{Anna Rodriguez telephoned the manager of Alpine Ski Shop and said that the}\\ \text{ } & \text{zipper on her ski jacket is broken. The manager agreed to give her a \$40 credit}\\ \text{ } & \text{on her purchase, plus a \$2.40 sales tax credit, Credit Memorandum 16.}\\ \end{array}$$

If $y=4-x^{2}$, find the value of y that corresponds to values of x for each integer starting with -3 and ending with 3.

This general Ledger assignment is adapted from the second problem in the problem set A of this chapter, including beginning equity balances. Prepare journal entries related to treasury stock, cash dividends, and net income. Then prepare the statement of retained earnings and the stockholders’ equity section of the balance sheet.

The general ledger for Show biz Video shows the following at December 31:

$$\begin{array}{llll} \mathbf{\text{General Ledger }} & \text{ } & \text{ } & \text{ }\\ \text{101 Cash in Bank} & \text{$12,000$} & \text{207 Accts. Pay. -} & \text{ }\\ \text{105 Accts. Rec. - G. Cohen} & \text{$3,000$} & \text{New Media Suppliers} & \text{$3,000$}\\ \text{110 Accts. Rec. - J. Coletti} & \text{900} & \text{209 Accts. Pay. - Palace Films} & \text{$14,000$}\\ \text{113 Accts. Rec. - Flannery} & \text{$1,800$} & \text{301 Greg Failla, Capital} & \text{$33,775$}\\ \text{115 Accts. Rec. - Spring} & \text{ } & \text{305 Greg Failla, Withdrawals} & \text{$4,000$}\\ \text{Branch School District} & \text{$1,500$} & \text{310 Income Summary} & \text{\_\_\_}\\ \text{130 Office Equipment} & \text{$5,000$} & \text{401 Video Rental Revenue} & \text{$9,600$}\\ \text{135 Office Furniture} & \text{$8,000$} & \text{405 VCR Rental Revenue} & \text{$3,500$}\\ \text{140 Computer Equipment} & \text{$10,000$} & \text{501 Advertising Expense} & \text{$1,600$}\\ \text{145 Video Tapes} & \text{$20,000$} & \text{505 Equipment Repair} & \text{ }\\ \text{150 Video Equipment} & \text{$9,000$} & \text{Expense} & \text{$1,200$}\\ \text{201 Accts. Pay. - Broad Street} & \text{ } & \text{510 Maintenance Expense} & \text{400}\\ \text{Office Supply} & \text{400} & \text{520 Rent Expense} & \text{$1,000$}\\ \text{205 Accts. Pay.} & \text{ } & \text{530 Utilities Expense} & \text{375}\\ \text{Computer Horizons} & \text{15,500} & \text{ } & \text{ }\\ \end{array}$$

Using the preceding account names and balances: 1. Prepare the six-column work sheet. The period covered is one month. 2. Prepare the financial statements. Greg Failla invested $10,000 during the month. 3. Record the closing entries on page 12 of the general journal. 4. Post the closing entries. 5. Prepare a post-closing trial balance.

Regina Delgado, owner of Hot Suds Car Wash, uses these accounts:

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Wash Revenue}\\ \text{125 Office Equipment} & \text{510 Maintenance Expense}\\ \text{205 Accounts Payable—} & \text{520 Rent Expense}\\ \text{O’Brian’s Office Supply} & \text{ }\\ \text{301 Regina Delgado, Capital} & \text{ }\\ \text{305 Regina Delgado, Withdrawals} & \text{ }\\ \end{matrix}$$

In your working papers: 1. Determine which accounts are affected for each transaction. 2. Prepare T accounts for the accounts affected. 3. Enter the amount of the debit and the amount of the credit in the T accounts.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 7} & \text{1. Received a check for $\$1,675$ for car wash services.}\\ \text{12} & \text{2. Paid the monthly rent of $\$ 450$ by writing Check 212 .}\\ \text{15} & \text{3. Regina Delgado withdrew $\$ 250$ for her personal use, Check 213.}\\ \text{29} & \text{4. Had the computer repaired at O'Brian's Office Supply for $\$ 245$ and was given until next month to pay. }\\ \end{array}$$

Write the answers to the following problems in the Working Papers. Work this problem independently.

$$\begin{matrix} \text{Cash} & \text{Supplies}\\ \text{Accounts Receivable-White} & \text{Prepaid Insurance}\\ \text{Company} & \text{Accounts Payable-West End}\\ \text{Accounts Receivable-Jagerstrom} & \text{Hardware}\\ \text{Inc.} & \text{Shelley Feinstein, Capital}\\ \end{matrix}$$

For each account, complete the following: 1. Prepare a T account. 2. Label the debit and credit side. 3. Draw an up arrow $(\uparrow)$ on the increase side. 4. Draw a down arrow $(\downarrow)$ on the decrease side. 5. Label the normal balance side.