Ch3.pdf 2s5r6b

CHAPTER 3 The ing Information System Study Objectives 1. 2. 3. 4. 5. 6. 7. 8. 9.

Analyze the effect of business transactions on the basic ing equation. Explain what an is and how it helps in the recording process. Define debits and credits and explain how they are used to record business transactions. Identify the basic steps in the recording process. Explain what a journal is and how it helps in the recording process. Explain what a ledger is and how it helps in the recording process. Explain what posting is and how it helps in the recording process. Explain the purposes of a trial balance. Classify cash activities as operating, investing, or financing.

Summary of Questions by Study Objectives and Bloom’s Taxonomy Item

SO

BT

Item

SO

1. 2. 3. 4. 5.

4 1 1 1 2

C C C K K

6. 7. 8. 9. 10.

3 3 3 3 3

1. 2. 3.

1 1 1

C AP AP

4. 5. 6.

3 3 5

1.

1

C

2.

2, 3

1. 2.

1 1

C AP

5. 6.

1 3, 5

3. 4.

1 1

AP AP

7.

3

1. 2. 3. 4. 1. 2. 3. 4.

1 1 1 3, 5 1 1 1 3, 5

AP AP AP AP AP AP AP AP

5.

5.

3, 5, 6, 7, 8

3, 5, 6, 7, 8

Copyright © 2011 John Wiley & Sons, Inc.

BT

Item

SO

BT

Item

SO

BT

16. 17. 18. 19. 20.

5 5 5 6 8

K K AP C C

21. 22.

7 8

K AN

K 9. C 10. AP Do It! Review Exercises C 3. 4, 5 AP 4. Exercises AP 8. 5 AP 12. AP 9. 3, 4, 13. 5 AP C 10. 7, 8 AP 14. 11. 1, 5, 7 AP

5 7

AP AP

11. 12.

8 8

AP AP

6, 7

AP

5, 8 7, 8

AP AP

15. 16.

8 8

AN AP

5, 8

AP

17. 18.

3 9

K AP

19.

9

AP

9.

8

AN

9.

8

AN

C C C K K

AP

AP

Item

SO

BT

Questions 11. 3 K 12. 3 K 13. 3 K 14. 3 K 15. 4 K Brief Exercises 7. 4 C 8. 4 C

Problems: Set A 6. 3, 5, 6, 7, 8 AP Problems: Set B 6. 3, 5, 6, 7, 8 AP

Kimmel ing, 4/e Solutions Manual

7. 8.

7. 8.

8 3, 5, 6, 7, 8

AN

8 3, 5, 6, 7, 8

AN

AP

AP

(For Instructor Use Only)

3-1

ASSIGNMENT CHARACTERISTICS TABLE Problem Number

3-2

Description

Difficulty Level

Time Allotted (min.)

1A

Analyze transactions and compute net income.

Moderate

40–50

2A

Analyze transactions and prepare financial statements.

Moderate

40–50

3A

Analyze transactions and prepare an income statement, retained earnings statement, and balance sheet.

Moderate

50–60

4A

Journalize a series of transactions.

Simple

20–30

5A

Journalize transactions, post, and prepare a trial balance.

Simple

30–40

6A


Moderate

40–50

7A

Prepare a correct trial balance.

Moderate

30–40

8A


Moderate

40–50

9A

Analyze errors and their effects on the trial balance.

Moderate

30–40

1B

Analyze transactions and compute net income.

Moderate

40–50

2B

Analyze transactions and prepare financial statements.

Moderate

40–50

3B

Analyze transactions and prepare an income statement, retained earnings statement, and balance sheet.

Moderate

50–60

4B

Journalize a series of transactions.

Simple

20–30

5B


Simple

30–40

6B


Moderate

40–50

7B

Prepare a correct trial balance.

Moderate

30–40

8B


Moderate

40–50

9B

Analyze errors and their effects on the trial balance

Moderate

30–40




ANSWERS TO QUESTIONS 1.

The system of collecting and processing transaction data and communicating financial information to decision makers is known as the ing information system.

2.

Yes, a business can enter into a transaction in which only the left side of the ing equation is affected. An example would be a transaction where an increase in one asset is offset by a decrease in another asset. An increase in the equipment which is offset by a decrease in the cash is a specific example.

3.

ing transactions are the economic events of the company recorded by ants because they affect the basic ing equation. (a) (b) (c) (d)

The death of a major stockholder of the company is not an ing transaction as it does not affect the basic ing equation. Supplies purchased on is an ing transaction because it affects the basic ing equation. An employee being fired is not an ing transaction as it does not affect the basic ing equation. Paying a cash dividend to stockholders is an ing transaction as it does affect the basic ing equation.

4.

(a) Decrease assets and decrease stockholders’ equity. (b) Increase assets and decrease assets. (c) Increase assets and increase stockholders’ equity. (d) Decrease assets and decrease liabilities.

5.

An consists of three parts: (a) the title, (b) the left or debit side, and (c) the right or credit side. Because the alignment of these parts resembles the letter T, it is referred to as a T .

6.

Disagree. The debit and credit are synonymous with left and right, respectively.

7.

James is incorrect. The double-entry system merely records the dual (two-sided) effect of a transaction on the ing equation. A transaction is not recorded twice; it is recorded once, and must affect two or more s to keep the basic ing equation in balance. In other words, for each transaction, debits must equal credits.

8.

Gayle is incorrect. A debit balance only means that debit amounts exceed credit amounts in an . Conversely, a credit balance only means that credit amounts are greater than debit amounts in an . Thus, a debit or credit balance is neither favorable or unfavorable.

9.

(a) Asset s are increased by debits and decreased by credits. (b) Liability s are decreased by debits and increased by credits. (c) The common stock is decreased by debits and increased by credits.




3-3

Questions Chapter 3 (Continued) 10.

(a) s Receivable—debit balance. (b) Cash—debit balance. (c) Dividends—debit balance. (d) s Payable—credit balance. (e) Service Revenue—credit balance. (f) Salaries and Wages Expense—debit balance. (g) Common Stock—credit balance.

11.

(a) s Receivable—asset—debit balance. (b) s Payable—liability—credit balance. (c) Equipment—asset—debit balance. (d) Dividends—stockholders’ equity—debit balance. (e) Supplies—asset—debit balance.

12.

(a) Debit Supplies and credit s Payable. (b) Debit Cash and credit Notes Payable. (c) Debit Salaries and Wages Expense and credit Cash.

13.

(a) Cash—both debit and credit entries. (b) s Receivable—both debit and credit entries. (c) Dividends—debit entries only. (d) s Payable—both debit and credit entries. (e) Salaries and Wages Expense—debit entries only. (f) Service Revenue—credit entries only.

14.

Normal balances for s in Tootsie Roll’s financial statements: s Receivable—debit; Income Taxes Payable—credit; Sales—credit; Selling, Marketing, and istrative Expenses— debit.

15.

The basic steps in the recording process are: (1) Analyze each transaction in of its effect on the s. (2) Enter the transaction information in a journal. (3) Transfer the journal information to the appropriate s in the ledger.

16.

(a) The debit should be entered first. (b) The credit should be indented.

17.

(a) No, debits and credits should not be recorded directly in the ledger. (b) The advantages of using the journal are: (1) It discloses in one place the complete effect of a transaction. (2) It provides a chronological record of all transactions. (3) It helps to prevent or locate errors because the debit and credit amounts for each entry can be readily compared.

18.

(a) Cash............................................................................................................................ 12,000 Common Stock ................................................................................................ (Issued stock for cash) (b)

3-4

Prepaid Insurance .................................................................................................... Cash................................................................................................................... (Paid one-year insurance policy)



12,000

800 800


Questions Chapter 3 (Continued) (c)

(d)

Supplies ..................................................................................................................... s Payable ........................................................................................... (Purchased supplies on )

1,800

Cash ........................................................................................................................... Service Revenue............................................................................................. (Received cash for services rendered)

7,500

1,800

7,500

19.

(a) The entire group of s maintained by a company, including all the asset, liability, and stockholders’ equity s, is referred to collectively as the ledger. (b) The chart of s is important, particularly for a company that has a large number of s, because it helps organize the s and identify their location in the ledger.

20.

A trial balance is a list of s and their balances at a given time. The primary purpose of a trial balance is to prove the mathematical equality of debits and credits after all journalized transactions have been posted. A trial balance also facilitates the discovery of errors in journalizing and posting. In addition, it is useful in preparing financial statements.

21.

The proper sequence is as follows: (b) ing transaction occurs. (c) Information is entered in the journal. (a) Debits and credits are posted to the ledger. (e) Trial balance is prepared. (d) Financial statements are prepared.

22.

(a) The trial balance would balance. (b) The trial balance would not balance since the debits would be $720 higher than the credits.




3-5

SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 3-1

(a) (b) (c)

Assets + + –

Liabilities + NE NE

Stockholders’ Equity NE + –

BRIEF EXERCISE 3-2

Cash (1)

+$60,000

(2)

–9,000

(3)

+13,000

Assets = Liabilities + Stockholders’ Equity s s Bonds Common Retained + Receivable + Supplies = Payable + Payable + Stock + Earnings +$60,000 –$9,000

Paid div.

