SOLUTIONS MANUAL FOR Using QuickBooks® Online For Accounting. 4th Edition (2021). Glenn Owen

Using QuickBooks® Online For Accounting Solutions Manual Fourth Edition (2021) Glenn Owen

TABLE OF CONTENTS CHAPTER 1

1

QUESTIONS MATCHING

1 1

CHAPTER 2

2

QUESTIONS MATCHING

2 2

CHAPTER 3

3

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5

3 3 4 6 8 10 12

CHAPTER 4

14

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5

14 14 15 18 21 24 27

CHAPTER 5

30

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5

30 30 31 35 40 47 53

CHAPTER 6

58

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3

58 58 59 64 69

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TABLE OF CONTENTS CASE 4 CASE 5

74 78

CHAPTER 7

82

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5

82 82 83 87 93 98 102

CHAPTER 8

106

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5

106 106 107 112 118 121 123

CHAPTER 9

126

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5

126 126 127 132 137 142 143

CHAPTER 10

144

QUESTIONS MATCHING CASE 1 CASE 2 CASE 3 CASE 4 CASE 5

144 144 145 150 155 165 171

APPENDIX 2

178

CASE 1 CASE 2 CASE 3 CASE 4

178 187 195 203

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1

Chapter 1 Solutions Manual Chapter 1 Questions 1. QBO is limited to one company per license. QBDT can manage an unlimited number of companies.

2. No, QBO requires an Internet connection.

3. No, QBO does not require the creation of backup files.

4. Both QBO and QBDT were developed in-house by Intuit to capture and report on accounting events.

5. The process of assigning your instructor as the accountant for your company involves a brief interview in which you’ll provide your instructor’s email address and name.

Chapter 1 Matching a. b. c. d. e. f. g. h. i. j.

QBO QBDT Gear icon Welcome Guide Navigation bar Create ( ) icon Magnifying Glass Help (?) icon Manage Users Home Page

h. g. d. a. i. j. b. f. c. e.

Click to access help Click to find past transactions Provides tasks to help you get started Online version of QuickBooks Click to add your instructor as your accountant Provides links to QBO tasks and resources Windows Desktop version of QuickBooks Click to add any transaction Click to manage your subscription, users, and settings On the left of the home page, it shows a menu of items

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2

Chapter 2 Solutions Manual Chapter 2 Questions 1. Click Sales and then click Customers.

2. Open the Customer window from the navigation bar, and then click a customer name.

3. Open the Vendor window from the navigation bar, click a specific vendor name, and then click a specific bill.

4. Open the Employee window from the navigation bar, and then click Edit next to a specific employee name.

5. Bank deposits, which have not yet been recorded in QBO, are not recognized and are temporarily classified as Uncategorized Income.

6. Bank charges, which have not yet been recorded in QBO, are not recognized and are temporarily classified as Uncategorized Expense.

7. Opening the sales transaction section of QBO will provide a listing of recent sales invoices and payments.

8. Opening the expense transaction section of QBO will provide a listing of recent credit card transactions, bills, expenses, purchase orders, checks, bill payments, and cash transactions.

9. List options include chart of accounts, recurring transactions, products and services, custom form styles, payment methods, terms, classes, and attachments.

10. Click Reports, and then type Accounts payable in the reports search box.

Chapter 2 Matching a. b. c. d. e. f. g. h. i. j.

Navigation bar Amy’s Bird Sanctuary Brosnahan Insurance Agency Recognizing Uncategorized Income Uncategorized Expense Registers John Johnson Terms Chart of accounts

h. e. g. i. a. c. j. f. b. d.

An employee in the Sample Company Bank deposits not yet recognized Exist for all asset, liability, and equity accounts Specify due dates for payment to/from vendors/customers Used to access a list of sales and expense transactions A vendor in the Sample Company A listing of all accounts available Bank charges not yet recognized A customer in the Sample Company Matching a banking transaction with a QBO transaction

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3

Chapter 3 Solutions Manual Chapter 3 Questions 1. Company Settings is accessed by clicking the Gear icon and then clicking Account and Settings from the Your Company column.

2. Adding beginning balances only occurs when you are utilizing QBO for the first time and your business has been in operation for some time.

3. Click the Gear icon, click Chart of Accounts, and then click the New button in the upper righthand corner of the chart of accounts.

4. The Opening Balance Equity account is also affected when a beginning balance is entered into an account.

5. When you add a new product, you may provide an initial quantity on hand and a related as of date. You also provide the related inventory asset account, sales and purchase description information, the price, the cost, the income account, and the cost of goods sold account used.

You must also identify if the item is taxable if the company collects sales tax.

6. When you add a beginning balance to accounts receivable, you must also identify the name of the customer who owes you.

7. When you add a beginning balance to accounts payable, you must also identify the name of the vendor you owe.

8. Retained Earnings is the additional account used when closing the Opening Balance Equity account.

9. Click Reports from the Navigation bar, type Balance Sheet into the Find report by name search text box, and then press [Enter].

10. Click the balance in the account line of the Balance Sheet report to view the Transaction Report.

Chapter 3 Matching a. b. c. d. e.

Transactions report Trial Balance Journal entry Opening Balance Equity Customer

e. d. g. h. b.

f. g. h. i. j.

Vendor Product Service Account Type Detailed type example

i. a. f. j. c.

Entity to whom you sell products/services Account used to offset beginning balances adjustments Merchandise a company purchases from a vendor Efforts made by a company to add value to a customer A listing of the debit and credit balances as of a specific date Dictates where an account appears in all reports Transactions for an account for a specified period Entity from whom you purchase products/services Checking Commonly used to adjust accounts

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4

Chapter 3 Case 1 Trial Balance

Case 1 TRIAL BALANCE As of December 31, 2023 DEBIT

Checking

25,000.00

Accounts Receivable (A/R)

5,000.00

Inventory Asset

8,000.00

Prepaid Expenses

3,000.00

Furniture & Fixtures:Depreciation Furniture & Fixtures:Original cost

CREDIT

10,000.00 40,000.00

Accounts Payable (A/P)

4,500.00

Notes Payable

60,000.00

Common Stock

1,000.00

Opening Balance Equity

0.00

Retained Earnings TOTAL

5,500.00 $81,000.00

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$81,000.00

5

Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

Opening Balance

Opening Balance Equity

AMOUNT

BALANCE

25,000.00

25,000.00

Checking 12/31/2023

Deposit

Total for Checking

$25,000.00

Accounts Receivable (A/R) 12/31/2023

Journal Entry

1

-Split-

Total for Accounts Receivable (A/R)

5,000.00

5,000.00

$5,000.00

Inventory Asset 12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Opening Balance Equity

4,000.00

4,000.00

12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Opening Balance Equity

4,000.00

8,000.00

Total for Inventory Asset

$8,000.00

Prepaid Expenses 12/31/2023

Journal Entry

1

-Split-

Total for Prepaid Expenses

3,000.00

3,000.00

$3,000.00

Furniture & Fixtures Depreciation 12/31/2023

Journal Entry

2

Opening Balance

-Split-

Total for Depreciation

-10,000.00

-10,000.00

$ -10,000.00

Original cost 12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

Total for Original cost

$40,000.00

Total for Furniture & Fixtures

$30,000.00

40,000.00

Accounts Payable (A/P) 12/31/2023

Journal Entry

1

-Split-

Total for Accounts Payable (A/P)

4,500.00

4,500.00

$4,500.00

Notes Payable 12/31/2023

Journal Entry

3

Opening Balance

-Split-

Total for Notes Payable

60,000.00

60,000.00

$60,000.00

Common Stock 12/31/2023

Journal Entry

4

Opening Balance

-Split-

Total for Common Stock

1,000.00

1,000.00

$1,000.00

Opening Balance Equity 12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

-10,000.00

12/31/2023

Journal Entry

4

Opening Balance

-Split-

-1,000.00

-11,000.00

12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

29,000.00

12/31/2023

Journal Entry

3

Opening Balance

-Split-

-60,000.00

-31,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Inventory Asset

4,000.00

-27,000.00

12/31/2023

Journal Entry

1

-Split-

3,500.00

-23,500.00

12/31/2023

Journal Entry

2

-Split-

-5,500.00

-29,000.00

12/31/2023

Inventory Starting Value

START

Inventory Asset

4,000.00

-25,000.00

12/31/2023

Deposit

Checking

25,000.00

0.00

The Water Hog - Opening inventory and value

Total for Opening Balance Equity

$0.00

Retained Earnings 12/31/2023

Journal Entry

Total for Retained Earnings

2

-Split-

5,500.00 $5,500.00

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5,500.00

6

Chapter 3 Case 2 Trial Balance

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7

Transaction Detail by Account

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8

Chapter 3 Case 3 Trial Balance

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9

Transaction Detail by Account

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10

Chapter 3 Case 4

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11

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12

Chapter 3 Case 5

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13

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14

Chapter 4 Solutions Manual Chapter 4 Questions 1.

2.

3.

4.

5.

6.

From the Gear icon, click Products and Services located in the Lists column.

From the icon, click Sales Receipts located in the Customers column.

From the icon, click Invoice located in the Customers column.

From the icon, click Receive Payment located in the Customers column.

From the icon, click Bank Deposit located in the Other column.

A new product is usually tracked and thus a beginning quantity may be required. A new service is not usually tracked and thus no beginning balance quantity is required.

7. A business uses sales receipts to record sales transactions on a daily basis where payment is received at the same time as a product or service is delivered. Sales invoices are used to record sales transactions where customers are granted credit terms and given some length of time to pay after a product or service is delivered.

Chapter 4 Matching a. b. c. d. e. f. g. h. i. j.

Invoice Sales receipt Product Service icon Payment from a customer Deposit Pest control Roses Cool Cars

h. g. a. e. j. d. b. f. c. i.

A service in the Sample Company Providing the bank a payment from a customer Used when recording a sale on account Used to access invoices, sales receipts, or bank deposits A customer in the Sample Company Quantities of this are not tracked Used when cash is collected at the time of a sale Cash receipts received from a sale Quantities of this are tracked A product in the Sample Company

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15

Chapter 4 Case 1 Trial Balance

Case 1 TRIAL BALANCE As of January 31, 2024

DEBIT

Checking

26,300.00

Accounts Receivable (A/R)

1,030.00

Inventory Asset

6,700.00

Prepaid Expenses

3,000.00

Undeposited Funds

5,000.00

Furniture & Fixtures:Depreciation Furniture & Fixtures:Original cost

CREDIT

10,000.00 40,000.00

Accounts Payable (A/P)

4,500.00

Notes Payable

60,000.00

Common Stock

1,000.00

Opening Balance Equity

0.00

Retained Earnings

5,500.00

Sales

2,160.00

Services

170.00

Cost of Goods Sold TOTAL

1,300.00 $83,330.00

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$83,330.00

16

Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

AMOUNT

BALANCE

Opening Balance

Opening Balance Equity

25,000.00

25,000.00

Undeposited Funds

1,300.00

26,300.00

Checking 12/31/2023

Deposit

01/08/2024

Deposit

Blondie's Boards

Total for Checking

$26,300.00

Accounts Receivable (A/R) 12/31/2023

Journal Entry

1

-Split-

5,000.00

5,000.00

01/04/2024

Invoice

1002

Sarah Hay

-Split-

1,030.00

6,030.00

01/05/2024

Payment

984

Blondie's Boards

Undeposited Funds

-5,000.00

1,030.00

Total for Accounts Receivable (A/R)

$1,030.00

Inventory Asset 12/31/2023

Inventory Starting Value START

The Water Hog - Opening inventory and value

Opening Balance Equity

4,000.00

4,000.00

12/31/2023

Inventory Starting Value START

Rook 15 - Opening inventory and value

Opening Balance Equity

4,000.00

8,000.00

01/01/2024

Inventory Starting Value START

Fred Rubble - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/03/2024

Sales Receipt

1001

Blondie's Boards Rook 15

Undeposited Funds

-800.00

7,200.00

01/04/2024

Invoice

1002

Sarah Hay

Accounts Receivable (A/R)

-500.00

6,700.00

The Water Hog

Total for Inventory Asset

$6,700.00

Prepaid Expenses 12/31/2023

Journal Entry

1

-Split-

Total for Prepaid Expenses

3,000.00

3,000.00

$3,000.00

Undeposited Funds 01/03/2024

Sales Receipt

1001

Blondie's Boards

Sales

1,300.00

1,300.00

01/05/2024

Payment

984

Blondie's Boards

Accounts Receivable (A/R)

5,000.00

6,300.00

01/08/2024

Deposit

Blondie's Boards

Checking

-1,300.00

5,000.00

Total for Undeposited Funds

$5,000.00

Furniture & Fixtures Depreciation 12/31/2023 Journal Entry

2

Opening Balance

-Split-

Total for Depreciation

-10,000.00 -10,000.00 $ -10,000.00

Original cost 12/31/2023 Journal Entry

1

Opening Balance

-Split-

40,000.00

Total for Original cost

$40,000.00

Total for Furniture & Fixtures

$30,000.00

40,000.00

Accounts Payable (A/P) 12/31/2023

Journal Entry

1

-Split-

Total for Accounts Payable (A/P)

4,500.00

4,500.00

$4,500.00

Notes Payable 12/31/2023

Journal Entry

3

Opening Balance

-Split-

Total for Notes Payable

60,000.00

60,000.00

$60,000.00

Common Stock 12/31/2023

Journal Entry

4

Opening Balance

-Split-

Total for Common Stock

1,000.00

1,000.00

$1,000.00

Opening Balance Equity 12/31/2023

Inventory Starting Value START

Rook 15 - Opening inventory and value

Inventory Asset

4,000.00

12/31/2023

Inventory Starting Value START

The Water Hog - Opening inventory and value

Inventory Asset

4,000.00

4,000.00 8,000.00

12/31/2023

Deposit

Checking

25,000.00

33,000.00

12/31/2023

Journal Entry

1

-Split-

3,500.00

36,500.00

12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

26,500.00

12/31/2023

Journal Entry

4

Opening Balance

-Split-

-1,000.00

25,500.00

12/31/2023

Journal Entry

3

Opening Balance

-Split-

-60,000.00 -34,500.00

12/31/2023

Journal Entry

2

12/31/2023

Journal Entry

1

01/01/2024

Inventory Starting Value START

-Split-

-5,500.00 -40,000.00

Opening Balance

-Split-

40,000.00

0.00

Fred Rubble - Opening inventory and value

Inventory Asset

0.00

0.00

Total for Opening Balance Equity

$0.00

Retained Earnings 12/31/2023

Journal Entry

2

-Split-

5,500.00

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5,500.00

17 DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

Total for Retained Earnings

AMOUNT

BALANCE

$5,500.00

Sales 01/03/2024

Sales Receipt

1001

Blondie's Boards Rook 15

Undeposited Funds

01/04/2024

Invoice

1002

Sarah Hay

Accounts Receivable (A/R)

The Water Hog

Total for Sales

1,300.00

1,300.00

860.00

2,160.00

$2,160.00

Services 01/04/2024

Invoice

1002

Sarah Hay

Tune-Up

Accounts Receivable (A/R)

Total for Services

170.00

170.00

$170.00

Cost of Goods Sold 01/03/2024

Sales Receipt

1001

Blondie's Boards Rook 15

Undeposited Funds

800.00

800.00

01/04/2024

Invoice

1002

Sarah Hay

Accounts Receivable (A/R)

500.00

1,300.00

Total for Cost of Goods Sold

The Water Hog

$1,300.00

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18

Chapter 4 Case 2 Trial Balance

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19

Transaction Detail by Account

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20

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

21

Chapter 4 Case 3

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22

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

23

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

24

Chapter 4 Case 4

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25

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

26

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

27

Chapter 4 Case 5

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28

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

29

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

30

Chapter 5 Solutions Manual Chapter 5 Questions 1. A business uses purchase orders to formally order products or services from its vendors. They are also used as a reference and control for products received.

