Case Study 1 (Part A)
P2-69B
(Learning Objectives 4, 5, 6:
Analyze the impact of business transactions on accounts; record (journalize and
post) transactions in the books; construct and use a trial balance) During the
first month of operations, Johnson Plumbing, Inc., completed the following
transactions:
Mar 2
Johnson
received $35,000 cash and issued common stock to the stockholders.
3
Purchased
supplies, $200, and equipment, $3,200, on account.
4
Performed
services for a client and received cash, $1,400.
7
Paid
cash to acquire land, $24,000.
11
Performed
services for a customer and billed the customer, $800. Johnson expects to
collect within one month.
16
Paid for
the equipment purchased March 3 on account.
17
Paid the
telephone bill, $150.
18
Received
partial payment from customer on account, $400.
22
Paid the
water and electricity bills, $170.
29
Received
$1,500 cash for repairing the pipes of a customer.
31
Paid
employee salary, $1,800.
31
Declared
and paid dividends of $2,100.
?Requirements (60 points)
1. Record each transaction in the journal. Key each
transaction by date. Explanations are not required.
2. Post the transactions to the T-accounts, using
transaction dates as posting references.
3. Prepare the trial balance of Johnson Plumbing, Inc.,
at March 31 of the current year.
4. The manager asks you how much in total resources the
business has to work with, how much it owes, and whether March was
profitable (and by how much).
Case Study 1 (Part B)
P3-77B
(Learning Objectives 3, 4: Adjust
the accounts; construct the financial statements) Consider the unadjusted trial
balance of Princess, Inc., at August 31, 2012, and the related month-end
adjustment data.
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Adjustment data at August 31, 2012,
include the following:
a. Accrued advertising revenue at August 31, $2,100.
b. Prepaid rent expired during the month. The unadjusted
prepaid balance of $2,100 relates to the period August 2012 through
October 2012.
c. Supplies used during August, $2,090.
d. Depreciation on furniture for the month. The
furnitureâs expected useful life is three years.
e. Accrued salary expense at August 31 for Monday,
Tuesday, and Wednesday. The five-day weekly payroll is $5,100 and will be
paid on Friday.
?
Requirements (40 points)
1. Using.vitalsource.com/books/9781269196536/content/id/ch03ex9″>Exhibit 3-9 as an example, prepare the
adjusted trial balance of Princess, Inc., at August 31, 2012. Key each
adjusting entry by letter.
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