–$13,000

(4)

+$3,100

+$3,100

BRIEF EXERCISE 3-3 Assets Cash (1)

–$286,176

(2)

+137,590

(3)

+ Inventory +

Equipment

=

Liabilities

=

s Payable

+ +

Stockholders’ Equity Common Stock

+

Retained Earnings

+$286,176 +$137,590 +$68,480

Issued stock

+$68,480

BRIEF EXERCISE 3-4

(a) (b) (c) (d) (e) (f)

3-6

s Payable Advertising Expense Service Revenue s Receivable Retained Earnings Dividends

Debit Effect Decrease Increase Decrease Increase Decrease Increase


Credit Effect Increase Decrease Increase Decrease Increase Decrease


Normal Balance Credit Debit Credit Debit Credit Debit


BRIEF EXERCISE 3-5

June 1 2 3 12

Debited Cash Equipment Rent Expense s Receivable

Credited Common Stock s Payable Cash Service Revenue

BRIEF EXERCISE 3-6 June 1 2 3 12

Cash .................................................................................. Common Stock .....................................................

5,000

Equipment....................................................................... s Payable................................................

1,100

Rent Expense................................................................. Cash .........................................................................

740

s Receivable................................................... Service Revenue ..................................................

700

5,000 1,100 740 700

BRIEF EXERCISE 3-7 The basic steps in the recording process are: 1.

Analyze each transaction. In this step, source documents are examined to determine the effects of the transaction on the s.

2.

Enter each transaction in a journal. This step is called journalizing and it results in making a chronological record of the transactions.

3.

Transfer journal information to ledger s. This step is called posting. Posting makes it possible to accumulate the effects of journalized transactions on individual s.




3-7

BRIEF EXERCISE 3-8 (a) Basic Analysis

(b)

Aug. 1

The asset Cash is increased; the stockholders’ equity Common Stock is increased.

Debits increase assets: debit Cash $10,000. Credits increase stockholders’ equity: credit Common Stock $10,000.

4

The asset Prepaid Insurance is increased; the asset Cash is decreased.

Debits increase assets: debit Prepaid Insurance $1,500. Credits decrease assets: credit Cash $1,500.

16

The asset Cash is increased; the revenue Service Revenue is increased.

Debits increase assets: debit Cash $900. Credits increase revenues: credit Service Revenue $900.

27

The expense Salaries and Wages Expense is increased; the asset Cash is decreased.

Debits increase expenses: debit Salaries and Wages Expense $620. Credits decrease assets: credit Cash $620.

Debit-Credit Analysis

BRIEF EXERCISE 3-9 Aug. 1 4 16 27

3-8

Cash .................................................................................. Common Stock .....................................................

10,000

Prepaid Insurance......................................................... Cash .........................................................................

1,500

Cash .................................................................................. Service Revenue ..................................................

900

Salaries and Wages Expense ................................... Cash .........................................................................

620



10,000 1,500 900 620


BRIEF EXERCISE 3-10

5/12 5/15

5/5

Cash 1,600 2,000

Service Revenue 5/5 5/15

3,800 2,000

s Receivable 3,800 5/12 1,600

BRIEF EXERCISE 3-11 LYNDON COMPANY Trial Balance June 30, 2012 Cash .......................................................................................... s Receivable........................................................... Equipment ............................................................................... s Payable................................................................. Common Stock ...................................................................... Dividends................................................................................. Service Revenue ................................................................... Salaries and Wages Expense ........................................... Rent Expense .........................................................................



Debit $ 5,400 3,000 13,000

Credit

$ 1,000 18,000 1,200 8,600 4,000 1,000 $27,600


$27,600

3-9

BRIEF EXERCISE 3-12 PELICAN COMPANY Trial Balance December 31, 2012 Cash.......................................................................................... Prepaid Insurance ................................................................ s Payable ................................................................ Unearned Service Revenue............................................... Common Stock...................................................................... Retained Earnings................................................................ Dividends ................................................................................ Service Revenue................................................................... Salaries and Wages Expense........................................... Rent Expense.........................................................................

3-10


Debit $20,800 3,500

Credit

$ 2,500 1,800 10,000 6,600 5,000 25,600 14,600 2,600 $46,500


$46,500


SOLUTIONS TO DO IT! REVIEW EXERCISES DO IT! 3-1 Assets Cash (1) (2)

=

Liabilities

+

s + Receivable =

s Payable

+

Common Stock

Retained Earnings + Revenues – Expenses – Dividends

+$20,000 +$20,000

+$20,000

–20,000

(3) (4)

Stockholders’ Equity

+$1,800

–$1,800

–3,000

–$3,000

DO IT! 3-2 Phil would likely need the following s in which to record the transactions necessary to ready his photography studio for opening day: Cash (debit balance) Supplies (debit balance) Notes Payable (credit balance)

Equipment (debit balance) s Payable (credit balance) Common Stock (credit balance)

DO IT! 3-3 Each transaction that is recorded is entered in the general journal. The three activities would be recorded as follows: 1. 2. 3.

Cash....................................................................................... Common Stock.......................................................... Supplies ............................................................................... s Payable .................................................... Cash.............................................................................. No entry because no transaction has occurred.

8,000 8,000 950 550 400

DO IT! 3-4

4/1 4/3 4/30


Cash 1,900 4/16 3,400 4/20 4,500


500 300


3-11

SOLUTIONS TO EXERCISES EXERCISE 3-1 1. 2. 3. 4. 5. 6. 7. 8. 9.

Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in assets and increase in stockholders’ equity. Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in liabilities and decrease in stockholders’ equity. Increase in assets and decrease in assets. Increase in assets and decrease in assets. Increase in assets and increase in liabilities.

EXERCISE 3-2 Assets

=

s Cash

+

Receivable + Equipment = +$30,000

–$ 4,000

(3)

+12,000

(4)

+5,000

(5)

–8,000

(6)

+40,000

(7)

–30,000

Payable

Stockholders’ Equity Common

+

Stock

Retained Earnings + Revenues –

–$4,000

Rent Expense

–$12,000 +$5,000

Service Revenue –8,000

+$40,000

Utilities Expense Issued Stock

–30,000 +1,300

$15,000 +

Expenses

+$30,000

(8) –$12,000

+

$30,000

=

$ 1,300

$33,000

3-12

+

s

(1) (2)

Liabilities


–1,300 +

$40,000 +

$5,000

–

Advertising Expense

$13,300

$33,000




+16,000

(4)

+

$60,000

$4,700

+

$45,000 +

$100,000 +

Kimmel ing, 4/e Solutions Manual $131,500

$131,500

+$26,000

–

$33,200

–

$11,000

$4,700

–$11,000 +

–11,000

–28,000

–$5,200

$ 56,800 +

+10,000

+$16,000

Stockholders’ Equity Retained Earnings + Revenues – Expenses – Dividends

(9)

$10,000

+$4,700

+$45,000

+$100,000

Common + Stock

+

–28,000

+$10,000

+$4,700

+$60,000

Equipment

Liabilities s Bonds = Payable + Payable

=

(8)

(7)

(6)

–5,200

–60,000

(3)

(5)

+45,000

(2)

(1) +$100,000

Cash

Assets s + Receivable + Supplies +

Dividends

Salaries and Wages Expense

Service Revenue

Rent Expense

Service Revenue

Issued Stock

EXERCISE 3-3


3-13

EXERCISE 3-4 (a)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Stockholders invested $20,000 cash in the business. Purchased equipment for $5,000, paying $1,000 in cash and the balance of $4,000 on . Paid $750 cash for supplies. Earned $9,500 in revenue, receiving $4,100 cash and $5,400 on . Paid $1,500 cash on s payable. Paid $2,000 cash dividends to stockholders. Paid $800 cash for rent. Collected $450 cash from customers on . Paid salaries of $3,000. Incurred $300 of utilities expense on .

(b) Issued common stock........................................................................ Service revenue ................................................................................... Dividends ............................................................................................... Rent expense ........................................................................................ Salaries and wages expense ........................................................... Utilities expense................................................................................... Increase in stockholders’ equity ....................................................

$20,000 9,500 (2,000) (800) (3,000) (300) $23,400

(c) Service revenue ................................................................................... Rent expense ........................................................................................ Salaries and wages expense ........................................................... Utilities expense................................................................................... Net income.............................................................................................

$ 9,500 (800) (3,000) (300) $ 5,400

3-14




EXERCISE 3-5 NIGEL COMPANY Income Statement For the Month Ended August 31, 2012 Revenues Service revenue ................................................................. Expenses Salaries and wages expense......................................... Rent expense...................................................................... Utilities expense ................................................................ Total expenses .......................................................... Net income ...................................................................................

$9,500 $3,000 800 300 4,100 $5,400

NIGEL COMPANY Retained Earnings Statement For the Month Ended August 31, 2012 Retained earnings, August 1........................................................................ Add: Net income ............................................................................................ Less: Dividends............................................................................................... Retained earnings, August 31......................................................................

$ 0 5,400 5,400 2,000 $3,400

NIGEL COMPANY Balance Sheet August 31, 2012 Assets Current Assets: Cash............................................................................................. s receivable .............................................................. Supplies ..................................................................................... Total current assets ...................................................... Equipment ................................................................................. Total assets......................................................................

$15,500 4,950 750

Liabilities and Stockholders’ Equity Current liabilities s payable .......................................................... Stockholders’ equity Common stock................................................................ $20,000 Retained earnings.......................................................... 3,400 Total liabilities and stockholders’ equity ......




21,200 5,000 $26,200

$ 2,800 23,400 $26,200 3-15

3-16




Liability

7.

8.

Asset

6.

3.

Stockholder’s Equity

Asset

2.

5.

Asset

1.

Asset

Asset

Transaction

4.

