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.

The general ledger account balances on May 31 for Outback Guide Service are:

$$\begin{array}{lll} \text{101} & \text{Cash in Bank} & \text{$\$ 2,834$}\\ \text{105} & \text{Accts. Rec. - Mary Johnson} & \text{384}\\ \text{125} & \text{Office Supplies} & \text{307}\\ \text{130} & \text{Office Equipment} & \text{$5,902$}\\ \text{135} & \text{Office Furniture} & \text{$2,804$}\\ \text{140} & \text{Computer Equipment} & \text{$3,295$}\\ \text{145} & \text{Hiking Equipment} & \text{922}\\ \text{150} & \text{Rafting Equipment} & \text{$8,351$}\\ \text{205} & \text{Accts. Pay. - Peak Equipment Inc.} & \text{$1,204$}\\ \text{301} & \text{Juanita Ortega, Capital} & \text{$20,419$}\\ \text{302} & \text{Juanita Ortega, Withdrawals} & \text{$1,800$}\\ \text{310} & \text{Income Summary} & \text{\_\_\_}\\ \text{401} & \text{Guide Service Revenue} & \text{$9,179$}\\ \text{501} & \text{Advertising Expense} & \text{795}\\ \text{505} & \text{Maintenance Expense} & \text{125}\\ \text{515} & \text{Rent Expense} & \text{$2,000$}\\ \text{525} & \text{Utilities Expense} & \text{$1,283$}\\ \end{array}$$

Prepare a work sheet for Outback Guide Service for the period ended May 31 in your working papers. Compute the total assets for Outback.

For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 2014, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basis. Rosebud Consulting entered into the following transactions during April: Apr. 1. The following assets were received from Jeff Horton in exchange for capital stock: cash, $20,000; accounts receivable,$14,700; supplies, $3,300; and office equipment,$12,000. There were no liabilities received.

1. Paid three months’ rent on a lease rental contract, $6,000.
2. Paid the premiums on property and casualty insurance policies,$4,200.
3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $9,400.
4. Purchased additional office equipment on account from Smith Office Supply Co.,$8,000.
5. Received cash from clients on account, $11,700.
6. Paid cash for a newspaper advertisement,$350.
7. Paid Smith Office Supply Co. for part of the debt incurred on April 5, $6,400.
8. Recorded services provided on account for the period April 1–12,$21,900.
9. Paid receptionist for two weeks’ salary, $1,650. Record the following transactions on Page 2 of the journal.
10. Recorded cash from cash clients for fees earned during the period April 1–16,$6,600.
11. Paid cash for supplies, $725.
12. Recorded services provided on account for the period April 13–20,$16,800.
13. Recorded cash from cash clients for fees earned for the period April 17–24, $4,450.
14. Received cash from clients on account,$26,500.
15. Paid receptionist for two weeks’ salary, $1,650.
16. Paid telephone bill for April,$540.
17. Paid electricity bill for April, $760.
18. Recorded cash from cash clients for fees earned for the period April 25–30,$5,160.
19. Recorded services provided on account for the remainder of April, $2,590.
20. Paid dividends of$18,000.

Instructions

1. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)

$$\begin{array}{llll} 11 & \text { Cash } & 31 & \text { Capital Stock } \\ 12 & \text { Accounts Receivable } & 32 & \text { Retained Earnings } \\ 14 & \text { Supplies } & 33 & \text { Dividends } \\ 15 & \text { Prepaid Rent } & 41 \text { Fees Earned } \\ 16 & \text { Prepaid Insurance } & 51 \text { Salary Expense } \\ 18 & \text { Office Equipment } & 52 & \text { Supplies Expense } \\ 19 & \text { Accumulated Depreciation } & 53 & \text { Rent Expense } \\ 21 & \text { Accounts Payable } & 54 & \text { Depreciation Expense } \\ 22 & \text { Salaries Payable } & 55 & \text { Insurance Expense } \\ 23 & \text { Unearned Fees } & 59 \quad \text { Miscellaneous Expense } \end{array}$$

2. Post the journal to a ledger of four-column accounts.
3. Prepare an unadjusted trial balance.
4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during April is $350. b. Supplies on hand on April 30 are$1,225. c. Depreciation of office equipment for April is $400. d. Accrued receptionist salary on April 30 is$275. e. Rent expired during April is $2,000. f. Unearned fees on April 30 are$2,350.
5. (Optional.) Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
6. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.
7. Prepare an adjusted trial balance.
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. (Income Summary is account #34 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
10. Prepare a post-closing trial balance.

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.