2. From a purchase order, click in the Product/Service column on line 1 of the purchase order’s Item details section and select Add New. 3. The Item details section of the purchase order is filled out with information from the last purchase order completed for this vendor.

4. Inventory and accounts payable.

5. A listing of possible bills that can be paid.

6. Click and hold your mouse between two columns and drag to the left to decrease the width of a column and drag to the right to increase the width of a column.

7. Click the icon and then click Expense.

8. Click the icon and then click Check.

9. From a trial balance, click the checking account balance to view its transaction report.

10. From a trial balance, click the inventory account balance to view its transaction report.

Chapter 5 Matching a. b. c. d. e. f. g. h. i. j.

Purchase order Due on receipt Bill Net 30 Item detail section Category detail section Pay Bills Check Expense Vendor

e. c. f. h. j. a. d. i. b. g.

Purchases that affect inventory are recorded here An invoice sent by a vendor to a customer Purchases that don’t affect inventory are recorded here Task used to record checks in the checking account Suppliers of products and services A formal means to order products from vendors Pay a bill within 30 days after the bill date Task used to record credit card charges Terms that provide no credit Paying vendors that have billed you

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31

Chapter 5 Case 1 Trial Balance

Case 1 TRIAL BALANCE As of January 31, 2024

DEBIT

Checking

CREDIT

16,325.00

Accounts Receivable (A/R)

1,030.00

Inventory Asset

11,800.00

Prepaid Expenses

8,000.00

Supplies Asset

375.00

Undeposited Funds

5,000.00

Furniture & Fixtures:Depreciation

10,000.00

Furniture & Fixtures:Original cost

40,000.00

Accounts Payable (A/P)

7,645.00

VISA

1,800.00

Notes Payable

60,000.00

Common Stock

1,000.00

Opening Balance Equity

0.00

Retained Earnings

5,500.00

Sales

2,160.00

Services

170.00

Cost of Goods Sold

1,300.00

Rent & Lease

2,500.00

Travel

1,800.00

Utilities

145.00

TOTAL

$88,275.00

$88,275.00

Transaction Report for the Checking Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Checking Beginning Balance

25,000.00

01/08/2024

Deposit

Blondie's Boards

Checking

Undeposited Funds

1,300.00

26,300.00

01/11/2024

Check

1002

Office Depot

Checking

Supplies Asset

-375.00

25,925.00

01/19/2024

Bill Payment (Check)

1001

Channel Islands

Checking

Accounts Payable (A/P)

-9,600.00

16,325.00

Total for Checking

$ -8,675.00

TOTAL

$ -8,675.00

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32

Transaction Report for the Inventory Asset Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

01/01/2024

Inventory Starting Value

01/02/2024 01/02/2024

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

START

Fred Rubble - Opening inventory and value

Inventory Asset

Opening Balance Equity

0.00

8,000.00

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Inventory Asset

Opening Balance Equity

0.00

8,000.00

Inventory Starting Value

START

808 - Opening inventory and value

Inventory Asset

Opening Balance Equity

0.00

8,000.00

01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Inventory Asset

Undeposited Funds

-800.00

7,200.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Inventory Asset

Accounts Receivable (A/R)

-500.00

6,700.00

01/05/2024

Bill

Channel Islands

Fred Rubble

Inventory Asset

Accounts Payable (A/P)

3,000.00

9,700.00

01/05/2024

Bill

Channel Islands

The Water Hog

Inventory Asset

Accounts Payable (A/P)

500.00

10,200.00

01/05/2024

Bill

Channel Islands

Rook 15

Inventory Asset

Accounts Payable (A/P)

1,600.00

11,800.00

Inventory Asset Beginning Balance

8,000.00

Total for Inventory Asset

$3,800.00

TOTAL

$3,800.00

Transaction Report for the Accounts Payable (A/P) Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Accounts Payable (A/P) Beginning Balance

4,500.00

01/05/2024

Bill

Channel Islands

Accounts Payable (A/P)

-Split-

5,100.00

01/08/2024

Bill

San Diego Gas & Electric

Accounts Payable (A/P)

Utilities

145.00

9,745.00

01/09/2024

Bill

Prime Properties

Accounts Payable (A/P)

-Split-

7,500.00

17,245.00

01/19/2024

Bill Payment (Check)

Channel Islands

Accounts Payable (A/P)

Checking

-9,600.00

7,645.00

1001

Total for Accounts Payable (A/P)

$3,145.00

TOTAL

$3,145.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9,600.00

33

Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

AMOUNT

BALANCE

Opening Balance

Checking 12/31/2023

Deposit

01/08/2024

Deposit

01/11/2024

Check

01/19/2024

Bill Payment (Check)

Opening Balance Equity

25,000.00

25,000.00

Blondie's Boards

Undeposited Funds

1,300.00

26,300.00

1002

Office Depot

Supplies Asset

-375.00

25,925.00

1001

Channel Islands

Accounts Payable (A/P)

-9,600.00

16,325.00

Total for Checking

$16,325.00

Accounts Receivable (A/R) 12/31/2023

Journal Entry

1

-Split-

5,000.00

5,000.00

01/04/2024

Invoice

1002

Sarah Hay

-Split-

1,030.00

6,030.00

01/05/2024

Payment

984

Blondie's Boards

Undeposited Funds

-5,000.00

1,030.00

Total for Accounts Receivable (A/R)

$1,030.00

Inventory Asset 12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Opening Balance Equity

4,000.00

4,000.00

12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Opening Balance Equity

4,000.00

8,000.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

-800.00

7,200.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

-500.00

6,700.00

01/05/2024

Bill

Channel Islands

Rook 15

Accounts Payable (A/P)

1,600.00

8,300.00

01/05/2024

Bill

Channel Islands

The Water Hog

Accounts Payable (A/P)

500.00

8,800.00

01/05/2024

Bill

Channel Islands

Fred Rubble

Accounts Payable (A/P)

3,000.00

11,800.00

Total for Inventory Asset

$11,800.00

Prepaid Expenses 12/31/2023

Journal Entry

01/09/2024

Bill

1 Prime Properties

-Split-

3,000.00

3,000.00

Accounts Payable (A/P)

5,000.00

8,000.00

Total for Prepaid Expenses

$8,000.00

Supplies Asset 01/11/2024

Check

1002

Office Depot

Checking

Total for Supplies Asset

375.00

375.00

$375.00

Undeposited Funds 01/03/2024

Sales Receipt

1001

Blondie's Boards

Sales

1,300.00

1,300.00

01/05/2024

Payment

984

Blondie's Boards

Accounts Receivable (A/R)

5,000.00

6,300.00

01/08/2024

Deposit

Blondie's Boards

Checking

-1,300.00

5,000.00

Total for Undeposited Funds

$5,000.00

Furniture & Fixtures Depreciation 12/31/2023 Journal Entry

2

Opening Balance

-Split-

Total for Depreciation

-10,000.00

10,000.00

$10,000.00

Original cost 12/31/2023 Journal Entry

1

Opening Balance

-Split-

40,000.00

Total for Original cost

$40,000.00

Total for Furniture & Fixtures

$30,000.00

40,000.00

Accounts Payable (A/P) 12/31/2023

Journal Entry

-Split-

4,500.00

4,500.00

01/05/2024

Bill

Channel Islands

-Split-

5,100.00

9,600.00

01/08/2024

Bill

San Diego Gas & Electric

Utilities

145.00

9,745.00

01/09/2024

Bill

Prime Properties

-Split-

7,500.00

17,245.00

01/19/2024

Bill Payment (Check)

Channel Islands

Checking

-9,600.00

7,645.00

Total for Accounts Payable (A/P)

1

1001

$7,645.00

VISA

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

34

DATE

01/10/2024

TRANSACTION TYPE

NUM

Expense

NAME

MEMO/DESCRIPTION

Village Travel

SPLIT

AMOUNT

BALANCE

Travel

1,800.00

1,800.00

Total for VISA

$1,800.00

Notes Payable 12/31/2023

Journal Entry

3

Opening Balance

-Split-

Total for Notes Payable

60,000.00

60,000.00

$60,000.00

Common Stock 12/31/2023

Journal Entry

4

Opening Balance

-Split-

Total for Common Stock

1,000.00

1,000.00

$1,000.00

Opening Balance Equity 12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

10,000.00

12/31/2023

Deposit

12/31/2023

Journal Entry

1

Opening Balance

Checking

25,000.00

15,000.00

-Split-

40,000.00

12/31/2023

Journal Entry

2

55,000.00

-Split-

-5,500.00

12/31/2023

Inventory Starting Value

START

49,500.00

The Water Hog - Opening inventory and value

Inventory Asset

4,000.00

53,500.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Inventory Asset

4,000.00

57,500.00

12/31/2023 12/31/2023

Journal Entry

4

Opening Balance

-Split-

-1,000.00

56,500.00

Journal Entry

1

-Split-

3,500.00

60,000.00

12/31/2023

Journal Entry

3

Opening Balance

-Split-

-60,000.00

0.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Inventory Asset

0.00

0.00

Total for Opening Balance Equity

$0.00

Retained Earnings 12/31/2023

Journal Entry

2

-Split-

Total for Retained Earnings

5,500.00

5,500.00

$5,500.00

Sales 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

1,300.00

1,300.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

860.00

2,160.00

Total for Sales

$2,160.00

Services 01/04/2024

Invoice

1002

Sarah Hay

Tune-Up

Accounts Receivable (A/R)

Total for Services

170.00

170.00

$170.00

Cost of Goods Sold 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

800.00

800.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

500.00

1,300.00

Total for Cost of Goods Sold

$1,300.00

Rent & Lease 01/09/2024

Bill

Prime Properties

Accounts Payable (A/P)

Total for Rent & Lease

2,500.00

2,500.00

$2,500.00

Travel 01/10/2024

Expense

Village Travel

VISA

Total for Travel

1,800.00

1,800.00

$1,800.00

Utilities 01/08/2024

Bill

Total for Utilities

San Diego Gas & Electric

Accounts Payable (A/P)

145.00 $145.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

145.00

35

Chapter 5 Case 2 Trial Balance

Transaction Report for the Checking Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

36

Transaction Report for the Inventory Asset Account

Transaction Report for the Accounts Payable (A/P) Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

37

Transaction Detail by Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

38

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

39

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

40

Chapter 5 Case 3

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

41

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

42

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

43

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

44

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

45

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

46

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

47

Chapter 5 Case 4

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

48

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

49

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

50

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

51

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

52

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

53

Chapter 5 Case 5

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

54

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

55

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

56

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

57

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

58

Chapter 6 Solutions Manual Chapter 6 Questions 1. Select Check from the icon. Complete the check using a fixed asset original cost as the offsetting account.

2. Select Journal entry from the icon. Debit a fixed asset original cost account and credit Notes Payable.

3. Select Bank Deposit from the icon. Complete the deposit using common stock as the offsetting account.

4. Select Check from the icon. Complete the check using retained earnings as the offsetting account.

5. Select Bank Deposit from the icon. Complete the deposit using notes payable as the offsetting account.

Chapter 6 Matching a. b. c. d. e. f. g. h. i. j.

Operating activity Investing activity Financing activity Fixed assets Long-term investment Common stock Dividends Long-term debt Bank deposit Journal entry

d. g. f. j. h. a. e. i. c. b.

