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    Trial Balances and Petty Cash

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    FREEMAN COMPANY
    Work Sheet
    For the Year Ended December 31, 2003

    Income Statement Balance Sheet
    ???????????????? ????????????????
    Accounts Debit Credit Debit Credit
    ???????? ?????? ??????
    Cash 20,700
    Accounts Receivable 4,000
    Prepaid Insurance 7,000
    Supplies 4,500
    Equipment 48,000
    Accumulated Depreciation 4,800
    Patents 7,500
    Accounts Payable 22,000
    Bonds Payable 18,000
    Common Stock 30,000
    Retained Earnings 16,000
    Dividends 3,500
    Service Revenue 23,400
    Salaries Expense 5,700
    Depreciation Expense 4,800
    Insurance Expense 5,000
    Interest Expense 3,500
    ?????? ?????? ?????? ??????
    Totals 19,000 23,400 95,200 90,800
    Net Income 4,400 4,400
    ?????? ?????? ?????? ??????
    23,400 23,400 95,200 95,200

    INSTRUCTIONS
    Prepare a classified balance sheet for Freeman Company.

    COLLINS INSURANCE AGENCY
    Income Statement
    For the Month Ended June 30
    ??????????????????????????????????????????????????
    Revenues
    Premium Commission Revenue ....................... $30,000
    Expenses
    Salary expense ................................... $7,000
    Advertising expense .............................. 800
    Rent expense ..................................... 4,200
    Depreciation expense ............................. 2,800
    ??????
    Total expenses ................................. 14,800
    ???????
    Net income ......................................... $15,200

    Additional Data: When the income statement was prepared, the
    company accountant neglected to take into consideration the
    following information:

    1. A utility bill for $2,000 was received on the last day of the
    month for electric and gas service for the month of June.

    2. A company insurance salesman sold a life insurance policy to a
    client for a premium of $25,000. The agency billed the client
    for the policy and is entitled to a commission of 20%.

    3. Supplies on hand at the beginning of the month were $3,000. The
    agency purchased additional supplies during the month for $2,500
    in cash and $2,200 of supplies were on hand at June 30.

    4. The agency purchased a new car at the beginning of the month for
    $19,200 cash. The car will depreciate $4,800 per year.

    5. Salaries owed to employees at the end of the month total $5,500.
    The salaries will be paid on July 5.

    INSTRUCTIONS
    Prepare a correct income statement.

    The adjusted trial balance of the Nelson Music Company appears below.
    Nelson Music Company prepares monthly financial statements and uses
    the perpetual inventory method.

    INSTRUCTIONS
    Complete the work sheet below.

    NELSON MUSIC COMPANY
    Work sheet
    For the Month Ended April 30, 2007

    Adjusted
    Trial Balance Income Statement Balance Sheet
    ??????????????? ????????????????
    Debit Credit Debit Credit Debit Credit
    ??????????????????????????????????????????????????
    Cash 15,000
    Supplies 3,500
    Merch Inv. 17,000
    Equipment 85,000
    Accum. Deprec.??
    Equipment 15,000
    Accounts Payabl e 15,000
    Common Stock 80,000
    Retained Earnings 17,000
    Dividends 5,000
    Sales 48,000
    Sales Discounts 2,000
    Cost of Gds. Sold 30,000
    Advertising Exp. 7,000
    Supplies Expense 6,000
    Deprec. Expense 1,000
    Rent Expense 2,500
    Utility Expense 1,000
    ??????? ???????
    175,000 175,000

    On October 1, 2000, Harris Company establishes an imprest petty cash
    fund by issuing a check for $150 to Anika Collette, the custodian of the
    petty cash fund. On October 31, 2000, Anika Collette submitted the
    following paid petty cash receipts for replenishment of the petty
    cash fund when there is $4 cash in the fund:

    Freight-in $26
    Office Supplies Expense 35
    Entertainment of Clients 60
    Postage Expense 20

    INSTRUCTIONS
    Prepare the journal entries required to establish the petty cash
    fund on October 1 and the replenishment of the fund on October 31.

    Andy Delduca and Associates is a financial planning service. The
    account balances at December 31, 2007 are shown by the following
    alphabetical list:

    Accounts Payable $ 10,000
    Accounts Receivable 21,000
    Automobiles 27,500
    Building 120,000
    Cash 20,500
    Common Stock 184,700
    Computer 28,000
    Computer Software 4,200
    Land 42,000
    Notes Payable 95,000
    Notes Receivable 8,100
    Office Furniture 15,400
    Office Supplies 800
    Technical Library 2,200

    INSTRUCTIONS
    Prepare a trial balance with the accounts arranged in financial
    statement order.

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    https://brainmass.com/business/trial-balance/trial-balances-petty-cash-167825

    Attachments

    Solution Preview

    For the first question - I have attached a classified balance sheet and all you need to do is fill in the numbers from the data you were given.

    For the second question, you were already given the income statement but you were ...

    Solution Summary

    The solution contains highly detailed explanations and sample financial statements.

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