Juanita Ortega is the owner of Outback Guide Service. The following accounts are used to record the transactions of her business. $$ \begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{205 Accts. Pay.—Peak Equipment Inc.}\\ \text{105 Accts. Rec.—M. Johnson} & \text{207 Accts. Pay.—Premier Processors}\\ \text{110 Accts. Rec.—Feldman,} & \text{301 Juanita Ortega, Capital}\\ \text{Jones & Ritter} & \text{302 Juanita Ortega, Withdrawals}\\ \text{115 Accts. Rec.—Podaski} & \text{310 Income Summary}\\ \text{Systems Inc.} & \text{401 Guide Service Revenue}\\ \text{130 Office Equipment} & \text{501 Advertising Expense}\\ \text{135 Office Furniture} & \text{505 Maintenance Expense}\\ \text{140 Computer Equipment} & \text{515 Rent Expense}\\ \text{145 Hiking Equipment} & \text{520 Salaries Expense}\\ \text{150 Rafting Equipment} & \text{525 Utilities Expense}\\ \text{201 Accts. Pay.—A-1} & \text{ }\\ \text{Adventure Warehouse}\\ \end{matrix} $$ Record the following transactions on page 1 of the general journal in your working papers. $$ \begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Juanita Ortega contributed the following assets to her business: cash, $\$ 1,500 ;$ hiking equipment, $\$ 2,000 ;$ rafting equipment, $\$ 2,500 ;$ and office furniture, $\$ 500 ;$ Memorandum 21.}\\ \text{2} & \text{Issued Check 515 to Town News for a $\$ 75$ ad.}\\ \text{4} & \text{Purchased $\$ 3,000$ in rafting equipment on account from A-1 Adventure Warehouse, Invoice AW45.}\\ \text{6} & \text{A group from Feldman, Jones & Ritter went on a hiking trip. The group was billed $\$ 4,800$ for guide services, Sales Invoice 300.}\\ \text{10} & \text{Paid $\$ 300$ to Dunn's Painting and Interior Co. for painting the office, Check 516. }\\ \text{13} & \text{Made a $\$ 1,000$ payment to A-1 Adventure Warehouse toward the amount owed, Check 517.}\\ \text{15} & \text{Received a check for $\$ 4,800$ from Feldman, Jones 8 Ritter in payment of their account, Receipt 252.}\\ \text{18} & \text{Juanita Ortega paid herself $\$ 600$ by issuing Check 518.}\\ \text{22} & \text{Billed a client, Mary Johnson, $\$ 1,200$ for completing guide services on a hiking expedition, Sales Invoice 301.}\\ \text{25} & \text{Paid the monthly telephone bill for $\$ 175$ by issuing Check 519.}\\ \text{30} & \text{Purchased a $\$ 3,600$ computer system from Premier Processors. Made a down payment for $\$ 1,800$ and agreed to pay the balance within 30 days, Check 520 and Invoice 749.}\\ \end{array} $$

On July 1, 2011, Lucinda Fogle formed a new self-storage business, KeepSafe Co. The following transactions occurred during the company’s first month.

July 1 Fogle invested $20,000 cash and buildings worth$120,000 in the company.
 2 The company rented equipment by paying $1,800 cash for the first month’s (July) rent.
 5 The company purchased$2,300 of office supplies for cash.
 10 The company paid $5,400 cash for the premium on a 12-month insurance policy. Coverage begins on July 11.
 14 The company paid an employee$900 cash for two weeks’ salary earned.
 24 The company collected $8,800 cash for storage fees from customers.
 28 The company paid$900 cash for two weeks’ salary earned by an employee.
 29 The company paid $850 cash for minor repairs to a leaking roof.
 30 The company paid$300 cash for this month’s telephone bill.
 31 Fogle withdrew $1,600 cash from the company for personal use.

The company’s chart of accounts follows:

101	Cash	401	Storage Fees Earned
106	Accounts Receivable	606	Depreciation Expense—Buildings
124	Office Supplies	622	Salaries Expense
128	Prepaid Insurance	637	Insurance Expense
173	Buildings	640	Rent Expense
174	Accumulated Depreciation—Buildings	650	Office Supplies Expense
209	Salaries Payable	684	Repairs Expense
301	L. Fogle, Capital	688	Telephone Expense
302	L. Fogle, Withdrawals	901	Income Summary

Required
1. Use the balance column format to set up each ledger account listed in its chart of accounts.
2. Prepare journal entries to record the transactions for July and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts.
3. Prepare an unadjusted trial balance as of July 31.
4. Use the following information to journalize and post adjusting entries for the month:
 a. Two-thirds of one month’s insurance coverage has expired.
 b. At the end of the month,$1,550 of office supplies are still available.
 c. This month’s depreciation on the buildings is $1,200.
 d. An employee earned$180 of unpaid and unrecorded salary as of month-end.
 e. The company earned $950 of storage fees that are not yet billed at month-end.
5. Prepare the income statement and the statement of owner’s equity for the month of July and the balance sheet at July 31, 2011.
6. Prepare journal entries to close the temporary accounts and post these entries to the ledger.
7. Prepare a post-closing trial balance.

