{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

LN04-ch4-LectureProblems-AFM101s10

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

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
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).
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Image of page 2
Chapter 4 – Exercise 1 (3 of 3) SOLUTION: Reliable Yacht Repair, Inc Unadjusted Trial Balance at May 31, 20B type Account Name debit credit
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 4 – Exercise 2 (1 of 3) Review the unadjusted trial balance you prepared in Exercise 1.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern