1 5B

Prob. 1–5B
1.
Assets = Liabilities + Stockholders’ Equity Accounts Accounts
Cash + Receivable + Supplies + Land = Payable + Capital + Retained Stock Earnings
$25,000 + $30,000 + $5,000 + $50,000 = $18,000 + Capital + Retained Stock Earnings

$110,000 = $18,000 + $35,000 + Retained Earnings

$57,000 = Retained Earnings

Prob. 1–5B (Continued)
2.
Stockholders’ Assets = Liabilities + Equity

Accounts Accounts Capital Retained Cash + Receivable + Supplies + Land = Payable + Stock – Dividends + Earnings

Bal. 25,000 30,000 5,000 50,000 18,000 35,000 57,000
a. + 15,000 + 15,000
Bal. 40,000 30,000 5,000 50,000 18,000 50,000 57,000
b. – 20,000 + 20,000
Bal. 20,000 30,000 5,000 70,000 18,000 50,000 57,000
c. – 3,000
Bal. 17,000 30,000 5,000 70,000 18,000 50,000 57,000
d. + 22,000
Bal. 17,000 52,000 5,000 70,000 18,000 50,000 57,000
e. – 13,000 – 13,000
Bal. 4,000 52,000 5,000 70,000 5,000 50,000 57,000
f. + 1,000 + 1,000
Bal. 4,000 52,000 6,000 70,000 6,000 50,000 57,000
g. + 28,000
Bal. 32,000 52,000 6,000 70,000 6,000 50,000 57,000
h. + 27,000 – 27,000
Bal. 59,000 25,000 6,000 70,000 6,000 50,000 57,000
i. + 21,500
Bal. 59,000 25,000 6,000 70,000 27,500 50,000 57,000
j. – 19,200
Bal. 39,800 25,000 6,000 70,000 27,500 50,000 57,000
k. – 2,600
Bal. 39,800 25,000 3,400 70,000 27,500 50,000 57,000
l. – 1,000 – 1,000
Bal. 38,800 25,000 3,400 70,000 27,500 50,000 – 1,000 57,000
Prob. 1–5B (Continued)

Stockholders’ Equity (Continued) Dry Dry Cleaning Cleaning Wages Rent Supplies Truck Utilities Misc. + Revenue – Exp. – Exp. – Exp. – Exp. – Exp. – Exp. – Exp.

Bal.
a.
Bal.