Ronald Hicks uses these accounts in his business, Wilderness Rentals.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{301 Ronald Hicks, Capital}\\ \text{105 Accounts Receivable—} & \text{305 Ronald Hicks, Withdrawals}\\ \text{Helen Katz} & \text{401 Equipment Rental Revenue}\\ \text{120 Office Equipment} & \text{505 Maintenance Expense}\\ \text{125 Camping Equipment} & \text{525 Utilities Expense}\\ \end{matrix}$$

Analyze each of the following trans actions using the format shown in the example. Record your answers in your working papers. a. Explain the debit. b. Explain the credit. On Jan. 2 Ronald Hicks paid the bill for office cleaning, $100. a. The expense account 505 Maintenance Expense is increased. Increases in expenses are recorded as debits. b. The asset account 101 Cash in Bank is decreased. Decreases in assets are recorded as credits.$

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 3} & \text{1. Ronald Hicks withdrew $\$500$ from his business for his own use, Check 225.}\\ \text{8} & \text{2. The business received $\$1,200$ cash in rental fees from various customers. }\\ \text{12} & \text{3. The business paid a telephone bill of $\$85$, Check 226.}\\ \end{array}$$

$

Gabi Gram started The Gram Co., a new business that began operations on May $1$. The Gram Co. completed the following transactions during its first month of operations.

May $1$ - G. Gram invested $\$40,000$ cash in the company.

$1$ - The company rented a furnished office and paid $\$2,200$ cash for May’s rent.

$3$ - The company purchased $\$1,890$ of office equipment on credit.

$5$ - The company paid $\$750$ cash for this month’s cleaning services.

$8$ - The company provided consulting services for a client and immediately collected $\$5,400$ cash.

$12$ - The company provided $\$2,500$ of consulting services for a client on credit.

$15$ - The company paid $\$750$ cash for an assistant’s salary for the first half of this month.

$20$ - The company received $\$2,500$ cash payment for the services provided on May $12$.

$22$ - The company provided $\$3,200$ of consulting services on credit.

$25$ - The company received $\$3,200$ cash payment for the services provided on May $22$.

$26$ - The company paid $\$1,890$ cash for the office equipment purchased on May $3$.

$27$ - The company purchased $\$80$ of advertising in this month's (May) local paper on credit; cash payment is due June $1$..

$28$ - The company paid $\$750$ cash for an assistant’s salary for the second half of this month.

$30$ - The company paid $\$300$ cash for this month’s telephone bill.

$30$ - The company paid $\$280$ cash for this month’s utilities.

$31$ - G. Gram withdrew $\$1,400$ cash from the company for personal use.

Required

1. Create the following table similar to the one in the previous Exhibit, that is, "Summary of Transactions Using the Accounting Equation".

Date	Assets					=	Liabilities	+	Equity
	Cash	+	Accounts Receivable	+	Office Equipment	=	Accounts Payable	+	G. Gram, Capital	-	G. Gram, Withdrawals	+	Revenues	-	Expenses

Enter the effects of each transaction on the accounts of the accounting equation by recording dollar increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

2. Prepare the income statement and the statement of owner’s equity for the month of May, and the balance sheet as of May $31$.

3. Prepare the statement of cash flows for the month of May.

Here is some information about the tallest buildings in the world as of February 2017. Identify the individuals and variables in this data set. Classify each variable as categorical or quantitative.

