Acct Problem B

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Copyright © 2011 John Wiley & Sons, Inc.   Weygandt, Accounting Principles, 10/e, Solutions Manual   (For Instructor Use Only)1-33

PROBLEM 1-1B

(a)VINCE’S TRAVEL AGENCY|
| | | | | | | | | | | | Owner’s Equity|
| | Cash| +| AccountsReceivable| +| Supplies| +| Equipment| =| AccountsPayable| +| Owner’sCapital| –| Owner’s Drawings| +| Revenues| –| Expenses|
| | | | | | | | | | | | | | | | | | |
1.2.3.4.5.6.7.8.9.10.| | +$15,000+ 15,000+   –600+ 14,400+ –3,000+ 11,400+000,000+ 11,400+   –800+ 10,600– +3,000+ 13,600+   –500+ 13,100+   –500+ 12,600+ –2,500+ 10,100– +4,000+$14,100| +++++| +$7,000+ 7,000+ 0,000+ 7,000+ 0,000+ 7,000+ 0,000+ 7,000+–4,000+$3,000| ++++++| +$800+ 800+0000+ 800+0000+ 800+0000+ 800+0000+ 800+        +$800| ++++++++| +$3,000+ 3,000+00,000+ 3,000+00,000+ 3,000+00,000+ 3,000+00,000+ 3,000+00,000+ 3,000+00,000+ 3,000+           +$3,000| ==========| +$700+ 700+0000+ 700+0000+ 700+0000+ 700+–500 200+0000 200        +$200| +++++| +$15,000+ 15,000++ 15,000+000,000+ 15,000++ 15,000+000,000+ 15,000–+ 15,000++ 15,000+000,000+ 15,000+ 15,000             +$15,000| –| –$500–500–500–500        $500| +| +$10,000 10,000 10,000 10,000 10,000            $10,000| –| –$600 –600 –600 –700–1,300–1,300–1,300–1,300–1,300–2,500–3,800            $3,800| | | $20,900| | | $20,900| | | | |

SOLUTIONS TO PROBLEMS

PROBLEM 1-1C
PROBLEM 1-1B (Continued)

(b)Service revenue$10,000
Expenses
Salaries and wages$2,500
Rent 600
Advertising 700 3,800
Net income$ 6,200

PROBLEM 1-3B|

(a)CRAZY CREATIONS CO.
Income Statement
For the Month Ended June 30, 2012

Revenues
Service revenue $6,700
Expenses
Supplies expense$1,600
Advertising expense 500
Gasoline expense 200
Utilities expense 150
Total expenses 2,450
Net income $4,250

CRAZY CREATIONS CO.
Owner’s Equity Statement
For the Month Ended June 30, 2012

Owner’s capital, June 1$ 0
Add: Investments$12,000
Net income 4,250 16,250
16,250
Less: Drawings 1,300
Owner’s capital, June 30$14,950

CRAZY CREATIONS CO.
Balance Sheet
June 30, 2012

Assets
Cash$10,150
Accounts receivable 3,000
Supplies 2,000
Equipment 10,000
Total assets$25,150

PROBLEM 1-3B (Continued)

CRAZY CREATIONS CO.
Balance Sheet (Continued)
June 30, 2012

Liabilities and Owner’s Equity
Liabilities
Notes payable$ 9,000
Accounts payable 1,200
Total liabilities 10,200
Owner’s equity
Owner’s capital 14,950
Total liabilities and owner’s equity$25,150

(b)CRAZY CREATIONS CO.
Income Statement
For the Month Ended June 30, 2012

Revenues
Service revenue ($6,700 + $900) $7,600
Expenses
Supplies expense$1,600
Advertising expense 500
Gasoline expense ($200 + $150) 350
Utilities expense 150
Total expenses 2,600
Net income $5,000

CRAZY CREATIONS CO.
Owner’s Equity Statement
For the Month Ended June 30, 2012

Owner’s capital, June 1$ 0
Add: Investments$12,000
Net income 5,000 17,000
17,000
Less: Drawings 1,300
Owner’s capital, June 30$15,700

PROBLEM 2-1B|

J1
Date| | Account Titles and Explanation| | Ref.| | Debit| | Credit| Mar.1| | Cash| | | | 20,000| | |
| | Owner’s Capital| | | | | | 20,000|
| | (Owner’s investment of cash| | | | | | | | | in business)| | | | | | |
| |...
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