Long-term tangible property that a firm owns Distribution of earnings to shareholders A stockholders’ equity account Used to record purchase of a fixed asset for a note A five-year note payable Sales receipt A financial instrument that matures in more than one year Used to record amounts received from a note payable Sale of common stock Purchase of common stock

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

59

Chapter 6 Case 1 Trial Balance

Case 1 TRIAL BALANCE As of January 31, 2024

DEBIT

Checking

CREDIT

34,850.00

Accounts Receivable (A/R)

1,030.00

Inventory Asset

11,800.00

Prepaid Expenses

8,000.00

Supplies Asset

375.00

Undeposited Funds

5,000.00

Equipment:Original cost

3,175.00

Furniture & Fixtures:Depreciation

10,000.00

Furniture & Fixtures:Original cost

40,000.00

Investments

4,000.00

Accounts Payable (A/P)

7,645.00

VISA

1,800.00

Notes Payable

66,800.00

Common Stock

21,000.00

Opening Balance Equity

0.00

Retained Earnings

5,000.00

Sales

2,160.00

Services

170.00

Cost of Goods Sold

1,300.00

Interest Expense

600.00

Rent & Lease

2,500.00

Travel

1,800.00

Utilities

145.00

TOTAL

$114,575.00

$114,575.00

Transaction Report for the Checking Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Blondie's Boards

Checking

Undeposited Funds

1,300.00

26,300.00

-1,375.00

24,925.00

-375.00

24,550.00

Checking Beginning Balance

25,000.00

01/08/2024

Deposit

01/10/2024

Check

1003

Office Depot

Checking

Equipment:Original cost

01/11/2024

Check

1002

Office Depot

Checking

Supplies Asset

01/11/2024

Check

1004

Etrade

Checking

Investments

-4,000.00

20,550.00

01/12/2024

Deposit

Shareholders

Checking

Common Stock

20,000.00

40,550.00

01/15/2024

Check

1005

Shareholders

Checking

Retained Earnings

-500.00

40,050.00

01/16/2024

Check

1006

Rabo Bank

Checking

-Split-

-60,600.00

-20,550.00

01/16/2024

Deposit

Bank of CA

Checking

Notes Payable

65,000.00

44,450.00

01/19/2024

Bill Payment (Check)

Channel Islands

Checking

Accounts Payable (A/P)

-9,600.00

34,850.00

1001

Total for Checking

$9,850.00

TOTAL

$9,850.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

60 Transaction Report for the Equipment: Original Cost Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

01/10/2024

Check

1003

Office Depot

01/17/2024

Journal Entry

3

ACCOUNT

SPLIT

AMOUNT

BALANCE

Equipment:Original cost

Checking

1,375.00

1,375.00

Equipment:Original cost

-Split-

1,800.00

3,175.00

Equipment Original cost

Total for Original cost

$3,175.00

Total for Equipment

$3,175.00

TOTAL

$3,175.00

Transaction Report for the Notes Payable Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

01/16/2024

Check

1006

01/16/2024

Deposit

01/17/2024

Journal Entry

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Rabo Bank

Notes Payable

Checking

-60,000.00

0.00

Bank of CA

Notes Payable

Checking

65,000.00

65,000.00

Notes Payable

-Split-

1,800.00

66,800.00

Notes Payable Beginning Balance

60,000.00

3

Total for Notes Payable

$6,800.00

TOTAL

$6,800.00

Transaction Report for the Common Stock Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Common Stock

Checking

20,000.00

21,000.00

Common Stock Beginning Balance 01/12/2024

1,000.00 Deposit

Shareholders

Total for Common Stock

$20,000.00

TOTAL

$20,000.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

61 Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

AMOUNT

BALANCE

Opening Balance

Opening Balance Equity

Checking 12/31/2023

Deposit

25,000.00

25,000.00

01/08/2024

Deposit

Blondie's Boards

Undeposited Funds

1,300.00

26,300.00

01/10/2024

Check

1003

Office Depot

Equipment:Original cost

-1,375.00

24,925.00

01/11/2024

Check

1004

Etrade

Investments

-4,000.00

20,925.00

01/11/2024

Check

1002

Office Depot

Supplies Asset

-375.00

20,550.00

01/12/2024

Deposit

Shareholders

Common Stock

20,000.00

40,550.00

01/15/2024

Check

Shareholders

Retained Earnings

-500.00

40,050.00

01/16/2024

Deposit

Bank of CA

Notes Payable

65,000.00

105,050.00

01/16/2024

Check

1006

Rabo Bank

-Split-

-60,600.00

44,450.00

01/19/2024

Bill Payment (Check)

1001

Channel Islands

Accounts Payable (A/P)

-9,600.00

34,850.00

1005

Total for Checking

$34,850.00

Accounts Receivable (A/R) 12/31/2023

Journal Entry

1

-Split-

5,000.00

5,000.00

01/04/2024

Invoice

1002

Sarah Hay

-Split-

1,030.00

6,030.00

01/05/2024

Payment

984

Blondie's Boards

Undeposited Funds

-5,000.00

1,030.00

Total for Accounts Receivable (A/R)

$1,030.00

Inventory Asset 12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Opening Balance Equity

4,000.00

4,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Opening Balance Equity

4,000.00

8,000.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

-800.00

7,200.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

-500.00

6,700.00

01/05/2024

Bill

Channel Islands

Fred Rubble

Accounts Payable (A/P)

3,000.00

9,700.00

01/05/2024

Bill

Channel Islands

Rook 15

Accounts Payable (A/P)

1,600.00

11,300.00

01/05/2024

Bill

Channel Islands

The Water Hog

Accounts Payable (A/P)

500.00

11,800.00

Total for Inventory Asset

$11,800.00

Prepaid Expenses 12/31/2023

Journal Entry

01/09/2024

Bill

1 Prime Properties

-Split-

3,000.00

3,000.00

Accounts Payable (A/P)

5,000.00

8,000.00

Total for Prepaid Expenses

$8,000.00

Supplies Asset 01/11/2024

Check

1002

Office Depot

Checking

Total for Supplies Asset

375.00

375.00

$375.00

Undeposited Funds 01/03/2024

Sales Receipt

1001

Blondie's Boards

Sales

1,300.00

1,300.00

01/05/2024

Payment

984

Blondie's Boards

Accounts Receivable (A/R)

5,000.00

6,300.00

01/08/2024

Deposit

Blondie's Boards

Checking

-1,300.00

5,000.00

Total for Undeposited Funds

$5,000.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

62

Equipment Original cost 01/10/2024

Check

1003

01/17/2024

Journal Entry

3

Office Depot

Checking

1,375.00

1,375.00

-Split-

1,800.00

3,175.00

Total for Original cost

$3,175.00

Total for Equipment

$3,175.00

Furniture & Fixtures Depreciation 12/31/2023

Journal Entry

2

Opening Balance

-Split-

Total for Depreciation

-10,000.00

-10,000.00

$ -10,000.00

Original cost 12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

Total for Original cost

$40,000.00

Total for Furniture & Fixtures

$30,000.00

40,000.00

Investments 01/11/2024

Check

1004

Etrade

Checking

Total for Investments

4,000.00

4,000.00

$4,000.00

Accounts Payable (A/P) 12/31/2023

Journal Entry

-Split-

4,500.00

01/05/2024

Bill

Channel Islands

-Split-

5,100.00

01/08/2024

Bill

1 San Diego Gas & Electric

Utilities

145.00

9,745.00

01/09/2024

Bill

Prime Properties

-Split-

7,500.00

17,245.00

01/19/2024

Bill Payment (Check)

Channel Islands

Checking

-9,600.00

7,645.00

1001

Total for Accounts Payable (A/P)

$7,645.00

VISA Total for VISA

$1,800.00

4,500.00 9,600.00

Notes Payable 12/31/2023

Journal Entry

3

01/16/2024

Check

1006

01/16/2024

Deposit

01/17/2024

Journal Entry

-Split-

60,000.00

Rabo Bank

Opening Balance

Checking

-60,000.00

0.00

Bank of CA

Checking

65,000.00

65,000.00

-Split-

1,800.00

66,800.00

3

Total for Notes Payable

60,000.00

$66,800.00

Common Stock 12/31/2023

Journal Entry

01/12/2024

Deposit

Total for Common Stock

4

Opening Balance Shareholders

-Split-

1,000.00

1,000.00

Checking

20,000.00

21,000.00

$21,000.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

63 Opening Balance Equity 12/31/2023

Journal Entry

2

-Split-

-5,500.00

12/31/2023

Journal Entry

1

-Split-

3,500.00

-2,000.00

12/31/2023

Journal Entry

3

Opening Balance

-Split-

-60,000.00

-62,000.00

12/31/2023

Journal Entry

4

Opening Balance

-Split-

-1,000.00

-63,000.00

12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

-73,000.00

12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

-33,000.00

12/31/2023

Deposit

Checking

25,000.00

-8,000.00

12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Inventory Asset

4,000.00

-4,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Inventory Asset

4,000.00

0.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Inventory Asset

0.00

0.00

Total for Opening Balance Equity

-5,500.00

$0.00

Retained Earnings 12/31/2023

Journal Entry

2

01/15/2024

Check

1005

Shareholders

-Split-

5,500.00

5,500.00

Checking

-500.00

5,000.00

Total for Retained Earnings

$5,000.00

Sales 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

Total for Sales

1,300.00

1,300.00

860.00

2,160.00

$2,160.00

Services 01/04/2024

Invoice

1002

Sarah Hay

Tune-Up

Accounts Receivable (A/R)

Total for Services

170.00

170.00

$170.00

Cost of Goods Sold 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

800.00

800.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

500.00

1,300.00

Total for Cost of Goods Sold

$1,300.00

Interest Expense 01/16/2024

Check

1006

Rabo Bank

Checking

Total for Interest Expense

600.00

600.00

$600.00

Rent & Lease 01/09/2024

Bill

Prime Properties

Accounts Payable (A/P)

Total for Rent & Lease

2,500.00

2,500.00

$2,500.00

Travel 01/10/2024

Expense

Village Travel

VISA

Total for Travel

1,800.00

1,800.00

$1,800.00

Utilities 01/08/2024

Bill

Total for Utilities

San Diego Gas & Electric

Accounts Payable (A/P)

145.00 $145.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

145.00

64

Chapter 6 Case 2 Trial Balance

Transaction Report for the Checking Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

65 Transaction Report for the Furniture Account

Transaction Report for the Notes Payable Account

Transaction Report for the Common Stock Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

66 Transaction Detail by Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

67

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

68

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

69

Chapter 6 Case 3 Trial Balance

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

70 Transaction Report for the Checking Account

Transaction Report for the Buildings: Original Cost Account

Transaction Report for the Notes Payable Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

71 Transaction Report for the Owners’ Equity Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

72

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

73

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

74

Chapter 6 Case 4

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

75

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

76

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

77

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

78

Chapter 6 Case 5

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

79

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

80

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

81

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

82

Chapter 7 Solutions Manual Chapter 7 Questions 1. Click the Workers and then Employees menu from the navigation bar, click the Add an Employee button, and then provide employee information.

2. Click the Gear icon, click Chart of Accounts, click New, select from the list of category types, select from the list of detail types text box, and then provide a name in the name text box.

3. Payroll (expense) and Payroll Tax Payable (liability).

4. Gross pay and employer’s portion of payroll taxes are included in the Payroll (expense) account.

5. Employee and employer’s portion of social security and Medicare taxes are included in the Payroll Tax Payable (liability) account.

Chapter 7 Matching a. 6.2% b. c. d. e. f. g. h. i. j.

1.45% Payroll Payroll tax payable QBO Payroll Gross pay Recurring transactions Transaction report Unscheduled Record as negative amounts

d. Account used to record the liability for Federal income tax withheld e. An add‐on feature to QBO b. Rate used to calculate an employee’s Medicare tax f. Hours worked times hourly rate g. Use to more efficiently record periodic payroll j. Payroll tax payable h. Accessed by clicking an amount on the trial balance i. One type of recurring event c. Account used to record all payroll expenses a. Rate used to calculate an employee’s social security tax

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

83

Chapter 7 Case 1 Trial Balance

Case 1 TRIAL BALANCE As of January 31, 2024

DEBIT

Checking

CREDIT

26,239.28

Accounts Receivable (A/R)

1,030.00

Inventory Asset

11,800.00

Prepaid Expenses

8,000.00

Supplies Asset

375.00

Undeposited Funds

5,000.00

Equipment:Original cost

3,175.00

Furniture & Fixtures:Depreciation

10,000.00

Furniture & Fixtures:Original cost

40,000.00

Investments

4,000.00

Accounts Payable (A/P)

7,645.00

VISA

1,800.00

Payroll Tax Payable

3,174.99

Notes Payable

66,800.00

Common Stock

21,000.00

Opening Balance Equity

0.00

Retained Earnings

5,000.00

Sales

2,160.00

Services

170.00

Cost of Goods Sold Interest Expense

1,300.00 600.00

Payroll

11,785.71

Rent & Lease

2,500.00

Travel

1,800.00

Utilities

145.00

TOTAL

$117,749.99

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

$117,749.99

84

Transaction Report for the Checking Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Checking Beginning Balance

25,000.00

01/08/2024

Deposit

Blondie's Boards

Checking

Undeposited Funds

1,300.00

26,300.00

01/10/2024

Check

1003

Office Depot

Checking

Equipment:Original cost

-1,375.00

24,925.00

01/11/2024

Check

1002

Office Depot

Checking

Supplies Asset

-375.00

24,550.00

01/11/2024

Check

1004

Etrade

Checking

Investments

-4,000.00

20,550.00

01/12/2024

Deposit

Shareholders

Checking

Common Stock

20,000.00

01/15/2024

Check

1005

Shareholders

Checking

Retained Earnings

-500.00

40,050.00

01/16/2024

Check

1006

Rabo Bank

Checking

-Split-

-60,600.00

-20,550.00

01/16/2024

Deposit

Bank of CA

Checking

Notes Payable

65,000.00

44,450.00

01/17/2024

Check

1007

Ben Franklin

Checking

-Split-

-3,113.22

41,336.78

01/17/2024

Check

1008

Betsy Ross

Checking

-Split-

-1,234.41

40,102.37

01/19/2024

Bill Payment (Check)

1001

Channel Islands

Checking

Accounts Payable (A/P)

-9,600.00

30,502.37

01/31/2024

Check

1009

Ben Franklin

Checking

-Split-

-3,113.22

27,389.15

01/31/2024

Check

1010

Betsy Ross

Checking

-Split-

-1,149.87

26,239.28

Total for Checking

$1,239.28

TOTAL

$1,239.28

40,550.00

Transaction Report for the Payroll Tax Payable Account Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