$$\begin{array}{l} \text{ } & \text{ } & \text{Height} & \text{ } & \text{ } & \text{Year }\\ \text{Building } & \text{Country} & \text{(m)} & \text{Floors} & \text{Use} & \text{completed}\\ \hline \text{Burj Khalifa} & \text{United Arab} & \text{828.0} & \text{163} & \text{Mixed} & \text{2010}\\ \text{ } & \text{Emirates} & \text{ ---} & \text{ } & \text{ } & \text{ }\\ \text{Shanghai Tower} & \text{China} & \text{632.0} & \text{121} & \text{Mixed} & \text{2014}\\ \text{Makkah Royal } & \text{Saudi} & \text{601.0} & \text{120} & \text{Hotel} & \text{2012}\\ \text{Clock Tower Hotel} & \text{Arabia} & \text{ } & \text{ } & \text{ }\\ \text{Ping An Finance } & \text{China} & \text{599.0} & \text{115} & \text{Mixed} & \text{2016}\\ \text{Center} & \text{ } & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Lotte World} & \text{South} & \text{554.5} & \text{123} & \text{Mixed} & \text{2016}\\ \text{Tower} & \text{Korea} & \text{ } & \text{ } & \text{ }\\ \text{One World Trade} & \text{United} & \text{541.0} & \text{104} & \text{Office} & \text{2013}\\ \text{Center} & \text{States} & \text{ } & \text{ } & \text{ }\\ \text{Taipei 101 } & \text{Taiwan} & \text{509.0} & \text{101} & \text{Office} & \text{2004}\\ \text{Shanghal World} & \text{China} & \text{492.0} & \text{101} & \text{Mixed} & \text{2008}\\ \text{Financial Center} & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Intemational} & \text{China} & \text{484.0} & \text{118} & \text{Mixed} & \text{2010}\\ \text{Commerce} & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Center} & \text{ } & \text{ } & \text{ } & \text{ }\\ \text{Petronas Tower 1} & \text{Malaysia} & \text{452.0} & \text{88} & \text{Office} & \text{1998}\\ \end{array}$$

a. Where do you find the information for recording payroll transactions in the cash payments journal? b. In recording payroll, what four liabilities are entered in the General Credit column of the cash payments journal?

Vince York practices medicine under the business title Vince York, M.D. During July, the medical practice completed the following transactions:

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• Jul. 1 - York contributed $63,000 cash to the business in exchange for common stock.
•         5 - Paid monthly rent on medical equipment,$510.
•         9 - Paid $23,000 cash to purchase land to be used in operations.
•       10 - Purchased office supplies on account,$1,600.
•       19 - Borrowed $22,000 from the bank for business use.
•       22 - Paid$1,100 on account.
•       28 - The business received a bill for advertising in the daily newspaper to be paid in August, $240.
•       31 - Revenues earned during the month included$6,400 cash and $6,000 on account.
•       31 - Paid employees' salaries$2,200, office rent $1,900, and utilities$560. Record as a compound entry.
•       31 - The business received $1,120 for medical screening services to be performed next month.
•       31 - Paid cash dividends of$7,200.

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The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Land; Accounts Payable; Advertising Payable; Unearned Revenue; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense; and Advertising Expense.

Requirements

1. Journalize each transaction. Explanations are not required.
2. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.
3. Prepare the trial balance of Vince York, M.D., as of July 31, 2018.

Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows:

i. Declared a 2% stock dividend on common stock and a $1.25 quarterly cash dividend per share on preferred stock. On the date of declaration, the market value of the common stock was$40 per share. On the date of record, 85,000 shares of common stock had been issued, 6,500 shares of treasury common stock were held, and 17,000 shares of preferred stock had been issued.

Instructions

1. Journalize the selected transactions.
2. After all of the transactions for the year ended December 31, 2012, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data below and on the following page were taken from the records of Everyday Products Inc.

a. Prepare a multiple-step income statement for the year ended December 31, 2012, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000 and preferred dividends were $85,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2012. c. Prepare a balance sheet in report form as of December 31, 2012.

