ch04-LectureProblems-AFM101w2012

ch04-LectureProblems-AFM101w2012 - Chapter 4 Exercise 1 (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 IFRS/ASPE. Lisa and Charlie ask you for advice. Charlie prepared the following trial balance shown below on May 31, 2012. 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) Accounts payable $ 300 Accounts receivable 800 Cash 19,500 Share capital 9,300 Maintenance revenue 800 Maintenance supplies inventory 125 Maintenance supplies expense 50 Notes payable 18,000 Notes receivable 1,000 Prepaid expenses 300 Property, plant, and equipment 10,000 Refinishing revenue 150 Retained earnings 3,200 Unearned/deferred revenue 200 Utilities expense 175 Prepare an unadjusted trial balance for Reliable Yacht Repair Inc as of May 31, 2012.
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Chapter 4 – Exercise 1 (3 of 3) SOLUTION: Reliable Yacht Repair, Inc Unadjusted Trial Balance at May 31, 2012 type Account Name debit credit
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ch04-LectureProblems-AFM101w2012 - Chapter 4 Exercise 1 (1...

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