(a) Basic Type

(a)

Dividends

s Payable

Cash

Advertising Expense

s Receivable

Supplies

Equipment

Cash

Increase

Decrease

Increase

Increase

Increase

Increase

Increase

Increase

Debited (b) (c) Specific Effect

Debit

Credit

Debit

Debit

Debit

Debit

Debit

Debit

(d) Normal Balance

Asset

Asset

Asset

Asset


Liability

Asset


(a) Basic Type

Cash

Cash

s Receivable

Cash

Service Revenue

s Payable

Cash

Common Stock

Decrease

Decrease

Decrease

Decrease

Debit

Debit

Debit

Debit

Credit

Credit

Increase

Increase

Debit

Credit

(d) Normal Balance

Decrease

Increase

Credited (b) (c) Specific Effect

EXERCISE 3-6


EXERCISE 3-6 (Continued) (b) General Journal Trans. 1. 2. 3. 4. 5. 6. 7. 8.

Titles Cash .............................................................................. Common Stock.................................................

Debit 15,000

Equipment................................................................... Cash .....................................................................

10,000

Supplies ....................................................................... s Payable............................................

300

s Receivable............................................... Service Revenue ..............................................

3,700

Advertising Expense ............................................... Cash .....................................................................

200

Cash .............................................................................. s Receivable......................................

1,100

s Payable..................................................... Cash .....................................................................

300

Dividends .................................................................... Cash .....................................................................

400

Credit 15,000 10,000 300 3,700 200 1,100 300 400

EXERCISE 3-7 Oct. 1

Debits increase assets: debit Cash $30,000. Credits increase stockholders’ equity: credit Common Stock $30,000.

2

No ing transaction.

3

Debits increase assets: debit Equipment $3,800. Credits increase liabilities: credit s Payable $3,800.




3-17

EXERCISE 3-7 (Continued) Oct. 6

Debits increase assets: debit s Receivable $10,800. Credits increase revenues: credit Service Revenue $10,800.

10

Debits increase assets: debit Cash $140. Credits increase revenues: credit Service Revenue $140.

27

Debits decrease liabilities: debit s Payable $700. Credits decrease assets: credit Cash $700.

30

Debits increase expenses: debit Salaries and Wages Expense $3,000. Credits decrease assets: credit Cash $3,000.

EXERCISE 3-8 General Journal Date Oct. 1

Debit 30,000

No entry.

3

Equipment................................................................. s Payable..........................................

3,800

s Receivable............................................. Service Revenue ............................................

10,800

Cash ............................................................................ Service Revenue ............................................

140

s Payable................................................... Cash ...................................................................

700

Salaries and Wages Expense ............................. Cash ...................................................................

3,000

10 27 30


Credit 30,000

2

6

3-18

Titles Cash ............................................................................ Common Stock...............................................

3,800 10,800 140 700


3,000


EXERCISE 3-9 General Journal Date May 4 7 8 9 17 22 29

Titles s Payable ................................................... Cash....................................................................

Debit 700

s Receivable ............................................. Service Revenue.............................................

6,800

Supplies ..................................................................... s Payable ..........................................

850

Equipment ................................................................. Cash....................................................................

1,000

Salaries and Wages Expense.............................. Cash....................................................................

530

Maintenance and Repair Expense..................... s Payable ..........................................

900

Prepaid Insurance................................................... Cash....................................................................

1,200



Credit 700 6,800 850 1,000 530 900


1,200

3-19

EXERCISE 3-10 (a) Oct. 1 10 Bal.

Cash 30,000 Oct. 27 140 30 26,440

700 3,000

s Payable Oct. 27 700 Oct. 3 Bal. Common Stock Oct. 1 Bal.

s Receivable Oct. 6 10,800 Bal. 10,800

Oct. 3 Bal.

Equipment 3,800 3,800

3,800 3,100

30,000 30,000

Service Revenue Oct. 6 10,800 10 140 Bal. 10,940 Salaries and Wages Expense Oct. 30 3,000 Bal. 3,000

(b)

PLUNKETT REAL ESTATE AGENCY Trial Balance October 31, 2012 Cash ................................................................................ s Receivable................................................. Equipment ..................................................................... s Payable....................................................... Common Stock ............................................................ Service Revenue ......................................................... Salaries and Wages Expense .................................

3-20


Debit $26,440 10,800 3,800

Credit

$ 3,100 30,000 10,940 3,000 $44,040


$44,040


EXERCISE 3-11 (a)

Assets

= Liabilities + s

Cash

+ Equipment =

Sept. 1

+$20,000

5

–3,000

25

–4,000

30

–500 $ 12,500 +

Payable

Stockholders’ Equity Common

+

Stock

– Dividends

+$20,000 +$9,000

Issued stock

+$ 6,000 –4,000 –$500

$9,000

$21,500..

=

$ 2,000

+

+$20,000

–

Dividends

$500

$21,500

(b) General Journal Date Sept. 1 5

25 30

Titles Cash ........................................................................... Common Stock..............................................

Debit 20,000

Equipment................................................................ s Payable......................................... Cash ..................................................................

9,000

s Payable.................................................. Cash ..................................................................

4,000

Dividends ................................................................. Cash ..................................................................

500



J1 Credit 20,000 6,000 3,000 4,000


500

3-21

EXERCISE 3-11 (Continued) (c) 9/1

Bal.

9/5 Bal.

9/25

3-22

Cash 20,000 9/5 9/25 9/30 12,500

3,000 4,000 500

9/30 Bal.

Equipment 9,000 9,000 s Payable 4,000 9/5 Bal.

Common Stock 9/1 Bal.

20,000 20,000

Dividends 500 500

6,000 2,000




EXERCISE 3-12 (a) Date Apr. 1

4

7

12

15

25

29

30

General Journal Titles and Explanation Cash............................................................................. Common Stock ............................................... (Issued stock for cash)

Debit 15,000

15,000

Supplies ..................................................................... s Payable .......................................... (Purchased supplies on )

5,200

s Receivable ............................................. Service Revenue............................................. (Billed clients for services rendered)

3,400

Cash............................................................................. Service Revenue............................................. (Received cash for revenue earned)

700

Salaries and Wages Expense.............................. Cash.................................................................... (Paid salaries)

800

s Payable ................................................... Cash.................................................................... (Paid creditors on )

3,500

Cash............................................................................. s Receivable .................................... (Received cash in payment of )

800

Cash............................................................................. Unearned Service Revenue ........................ (Received cash for future services)

900



Credit

5,200

3,400

700

800

3,500

800


900

3-23

EXERCISE 3-12 (Continued) (b)

McGREGOR GARDENING COMPANY, INC. Trial Balance April 30, 2012 Cash ................................................................................ s Receivable................................................. Supplies ......................................................................... s Payable....................................................... Unearned Service Revenue ..................................... Common Stock ............................................................ Service Revenue ......................................................... Salaries and Wages Expense .................................

3-24


Debit $13,100 2,600 5,200

Credit

$ 1,700 900 15,000 4,100 800 $21,700


$21,700


EXERCISE 3-13 (a) Aug. 1 10 31 Bal.

Cash 8,000 Aug. 12 1,700 600 9,100

s Receivable Aug. 25 3,400 Aug. 31 Bal. 2,800

Aug. 12 Bal.

5,000 5,000

Common Stock Aug. 1 Bal.

8,000 8,000

Service Revenue Aug. 10 25 Bal.

1,700 3,400 5,100

1,200

600


(b)

Notes Payable Aug. 12 Bal.

GALAXY INC. Trial Balance August 31, 2012 Cash................................................................................. s Receivable ................................................. Equipment...................................................................... Notes Payable............................................................... Common Stock............................................................. Service Revenue..........................................................

Debit $ 9,100 2,800 6,200

$18,100




Credit

$ 5,000 8,000 5,100 $18,100

3-25

EXERCISE 3-14 (a) Oct. 1

10

10

20

20

3-26

Cash........................................................................... Common Stock ............................................. (Issued stock for cash)

7,000

Cash........................................................................... Service Revenue........................................... (Received cash for services provided)

980

Cash........................................................................... Notes Payable ............................................... (Obtained loan from bank)

8,000

Cash........................................................................... s Receivable .................................. (Received cash in payment of )

700

s Receivable ........................................... Service Revenue........................................... (Billed clients for services provided)

920



7,000

980

8,000

700

920



STAMPFER CO. Trial Balance October 31, 2012 Cash................................................................................. s Receivable ................................................. Supplies.......................................................................... Equipment...................................................................... Notes Payable............................................................... s Payable ....................................................... Common Stock............................................................. Dividends ....................................................................... Service Revenue.......................................................... Salaries and Wages Expense.................................. Supplies Expense........................................................ Rent Expense................................................................

Debit $15,730 1,020 220 3,000

Credit

$ 8,000 1,500 9,000 300 2,700 500 180 250 $21,200

$21,200

EXERCISE 3-15 Error 1. 2. 3. 4. 5. 6.

(a) In Balance No Yes Yes No Yes No


(b) Difference $400 — — 300 — 36

(c) Larger Column Debit — — Credit — Credit



3-27

EXERCISE 3-16 (a)

ROSHEK DELIVERY SERVICE Trial Balance July 31, 2012 Debit Cash ($98,370 – Debit total without Cash $85,946) ...................................................................... s Receivable ................................................. Prepaid Insurance ....................................................... Equipment...................................................................... s Payable ....................................................... Salaries and Wages Payable ................................... Notes Payable (due 2015) ......................................... Common Stock............................................................. Retained Earnings....................................................... Dividends ....................................................................... Service Revenue .......................................................... Salaries and Wages Expense .................................. Maintenance and Repairs Expense ....................... Insurance Expense .....................................................

3-28


Credit

$12,424 13,400 2,200 59,360 $ 8,400 820 28,450 40,000 5,200 700 15,500 7,428 1,958 900 $98,370


$98,370



ROSHEK DELIVERY SERVICE Income Statement For the Month Ended July 31, 2012 Revenues Service revenue .......................................................... Expenses Salaries and wages expense .................................. Maintenance and repairs expense........................ Insurance expense..................................................... Total expenses ........................................................ Net income........................................................................

$15,500 $7,428 1,958 900 10,286 $ 5,214

ROSHEK DELIVERY SERVICE Retained Earnings Statement For the Month Ended July 31, 2012 Retained earnings, July 1 ............................................ Add: Net income .......................................................... Less: Dividends ............................................................. Retained earnings, July 31..........................................




$ 5,200 5,214 10,414 700 $ 9,714

3-29

EXERCISE 3-16 (Continued) ROSHEK DELIVERY SERVICE Balance Sheet July 31, 2012 Assets Current Assets Cash ............................................................................... s receivable ................................................. Prepaid insurance...................................................... Total current assets .............................................. Equipment ........................................................................ Total assets..............................................................

$12,424 13,400 2,200 $28,024 59,360 $87,384

Liabilities and Stockholders’ Equity Current Liabilities s payable ...................................................... Salaries and wages payable................................... Total current liabilities ......................................... Notes payable ................................................................. Total liabilities......................................................... Stockholders’ Equity Common stock................................................................ Retained earnings.......................................................... Total stockholders’ equity .................................. Total liabilities and stockholders’ equity.......

3-30


$ 8,400 820 $ 9,220 28,450 37,670 40,000 9,714


49,714 $87,384


EXERCISE 3-17

s payable s receivable Common stock Depreciation expense Interest expense Interest income Inventories Prepaid expenses Property and Equipment Revenues

(a) Normal Balance Debit or Credit Credit Debit Credit Debit Debit Credit Debit Debit Debit Credit

(b) Balance Sheet or Income Statement Balance sheet Balance sheet Balance sheet Income statement Income statement Income statement Balance sheet Balance sheet Balance sheet Income statement

EXERCISE 3-18 1. 2. 3. 4. 5. 6. 7. 8. 9.

Financing activity Operating activity Operating activity Non-cash event Financing activity Non-cash event Operating activity Investing activity Non-cash event

EXERCISE 3-19 1. 2. 3. 4. 5. 6. 7. 8. 9.

Financing activity Financing activity Investing activity Operating activity Non-cash event Operating activity Non-cash event Operating activity Financing activity




3-31

3-32

–900

–3,400

2.

3.


+3,000

–400

–200

–1,800

+9,000

6.

7.

8.

9.

10.

Assets

= Liabilities +

$

0

–9,000

+$9,000


+

$500

+$500

+

$3,400

+$3,400

=

$

0

–200

+$200

+


$30,000 +

+$30,000

$38,700

$12,000

+$12,000

–

$2,900

–1,800

–200

–$900

–

$400

–$400

Retained Earnings Common Stock + Revenues – Expenses – Dividends

VAGABOND TRAVEL AGENCY INC.

s s + Receivable + Supplies + Equipment = Payable +

$34,800 +

–500

5.

4.

+$30,000

Cash

1.

(a)

Expense

Salaries and Wages

Dividends

Service Revenue

Advertising Expense

Rent Expense

SOLUTIONS TO PROBLEM PROBLEM 3-1A


PROBLEM 3-1A (Continued) (b) Service Revenue................................................................ Expenses Salaries and Wages Expense............................... Rent Expense............................................................. Advertising Expense............................................... Net Income.........................................................

$12,000 $1,800 900 200

2,900 $ 9,100

OR Revenues ............................................................................. Less: Expenses ................................................................ Net Income...........................................................................




$12,000 2,900 $ 9,100

3-33

3-34

Cash

+1,400

–200

9

12


=

Liabilities

+


+


$2,000

=

$5,000

+

+

$15,000 +

$5,600

–

$1,800

$23,770

$3,430

$500

$18,270 +

+

–180

30

$3,000

–180

–200

29

+1,800

+5,000

26 +$2,000

+1,200

23

–2,500

–500

+$5,000

+4,200

+$1,400

–150

20

–500

+$500

–$600

–2,500

–1,200

+4,200

+$500

+$15,000

–

$200

–$200

Retained Earnings s Notes s Common + Receivable + Supplies + Equipment = Payable + Payable + Stock + Revenues – Expenses – Dividends

Assets

TAYLOR MADE CONSULTING INC.

17

15

–150

–600

5

3

2

May 1 +$15,000

Date

(a)

Utilities Expense

Expense

Salaries and Wages

Service Revenue

Dividends

Service Revenue

Advertising Expense

Rent Expense

PROBLEM 3-2A


PROBLEM 3-2A (Continued) (b)

TAYLOR MADE CONSULTING INC. Income Statement For the Month Ended May 31, 2012 Revenues Service revenue ($1,400 + $4,200) ................... Expenses Salaries and wages expense ............................. Rent expense .......................................................... Utilities expense .................................................... Advertising expense ............................................ Total expenses .............................................. Net income........................................................................

(c)

$5,600 $2,500 600 180 150 3,430 $2,170

TAYLOR MADE CONSULTING INC. Balance Sheet May 31, 2012 Assets Current assets Cash .......................................................................... s receivable ............................................ Supplies ................................................................... Total current assets .................................... Equipment ............................................................... Total assets....................................................

$18,270 3,000 500 $21,770 2,000 $23,770

Liabilities and Stockholders’ Equity Current liabilities Notes payable ........................................................ s payable ................................................. Total current liabilities................................ Stockholders’ Equity Common stock....................................................... Retained earnings ($0 + $2,170 – $200)......... Total liabilities and stockholders’ equity ...........................................................



$ 5,000 1,800 $ 6,800 15,000 1,970


16,970 $23,770

3-35

3-36


+3,600

–700

–2,450

–700

+5,000

9

15

19

23

26

$7,150 +

–2,700

4

$4,000 +

+1,100

31

Assets

=

Liabilities

+

DICK REBER INC. Stockholders’ Equity

Kimmel ing, 4/e Solutions Manual +

+

$500

$500

$19,850

$3,200

+1,800

–1,100

$2,500

+

+

$9,000

+4,000

$5,000

=

=

+380 $5,000 + $5,180

+$5,000

+3,300

–2,700

$4,200

+

+

$6,200

$6,200

+

+

$19,850

$1,600

$1,600

+

$5,400

+$5,400

–

–380 $2,830 –

$700

Utilities Expense

Dividends

Advertising Expense

–350 –$700

Rent Expense

Expense

Salaries and Wages

Service Revenue

–700

–$1,400

Notes s Common s Retained Cash + Receivable + Supplies + Equipment = payable + Payable + Stock + Earnings + Revenues– Expenses – Dividends

Aug. 1

Bal.

July 31

(a)

PROBLEM 3-3A


PROBLEM 3-3A (Continued) (b)

ROBIN KLANN INC. Income Statement For the Month Ended August 31, 2012 Revenues Service revenue ........................................................ Expenses Salaries and wages expense ................................ Rent expense ............................................................. Utilities expense ....................................................... Advertising expense ............................................... Total expenses ................................................. Net income...........................................................................

$5,400 $1,400 700 380 350 2,830 $2,570

ROBIN KLANN INC. Retained Earnings Statement For the Month Ended August 31, 2012 Retained earnings, August 1............................................................... Add: Net income................................................................................... Less: Dividends...................................................................................... Retained earnings, August 31.............................................................




$1,600 2,570 4,170 700 $3,470

3-37

PROBLEM 3-3A (Continued) ROBIN KLANN INC. Balance Sheet August 31, 2012 Assets Current assets Cash ............................................................................ s receivable .............................................. Supplies ..................................................................... Total current assets ...................................... Office equipment..................................................... Total assets .....................................................

$7,150 3,200 500 $10,850 9,000 $19,850

Liabilities and Stockholders’ Equity Current liabilities Notes payable .......................................................... s payable................................................... Total current liabilities ................................. Stockholders’ equity Common stock ........................................................ Retained earnings .................................................. Total liabilities and stockholders’ equity.............................................................

3-38


$5,000 5,180 $10,180 6,200 3,470


9,670 $19,850


PROBLEM 3-4A

Date Mar. 1

3

5

6

10

18

19

25

Titles and Explanation Cash............................................................................. Common Stock ............................................... (Issued stock for cash)

Debit 50,000

Land............................................................................. Buildings.................................................................... Equipment ................................................................. Cash.................................................................... (Purchased Arnie’s Golf Land)

23,000 9,000 6,000

Advertising Expense.............................................. Cash.................................................................... (Paid for advertising)

1,200

Prepaid Insurance................................................... Cash.................................................................... (Paid for one-year insurance policy)

2,400

Equipment ................................................................. s Payable .......................................... (Purchased equipment on )

5,500


1,600

Cash (100 X $25)...................................................... Unearned Service Revenue ........................ (Received cash for coupon books sold)

2,500

Dividends ................................................................... Cash.................................................................... (Payment of cash dividend)

500



Credit 50,000

38,000

1,200

2,400

5,500

1,600

2,500


500

3-39

PROBLEM 3-4A (Continued) Date Mar. 30

30

31

3-40

Titles and Explanation Salaries and Wages Expense ............................. Cash ................................................................... (Paid salaries expense)

Debit 800

s Payable................................................... Cash ................................................................... (Paid creditor on )

5,500

Cash ............................................................................ Service Revenue ............................................ (Received cash for revenue earned)

900


Credit 800

5,500


900


PROBLEM 3-5A (a) Date Apr. 1

Titles and Explanation Cash............................................................................. Common Stock ............................................... (Issued shares of stock for cash)

Debit 18,000

18,000

1

No entry—not a transaction.

2

Rent Expense ........................................................... Cash.................................................................... (Paid monthly office rent)

900

Supplies ..................................................................... s Payable .......................................... (Purchased supplies on from Spring Green Company)

1,300

s Receivable ............................................. Service Revenue............................................. (Billed clients for services rendered)

1,900

Cash............................................................................. Unearned Service Revenue ........................ (Received cash advance for future service)

700


2,800

Salaries and Wages Expense.............................. Cash.................................................................... (Paid monthly salary)

1,500

s Payable ................................................... Cash.................................................................... (Paid Spring Green Company on )

300

3

10

11

20

30

30



Credit

900

1,300

1,900

700

2,800

1,500


300

3-41

PROBLEM 3-5A (Continued) (b) 4/1 4/11 4/20 Bal.

4/10 Bal.

4/3 Bal.

4/30

Cash 18,000 4/2 700 4/30 2,800 4/30 18,800

900 1,500 300

Salaries and Wages Expense 4/30 1,500 Bal. 1,500

4/2 Bal.

s Receivable 1,900 1,900

Rent Expense 900 900

Supplies 1,300 1,300 s Payable 300 4/3 Bal.

1,300 1,000

Unearned Service Revenue 4/11 700 Bal. 700

3-42


18,000 18,000

Service Revenue 4/10 4/20 Bal.

1,900 2,800 4,700




PROBLEM 3-5A (Continued) (c)

TOWNE ARCHITECTS INC. Trial Balance April 30, 2012 Cash................................................................................. s Receivable ................................................. Supplies.......................................................................... s Payable ....................................................... Unearned Service Revenue...................................... Common Stock............................................................. Service Revenue.......................................................... Salaries and Wages Expense.................................. Rent Expense................................................................



Debit $18,800 1,900 1,300

Credit

$ 1,000 700 18,000 4,700 1,500 900 $24,400


$24,400

3-43

PROBLEM 3-6A

(a) & (c) 10/1 Bal. 10/5

Bal.

Cash 8,200 10/15 1,300 10/20 10/29 10/31 5,700

Common Stock 10/1 Bal. 15,000 Bal. 15,000

1,200 1,900 300 400 10/29 Bal.

s Receivable 10/1 Bal. 2,600 10/5 1,300 10/10 5,100 Bal. 6,400

10/1 Bal. Bal.

Supplies 2,100 2,100

10/1 Bal. Bal.


10/20

s Payable 1,900 10/1 Bal. Bal.

Dividends 300 300 Service Revenue 10/10 10/17 Bal.

5,100 600 5,700


10/31 Bal.

Utilities Expense 400 400

4,800 2,900

Unearned Service Revenue 10/17 600 10/1 Bal. 1,000 Bal. 500

3-44




PROBLEM 3-6A (Continued) (b) Date Oct. 5

10

15

17

20

29

31

Titles and Explanation Cash............................................................................. s Receivable .................................... (Received collections from customers on )

Debit 1,300

s Receivable ............................................. Service Revenue............................................. (Billed customers for services performed)

5,100

Salaries and Wages Expense.............................. Cash.................................................................... (Paid employee salaries)

1,200

Unearned Service Revenue ................................. Service Revenue............................................. (Performed services for customers who paid in advance)

600

s Payable ................................................... Cash.................................................................... (Paid creditors on )

1,900

Dividends ................................................................... Cash.................................................................... (Payment of cash dividend)

300

Utilities Expense...................................................... Cash.................................................................... (Paid utilities)

400



Credit 1,300

5,100

1,200

600

1,900

300


400

3-45

PROBLEM 3-6A (Continued) (d)

MIMOSA COMPANY Trial Balance October 31, 2012 Cash ................................................................................ s Receivable................................................. Supplies ......................................................................... Equipment ..................................................................... s Payable....................................................... Unearned Service Revenue ..................................... Common Stock ............................................................ Dividends....................................................................... Service Revenue ......................................................... Salaries and Wages Expense ................................. Utilities Expense .........................................................

3-46


Debit $ 5,700 6,400 2,100 8,000

Credit

$ 2,900 500 15,000 300 5,700 1,200 400 $24,100


$24,100


PROBLEM 3-7A

MICHELS CO. Trial Balance June 30, 2012 Cash ($3,090 – $780 + $870)..................................... s Receivable*................................................ Supplies ($800 – $340)............................................... Equipment ($3,000 + $340) ....................................... s Payable ($3,686 – $206 – $260) ........... Unearned Service Revenue...................................... Common Stock............................................................. Dividends ($800 + $600) ............................................ Service Revenue.......................................................... Salaries and Wages Expense ($3,600 + $700 – $600) ............................................ Utilities Expense..........................................................

Debit $ 3,180 3,910 460 3,340

Credit

$ 3,220 1,200 9,000 1,400 3,480 3,700 910 $16,900

$16,900

*$3,190 + $780 – $870 – $90 + $900




3-47

PROBLEM 3-8A

(a) & (c) 3/1 Bal. 3/9 3/20 3/31 3/31 Bal.

3/31 Bal.

3/1 Bal. Bal.

3/1 Bal. Bal.

3-48

2,000 10,900 500 5,000 3,800

s Receivable 750 750

3/1 Bal. Bal.

3/10

Cash 16,000 3/2 9,900 3/10 8,300 3/12 750 3/20 20,000 3/31 32,750

Land 38,000 38,000 Buildings 22,000 22,000 Equipment 16,000 16,000 s Payable 10,900 3/1 Bal. 12,000 3/2 8,000 Bal. 9,100


Common Stock 3/1 Bal. Bal.

80,000 80,000

Service Revenue 3/9 3/20 3/31 Bal.

9,900 8,300 20,000 38,200

Sales Revenue 3/31 Bal.

1,500 1,500

3/12 Bal.

Advertising Expense 500 500

3/2 3/20 Bal.

Rent Expense 10,000 5,000 15,000




PROBLEM 3-8A (Continued) (b) Date Mar. 2

Titles and Explanation Rent Expense........................................................... s Payable.......................................... Cash ................................................................... (Rented films for cash and on )

Debit 10,000

8,000 2,000

3


9

Cash ............................................................................ Service Revenue ............................................ (Received cash for issions)

9,900

s Payable ($8,000 + $2,900)................. Cash ................................................................... (Paid creditors on )

10,900

10

9,900

10,900

11


12

Advertising Expense ............................................. Cash ................................................................... (Paid advertising expenses)

500


8,300

Rent Expense........................................................... Cash ................................................................... (Paid film rental)

5,000

Salaries and Wages Expense ............................. Cash ................................................................... (Paid salaries expense)

3,800

20

20

31



Credit

500

8,300

5,000


3,800

3-49

PROBLEM 3-8A (Continued) Date Mar. 31

31

(d)

Titles and Explanation Cash............................................................................ s Receivable ............................................ Sales Revenue (15% X $10,000)................... (Received cash and balance on for concession revenue)

Debit 750 750

Cash............................................................................ Service Revenue............................................ (Received cash for issions)

20,000

1,500

20,000

SCIFI THEATER INC. Trial Balance March 31, 2012 Cash ............................................................................. s Receivable.............................................. Land.............................................................................. Buildings..................................................................... Equipment .................................................................. s Payable.................................................... Common Stock ......................................................... Service Revenue ...................................................... Sales Revenue .......................................................... Advertising Expense .............................................. Rent Expense ............................................................ Salaries and Wages Expense ..............................

3-50

Credit


Debit $ 32,750 750 38,000 22,000 16,000

Credit

$

500 15,000 3,800 $128,800


9,100 80,000 38,200 1,500

$128,800


PROBLEM 3-9A

Error 1.

(a) In Balance No

(b) Difference $600

(c) Larger Column Debit

2.

Yes

None

N/A

3.

Yes

None

N/A

4.

No

$680

Credit

5.

Yes

None

N/A

6.

Yes

None

N/A

7.

No

$900

Debit

8.

Yes

None

N/A




3-51

3-52

Cash

–300

4.

Copyright © 2011 John Wiley & Sons, Inc. –650 $ 350

+650

$15,510 +

11.

–140

9.

+$1,000

–1,700

8.

NEW DAWN WINDOW WASHING INC.


+

$300

+$300

+

$9,000

+$9,000

=

$750

+$750

+

$20,000 +

+$20,000

$25,160

$8,200

+1,000

+$7,200

–

$3,290

–140

–1,700

–750

–$700

–

$500

–$500

Assets = Liabilities + Stockholders’ Equity s s Common Retained Earnings + Receivable + Supplies + Equipment = Payable + Stock + Revenues – Expenses – Dividends

10.

–500

7.

6.

+7,200

–700

3.

5.

–9,000

+$20,000

2.

1.

(a)

Service Revenue

Utilities Expense

Expense

Salaries and Wages

Dividends

Service Revenue

Advertising Expense

Rent Expense

PROBLEM 3-1B


PROBLEM 3-1B (Continued) (b) Service Revenue ($7,200 + $1,000).............................. Expenses Salaries and Wages Expense............................... Advertising Expense............................................... Rent Expense............................................................. Utilities Expense....................................................... Net Income.........................................................