$$\begin{aligned} &\textbf { Income statement data: }\\ &\begin{array}{lr} \hline \text { Advertising expense } & \$ 125,000 \\ \text { Cost of merchandise sold } & 3,650,000 \\ \text { Delivery expense } & 29,000 \\ \text { Depreciation expense-office buildings and equipment } & 26,000 \\ \text { Depreciation expense-store buildings and equipment } & 95,000 \\ \text { Dividend revenue } & 3,575 \\ \text { Gain on sale of investment } & 2,225 \\ \text { Income from Lifecare Co. investment } & 65,600 \\ \text { Income tax expense } & 128,500 \\ \text { Interest expense } & 19,000 \\ \text { Interest revenue } & 1,800 \\ \text { Miscellaneous administrative expense } & 7,500 \\ \text { Miscellaneous selling expense } & 13,750 \\ \text { Office rent expense } & 50,000 \\ \text { Office salaries expense } & 165,000 \\ \text { Office supplies expense } & 10,000 \\ \text { Sales } & 5,145,000 \\ \text { Sales commissions } & 182,000 \\ \text { Sales salaries expense } & 365,000 \\ \text { Store supplies expense } & 22,000 \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Retained earnings and balance sheet data: }\\ &\begin{array}{lr} \hline \text { Accounts payable } & \$ 195,000 \\ \text { Accounts receivable } & 543,000 \\ \text { Accumulated depreciation–office buildings and equipment } & 1,580,000 \\ \text { Accumulated depreciation-store buildings and equipment } & 4,126,000 \\ \text { Allowance for doubtful accounts } & 8,150 \\ \text { Available-for-sale investments (at cost) } & 110,250 \\ \text { Bonds payable, 6\%, due 2022 } & 400,000 \\ \text { Cash } & 240,000 \\ \text { Common stock, \$25 par (400,000 shares authorized; } & \\ \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \text { Dividends: } & \\ \quad \text { Cash dividends for common stock } & 155,120 \\ \quad \text { Cash dividends for preferred stock } & 85,000 \\ \quad\text { Stock dividends for common stock } & 62,800 \\ \text { Goodwill } & 510,000 \\ \text { Income tax payable } & 40,000 \\ \text { Interest receivable } & 930 \\ \text { Investment in Lifecare Co. stock (equity method) } & 689,100 \\ \text { Investment in Nordic Wear Inc. bonds (long term) } & 62,000\\ \text { Merchandise inventory (December 31, 2012), at lower }\\ \quad\text { of cost (FIFO) or market } & \$780,000 \\ \text { Office buildings and equipment } & 4,320,000 \\ \text { Paid-in capital from sale of treasury stock } & 18,200 \\ \text { Paid-in capital in excess of par-common stock } & 842,000 \\ \text { Paid-in capital in excess of par-preferred stock } & 150,000 \\ \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \quad 17,000 \text { shares issued) } & 1,700,000 \\ \text { Premium on bonds payable } & 19,000 \\ \text { Prepaid expenses } & 26,500 \\ \text { Retained earnings, January 1, 2012 } & 8,708,150 \\ \text { Store buildings and equipment } & 12,560,000 \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ \quad \$ 35 \text { per share) } & 136,500 \\ \text { Unrealized gain (loss) on available-for-sale investments } & (17,750) \\ \text { Valuation allowance for available-for-sale investments } & (17,750)\\ \end{array} \end{aligned}$$

The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2014:

$$\begin{array}{c} \textbf{Lambert and Yost}\\ \textbf{Trial Balance}\\ \textbf{December 31, 2014} \end{array}$$

$$\begin{array}{lrr} \hline{\text{}}&\textbf{Debit}\hspace{8pt}&\textbf{Credit}\hspace{5pt}\\ {\text{}}&\textbf{Balances}&\textbf{Balances}\\\hline \text{Cash}&\text{34,000}\\ \text{Accounts Receivable}&\text{47,800}\\ \text{Supplies}&\text{2,000}\\ \text{Land}&\text{120,000}\\ \text{Building}&\text{157,500}\\ \text{Accumulated Depreciation—Building}&&\text{67,200}\\ \text{Office Equipment}&\text{63,600}\\ \text{Accumulated Depreciation—Office Equipment}&&\text{21,700}\\ \text{Accounts Payable}&&\text{27,900}\\ \text{Salaries Payable}&&\text{5,100}\\ \text{Tyler Lambert, Capital}&&\text{135,000}\\ \text{Tyler Lambert, Drawing}&\text{50,000}\\ \text{Jayla Yost, Capital}&&\text{88,000}\\ \text{Jayla Yost, Drawing}&\text{60,000}\\ \text{Professional Fees}&&\text{395,300}\\ \text{Salary Expense}&\text{154,500}\\ \text{Depreciation Expense—Building}&\text{15,700}\\ \text{Property Tax Expense}&\text{12,000}\\ \text{Heating and Lighting Expense}&\text{8,500}\\ \text{Supplies Expense}&\text{6,000}\\ \text{Depreciation Expense—Office Equipment}&\text{5,000}\\ \text{Miscellaneous Expense}&\text{\underline{\hspace{10pt}3,600}}&\text{\underline{\hspace{33pt}}}\\ &\underline{\underline{\text{740,200}}}&\underline{\underline{\text{740,200}}}\\ \end{array}$$

The balance in Yost’s capital account includes an additional investment of $10,000 made on April 10, 2014.

Instructions

1. Prepare an income statement for 2014, indicating the division of net income. The partnership agreement provides for salary allowances of$45,000 to Lambert and $54,700 to Yost, allowances of 10% on each partner’s capital balance at the bbeginningof the fiscal year, and equal division of the remaining net income or net loss.
2. Prepare a statement of partnership equity for 2014.
3. Prepare a balance sheet as of the end of 2014.

Post from the general journal to the general ledger.