LN04-ch4-LectureProblems-AFM101s10

LN04-ch4-LectureProblems-AFM101s10 - Chapter 4 Exercise 1...

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Chapter 4 – Exercise 1 (1 of 3) Lisa and Charlie operate a yacht maintenance service that they incorporated as Reliable Yacht Repair Inc. They recently talked to their banker about obtaining a loan. The banker sounded interested, but wants to see last month’s income statement. She reminded them that the bank only accepts financial statements that are prepared in accordance with GAAP. Lisa and Charlie ask you for advice. Charlie prepared the following trial balance shown below on May 31, 20B. He carefully put the company’s accounts in alphabetical order (it seemed like a logical approach to him). All of the company’s accounts have normal balances (debit or credit).
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Chapter 4 – Exercise 1 (2 of 3) (…continued) [L]Accounts payable $ 300 [A]Accounts receivable 800 [A]Cash 19,500 [SE]Share capital 9,300 [SE-R]Maintenance revenue 800 [A]Maintenance supplies inventory 125 [SE-E]Maintenance supplies expense 50 [L]Notes payable 18,000 [A]Notes receivable 1,000 [A]Prepaid expenses 300 [A]Property, plant and equipment 10,000 [SE-R]Refinishing revenue 150 [SE]Retained earnings 3,200 [L]Unearned revenue 200 [SE-E]Utilities expense 175 Prepare an unadjusted trial balance for Reliable Yacht Repair Inc as of May 31, 20B.
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Chapter 4 – Exercise 1 (3 of 3) SOLUTION: Reliable Yacht Repair, Inc Unadjusted Trial Balance at May 31, 20B type Account Name debit credit
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Chapter 4 – Exercise 2 (1 of 3) Review the unadjusted trial balance you prepared in Exercise 1. Identify the accounts that might
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This note was uploaded on 06/17/2011 for the course AFM 101 taught by Professor Kennedy during the Spring '08 term at Waterloo.

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LN04-ch4-LectureProblems-AFM101s10 - Chapter 4 Exercise 1...

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