$8,200 $1,700 750 700 140

3,290 $4,910

OR Revenues ............................................................................. Less: Expenses ................................................................ Net Income...........................................................................




$8,200 3,290 $4,910

3-53

3-54

–600

3


–500

–180

–240

–750

23

26

29

30

Assets

=

Liabilities

+

ALDRICH SERVICE INC. Stockholders’ Equity

$1,650

–750

+$2,400


+

$240 +

+$240

$15,000 =

+$15,000

$12,500 +

–500

+$13,000

$200

–240

+200

+$240

–750

–180

–200

–$600

$3,900 – $1,730

+1,500

+$2,400

$29,570

+ $15,000 +

$15,000

–

$300

–$300

Retained Earnings s Notes s Common + Receivable + Supplies + Equipment = Payable + Payable + Stock + Revenues – Expenses – Dividends

$12,680 +

+1,500

+750

20

17

15

12

9

–300

–2,000

2

5

Cash

$15,000

Date

June 1

(a)


Utilities Expense

Service Revenue

Advertising Expense

Dividends

Service Revenue

Rent Expense

PROBLEM 3-2B


PROBLEM 3-2B (Continued) (b)

ALDRICH SERVICE INC. Income Statement For the Month Ended June 30, 2012 Revenues Service revenue ($2,400 + $1,500) ................... Expenses Salaries and wages expense ............................. Rent expense .......................................................... Advertising expense ............................................ Utilities expense .................................................... Total expenses .............................................. Net income........................................................................

(c)

$3,900 $750 600 200 180 1,730 $2,170

ALDRICH SERVICE INC. Balance Sheet June 30, 2012 Assets Current Assets Cash........................................................................... s receivable............................................. Supplies.................................................................... Total current assets..................................... Equipment ........................................................................ Total assets .............................................................

$12,680 1,650 240

Liabilities and Stockholders’ Equity Current Liabilities Notes payable......................................................... $12,500 s payable ................................................. 200 Total liabilities ............................................... Stockholders’ equity Common stock ....................................................... 15,000 Retained earnings* ............................................... 1,870 Total liabilities and stockholders’ equity ...........................................................

$14,570 15,000 $29,570

$12,700 16,870 $29,570

*($0 + $2,170 – $300) Copyright © 2011 John Wiley & Sons, Inc.



3-55

3-56


–1,000

+2,300

–600

–2,250

8.

13.

17.

22.

30.

$10,250 +

+5,000

+1,200

5.

$9,000 +

–3,400

26.

Assets

=

Liabilities

+

TIEDE COMPANY Stockholders’ Equity

+

+

$29,750

$8,800

+8,300

–1,200

$1,700

$600

$600

+

+

=

$10,100 =

+5,100

$5,000

$5,000 + $4,520

+$5,000

+220

+4,100

–3,400

$3,600

+ $12,000 +

+ $12,000 +

+$10,600

+ $10,600 –

$29,750

$700

$700

$2,470

–220

–

$600

Utilities Expense

Advertising Expense

Rent Expense

–1,100 –250


Dividends

Service Revenue

–$900

–$600

s Notes s Common Retained Cash + Receivable + Supplies + Equipment = Payable + Payable + Stock + Earnings + Revenues – Expenses – Dividends

Sept. 2.

Bal.

(a)

PROBLEM 3-3B



PROBLEM 3-3B (Continued) (b)

TIEDE COMPANY Income Statement For the Month Ended September 30, 2012 Revenues Service revenue ............................................................ Expenses Rent expense ................................................................. Salaries and wages expense .................................... Advertising expense ................................................... Utilities expense ........................................................... Total expenses ..................................................... Net income...............................................................................

$10,600 $1,100 900 250 220 2,470 $8,130

TIEDE COMPANY Retained Earnings Statement For the Month Ended September 30, 2012 Retained earnings, September 1........................................................ Add: Net income ................................................................................... Less: Dividends...................................................................................... Retained earnings, September 30 .....................................................




$ 700 8,130 8,830 600 $8,230

3-57

PROBLEM 3-3B (Continued) TIEDE COMPANY Balance Sheet September 30, 2012 Assets Current assets Cash .......................................................................... s receivable ............................................ Supplies ................................................................... Total current assets .................................... Equipment............................................................... Total assets ...................................................

$10,250 8,800 600 $19,650 10,100 $29,750

Liabilities and Stockholders’ Equity Current liabilities Notes payable ........................................................ s payable................................................. Total current liabilities ............................... Stockholders’ equity Common stock ...................................................... Retained earnings ................................................ Total liabilities and stockholders’ equity...........................................................

3-58


$ 5,000 4,520 $ 9,520 12,000 8,230


20,230 $29,750


PROBLEM 3-4B

Date Apr. 1

4

8

11

Titles and Explanation Cash ............................................................................ Common Stock ............................................... (Issued stock for cash)

Debit 70,000

Land............................................................................. Cash ................................................................... (Purchased land for cash)

50,000

Advertising Expense.............................................. s Payable.......................................... (Incurred advertising expense on )

1,200

Salaries and Wages Expense ............................. Cash ................................................................... (Paid salaries)

2,700

70,000

50,000

1,200

2,700

12


13

Prepaid Insurance................................................... Cash ................................................................... (Paid for one-year insurance policy)

7,200

Dividends................................................................... Cash ................................................................... (Payment of cash dividend)

600

Cash ............................................................................ Service Revenue ............................................ (Received cash for services provided)

6,000

Cash (100 X $90)...................................................... Unearned Service Revenue ........................ (Received advance for future services)

9,000

17

20

25



Credit

7,200

600

6,000


9,000

3-59

PROBLEM 3-4B (Continued) Date Apr. 30

30

3-60

Titles and Explanation Cash............................................................................ Service Revenue............................................ (Received cash for services provided)

Debit 7,900

s Payable .................................................. Cash................................................................... (Paid creditor on )

400


Credit 7,900


400


PROBLEM 3-5B (a) Date May 1

Titles and Explanation Cash............................................................................. Common Stock ............................................... (Issued stock for cash)

Debit 40,000

40,000

2


3

Supplies ..................................................................... s Payable .......................................... (Purchased supplies on )

800

Rent Expense ........................................................... Cash.................................................................... (Paid office rent)

1,400

s Receivable ............................................. Service Revenue............................................. (Billed client for services provided)

1,500

Cash............................................................................. Unearned Service Revenue ........................ (Received an advance for future services)

4,200


3,300

Salaries and Wages Expense.............................. Cash.................................................................... (Paid salaries)

2,000

s Payable ($800 X 50%)......................... Cash.................................................................... (Paid creditor on )

400

7

11

12

17

31

31



Credit

800

1,400

1,500

4,200

3,300

2,000


400

3-61

PROBLEM 3-5B (Continued) (b) 5/1 5/12 5/17 Bal.

Cash 40,000 5/7 4,200 5/31 3,300 5/31 43,700

5/11 Bal.

s Receivable 1,500 1,500

5/3 Bal.

Supplies 800 800

5/31

s Payable 400 5/3 Bal.

1,400 2,000 400


5/7 Bal.

Rent Expense 1,400 1,400

800 400

Unearned Service Revenue 5/12 4,200 Bal. 4,200

3-62


40,000 40,000


1,500 3,300 4,800




PROBLEM 3-5B (Continued) (c)

RIDGELL CONSULTING Trial Balance May 31, 2012 Cash................................................................................. s Receivable ................................................. Supplies.......................................................................... s Payable ....................................................... Unearned Service Revenue...................................... Common Stock............................................................. Service Revenue.......................................................... Salaries and Wages Expense.................................. Rent Expense................................................................



Debit $43,700 1,500 800

Credit

$

400 4,200 40,000 4,800

2,000 1,400 $49,400


$49,400

3-63

PROBLEM 3-6B

(a) & (c) 7/1 Bal. 7/8 7/11 Bal.

Cash 12,532 7/9 5,189 7/14 7,320 7/30 7/31 7,464


2,100 9,810 5,267 400 7/31 Bal.

s Receivable 7/1 Bal. 10,536 7/8 5,189 7/22 4,700 Bal. 10,047

7/1 Bal. 7/17 Bal.

Supplies 3,592 720 4,312

7/1 Bal. Bal.

Equipment 25,950 25,950

7/14

s Payable 9,810 7/1 Bal. 15,800 7/17 720 Bal. 6,710

35,000 35,000

Dividends 400 400 Service Revenue 7/11 7/22 Bal.

7,320 4,700 12,020

Maintenance and Repairs Expense 7/30 386 Bal. 386 Salaries and Wages Expense 7/9 2,100 7/30 3,114 Bal. 5,214

7/30 Bal.

Utilities Expense 1,767 1,767

Unearned Service Revenue 7/1 Bal. 1,810 Bal. 1,810

3-64




PROBLEM 3-6B (Continued) (b) Date July 8

9

11

14

17

22

30

31

Titles and Explanation Cash ............................................................................ s Receivable.................................... (Received cash on )

Debit 5,189

Salaries and Wages Expense ............................. Cash ................................................................... (Paid salaries)

2,100

Cash ............................................................................ Service Revenue ............................................ (Received cash for services provided)

7,320

s Payable................................................... Cash ................................................................... (Paid creditors)

9,810

Supplies ..................................................................... s Payable.......................................... (Purchased supplies on )

720

s Receivable............................................. Service Revenue ............................................ (Billed for services provided)

4,700

Salaries and Wages Expense ............................. Utilities Expense ..................................................... Maintenance and Repairs Expense .................. Cash ................................................................... (Paid for various expenses)

3,114 1,767 386

Dividends................................................................... Cash ................................................................... (Payment of cash dividend)

400



Credit 5,189

2,100

7,320

9,810

720

4,700

5,267


400

3-65

PROBLEM 3-6B (Continued) (d)

KINNEAR DRY CLEANERS Trial Balance July 31, 2012 Cash ................................................................................ s Receivable................................................. Supplies ......................................................................... Equipment ..................................................................... s Payable....................................................... Unearned Service Revenue ..................................... Common Stock ............................................................ Dividends....................................................................... Service Revenue ......................................................... Maintenance and Repairs Expense ...................... Salaries and Wages Expense ................................. Utilities Expense .........................................................

3-66


Debit $ 7,464 10,047 4,312 25,950

Credit

$ 6,710 1,810 35,000 400 12,020 386 5,214 1,767 $55,540


$55,540


PROBLEM 3-7B

LAGERSTROM COMPANY Trial Balance May 31, 2012 Cash ($6,340 + $350 – $441) ............................................. s Receivable ($2,750 – $180 – $240).............. Prepaid Insurance ($700 + $100)..................................... Supplies ($0 + $350)............................................................ Equipment ($8,000 – $350)................................................ s Payable ($4,100 – $100 + $350 – $240)...... Income Taxes Payable ....................................................... Common Stock ($5,700 + $600)....................................... Retained Earnings ............................................................... Dividends ($0 + $600) ......................................................... Service Revenue ($7,690 + $270).................................... Salaries and Wages Expense ($4,200 + $500)............ Advertising Expense ($1,100 + $441) ............................ Income Tax Expense ($900 + $100)................................



Debit $ 6,249 2,330 800 350 7,650

Credit

$ 4,110 750 6,300 6,000 600 7,960 4,700 1,541 1,000 $25,220


$25,220

3-67

PROBLEM 3-8B

(a) & (c) 4/1 Bal. 4/9 4/25 4/30 Bal.

Cash 6,300 4/2 4,700 4/10 3,000 4/12 170 4/29 4/30 6,660

800 3,200 410 1,900 1,200

4/10

4/10 4/30 Bal.

s Receivable 170 170

4/30 Bal.

4/1 Bal. Bal.

4/1 Bal. Bal.

4/1 Bal. Bal.

3-68

Prepaid Rent 1,200 1,200 Land 10,000 10,000


2,300 750 1,850

Mortgage Payable 2,000 4/1 Bal. Bal.

8,000 6,000


20,000 20,000


4,700 3,000 7,700

Sales Revenue 4/30 Bal.

Buildings 8,000 8,000 Equipment 6,000 6,000

s Payable 1,200 4/1 Bal. 4/20 Bal.

4/12 Bal.

340 340

Advertising Expense 410 410



PROBLEM 3-8B (Continued) Rent Expense 800 750 1,550

4/2 4/20 Bal.


(b) Date Apr. 2

Titles and Explanation Rent Expense........................................................... Cash ................................................................... (Paid film rental)

Debit 800

800

3


9


4,700

Mortgage Payable................................................... s Payable................................................... Cash ................................................................... (Made payments on mortgage and s payable)

2,000 1,200

10

4,700

3,200

11


12

Advertising Expense ............................................. Cash ................................................................... (Paid advertising expenses)

410

Rent Expense........................................................... s Payable.......................................... (Rented film on )

750


3,000

20

25



Credit

410

750


3,000

3-69

PROBLEM 3-8B (Continued) Date Apr. 29

30

30

(d)

Titles and Explanation Salaries and Wages Expense............................. Cash................................................................... (Paid salaries expense)

Debit 1,900

Cash............................................................................ s Receivable ............................................ Sales Revenue (17% X $2,000) ..................... (Received cash and balance on for concession revenue)

170 170

Prepaid Rent ............................................................ Cash................................................................... (Paid cash for future film rental)

1,200

1,900

340

1,200

RIVIERA THEATER INC. Trial Balance April 30, 2012 Cash ............................................................................. s Receivable.............................................. Prepaid Rent.............................................................. Land.............................................................................. Buildings..................................................................... Equipment .................................................................. s Payable.................................................... Mortgage Payable .................................................... Common Stock ......................................................... Service Revenue ...................................................... Sales Revenue .......................................................... Advertising Expense .............................................. Rent Expense ............................................................ Salaries and Wages Expense ..............................

3-70

Credit


Debit $ 6,660 170 1,200 10,000 8,000 6,000

Credit

$ 1,850 6,000 20,000 7,700 340 410 1,550 1,900 $35,890


$35,890


PROBLEM 3-9B (a) Correct: 2, 7 Incorrect: 1, 3, 4, 5, 6, 8 (b)

Error

(1) In Balance

(2) Difference

(3) Larger Column

1.

No

$270

Credit

3.

No

$880

Credit

4.

Yes

None

N/A

5.

Yes

None

N/A

6.

Yes

None

N/A

8.

No

$5,000

Credit




3-71

CCC3

CONTINUING COOKIE CHRONICLE

(a) General Journal Date Nov.

8

Titles No journal entry required.

8

No journal entry required.

8

Cash ........................................................................ Common Stock............................................

500

Supplies................................................................. Cash................................................................

95

Supplies................................................................. Cash................................................................

125

Equipment............................................................. Common Stock............................................

300

Cash ........................................................................ Notes Payable..............................................

2,000

Equipment............................................................. Cash................................................................

900

11 14 15 16 17

95 125 300 2,000 900

No journal entry required.

25

Cash ........................................................................ Unearned Service Revenue.....................

60

Cash ........................................................................ Service Revenue.........................................

100


Credit

500

18

29

3-72

Debit

60


100


CONTINUING COOKIE CHRONICLE (Continued) Date Nov. 30 30 30 30

Titles Website.................................................................. s Payable......................................

Debit 600

Credit 600

Prepaid Insurance.............................................. Cash ...............................................................

1,200

s Receivable ........................................ Service Revenue ........................................

300

Utilities Expense................................................. s Payable......................................

50

1,200 300 50

(b) Cash Nov. 8 500 Nov. Nov. 16 2,000 Nov. Nov. 25 60 Nov. Nov. 29 100 Nov. Nov.30 Bal. 340

11 14 17 30

95 125 900 1,200

Equipment Nov. 15 300 Nov. 17 900 Nov. 30 Bal. 1,200 Website Nov. 30 600 Nov. 30 Bal. 600

s Receivable Nov. 30 300 Nov. 30 Bal. 300 Supplies Nov. 11 95 Nov. 11 125 Nov. 30 Bal. 220

s Payable Nov. 30 Nov. 30 Nov. 30 Bal.

Unearned Service Revenue Nov. 25 60 Nov. 30 Bal. 60

Prepaid Insurance Nov. 30 1,200 Nov. 30 Bal. 1,200


600 50 650


Notes Payable Nov. 16 2,000 Nov. 30 Bal. 2,000


3-73

CONTINUING COOKIE CHRONICLE (Continued)

(c)

Common Stock Nov. 8 Nov. 15 Nov. 30 Bal.

500 300 800

Service Revenue Nov. 29 Nov. 30 Nov. 30 Bal.

100 300 400

Utilities Expense Nov. 30 50 Nov. 30 Bal. 50

COOKIE CREATIONS INC. Trial Balance November 30, 2012 Cash ..................................................................................... s Receivable...................................................... Supplies .............................................................................. Prepaid Insurance............................................................ Equipment .......................................................................... Website................................................................................ s Payable............................................................ Unearned Service Revenue .......................................... Notes Payable ................................................................... Common Stock ................................................................. Service Revenue .............................................................. Utilities Expense ..............................................................

3-74


Debit $ 340 300 220 1,200 1,200 600

Credit

$ 650 60 2,000 800 400 50 $3,910


$3,910


BYP 3-1

FINANCIAL REPORTING PROBLEM

(a) Common Stock s Payable s Receivable Selling, Marketing, and istrative Expenses Prepaid Expenses Net Property, Plant, and Equipment Net Product Sales

1. Increase 2. Decrease 3. Normal Side Side Balance Right/Credit Left/Debit Credit Right/Credit Left/Debit Credit Left/Debit Right/Credit Debit Left/Debit Left/Debit

Right/Credit Right/Credit

Debit Debit

Left/Debit Right/Credit

Right/Credit Left/Debit

Debit Credit

(b) 1. 2. 3.

Cash is increased. Cash is decreased. Cash is decreased.

(c) 1. 2.

Cash is decreased or Interest Payable is increased. Cash is decreased or Notes (or Mortgage) Payable is increased.




3-75

BYP 3-2

(a) 1. 2. 3. 4. 5.

COMPARATIVE ANALYSIS PROBLEM

Tootsie Roll s Receivable: Net Property, Plant, and Equipment: s Payable: Retained Earnings: Net Product Sales:

debit debit credit credit credit

1. 2. 3. 4. 5.

Hershey Foods Inventories: Provision for Income Taxes: Accrued Liabilities: Common Stock: Interest Expense:

debit debit credit credit debit

(b) The following other s are ordinarily involved:

3-76

1.

Increase in s Receivable: Service Revenue or Sales Revenue is increased (credited).

2.

Decrease in Notes Payable: Cash is decreased (credited).

3.

Increase in Machinery: Notes Payable is increased (credited) or Cash is decreased (credited).

4.

