Ex. 202
Cyn Sclose is the bookkeeper for Ayala Company. Cyn has been trying to get the balance
sheet of Ayala Company to balance. Ayala’s balance sheet is as follows.
AYALA COMPANY
Balance Sheet
December 31, 2011
Assets Liabilities
Cash $17,400 Accounts payable $33,000
Supplies 7,100 Accounts receivable (12,500)
Equipment 45,000 Common stock 40,000
Dividends 9,200 Retained earnings 18,200
Total liabilities and
Total assets $78,700stockholders' equity $78,700
Instructions
Prepare a correct balance sheet.
Ex. 203
Presented below is information related to Smith and Jones, Attorneys at Law.
Retained earnings, January 1, 2011$ 23,000
Legal service revenue—2011 300,000
Total expenses—2011 211,000
Assets, January 1, 2011 85,000
Liabilities, January 1, 2011 62,000
Assets, December 31, 2011 168,000
Liabilities, December 31, 2011 85,000
Dividends—2011 59,000
Instructions
Prepare the 2011 retained earnings statement for Smith and Jones, Attorneys at Law.
Ex. 204
Prepare an income statement, a retained earnings statement, and a balance sheet for the accupuncture practice of Lei Chen, from the items listed below for the month of September.
Retained earnings, September 1$12,000
Common stock30,000
Accounts payable7,000
Equipment30,000
Service revenue27,000
Dividends6,000
Dental supplies expense3,500
Cash8,000
Utilities expense700
Dental supplies2,800
Salaries expense9,000
Accounts receivable14,000
Rent expense2,000
Ex. 204
(cont.)
LEI CHEN, ACCURPUNCTURIST
Income Statement
For the Month Ended September 30, 2011
——————————————————————————————————————————
Revenues$
Expenses$$
Total expenses$
Net income$
LEI CHEN, ACCURPUNCTURIST
Retained Earnings Statement
For the Month Ended September 30, 2011
——————————————————————————————————————————
Retained Earnings, September 1$
Add:
$
Less:
$
LEI CHEN, ACCURPUNCTURIST
Balance Sheet
September 30, 2011
——————————————————————————————————————————
Assets
$
Total assets
$
Liabilities and Stockholders' Equity
Liabilities$
Stockholders' Equity$
Total liabilities and stockholders equity$