1 description debit balance forward credit balance

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: xpense 28,000 Supplies Expense 8,000 Rent Expense 6,800 Interest Expense 2,400 Dividends 10,000 $ 55,200 $ 104,000 Download free eBooks at bookboon.com 42 Accounting Cycle Exercises II Problem 7: Worksheet Worksheet 7 (e) HAGEN CORPORATION Income Statement For the Month Ending January 31, 20X6 Revenues Services to customers Expenses Salaries Supplies Rent Interest Net income HAGEN CORPORATION Statement of Retained Earnings For the Month Ending January 31, 20X6 Beginning retained earnings Plus: Net income Less: Dividends Ending retained earnings HAGEN CORPORATION Balance Sheet January 31, 20X6 Assets Cash Accounts receivable Land Total assets Liabilities Accounts payable Loan payable Total liabilities Stockholders’ equity Capital stock Retained earnings Total stockholders’ equity Total liabilities and equity Download free eBooks at bookboon.com 43 Accounting Cycle Exercises II Problem 7: Solution Solution 7 (a) CASH Date Description Debit Credit Balance Jan. 1 Balance forward - - 100,000 Jan. 2 Journal Page 1 40,000 - 140,000 Jan. 3 Journal Page 1 - 80,000 60,000 Jan. 7 Journal Page 1 48,000 - 108,000 Jan. 11 Journal Page 1 - 12,000 96,000 Jan. 12 Journal Page 1 44,000 - 140,000 Jan. 17 Journal Page 2 - 10,000 130,000 Jan. 20 Journal Page 2 - 6,800 123,200 Jan. 23 Journal Page 2 - 16,000 107,200 Jan. 24 Journal Page 2 - 64,000 43,200 Jan. 29 Journal Page 2 200,000 - 243,200 Jan. 31 Journal Page 3 - 88,000 155,200 Jan. 31 Journal Page 3 - 2,400 152,800 ACCOUNTS RECEIVABLE Date Description Jan. 1 Balance forward Jan. 2 Jan. 5 Jan. 29 Debit Credit Balance - - 300,000 Journal Page 1 - 40,000 260,000 Journal Page 1 60,000 - 320,000 Journal Page 2 - 200,000 120,000 LAND Date Description Jan. 1 Jan. 3 Debit Balance forward Journal Page 1 Credit Balance - - 600,000 80,000 - 680,000 ACCOUNTS PAYABLE Date Jan. 1 Description Debit Credit Balance Balance forward - - 240,000 Jan. 15 Journal Page 2 - 8,000 248,000 Jan. 24 Journal Page 2 64,000 - 184,000 LOAN PAYABLE Date Description Debit Credit Balance Jan. 1 Balance forward - - 120,000 Jan. 7 Journal Page 1 - 48,000 168,000 Jan. 31 Journal Page 3 88,000 - 80,000 Download free eBooks at bookboon.com 44 Accounting Cycle Exercises II Problem 7: Solution CAPITAL STOCK Date Jan. 1 Description Debit Balance forward Credit - Balance - 200,000 RETAINED EARNINGS Date Jan. 1 Description Debit Balance forward Credit - Balance - 440,000 DIVIDENDS Date Description Debit Jan. 1 Jan. 17 Credit Balance - - 10,000 Journal Page 2 - 10,000 REVENUES Date Description Debit Jan. 1 Credit Balance - - - Jan. 5 Journal Page 1 - 60,000 60,000 Jan. 12 Journal Page 1 - 44,000 104,000 SALARIES EXPENSE Date Description Debit Jan. 1 Credit Balance - - - Jan. 11 Journal Page 1 12,000 - 12,000 Jan. 23 Journal Page 2 16,000 - 28,000 SUPPLIES EXPENSE Date Description Debit Jan. 1 Jan. 15 Credit Balance - - 8,000 Journal Page 2 - 8,000 RENT EXPENSE Date Description Debit Jan. 1 Jan. 20 Credit Balance - - 6,800 Journal Page 2 - 6,800 INTEREST E...
View Full Document

Ask a homework question - tutors are online