Increase in Interest Revenue: Cash or Interest Receivable is increased (debited).




BYP 3-3

RESEARCH CASE

(a) There are 15 items listed in this section. Students ranking of the top three will vary. Their explanations for giving particular items high rankings should provide a basis for good classroom discussion. An additional activity would be to apply these criteria to an actual annual report. (b) The answers to this question will vary depending on the year. In 2006 the companies with the highest ranked annual reports were: Tellabs, Inc., Manitowoc Co., Inc., Tyson Foods, TD Bank Financial Group, MDU Resources, Scotiabank, F. Hoffmann-La Roche. (c) The annual report is the primary mechanism for a company to communicate its operating results and financial position to outsiders. If outsiders think that the company has made its best effort to communicate this information effectively they may have more confidence in the results, and may feel more comfortable relying on it to make decisions. On the other hand, if outsiders feel that the company did not do its best to communicate its results in an understandable fashion, or even tried to conceal things, then they will be reluctant to rely on the annual report as an information source.




3-77

BYP 3-4

INTERPRETING FINANCIAL STATEMENTS

CHIEFTAIN INTERNATIONAL, INC. (a) One of the primary advantages to Chieftain of having no long-term debt is that there is room for growth through the use of debt and the company’s financial risk is greatly reduced. Another advantage is that profitability is enhanced when there is no interest expense. A possible disadvantage is that the company could expand more and earn a greater return if the growth had been financed with long-term debt. (b) An advantage to Chieftain from having a large cash balance is that cash is available to finance such things as the drilling of new wells and the investment in new technology. New opportunities may be seized and expansions may be undertaken at the time most advantageous for the business. A disadvantage is that cash earns little or no interest. A higher rate of return might be generated on excess cash by some other type of investment. (c) s payable, as purchases on credit, represent interest-free loans. Business enterprises don’t pay cash unless the supplier requires immediate payment. Nearly all exchange transactions are conducted on 30-day or more credit.

3-78




BYP 3-5

FINANCIAL ANALYSIS ON THE WEB

(a) A stands for Certified Public ant. As work in public ing, business and industry, government, and education. (b) “Public ing” is a term that describes ants who provide audit services. Auditors review company financial records for accuracy and ability. Public ants also provide advice to clients regarding taxation laws, computer technology, and management operations. (c) A A needs: strong communication and leadership skills, critical thinking and big-picture perspectives, strong analytical and computer skills, well-rounded academic background that combines liberal arts & science courses with ing and business classes, strong sense of ethics and integrity, a professional manner to interact well with a variety of people. (d) Salary ranges are: $52,000 – $62,250 during the first three years for a A at a large firm; $252,500 – $358,750 for Chief Financial Officer (CFO) & Treasurer at a large corporation.




3-79

BYP 3-6

DECISION MAKING ACROSS THE ORGANIZATION

(a) May 1

Cash .......................................................................... Common Stock .............................................

15,000 15,000

5

Correct.

7

Cash .......................................................................... Unearned Revenue ......................................

500

Hay and Feed Supplies ....................................... s Payable........................................

1,500

Office Equipment .................................................. Cash .................................................................

800

Dividends................................................................. Cash .................................................................

400

Cash .......................................................................... Riding Revenue ............................................

154

Veterinary Expense .............................................. s Payable........................................

75

9 14 15 20 31

500 1,500 800 400 154 75

(b) The error in the entries of May 14 and May 20 would prevent the trial balance from balancing. (c) Net income as reported ................................................. Add: 5/9, Hay and feed expense............................... 5/15, Salaries expense (dividends paid)....................................................................

$ 4,500 $1,500 400

Less: 5/7, Unearned boarding revenue ................... Correct net income.......................................................... (d) Cash as reported ............................................................. Add: 5/9, Purchase on ................................ 5/20, Transposition error..................................

3-80


1,900 6,400 500 $ 5,900 $12,475

$1,500 9


1,509 $13,984


BYP 3-7

COMMUNICATION ACTIVITY

To:

ing Instructor

From:

ing Student

Re:

Steps in Recording Process

In the first transaction, bills totaling $6,000 were sent to customers for services provided. Therefore, the asset s Receivable is increased $6,000 and the revenue Service Revenue is increased $6,000. Debits increase assets and credits increase revenues, so the journal entry is: s Receivable ........................................................................ Service Revenue........................................................................ (Billed customers for services provided)

6,000 6,000

The $6,000 amount is then posted to the debit side of the general ledger s Receivable and to the credit side of the general ledger Service Revenue. In the second transaction, $2,000 was paid in salaries to employees. Therefore, the expense Salaries and Wages Expense is increased $2,000 and the asset Cash is decreased $2,000. Debits increase expenses and credits decrease assets, so the journal entry is: Salaries and Wages Expense......................................................... Cash............................................................................................... (Salaries paid)

2,000 2,000

The $2,000 amount is then posted to the debit side of the general ledger Salaries and Wages Expense and to the credit side of the general ledger Cash.




3-81

BYP 3-8

ETHICS CASE

(a) The stakeholders in this situation are: • • •

Courtney Delacey, assistant chief ant. s of the company’s financial statements. BIT Company.

(b) By adding $1,000 to the Equipment , that total is intentionally misstated. By not locating the error causing the imbalance, some other may also be misstated by $1,000. If the amount of $1,000 is determined to be immaterial, and the intent is not to commit fraud (cover up an embezzlement or other misappropriation of assets), Courtney’s action might not be considered unethical in the preparation of interim financial statements. However, if Courtney is violating a company ing policy by her action, then she is acting unethically. (c) Courtney’s alternatives are:

3-82

1.

Miss the deadline but find the error causing the imbalance.

2.

Tell her supervisor of the imbalance and suffer the consequences.

3.

Do as she did and locate the error later, making the adjustment in the next quarter.




BYP 3-9

ETHICS CASE

(a) Employees in the rail unit accelerated revenue in each of the fourth quarters from 2000 to 2003. That is, revenue that should have been reported in the first quarter of a year was instead reported in the fourth quarter of the previous year. (b) One possible motivation for engaging in this activity is that bonuses are frequently based on annual results. If it appeared that the rail unit was not going to meet the performance level required for bonuses, the employees may have shifted the revenue recognition forward on these sales in order to boost annual results to meet performance targets. (c) The employees were fired. In addition, the matter was being investigated by the Securities and Exchange Commission (SEC). (d) To restate financial statements means to actually issue new financial statements to replace those that were previously issued. We are told that, for example, 2002 revenue was overstated by $158 million, and net income was overstated by $22 million. While these numbers seem large, to GE they are immaterial. $22 million was less than 0.2% of the company’s net income. As a percentage of GE’s total results the errors are not large enough to change investors’ evaluation of the company.




3-83

BYP 3-10

ALL ABOUT YOU ACTIVITY

We address the issue of contingent liabilities in greater detail in Chapter 10. Our primary interest in this exercise is to engage students in a discussion regarding the general nature of the financial statement elements (assets, liabilities, equity, revenues and expenses). (a)

By taking out the bank loan your friend has incurred a liability. You do not have a liability unless your friend defaults, or unless it becomes clear that he will default. The loan application may, however, require you to disclose any guarantees that you have signed, since they represent potential liabilities.

(b) ing standards have specific requirements regarding ing for situations where there is uncertainty regarding whether a liability has been incurred. Those standards require an evaluation of the probability of an amount being owed. Without going into detail regarding those standards, the basic idea is that if it is probable that you will owe money, then you should accrue a liability. If it is not probable, but it is possible that you will owe money, then you should disclose facts regarding the situation. The most important point is that this event has the potential to materially impact your finances, and therefore you have a responsibility to disclose it to the bank in some form. (c)

3-84

Losing your job would not create a financial liability, although it would most certainly reduce your revenues. You are obviously concerned that you might lose your job, but you don’t have specific information that would suggest that it will happen. Therefore, you probably don’t have an obligation to disclose this information to the bank. However, unless you are relatively certain that you would be able to find suitable employment relatively quickly, you might want to wait until your job situation has stabilized before pursuing a loan of this size.




IFRS 3-1

CONCEPTS AND APPLICATION

In deciding whether the U.S. should adopt IFRS, the SEC should consider the following. Whether IFRS is sufficiently developed and consistent in application Whether the IASB is sufficiently independent Whether IFRS is established for the benefit to investors The issues involved in educating investors about IFRS The impact of a switch to IFRS on U.S. laws and regulations The impact on companies including changes to their ing systems, contractual arrangements, corporate governance, and litigation • The issues involved in educating ants, so they can prepare statements under IFRS • • • • • •




3-85

IFRS 3-2

INTERNATIONAL FINANCIAL REPORTING PROBLEM

Share capital

Financial Statement Consolidated Balance Sheet Goodwill Consolidated Balance Sheet Borrowings and Consolidated overdrafts Balance Sheet Amortisation of Consolidated intangible Income Statement assets Derivative Consolidated financial asset Balance Sheet

3-86


Position in Financial Statement Equity Non-current assets Current and Non-current liabilities After Gross profit and before Operating profit Current assets



Ch3.pdf 2s5r6b

Overview 3e4r5l

More details w3441

More Documents from "Arnoldo 'Oz' Olmos" 2t33c

Ch3.pdf 2s5r6b

Curry, 5 Especias Chinas, Quatre Epice 61u5s

Efecto Mozart.pdf 6o4a3w

6l6m1j

Croatto Crear Y Amar En Libertad Genesis 24 324 4f6k

Derecho Lab Act 9 1h6l1