01/17/2024

Check

1008

01/17/2024

Check

1007

01/17/2024

Check

01/17/2024

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Betsy Ross

Payroll Tax Payable

Ben Franklin

Payroll Tax Payable

Checking

335.09

335.09

Checking

302.82

1008

Betsy Ross

637.91

Payroll Tax Payable

Checking

120.07

Check

1007

757.98

Ben Franklin

Payroll Tax Payable

Checking

845.11

1,603.09

01/31/2024

Check

01/31/2024

Check

1010

Betsy Ross

Payroll Tax Payable

Checking

312.13

1,915.22

1009

Ben Franklin

Payroll Tax Payable

Checking

302.82

01/31/2024

2,218.04

Check

1010

Betsy Ross

Payroll Tax Payable

Checking

111.84

01/31/2024

2,329.88

Check

1009

Ben Franklin

Payroll Tax Payable

Checking

845.11

3,174.99

Payroll Tax Payable

Total for Payroll Tax Payable

$3,174.99

TOTAL

$3,174.99

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

85

Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

AMOUNT

BALANCE

Opening Balance

Opening Balance Equity

Checking 12/31/2023

Deposit

25,000.00

25,000.00

01/08/2024

Deposit

Blondie's Boards

Undeposited Funds

1,300.00

26,300.00

01/10/2024

Check

1003

Office Depot

Equipment:Original cost

-1,375.00

24,925.00

01/11/2024

Check

1002

Office Depot

Supplies Asset

-375.00

24,550.00

01/11/2024

Check

1004

Etrade

Investments

-4,000.00

20,550.00

01/12/2024

Deposit

Shareholders

Common Stock

20,000.00

40,550.00

01/15/2024

Check

Shareholders

Retained Earnings

-500.00

40,050.00

01/16/2024

Deposit

Bank of CA

Notes Payable

65,000.00

105,050.00

01/16/2024

Check

1006

Rabo Bank

-Split-

-60,600.00

44,450.00

01/17/2024

Check

1008

Betsy Ross

-Split-

-1,234.41

43,215.59

01/17/2024

Check

1007

Ben Franklin

-Split-

-3,113.22

40,102.37

01/19/2024

Bill Payment (Check)

1001

Channel Islands

Accounts Payable (A/P)

-9,600.00

30,502.37

01/31/2024

Check

1009

Ben Franklin

-Split-

-3,113.22

27,389.15

01/31/2024

Check

1010

Betsy Ross

-Split-

-1,149.87

26,239.28

1005

Total for Checking

$26,239.28

Accounts Receivable (A/R) 12/31/2023

Journal Entry

1

-Split-

5,000.00

5,000.00

01/04/2024

Invoice

1002

Sarah Hay

-Split-

1,030.00

6,030.00

01/05/2024

Payment

984

Blondie's Boards

Undeposited Funds

-5,000.00

1,030.00

Total for Accounts Receivable (A/R)

$1,030.00

Inventory Asset 12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Opening Balance Equity

4,000.00

4,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Opening Balance Equity

4,000.00

8,000.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

-800.00

7,200.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

-500.00

6,700.00

01/05/2024

Bill

Channel Islands

Rook 15

Accounts Payable (A/P)

1,600.00

8,300.00

01/05/2024

Bill

Channel Islands

Fred Rubble

Accounts Payable (A/P)

3,000.00

11,300.00

01/05/2024

Bill

Channel Islands

The Water Hog

Accounts Payable (A/P)

500.00

11,800.00

Total for Inventory Asset

$11,800.00

Prepaid Expenses 12/31/2023

Journal Entry

01/09/2024

Bill

1 Prime Properties

-Split-

3,000.00

3,000.00

Accounts Payable (A/P)

5,000.00

8,000.00

Total for Prepaid Expenses

$8,000.00

Supplies Asset 01/11/2024

Check

1002

Office Depot

Checking

Total for Supplies Asset

375.00

375.00

$375.00

Undeposited Funds 01/03/2024

Sales Receipt

1001

Blondie's Boards

Sales

1,300.00

1,300.00

01/05/2024

Payment

984

Blondie's Boards

Accounts Receivable (A/R)

5,000.00

6,300.00

01/08/2024

Deposit

Blondie's Boards

Checking

-1,300.00

5,000.00

Total for Undeposited Funds

$5,000.00

Equipment Original cost 01/10/2024

Check

1003

01/17/2024

Journal Entry

3

Office Depot

Checking

1,375.00

1,375.00

-Split-

1,800.00

3,175.00

Total for Original cost

$3,175.00

Total for Equipment

$3,175.00

Furniture & Fixtures Depreciation 12/31/2023

Journal Entry

2

Opening Balance

-Split-

Total for Depreciation

-10,000.00

-10,000.00

$ -10,000.00

Original cost 12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

Total for Original cost

$40,000.00

Total for Furniture & Fixtures

$30,000.00

40,000.00

Investments 01/11/2024

Check

1004

Etrade

Checking

Total for Investments

4,000.00

4,000.00

$4,000.00

Accounts Payable (A/P) 12/31/2023

Journal Entry

-Split-

4,500.00

4,500.00

01/05/2024

Bill

1 Channel Islands

-Split-

5,100.00

9,600.00

01/08/2024

Bill

San Diego Gas & Electric

Utilities

145.00

9,745.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

86 DATE

TRANSACTION TYPE

01/09/2024

Bill

01/19/2024

Bill Payment (Check)

NUM

1001

NAME

SPLIT

AMOUNT

BALANCE

Prime Properties

MEMO/DESCRIPTION

-Split-

7,500.00

17,245.00

Channel Islands

Checking

-9,600.00

7,645.00

Total for Accounts Payable (A/P)

$7,645.00

VISA 01/10/2024

Expense

Village Travel

Travel

Total for VISA

1,800.00

1,800.00

$1,800.00

Payroll Tax Payable 01/17/2024

Check

1007

Ben Franklin

Checking

845.11

01/17/2024

Check

1008

Betsy Ross

Checking

120.07

965.18

01/17/2024

Check

1008

Betsy Ross

Checking

335.09

1,300.27

01/17/2024

Check

1007

Ben Franklin

Checking

302.82

1,603.09

01/31/2024

Check

1010

Betsy Ross

Checking

111.84

1,714.93

01/31/2024

Check

1010

Betsy Ross

Checking

312.13

2,027.06

01/31/2024

Check

1009

Ben Franklin

Checking

302.82

2,329.88

01/31/2024

Check

1009

Ben Franklin

Checking

845.11

3,174.99

Total for Payroll Tax Payable

845.11

$3,174.99

Notes Payable 12/31/2023

Journal Entry

01/16/2024

Deposit

3

01/16/2024

Check

1006

01/17/2024

Journal Entry

3

-Split-

60,000.00

60,000.00

Bank of CA

Opening Balance

Checking

65,000.00

125,000.00

Rabo Bank

Checking

-60,000.00

65,000.00

1,800.00

66,800.00

-Split-

Total for Notes Payable

$66,800.00

Common Stock 12/31/2023

Journal Entry

01/12/2024

Deposit

4

Opening Balance Shareholders

-Split-

1,000.00

1,000.00

Checking

20,000.00

21,000.00

Total for Common Stock

$21,000.00

Opening Balance Equity 12/31/2023

Journal Entry

3

Opening Balance

-Split-

-60,000.00

-60,000.00

12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Inventory Asset

4,000.00

-56,000.00

12/31/2023

Deposit

Checking

25,000.00

-31,000.00

12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

9,000.00

12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

-1,000.00

12/31/2023

Journal Entry

4

Opening Balance

-Split-

-1,000.00

-2,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Inventory Asset

4,000.00

2,000.00

12/31/2023

Journal Entry

1

-Split-

3,500.00

5,500.00

12/31/2023

Journal Entry

2

-Split-

-5,500.00

0.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Inventory Asset

0.00

0.00

Total for Opening Balance Equity

$0.00

Retained Earnings 12/31/2023

Journal Entry

2

01/15/2024

Check

1005

Shareholders

-Split-

5,500.00

5,500.00

Checking

-500.00

5,000.00

Total for Retained Earnings

$5,000.00

Sales 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

Total for Sales

1,300.00

1,300.00

860.00

2,160.00

$2,160.00

Services 01/04/2024

Invoice

1002

Sarah Hay

Tune-Up

Accounts Receivable (A/R)

Total for Services

170.00

170.00

$170.00

Cost of Goods Sold 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

800.00

800.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

500.00

1,300.00

Total for Cost of Goods Sold

$1,300.00

Interest Expense 01/16/2024

Check

Total for Interest Expense

1006

Rabo Bank

Checking

600.00 $600.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

600.00

87

Payroll 01/17/2024

Check

1007

Ben Franklin

Checking

3,958.33

3,958.33

01/17/2024

Check

1007

Ben Franklin

Checking

302.82

4,261.15

01/17/2024

Check

1008

Betsy Ross

Checking

1,569.50

5,830.65

01/17/2024

Check

1008

Betsy Ross

Checking

120.07

5,950.72

01/31/2024

Check

1009

Ben Franklin

Checking

302.82

6,253.54

01/31/2024

Check

1009

Ben Franklin

Checking

3,958.33

10,211.87

01/31/2024

Check

1010

Betsy Ross

Checking

111.84

10,323.71

01/31/2024

Check

1010

Betsy Ross

Checking

1,462.00

11,785.71

Total for Payroll

$11,785.71

Rent & Lease 01/09/2024

Bill

Prime Properties

Accounts Payable (A/P)

Total for Rent & Lease

2,500.00

2,500.00

$2,500.00

Travel 01/10/2024

Expense

Village Travel

VISA

Total for Travel

1,800.00

1,800.00

$1,800.00

Utilities 01/08/2024

Bill

San Diego Gas & Electric

Accounts Payable (A/P)

Total for Utilities

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

145.00 $145.00

145.00

88

Chapter 7 Case 2 Trial Balance

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

89

Transaction Report for the Checking Account

Transaction Report for the Payroll Tax Payable Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

90

Transaction Detail by Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

91

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

92

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

93

Chapter 7 Case 3 Trial Balance

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

94

Transaction Report for the Checking Account

Transaction Report for the Payroll Tax Payable Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

95

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

96

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

97

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

98

Chapter 7 Case 4

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

99

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

100

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

101

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

102

Chapter 7 Case 5

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

103

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

104

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

105

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

106

Chapter 8 Solutions Manual Chapter 8 Questions 1. Click the Gear icon, select Budgeting, and then input budget amounts.

2. Both budgets and bank reconciliations provide internal control over business activities.

Significant deviations between actual and budget amounts could identify and help resolve problems.

3. Unexplained differences identified in bank reconciliations can point to possible fraud or incompetency issues.

4. Someone other than the accountant or bookkeeper who is responsible for maintaining accounting records.

5. The Budget Overview report only lists budget data. The Budget vs. Actual lists budget data compared to actual transactions inputted into QBO. 6. Use the Copy Across button to replicate amounts across several months.

7. Your account is reconciled when there is a 0.00 difference between the statement ending balance and the cleared balance shown on the bank reconciliation.

8. Click Customize to modify the Budget Overview report and then change the From: and To: dates to a month of your choice.

9. If you discover a deposit that was recorded by the bank but not recorded in the checking account (determined to be an error in the checking account), you should just correct the checking account by recording the deposit.

10. Click the Gear icon, click Reconcile, and then provide information requested.

Chapter 8 Matching a. b. c. d. e. f.

Budget Overview report Budget vs. Actual report Deposits in transit Outstanding checks Collapse Customize

e. c. f. a. d. b.

Condenses a report Do not appear on the bank statement Used to change report dates Includes only budget amounts Usually appear as checks on the next bank statement Includes both budget and actual amounts

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

107

Chapter 8 Case 1 Budget Overview

Case 1 BUDGET OVERVIEW: BUDGET 1 - FY24 P&L January 2024 TOTAL

Income Sales

40,000.00

Services

3,000.00

Total Income

$43,000.00

Cost of Goods Sold Cost of Goods Sold

23,500.00

Total Cost of Goods Sold

$23,500.00

GROSS PROFIT

$19,500.00

Expenses Interest Expense

600.00

Payroll

12,000.00

Rent & Lease

2,500.00

Travel

500.00

Utilities

200.00

Total Expenses

$15,800.00

NET OPERATING INCOME

$3,700.00

NET INCOME

$3,700.00

Budget vs. Actual

Case 1 BUDGET VS. ACTUALS: BUDGET 1 - FY24 P&L January 2024 TOTAL ACTUAL

BUDGET

OVER BUDGET

% OF BUDGET

Sales

17,180.00

40,000.00

-22,820.00

42.95 %

Services

2,670.00

3,000.00

-330.00

89.00 %

Total Income

$19,850.00

$43,000.00

$ -23,150.00

46.16 %

Income

Cost of Goods Sold Cost of Goods Sold

10,400.00

23,500.00

-13,100.00

44.26 %

Total Cost of Goods Sold

$10,400.00

$23,500.00

$ -13,100.00

44.26 %

GROSS PROFIT

$9,450.00

$19,500.00

$ -10,050.00

48.46 % 100.00 %

Expenses Interest Expense

600.00

600.00

0.00

Payroll

11,785.71

12,000.00

-214.29

98.21 %

Rent & Lease

2,500.00

2,500.00

0.00

100.00 %

Travel

1,800.00

500.00

1,300.00

360.00 %

Utilities

145.00

200.00

-55.00

72.50 %

Total Expenses

$16,830.71

$15,800.00

$1,030.71

106.52 %

NET OPERATING INCOME

$ -7,380.71

$3,700.00

$ -11,080.71

-199.48 %

NET INCOME

$ -7,380.71

$3,700.00

$ -11,080.71

-199.48 %

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

108 Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

AMOUNT

BALANCE

Opening Balance

Checking 12/31/2023

Deposit

01/08/2024

Deposit

Opening Balance Equity

25,000.00

25,000.00

Blondie's Boards

Undeposited Funds

1,300.00

01/10/2024

Check

26,300.00

1003

Office Depot

Equipment:Original cost

-1,375.00

01/11/2024

24,925.00

Check

1004

Etrade

Investments

-4,000.00

20,925.00

01/11/2024

Check

1002

Office Depot

Supplies Asset

-375.00

20,550.00

01/12/2024

Deposit

Shareholders

Common Stock

20,000.00

40,550.00

01/15/2024

Check

Shareholders

Retained Earnings

-500.00

40,050.00

01/16/2024

Deposit

Bank of CA

Notes Payable

65,000.00

105,050.00

01/16/2024

Check

1006

Rabo Bank

-Split-

-60,600.00

44,450.00

01/17/2024

Check

1007

Ben Franklin

-Split-

-3,113.22

41,336.78

01/17/2024

Check

1008

Betsy Ross

-Split-

-1,234.41

40,102.37

01/19/2024

Bill Payment (Check)

1001

Channel Islands

Accounts Payable (A/P)

-9,600.00

30,502.37

01/31/2024

Check

1010

Betsy Ross

-Split-

-1,149.87

29,352.50

01/31/2024

Check

1009

Ben Franklin

-Split-

-3,113.22

26,239.28

1005

Total for Checking

$26,239.28

Accounts Receivable (A/R) 12/31/2023

Journal Entry

1

-Split-

5,000.00

5,000.00

01/04/2024

Invoice

1002

Sarah Hay

-Split-

1,030.00

6,030.00

01/05/2024

Payment

984

Blondie's Boards

Undeposited Funds

-5,000.00

1,030.00

01/30/2024

Invoice

1003

Blondie's Boards

-Split-

15,020.00

16,050.00

01/31/2024

Invoice

1004

Surf Rider Foundation

Services

2,500.00

18,550.00

Total for Accounts Receivable (A/R)

$18,550.00

Inventory Asset 12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Opening Balance Equity

4,000.00

4,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Opening Balance Equity

4,000.00

8,000.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

-800.00

7,200.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

-500.00

6,700.00

01/05/2024

Bill

Channel Islands

The Water Hog

Accounts Payable (A/P)

500.00

7,200.00

01/05/2024

Bill

Channel Islands

Fred Rubble

Accounts Payable (A/P)

3,000.00

10,200.00

01/05/2024

Bill

Channel Islands

Rook 15

Accounts Payable (A/P)

1,600.00

11,800.00

01/30/2024

Invoice

1003

Blondie's Boards

Rook 15

Accounts Receivable (A/R)

-3,200.00

8,600.00

01/30/2024

Invoice

1003

Blondie's Boards

Fred Rubble

Accounts Receivable (A/R)

-2,400.00

6,200.00

01/30/2024

Invoice

1003

Blondie's Boards

The Water Hog

Accounts Receivable (A/R)

-3,500.00

2,700.00

Total for Inventory Asset

$2,700.00

Prepaid Expenses 12/31/2023

Journal Entry

01/09/2024

Bill

1 Prime Properties

-Split-

3,000.00

3,000.00

Accounts Payable (A/P)

5,000.00

8,000.00

Total for Prepaid Expenses

$8,000.00

Supplies Asset 01/11/2024

Check

Total for Supplies Asset

1002

Office Depot

Checking

375.00 $375.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

375.00

109

Undeposited Funds 01/03/2024

Sales Receipt

1001

Blondie's Boards

Sales

1,300.00

1,300.00

01/05/2024

Payment

984

Blondie's Boards

Accounts Receivable (A/R)

5,000.00

6,300.00

01/08/2024

Deposit

Blondie's Boards

Checking

-1,300.00

5,000.00

Total for Undeposited Funds

$5,000.00

Equipment Original cost 01/10/2024

Check

1003

01/17/2024

Journal Entry

3

Office Depot

Checking

1,375.00

1,375.00

-Split-

1,800.00

3,175.00

Total for Original cost

$3,175.00

Total for Equipment

$3,175.00

Furniture & Fixtures Depreciation 12/31/2023

Journal Entry

2

Opening Balance

-Split-

Total for Depreciation

-10,000.00

-10,000.00

$ -10,000.00

Original cost 12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

Total for Original cost

$40,000.00

Total for Furniture & Fixtures

$30,000.00

40,000.00

Investments 01/11/2024

Check

1004

Etrade

Checking

Total for Investments

4,000.00

4,000.00

$4,000.00

Accounts Payable (A/P) 12/31/2023

Journal Entry

-Split-

4,500.00

4,500.00

01/05/2024

Bill

1 Channel Islands

-Split-

5,100.00

9,600.00

01/08/2024

Bill

San Diego Gas & Electric

Utilities

145.00

9,745.00

01/09/2024

Bill

Prime Properties

-Split-

7,500.00

17,245.00

01/19/2024

Bill Payment (Check)

Channel Islands

Checking

-9,600.00

7,645.00

1001

Total for Accounts Payable (A/P)

$7,645.00

VISA 01/10/2024

Expense

Village Travel

Travel

Total for VISA

1,800.00

1,800.00

$1,800.00

Payroll Tax Payable 01/17/2024

Check

1008

Betsy Ross

Checking

335.09

335.09

01/17/2024

Check

1007

Ben Franklin

Checking

302.82

637.91

01/17/2024

Check

1008

Betsy Ross

Checking

120.07

757.98

01/17/2024

Check

1007

Ben Franklin

Checking

845.11

1,603.09

01/31/2024

Check

1010

Betsy Ross

Checking

111.84

1,714.93

01/31/2024

Check

1010

Betsy Ross

Checking

312.13

2,027.06

01/31/2024

Check

1009

Ben Franklin

Checking

302.82

2,329.88

01/31/2024

Check

1009

Ben Franklin

Checking

845.11

3,174.99

Total for Payroll Tax Payable

$3,174.99

Notes Payable 12/31/2023

Journal Entry

01/16/2024

Deposit

3

01/16/2024

Check

1006

01/17/2024

Journal Entry

3

-Split-

60,000.00

60,000.00

Bank of CA

Opening Balance

Checking

65,000.00

125,000.00

Rabo Bank

Checking

-60,000.00

65,000.00

1,800.00

66,800.00

-Split-

Total for Notes Payable

$66,800.00

Common Stock 12/31/2023

Journal Entry

01/12/2024

Deposit

4

Opening Balance Shareholders

-Split-

1,000.00

1,000.00

Checking

20,000.00

21,000.00

Total for Common Stock

$21,000.00

Opening Balance Equity 12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Inventory Asset

4,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Inventory Asset

4,000.00

8,000.00

12/31/2023

Deposit

Checking

25,000.00

33,000.00

12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

73,000.00

12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

63,000.00

12/31/2023

Journal Entry

4

Opening Balance

-Split-

-1,000.00

62,000.00

12/31/2023

Journal Entry

3

Opening Balance

-Split-

-60,000.00

2,000.00

12/31/2023

Journal Entry

1

-Split-

3,500.00

5,500.00

12/31/2023

Journal Entry

2

-Split-

-5,500.00

0.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Inventory Asset

0.00

0.00

Total for Opening Balance Equity

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

$0.00

4,000.00

110

Retained Earnings 12/31/2023

Journal Entry

2

01/15/2024

Check

1005

Shareholders

-Split-

5,500.00

5,500.00

Checking

-500.00

5,000.00

Total for Retained Earnings

$5,000.00

Sales 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

1,300.00

1,300.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

860.00

2,160.00

01/30/2024

Invoice

1003

Blondie's Boards

Fred Rubble

Accounts Receivable (A/R)

3,800.00

5,960.00

01/30/2024

Invoice

1003

Blondie's Boards

Rook 15

Accounts Receivable (A/R)

5,200.00

11,160.00

01/30/2024

Invoice

1003

Blondie's Boards

The Water Hog

Accounts Receivable (A/R)

6,020.00

17,180.00

Total for Sales

$17,180.00

Services 01/04/2024

Invoice

1002

Sarah Hay

Tune-Up

Accounts Receivable (A/R)

170.00

170.00

01/31/2024

Invoice

1004

Surf Rider Foundation

Consulting

Accounts Receivable (A/R)

2,500.00

2,670.00

Total for Services

$2,670.00

Cost of Goods Sold 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

800.00

800.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

500.00

1,300.00

01/30/2024

Invoice

1003

Blondie's Boards

Fred Rubble

Accounts Receivable (A/R)

2,400.00

01/30/2024

Invoice

1003

Blondie's Boards

The Water Hog

Accounts Receivable (A/R)

3,500.00

7,200.00

01/30/2024

Invoice

1003

Blondie's Boards

Rook 15

Accounts Receivable (A/R)

3,200.00

10,400.00

Total for Cost of Goods Sold

3,700.00

$10,400.00

Interest Expense 01/16/2024

Check

1006

Rabo Bank

Checking

Total for Interest Expense

600.00

600.00

$600.00

Payroll 01/17/2024

Check

1008

Betsy Ross

Checking

1,569.50

01/17/2024

Check

1007

Ben Franklin

Checking

302.82

1,872.32

01/17/2024

Check

1007

Ben Franklin

Checking

3,958.33

5,830.65

01/17/2024

Check

1008

Betsy Ross

Checking

120.07

5,950.72

01/31/2024

Check

1010

Betsy Ross

Checking

111.84

6,062.56

01/31/2024

Check

1010

Betsy Ross

Checking

1,462.00

7,524.56

01/31/2024

Check

1009

Ben Franklin

Checking

302.82

7,827.38

01/31/2024

Check

1009

Ben Franklin

Checking

3,958.33

11,785.71

Total for Payroll

1,569.50

$11,785.71

Rent & Lease 01/09/2024

Bill

Prime Properties

Accounts Payable (A/P)

Total for Rent & Lease

2,500.00

2,500.00

$2,500.00

Travel 01/10/2024

Expense

Village Travel

VISA

Total for Travel

1,800.00

1,800.00

$1,800.00

Utilities 01/08/2024 Total for Utilities

Bill

San Diego Gas & Electric

Accounts Payable (A/P)

145.00 $145.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

145.00

111 Reconciliation Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

112

Chapter 8 Case 2 Budget Overview Report

Budget vs. Actuals Report

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113 Transaction Detail by Account

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

114

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

115

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

116

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

117 Reconciliation Report

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118

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

119

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

120

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

121

Chapter 8 Case 4

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122

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

123

Chapter 8 Case 5

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124

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

125

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

126

Chapter 9 Solutions Manual Chapter 9 Questions 1.

2.

3.

4.

5.

6.

7.

8.

9.

An unadjusted trial balance is one created before adjusting entries are recorded.

An adjusted trial balance is one created after adjusting entries are recorded.

Expenses are accrued so that they are recorded in the period in which they were consumed.

Expenses are deferred so that they are recorded in the period in which they were consumed.

Revenues are accrued so that they are recorded in the period in which they were earned.

Revenues are deferred so that they are recorded in the period in which they were earned.

Journal entries.

Fixed assets must be depreciated over their useful life to match costs with revenues.

In a journal entry, type the name of the new account in the Account column of a journal entry. If the account doesn’t exist, you will be asked if you want to add a new account and specify its category and detail type.

10. In a journal entry, type the name of the customer in the Name column of a journal entry. If the Name doesn’t exist, you will be asked if you want to add a new customer.

Chapter 9 Matching a. b. c. d. e. f. g. h. i. j.

Prepaid Expenses Accrue Unearned Revenue Defer Depreciation Expense Supplies Asset Supplies Expense Accrued Receivables Accrued Liabilities Accumulate Depreciation

e. i. h. g. j. a. c. b. f. d.

Debit this account when recording depreciation Credit this account when accruing an expense Debit this account when accruing revenue Supplies consumed Credit this account when recording depreciation Expenses not yet consumed Revenue not yet earned To increase Supplies not yet consumed To postpone

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127

Chapter 9 Case 1 Trial Balance after adjusting journal entries

Case 1 TRIAL BALANCE As of January 31, 2024

DEBIT

Checking

26,239.28

Accounts Receivable (A/R)

18,550.00

Accrued Receivable

8,500.00

Inventory Asset

2,700.00

Prepaid Expenses

7,200.00

Supplies Asset Undeposited Funds

CREDIT

75.00 5,000.00

Equipment:Accumulated Depreciation Equipment:Original cost

75.00 3,175.00

Furniture & Fixtures:Accumulated Depreciation

10,500.00

Furniture & Fixtures:Original cost

40,000.00

Investments

4,000.00

Accounts Payable (A/P)

7,645.00

VISA

1,800.00

Accrued Liabilities

150.00

Payroll Tax Payable

3,174.99

Unearned Revenue

2,500.00

Notes Payable

66,800.00

Common Stock

21,000.00

Opening Balance Equity

0.00

Retained Earnings

5,000.00

Sales

17,180.00

Services

8,670.00

Cost of Goods Sold Interest Expense

10,400.00 600.00

Payroll

11,785.71

Rent & Lease

3,300.00

Repairs & Maintenance

150.00

Supplies

300.00

Travel

1,800.00

Utilities

145.00

Depreciation Expense TOTAL

575.00 $144,494.99

$144,494.99

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

128

Transaction Detail by Account Case 1 TRANSACTION DETAIL BY ACCOUNT January 2014 - December 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

SPLIT

AMOUNT

BALANCE

Opening Balance

Checking 12/31/2023

Deposit

01/08/2024

Deposit

Opening Balance Equity

25,000.00

25,000.00

Blondie's Boards

Undeposited Funds

1,300.00

01/10/2024

Check

01/11/2024

Check

26,300.00

1003

Office Depot

Equipment:Original cost

-1,375.00

24,925.00

1004

Etrade

Investments

-4,000.00

01/11/2024

Check

20,925.00

1002

Office Depot

Supplies Asset

-375.00

01/12/2024

Deposit

20,550.00

Shareholders

Common Stock

20,000.00

01/15/2024

Check

40,550.00

Shareholders

Retained Earnings

-500.00

01/16/2024

Deposit

40,050.00

Bank of CA

Notes Payable

65,000.00

105,050.00

01/16/2024

Check

01/17/2024

Check

1006

Rabo Bank

-Split-

-60,600.00

44,450.00

1007

Ben Franklin

-Split-

-3,113.22

01/17/2024

41,336.78

Check

1008

Betsy Ross

-Split-

-1,234.41

40,102.37

01/19/2024

Bill Payment (Check)

1001

Channel Islands

Accounts Payable (A/P)

-9,600.00

30,502.37

01/31/2024

Check

1010

Betsy Ross

-Split-

-1,149.87

29,352.50

01/31/2024

Check

1009

Ben Franklin

-Split-

-3,113.22

26,239.28

1005

Total for Checking

$26,239.28

Accounts Receivable (A/R) 12/31/2023

Journal Entry

1

-Split-

5,000.00

5,000.00

01/04/2024

Invoice

1002

Sarah Hay

-Split-

1,030.00

6,030.00

01/05/2024

Payment

984

Blondie's Boards

Undeposited Funds

-5,000.00

1,030.00

01/30/2024

Invoice

1003

Blondie's Boards

-Split-

15,020.00

16,050.00

01/31/2024

Invoice

1004

Surf Rider Foundation

Services

2,500.00

18,550.00

Total for Accounts Receivable (A/R)

$18,550.00

Accrued Receivable 01/31/2024

Journal Entry

8

-Split-

Total for Accrued Receivable

8,500.00

8,500.00

$8,500.00

Inventory Asset 12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Opening Balance Equity

4,000.00

4,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Opening Balance Equity

4,000.00

8,000.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Opening Balance Equity

0.00

8,000.00

01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

-800.00

7,200.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

-500.00

6,700.00

01/05/2024

Bill

Channel Islands

The Water Hog

Accounts Payable (A/P)

500.00

7,200.00

01/05/2024

Bill

Channel Islands

Rook 15

Accounts Payable (A/P)

1,600.00

8,800.00

01/05/2024

Bill

Channel Islands

Fred Rubble

Accounts Payable (A/P)

3,000.00

11,800.00

01/30/2024

Invoice

1003

Blondie's Boards

Rook 15

Accounts Receivable (A/R)

-3,200.00

8,600.00

01/30/2024

Invoice

1003

Blondie's Boards

The Water Hog

Accounts Receivable (A/R)

-3,500.00

5,100.00

01/30/2024

Invoice

1003

Blondie's Boards

Fred Rubble

Accounts Receivable (A/R)

-2,400.00

2,700.00

Total for Inventory Asset

$2,700.00

Prepaid Expenses 12/31/2023

Journal Entry

01/09/2024

Bill

01/31/2024

Journal Entry

1 Prime Properties 5

-Split-

3,000.00

3,000.00

Accounts Payable (A/P)

5,000.00

8,000.00

-Split-

-800.00

7,200.00

Total for Prepaid Expenses

$7,200.00

Supplies Asset 01/11/2024

Check

1002

01/31/2024

Journal Entry

4

Office Depot

Checking

375.00

375.00

-Split-

-300.00

75.00

Total for Supplies Asset

$75.00

Undeposited Funds 01/03/2024

Sales Receipt

1001

Blondie's Boards

Sales

1,300.00

1,300.00

01/05/2024

Payment

984

Blondie's Boards

Accounts Receivable (A/R)

5,000.00

6,300.00

01/08/2024

Deposit

Blondie's Boards

Checking

-1,300.00

5,000.00

Total for Undeposited Funds

$5,000.00

Equipment Accumulated Depreciation 01/31/2024

Journal Entry

9

-Split-

Total for Accumulated Depreciation

-75.00

-75.00

$ -75.00

Original cost 01/10/2024

Check

1003

01/17/2024

Journal Entry

3

Office Depot

Checking

1,375.00

1,375.00

-Split-

1,800.00

3,175.00

Total for Original cost

$3,175.00

Total for Equipment

$3,100.00

Furniture & Fixtures Accumulated Depreciation 12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

-10,000.00

129

01/31/2024

Journal Entry

9

-Split-

Total for Accumulated Depreciation

-500.00

-10,500.00

$ -10,500.00

Original cost 12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

Total for Original cost

$40,000.00

Total for Furniture & Fixtures

$29,500.00

40,000.00

Investments 01/11/2024

Check

1004

Etrade

Checking

Total for Investments

4,000.00

4,000.00

$4,000.00

Accounts Payable (A/P) 12/31/2023

Journal Entry

-Split-

4,500.00

4,500.00

01/05/2024

Bill

1 Channel Islands

-Split-

5,100.00

9,600.00

01/08/2024

Bill

San Diego Gas & Electric

Utilities

145.00

9,745.00

01/09/2024

Bill

Prime Properties

-Split-

7,500.00

17,245.00

01/19/2024

Bill Payment (Check)

Channel Islands

Checking

-9,600.00

7,645.00

1001

Total for Accounts Payable (A/P)

$7,645.00

VISA 01/10/2024

Expense

Village Travel

Travel

Total for VISA

1,800.00

1,800.00

$1,800.00

Accrued Liabilities 01/31/2024

Journal Entry

6

-Split-

Total for Accrued Liabilities

150.00

150.00

$150.00

Payroll Tax Payable 01/17/2024

Check

1008

Betsy Ross

Checking

120.07

120.07

01/17/2024

Check

1008

Betsy Ross

Checking

335.09

455.16

01/17/2024

Check

1007

Ben Franklin

Checking

302.82

757.98

01/17/2024

Check

1007

Ben Franklin

Checking

845.11

1,603.09

01/31/2024

Check

1010

Betsy Ross

Checking

111.84

1,714.93

01/31/2024

Check

1010

Betsy Ross

Checking

312.13

2,027.06

01/31/2024

Check

1009

Ben Franklin

Checking

302.82

2,329.88

01/31/2024

Check

1009

Ben Franklin

Checking

845.11

3,174.99

Total for Payroll Tax Payable

$3,174.99

Unearned Revenue 01/31/2024

Journal Entry

7

-Split-

Total for Unearned Revenue

2,500.00

2,500.00

$2,500.00

Notes Payable 12/31/2023

Journal Entry

01/16/2024

Deposit

3

01/16/2024

Check

1006

01/17/2024

Journal Entry

3

-Split-

60,000.00

60,000.00

Bank of CA

Opening Balance

Checking

65,000.00

125,000.00

Rabo Bank

Checking

-60,000.00

65,000.00

1,800.00

66,800.00

-Split-

Total for Notes Payable

$66,800.00

Common Stock 12/31/2023

Journal Entry

01/12/2024

Deposit

Total for Common Stock

4

Opening Balance Shareholders

-Split-

1,000.00

1,000.00

Checking

20,000.00

21,000.00

$21,000.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

130

Opening Balance Equity 12/31/2023

Journal Entry

4

Opening Balance

-Split-

-1,000.00

-1,000.00

12/31/2023

Journal Entry

2

Opening Balance

-Split-

-10,000.00

-11,000.00

12/31/2023

Inventory Starting Value

START

Rook 15 - Opening inventory and value

Inventory Asset

4,000.00

-7,000.00

12/31/2023

Journal Entry

1

Opening Balance

-Split-

40,000.00

33,000.00

12/31/2023

Deposit

Checking

25,000.00

58,000.00

12/31/2023

Inventory Starting Value

START

The Water Hog - Opening inventory and value

Inventory Asset

4,000.00

62,000.00

12/31/2023

Journal Entry

2

-Split-

-5,500.00

56,500.00

12/31/2023

Journal Entry

1

-Split-

3,500.00

60,000.00

12/31/2023

Journal Entry

3

Opening Balance

-Split-

-60,000.00

0.00

01/01/2024

Inventory Starting Value

START

Fred Rubble - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

California Nose Rider - Opening inventory and value

Inventory Asset

0.00

0.00

01/02/2024

Inventory Starting Value

START

808 - Opening inventory and value

Inventory Asset

0.00

0.00

Total for Opening Balance Equity

$0.00

Retained Earnings 12/31/2023

Journal Entry

2

01/15/2024

Check

1005

Shareholders

-Split-

5,500.00

5,500.00

Checking

-500.00

5,000.00

Total for Retained Earnings

$5,000.00

Sales 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

1,300.00

1,300.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

860.00

2,160.00

01/30/2024

Invoice

1003

Blondie's Boards

Fred Rubble

Accounts Receivable (A/R)

3,800.00

5,960.00

01/30/2024

Invoice

1003

Blondie's Boards

The Water Hog

Accounts Receivable (A/R)

6,020.00

11,980.00

01/30/2024

Invoice

1003

Blondie's Boards

Rook 15

Accounts Receivable (A/R)

5,200.00

17,180.00

Total for Sales

$17,180.00

Services 01/04/2024

Invoice

1002

01/31/2024

Journal Entry

7

01/31/2024

Journal Entry

8

01/31/2024

Invoice

1004

Sarah Hay

Surf Rider Foundation

Tune-Up

Consulting

Accounts Receivable (A/R)

170.00

170.00

-Split-

-2,500.00

-2,330.00

-Split-

8,500.00

6,170.00

Accounts Receivable (A/R)

2,500.00

8,670.00

Total for Services

$8,670.00

Cost of Goods Sold 01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Undeposited Funds

800.00

800.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Accounts Receivable (A/R)

500.00

1,300.00

01/30/2024

Invoice

1003

Blondie's Boards

Rook 15

Accounts Receivable (A/R)

3,200.00

4,500.00

01/30/2024

Invoice

1003

Blondie's Boards

Fred Rubble

Accounts Receivable (A/R)

2,400.00

6,900.00

01/30/2024

Invoice

1003

Blondie's Boards

The Water Hog

Accounts Receivable (A/R)

3,500.00

10,400.00

Total for Cost of Goods Sold

$10,400.00

Interest Expense 01/16/2024

Check

1006

Rabo Bank

Checking

Total for Interest Expense

600.00

600.00

$600.00

Payroll 01/17/2024

Check

1008

Betsy Ross

Checking

120.07

120.07

01/17/2024

Check

1008

Betsy Ross

Checking

1,569.50

1,689.57

01/17/2024

Check

1007

Ben Franklin

Checking

302.82

1,992.39

01/17/2024

Check

1007

Ben Franklin

Checking

3,958.33

5,950.72

01/31/2024

Check

1009

Ben Franklin

Checking

3,958.33

9,909.05

01/31/2024

Check

1009

Ben Franklin

Checking

302.82

10,211.87

01/31/2024

Check

1010

Betsy Ross

Checking

111.84

10,323.71

01/31/2024

Check

1010

Betsy Ross

Checking

1,462.00

11,785.71

Total for Payroll

$11,785.71

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

131

Rent & Lease 01/09/2024

Bill

01/31/2024

Journal Entry

Prime Properties 5

Accounts Payable (A/P) -Split-

Total for Rent & Lease

2,500.00

2,500.00

800.00

3,300.00

$3,300.00

Repairs & Maintenance 01/31/2024

Journal Entry

6

-Split-

Total for Repairs & Maintenance

150.00

150.00

$150.00

Supplies 01/31/2024

Journal Entry

4

-Split-

Total for Supplies

300.00

300.00

$300.00

Travel 01/10/2024

Expense

Village Travel

VISA

Total for Travel

1,800.00

1,800.00

$1,800.00

Utilities 01/08/2024

Bill

San Diego Gas & Electric

Accounts Payable (A/P)

Total for Utilities

145.00

145.00

$145.00

Depreciation Expense 01/31/2024

Journal Entry

Total for Depreciation Expense

9

-Split-

575.00 $575.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

575.00

132

Chapter 9 Case 2 Trial Balance after adjusting entries

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

133

Transaction Detail by Account

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134

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

135

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

136

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

137

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

138

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

139

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

140

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

141

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

142

Chapter 9 Case 4

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143

Chapter 9 Case 5

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

144

Chapter 10 Solutions Manual Chapter 10 Questions 1. Paulsen Medical Supplies 2. Design 3. Fountain pump 4. Robertson & Associates 5. 25 6. $0.75 7. Red Rock Diner 8. $3,756.02 9. $761.23 10. $15,662.50

Chapter 10 Matching a. b. c. d. e. f. g. h. i. j.

Income statement Balance sheet Statement of cash flows AR aging report AP aging report Inventory valuation report Profit and loss report To view a transaction report To view a source document % of income check box

i. h. j. e. a. c. f. b. g. d.

Click on an event in any transaction report Click an account on any report Click to add a new column in a report Reflects unpaid bills for the current period Reports revenues and expenses Includes operating, investing, and financing activities Reports inventory quantities on hand Reports assets, liabilities, and equities Another name for the income statement Reflects unpaid invoices for the current period

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145

Chapter 10 Case 1 1.

Case 1 PROFIT AND LOSS January 2024

TOTAL JAN 2024

% OF INCOME

Sales

17,180.00

66.46 %

Services

8,670.00

33.54 %

Total Income

$25,850.00

100.00 %

Income

Cost of Goods Sold Cost of Goods Sold

10,400.00

40.23 %

Total Cost of Goods Sold

$10,400.00

40.23 %

GROSS PROFIT

$15,450.00

59.77 %

Expenses Interest Expense

600.00

2.32 %

Payroll

11,785.71

45.59 %

Rent & Lease

3,300.00

12.77 %

Repairs & Maintenance

150.00

0.58 %

Supplies

300.00

1.16 %

Travel

1,800.00

6.96 %

Utilities

145.00

0.56 %

Total Expenses

$18,080.71

69.94 %

NET OPERATING INCOME

$ -2,630.71

-10.18 % 2.22 %

Other Expenses Depreciation Expense

575.00

Total Other Expenses

$575.00

2.22 %

NET OTHER INCOME

$ -575.00

-2.22 %

$ -3,205.71

-12.40 %

NET INCOME

2.

Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

01/03/2024

Sales Receipt

1001

Blondie's Boards

Rook 15

Sales

Undeposited Funds

1,300.00

1,300.00

01/04/2024

Invoice

1002

Sarah Hay

The Water Hog

Sales

Accounts Receivable (A/R)

860.00

2,160.00

01/30/2024

Invoice

1003

Blondie's Boards

Rook 15

Sales

Accounts Receivable (A/R)

5,200.00

7,360.00

01/30/2024

Invoice

1003

Blondie's Boards

Fred Rubble

Sales

Accounts Receivable (A/R)

3,800.00

11,160.00

01/30/2024

Invoice

1003

Blondie's Boards

The Water Hog

Sales

Accounts Receivable (A/R)

6,020.00

17,180.00

Sales

Total for Sales

$17,180.00

TOTAL

$17,180.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

146

3.

Case 1 BALANCE SHEET As of January 31, 2024

TOTAL AS OF JAN 31, 2024

% OF COLUMN

Checking

26,239.28

25.02 %

Total Bank Accounts

$26,239.28

25.02 %

Accounts Receivable (A/R)

18,550.00

17.69 %

Total Accounts Receivable

$18,550.00

17.69 %

Accrued Receivable

8,500.00

8.11 %

Inventory Asset

2,700.00

2.57 %

Prepaid Expenses

7,200.00

6.87 %

75.00

0.07 %

ASSETS Current Assets Bank Accounts

Accounts Receivable

Other Current Assets

Supplies Asset Undeposited Funds

5,000.00

4.77 %

Total Other Current Assets

$23,475.00

22.39 %

Total Current Assets

$68,264.28

65.10 %

Fixed Assets Equipment Accumulated Depreciation

-75.00

-0.07 %

Original cost

3,175.00

3.03 %

Total Equipment

3,100.00

2.96 %

Accumulated Depreciation

-10,500.00

-10.01 %

Original cost

40,000.00

38.14 %

Total Furniture & Fixtures

29,500.00

28.13 %

Total Fixed Assets

$32,600.00

31.09 %

Investments

4,000.00

3.81 %

Total Other Assets

$4,000.00

3.81 %

$104,864.28

100.00 %

Accounts Payable (A/P)

7,645.00

7.29 %

Total Accounts Payable

$7,645.00

7.29 %

VISA

1,800.00

1.72 %

Total Credit Cards

$1,800.00

1.72 %

150.00

0.14 %

Furniture & Fixtures

Other Assets

TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable

Credit Cards

Other Current Liabilities Accrued Liabilities

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147

TOTAL AS OF JAN 31, 2024

% OF COLUMN

Payroll Tax Payable

3,174.99

3.03 %

Unearned Revenue

2,500.00

2.38 %

Total Other Current Liabilities

$5,824.99

5.55 %

Total Current Liabilities

$15,269.99

14.56 %

Long-Term Liabilities Notes Payable

66,800.00

63.70 %

Total Long-Term Liabilities

$66,800.00

63.70 %

Total Liabilities

$82,069.99

78.26 %

21,000.00

20.03 %

0.00

0.00 %

Equity Common Stock Opening Balance Equity Retained Earnings

5,000.00

4.77 %

Net Income

-3,205.71

-3.06 %

Total Equity

$22,794.29

21.74 %

TOTAL LIABILITIES AND EQUITY

$104,864.28

100.00 %

4.

Case 1 TRANSACTION REPORT January 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

Blondie's Boards

Checking

Undeposited Funds

1,300.00

26,300.00

Checking Beginning Balance

25,000.00

01/08/2024

Deposit

01/10/2024

Check

1003

Office Depot

Checking

Equipment:Original cost

-1,375.00

24,925.00

01/11/2024

Check

1002

Office Depot

Checking

Supplies Asset

-375.00

24,550.00

01/11/2024

Check

1004

Etrade

Checking

Investments

-4,000.00

20,550.00

01/12/2024

Deposit

Shareholders

Checking

Common Stock

20,000.00

40,550.00

01/15/2024

Check

1005

Shareholders

Checking

Retained Earnings

-500.00

40,050.00

01/16/2024

Check

1006

Rabo Bank

Checking

-Split-

-60,600.00

-20,550.00

01/16/2024

Deposit

Bank of CA

Checking

Notes Payable

65,000.00

44,450.00

01/17/2024

Check

1007

Ben Franklin

Checking

-Split-

-3,113.22

41,336.78

01/17/2024

Check

1008

Betsy Ross

Checking

-Split-

-1,234.41

40,102.37

01/19/2024

Bill Payment (Check)

1001

Channel Islands

Checking

Accounts Payable (A/P)

-9,600.00

30,502.37

01/31/2024

Check

1009

Ben Franklin

Checking

-Split-

-3,113.22

27,389.15

01/31/2024

Check

1010

Betsy Ross

Checking

-Split-

-1,149.87

26,239.28

Total for Checking

$1,239.28

TOTAL

$1,239.28

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

148

Case 1

5.

STATEMENT OF CASH FLOWS January 2024

TOTAL

OPERATING ACTIVITIES Net Income

-3,205.71

Adjustments to reconcile Net Income to Net Cash provided by operations: Accounts Receivable (A/R)

-13,550.00

Accrued Receivable

-8,500.00

Inventory Asset

5,300.00

Prepaid Expenses

-4,200.00

Supplies Asset

-75.00

Equipment:Accumulated Depreciation

75.00

Furniture & Fixtures:Accumulated Depreciation

500.00

Accounts Payable (A/P)

3,145.00

VISA

1,800.00

Accrued Liabilities

150.00

Payroll Tax Payable

3,174.99

Unearned Revenue

2,500.00

Total Adjustments to reconcile Net Income to Net Cash provided by operations:

-9,680.01

Net cash provided by operating activities

$ -12,885.72

INVESTING ACTIVITIES Equipment:Original cost

-3,175.00

Investments

-4,000.00

Net cash provided by investing activities

$ -7,175.00

FINANCING ACTIVITIES Notes Payable

6,800.00

Common Stock

20,000.00

Opening Balance Equity

0.00

Retained Earnings

-500.00

Net cash provided by financing activities

$26,300.00

NET CASH INCREASE FOR PERIOD

$6,239.28

Cash at beginning of period

25,000.00

CASH AT END OF PERIOD

$31,239.28

6.

Case 1 TRANSACTION REPORT January 2024

DATE

NUM

NAME

ACCOUNT

SPLIT

AMOUNT

01/04/2024

TRANSACTION TYPE

Invoice

1002

Sarah Hay

MEMO/DESCRIPTION

Accounts Receivable (A/R)

-Split-

1,030.00

BALANCE

1,030.00

01/05/2024

Payment

984

Blondie's Boards

Accounts Receivable (A/R)

Undeposited Funds

-5,000.00

-3,970.00

01/30/2024

Invoice

1003

Blondie's Boards

Accounts Receivable (A/R)

-Split-

15,020.00

11,050.00

01/31/2024

Invoice

1004

Surf Rider Foundation

Accounts Receivable (A/R)

Services

2,500.00

13,550.00

Accounts Receivable (A/R)

Total for Accounts Receivable (A/R)

$13,550.00

TOTAL

$13,550.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

149

7.

Case 1 A/R AGING SUMMARY As of January 31, 2024

CURRENT

1 - 30

31 - 60

61 - 90

91 AND OVER

TOTAL

Blondie's Boards

15,020.00

$15,020.00

Sarah Hay

1,030.00

$1,030.00

Surf Rider Foundation

2,500.00

TOTAL

$2,500.00

$18,550.00

$0.00

8.

$0.00

$0.00

$0.00

$18,550.00

Case 1 A/P AGING SUMMARY As of January 31, 2024

CURRENT

Prime Properties San Diego Gas & Electric TOTAL

1 - 30

31 - 60

61 - 90

91 AND OVER

7,500.00 145.00 $0.00

$7,645.00

TOTAL

$7,500.00 $145.00 $0.00

$0.00

$0.00

$7,645.00

Case 1

9.

INVENTORY VALUATION SUMMARY As of January 31, 2024

QTY

ASSET VALUE

808

SKU

0.00

0.00

California Nose Rider

0.00

0.00

Fred Rubble

1.00

600.00

600.00

Rook 15

4.00

1,600.00

400.00

The Water Hog

1.00

500.00

500.00

TOTAL

$2,700.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

CALC. AVG

150

Chapter 10 Case 2 1.

2.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

151

3.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

152

4.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

153

5.

6.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

154

7.

8.

9.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

155

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

156

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

157

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

158

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

159

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

160

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

161

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

162

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

163

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

164

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

165

Chapter 10 Case 4 1.

2.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

166

3.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

167

4.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

168

5.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

169

6.

7.

8.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

170

9.

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

171

Chapter 10 Case 5

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

172

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

173

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

174

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

175

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

176

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

177

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

178

Appendix 2 - Comprehensive Problem Solutions Case 1 Comprehensive Problem Solution Profit and Loss Report

Case 1 PROFIT AND LOSS February 1-28, 2024

TOTAL FEB 1-28, 2024

% OF INCOME

Sales

40,660.00

75.96 %

Services

12,870.00

24.04 %

Total Income

$53,530.00

100.00 %

Income

Cost of Goods Sold Cost of Goods Sold

24,500.00

45.77 %

Total Cost of Goods Sold

$24,500.00

45.77 %

GROSS PROFIT

$29,030.00

54.23 %

Expenses Interest Expense

325.00

0.61 %

Payroll

13,421.46

25.07 %

Rent & Lease

3,300.00

6.16 %

Supplies

250.00

0.47 %

Travel

1,225.00

2.29 %

Utilities

150.00

0.28 %

Total Expenses

$18,671.46

34.88 %

NET OPERATING INCOME

$10,358.54

19.35 %

Depreciation Expense

675.00

1.26 %

Total Other Expenses

$675.00

1.26 %

Other Expenses

NET OTHER INCOME

$ -675.00

-1.26 %

NET INCOME

$9,683.54

18.09 %

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

179

Appendix 2 - Comprehensive Problem Solutions Sales Transaction Report Case 1 TRANSACTION REPORT February 1-28, 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

02/05/2024

Sales Receipt

1005

Awesome Surf

Rook 15

Sales

Undeposited Funds

1,950.00

1,950.00

02/05/2024

Sales Receipt

1005

Awesome Surf

The Water Hog

Sales

Undeposited Funds

860.00

02/06/2024

Invoice

1006

Surf Rider Foundation

Rook 15

Sales

Accounts Receivable (A/R)

650.00

3,460.00

02/27/2024

Invoice

1007

Blazing Boards

Wiley One

Sales

Accounts Receivable (A/R)

12,000.00

15,460.00

02/28/2024

Invoice

1008

Blondie's Boards

Fred Rubble

Sales

Accounts Receivable (A/R)

7,600.00

23,060.00

02/28/2024

Sales Receipt

1009

Sarah Hay

California Nose Rider

Sales

Checking

3,200.00

26,260.00

02/28/2024

Sales Receipt

1009

Sarah Hay

Rook 15

Sales

Checking

1,300.00

27,560.00

02/28/2024

Sales Receipt

1009

Sarah Hay

The Water Hog

Sales

Checking

860.00

28,420.00

02/28/2024

Sales Receipt

1009

Sarah Hay

Wiley One

Sales

Checking

4,000.00

32,420.00

02/28/2024

Invoice

1008

Blondie's Boards

Rook 15

Sales

Accounts Receivable (A/R)

1,950.00

34,370.00

02/28/2024

Invoice

1008

Blondie's Boards

The Water Hog

Sales

Accounts Receivable (A/R)

3,440.00

37,810.00

02/28/2024

Sales Receipt

1009

Sarah Hay

Fred Rubble

Sales

Checking

2,850.00

40,660.00

Sales

Total for Sales

$40,660.00

TOTAL

$40,660.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2,810.00

180

Appendix 2 - Comprehensive Problem Solutions Balance Sheet

Case 1 BALANCE SHEET As of February 28, 2024

TOTAL AS OF FEB 28, 2024

% OF COLUMN

Checking

47,406.54

27.87 %

Total Bank Accounts

$47,406.54

27.87 %

Accounts Receivable (A/R)

44,860.00

26.37 %

Total Accounts Receivable

$44,860.00

26.37 %

Accrued Receivable

10,200.00

6.00 %

Inventory Asset

4,900.00

2.88 %

Prepaid Expenses

6,400.00

3.76 %

400.00

0.24 %

ASSETS Current Assets Bank Accounts

Accounts Receivable

Other Current Assets

Supplies Asset Undeposited Funds

0.00

0.00 %

Total Other Current Assets

$21,900.00

12.88 %

Total Current Assets

$114,166.54

67.12 %

Fixed Assets Buildings Accumulated Depreciation

-100.00

-0.06 %

Original cost

15,000.00

8.82 %

Total Buildings

14,900.00

8.76 %

Accumulated Depreciation

-150.00

-0.09 %

Original cost

3,175.00

1.87 %

Total Equipment

3,025.00

1.78 %

Equipment

Furniture & Fixtures Accumulated Depreciation

-11,000.00

-6.47 %

Original cost

40,000.00

23.52 %

Total Furniture & Fixtures

29,000.00

17.05 %

Land

5,000.00

2.94 %

$51,925.00

30.53 %

Investments

4,000.00

2.35 %

Total Other Assets

$4,000.00

2.35 %

$170,091.54

100.00 %

Accounts Payable (A/P)

29,495.00

17.34 %

Total Accounts Payable

$29,495.00

17.34 %

Total Fixed Assets Other Assets

TOTAL ASSETS LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

181

Appendix 2 - Comprehensive Problem Solutions Balance Sheet (continued)

TOTAL AS OF FEB 28, 2024

% OF COLUMN

VISA

2,575.00

1.51 %

Total Credit Cards

$2,575.00

1.51 %

Accrued Liabilities

600.00

0.35 %

Payroll Tax Payable

6,790.66

3.99 %

Unearned Revenue

0.00

0.00 %

Total Other Current Liabilities

$7,390.66

4.35 %

Total Current Liabilities

$39,460.66

23.20 %

Notes Payable - Bank of CA

65,917.73

38.75 %

Notes Payable - Chase

17,735.32

10.43 %

Total Long-Term Liabilities

$83,653.05

49.18 %

Total Liabilities

$123,113.71

72.38 %

36,000.00

21.17 %

0.00

0.00 %

Retained Earnings

4,500.00

2.65 %

Net Income

6,477.83

3.81 %

Total Equity

$46,977.83

27.62 %

TOTAL LIABILITIES AND EQUITY

$170,091.54

100.00 %

Credit Cards

Other Current Liabilities

Long-Term Liabilities

Equity Common Stock Opening Balance Equity

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

182

Appendix 2 - Comprehensive Problem Solutions Checking Report Case 1 TRANSACTION REPORT February 1-28, 2024

DATE

TRANSACTION TYPE

NUM

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

AMOUNT

BALANCE

15,810.00

42,049.28

-575.00

41,474.28

Checking Beginning Balance

26,239.28

02/08/2024

Deposit

Checking

-Split-

02/11/2024

Check

1013

Office Depot

Checking

Supplies Asset

02/14/2024

Bill Payment (Check)

1012

Prime Properties

Checking

Accounts Payable (A/P)

-7,500.00

33,974.28

02/15/2024

Check

1014

Prime Properties

Checking

-Split-

-2,000.00

31,974.28

02/19/2024

Check

1015

Shareholders

Checking

Retained Earnings

-500.00

31,474.28

02/19/2024

Deposit

Shareholders

Checking

Common Stock

15,000.00

46,474.28

02/20/2024

Check

1019

Betsy Ross

Checking

-Split-

-1,048.40

45,425.88

02/20/2024

Check

1016

Chase Bank

Checking

-Split-

-339.68

45,086.20

02/20/2024

Check

1017

Bank of CA

Checking

-Split-

-1,132.27

43,953.93

02/20/2024

Check

1020

Jane Price

Checking

-Split-

-943.80

43,010.13

02/20/2024

Check

1018

Ben Franklin

Checking

-Split-

-3,113.22

39,896.91

02/28/2024

Sales Receipt

1009

Sarah Hay

Checking

-Split-

12,210.00

52,106.91

02/28/2024

Check

1022

Betsy Ross

Checking

-Split-

-879.30

51,227.61

02/28/2024

Check

1021

Ben Franklin

Checking

-Split-

-3,113.22

48,114.39

02/28/2024

Check

1023

Jane Price

Checking

-Split-

-707.85

47,406.54

Total for Checking

$21,167.26

TOTAL

$21,167.26

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

183

Appendix 2 - Comprehensive Problem Solutions Statement of Cash Flows Report

Case 1 STATEMENT OF CASH FLOWS February 1-28, 2024

TOTAL

OPERATING ACTIVITIES Net Income

9,683.54

Adjustments to reconcile Net Income to Net Cash provided by operations: Accounts Receivable (A/R)

-26,310.00

Accrued Receivable

-1,700.00

Inventory Asset

-2,200.00

Prepaid Expenses

800.00

Supplies Asset

-325.00

Buildings:Accumulated Depreciation

100.00

Equipment:Accumulated Depreciation

75.00

Furniture & Fixtures:Accumulated Depreciation

500.00

Accounts Payable (A/P) VISA

21,850.00 775.00

Accrued Liabilities

450.00

Payroll Tax Payable

3,615.67

Unearned Revenue

-2,500.00

Total Adjustments to reconcile Net Income to Net Cash provided by operations:

-4,869.33

Net cash provided by operating activities

$4,814.21

INVESTING ACTIVITIES Buildings:Original cost Land

-15,000.00 -5,000.00

Net cash provided by investing activities

$ -20,000.00

FINANCING ACTIVITIES Notes Payable - Bank of CA

-882.27

Notes Payable - Chase

17,735.32

Common Stock

15,000.00

Opening Balance Equity Retained Earnings

0.00 -500.00

Net cash provided by financing activities

$31,353.05

NET CASH INCREASE FOR PERIOD

$16,167.26

Cash at beginning of period

31,239.28

CASH AT END OF PERIOD

$47,406.54

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

184

Appendix 2 - Comprehensive Problem Solutions A/R Aging Summary Report

Case 1 A/R AGING SUMMARY As of February 28, 2024

CURRENT

Blazing Boards

20,500.00

Blondie's Boards

20,010.00

1 - 30

31 - 60

61 - 90

91 AND OVER

$20,010.00

Sarah Hay

1,030.00

Surf Rider Foundation TOTAL

TOTAL

$20,500.00 $1,030.00

3,320.00

$3,320.00

$43,830.00

$1,030.00

A/P Aging Summary Report

$0.00

$0.00

$0.00

61 - 90

91 AND OVER

$44,860.00

Case 1 A/P AGING SUMMARY As of February 28, 2024

CURRENT

1 - 30

31 - 60

TOTAL

BoardsWest

9,600.00

$9,600.00

Channel Islands

12,400.00

$12,400.00

Prime Properties

2,500.00

San Diego Gas & Electric Stewart Surfboards TOTAL

$2,500.00

150.00

145.00

$295.00

4,700.00 $29,350.00

$4,700.00 $0.00

$145.00

$0.00

$0.00

$29,495.00

Inventory Valuation Summary Report

Case 1 INVENTORY VALUATION SUMMARY As of February 28, 2024

QTY

ASSET VALUE

CALC. AVG

808

SKU

2.00

3,000.00

1,500.00

Biscuit Bonzer

0.00

0.00

California Nose Rider

0.00

0.00

Fred Rubble

0.00

0.00

Rook 15

1.00

400.00

400.00

The Water Hog

3.00

1,500.00

500.00

Wiley One

0.00

0.00

TOTAL

$4,900.00

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

185

Appendix 2 - Comprehensive Problem Solutions Transactions List by Date Report Case 1 TRANSACTION LIST BY DATE February 1-28, 2024

DATE

TRANSACTION TYPE

NUM

02/01/2024

Inventory Starting Value

START

02/05/2024

Sales Receipt

1005

02/06/2024

Invoice

1006

02/07/2024

Payment

02/08/2024

Deposit

02/09/2024

Inventory Starting Value

START

02/09/2024

Purchase Order

1003

02/10/2024

Expense

02/11/2024

Check

1013

02/11/2024

Purchase Order

1004

02/12/2024

Bill

02/13/2024

Bill

02/14/2024

Bill

02/14/2024

Bill Payment (Check)

1012

02/15/2024

Check

1014

02/19/2024

Deposit

02/19/2024

Check

02/20/2024

Check

02/20/2024

NAME

MEMO/DESCRIPTION

ACCOUNT

SPLIT

Biscuit Bonzer - Opening inventory and value

Opening Balance Equity

Inventory Asset

Awesome Surf

Undeposited Funds

-Split-

Surf Rider Foundation

Accounts Receivable (A/R)

-Split-

Blondie's Boards

Undeposited Funds

Accounts Receivable (A/R)

8,000.00

Checking

-Split-

15,810.00

Opening Balance Equity

Inventory Asset

BoardsWest

Accounts Payable (A/P)

Cost of Goods Sold

Village Travel

VISA

Travel

775.00

Office Depot

Checking

Supplies Asset

-575.00

Channel Islands

Accounts Payable (A/P)

-Split-

12,400.00

Stewart Surfboards

Accounts Payable (A/P)

-Split-

4,700.00

San Diego Gas & Electric

Accounts Payable (A/P)

Utilities

Prime Properties

Accounts Payable (A/P)

Rent & Lease

2,500.00

Prime Properties

Checking

Accounts Payable (A/P)

-7,500.00

Prime Properties

Checking

-Split-

-2,000.00

Shareholders

Checking

Common Stock

15,000.00

1015

Shareholders

Checking

Retained Earnings

-500.00

1016

Chase Bank

Checking

-Split-

-339.68

Check

1017

Bank of CA

Checking

-Split-

-1,132.27

02/20/2024

Check

1018

Ben Franklin

Checking

-Split-

-3,113.22

02/20/2024

Check

1019

Betsy Ross

Checking

-Split-

-1,048.40

02/20/2024

Check

1020

Jane Price

Checking

-Split-

-943.80

02/27/2024

Bill

BoardsWest

Accounts Payable (A/P)

Inventory Asset

9,600.00

02/27/2024

Invoice

1007

Blazing Boards

Accounts Receivable (A/R)

Sales

12,000.00

02/28/2024

Check

1021

Ben Franklin

Checking

-Split-

-3,113.22

02/28/2024

Check

1022

Betsy Ross

Checking

-Split-

-879.30

02/28/2024

Check

1023

Jane Price

Checking

-Split-

-707.85

02/28/2024

Bill

Channel Islands

Accounts Payable (A/P)

-Split-

12,400.00

02/28/2024

Invoice

1008

Blondie's Boards

Accounts Receivable (A/R)

-Split-

12,990.00

02/28/2024

Sales Receipt

1009

Sarah Hay

Checking

-Split-

12,210.00

02/28/2024

Journal Entry

10

-Split-

02/28/2024

Journal Entry

11

-Split-

02/28/2024

Journal Entry

12

-Split-

02/28/2024

Journal Entry

13

02/28/2024

Invoice

1010

02/28/2024

Journal Entry

14

-Split-

02/28/2024

Journal Entry

15

-Split-

02/28/2024

Journal Entry

16

-Split-

Wiley One - Opening inventory and value

AMOUNT

0.00 2,810.00 820.00

0.00 9,600.00

150.00

-SplitBlazing Boards

Accounts Receivable (A/R)

Services

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8,500.00

186

Appendix 2 - Comprehensive Problem Solutions Budget vs. Actuals Report

Case 1 BUDGET VS. ACTUALS: BUDGET 1 - FY24 P&L February 1-28, 2024

TOTAL ACTUAL

BUDGET

OVER BUDGET

% OF BUDGET

Sales

40,660.00

Services

12,870.00

35,000.00

5,660.00

116.17 %

2,000.00

10,870.00

Total Income

$53,530.00

643.50 %

$37,000.00

$16,530.00

144.68 %

Income

Cost of Goods Sold Cost of Goods Sold

24,500.00

21,500.00

3,000.00

113.95 %

Total Cost of Goods Sold

$24,500.00

$21,500.00

$3,000.00

113.95 %

GROSS PROFIT

$29,030.00

$15,500.00

$13,530.00

187.29 %

Expenses Interest Expense

325.00

800.00

-475.00

40.63 %

Payroll

13,421.46

13,000.00

421.46

103.24 %

Rent & Lease

3,300.00

2,500.00

800.00

132.00 %

Supplies

250.00

250.00

Travel

1,225.00

500.00

725.00

Utilities

150.00

300.00

-150.00

50.00 %

Total Expenses

$18,671.46

$17,100.00

$1,571.46

109.19 %

NET OPERATING INCOME

$10,358.54

$ -1,600.00

$11,958.54

-647.41 %

245.00 %

Other Expenses Depreciation Expense

675.00

Total Other Expenses

$675.00

$0.00

$675.00

675.00 0.00%

NET OTHER INCOME

$ -675.00

$0.00

$ -675.00

0.00%

NET INCOME

$9,683.54

$ -1,600.00

$11,283.54

-605.22 %

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

187

Appendix 2 - Comprehensive Problem Solutions Case 2 Comprehensive Problem Solution Profit and Loss Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

188

Appendix 2 - Comprehensive Problem Solutions Total Income Transaction Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

189

Appendix 2 - Comprehensive Problem Solutions Balance Sheet (Page 1/2)

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

190

Appendix 2 - Comprehensive Problem Solutions Balance Sheet (Page 2/2)

Checking Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

191

Appendix 2 - Comprehensive Problem Solutions Statement of Cash Flows Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

192

Appendix 2 - Comprehensive Problem Solutions A/R Aging Summary Report

A/P Aging Summary Report

Inventory Valuation Summary Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

193

Appendix 2 - Comprehensive Problem Solutions Transactions List by Date Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

194

Appendix 2 - Comprehensive Problem Solutions Budget vs. Actuals Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

195

Appendix 2 - Comprehensive Problem Solutions Case 3 Comprehensive Problem Solution Profit and Loss Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

196

Appendix 2 - Comprehensive Problem Solutions Total Income Transaction Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

197

Appendix 2 - Comprehensive Problem Solutions Balance Sheet (1/2)

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

198

Appendix 2 - Comprehensive Problem Solutions Balance Sheet (2/2)

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

199

Appendix 2 - Comprehensive Problem Solutions Checking Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

200

Appendix 2 - Comprehensive Problem Solutions Statement of Cash Flows Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

201

Appendix 2 - Comprehensive Problem Solutions A/R Aging Summary Report

A/P Aging Summary Report

Inventory Valuation Summary Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

202

Appendix 2 - Comprehensive Problem Solutions

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

203

Appendix 2 - Comprehensive Problem Solutions Budget vs. Actuals Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

204

Appendix 2 - Comprehensive Problem Solutions Case 4 Comprehensive Problem Solution Trial Balance

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

205

Appendix 2 - Comprehensive Problem Solutions Profit and Loss Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

206

Appendix 2 - Comprehensive Problem Solutions Total Income Transaction Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

207

Appendix 2 - Comprehensive Problem Solutions Balance Sheet (1/2)

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

208

Appendix 2 - Comprehensive Problem Solutions Balance Sheet (2/2)

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

209

Appendix 2 - Comprehensive Problem Solutions Checking Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

210

Appendix 2 - Comprehensive Problem Solutions Statement of Cash Flows Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

211

Appendix 2 - Comprehensive Problem Solutions A/R Aging Summary Report

A/P Aging Summary Report

Inventory Valuation Summary Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

212

Appendix 2 - Comprehensive Problem Solutions Transactions List by Date Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

213

Appendix 2 - Comprehensive Problem Solutions Budget vs. Actuals Report

© 2021 Cengage. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.