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Page 1
SOLUTIONS TO HERITAGE HOME FURNITURE
A NARRATIVE PRACTICE SET
FOR USE WITH
ACCOUNTING
PRINCIPLES
7th Edition
J
J. W
ERRY
EYGANDT Ph.D., C.P.A.
Arthur Anderson Alumni Professor of Accounting
University of Wisconsin - Madison
Madison, Wisconsin
DONALD E. KIESO Ph.D., C.P.A.
KPMG Peat Marwick Emeritus Professor of Accountancy
Northern Illinois University
DeKalb, Illinois
P
D. K
AUL
IMMEL Ph.D., C.P.A.
Associate Professor of Accounting
University of Wisconsin - Milwaukee
Milwaukee, Wisconsin
Prepared By
JOAN E. COOK, C.P.A.
Milwaukee Area Technical College
JOHN WILEY & SONS, INC.
New York • Chichester • Weinheim • Brisbane • Singapore • Toronto
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TABLE OF CONTENTS
Sales Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Purchases Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Cash Receipts Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Cash Payments Journal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
General Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
General Ledgers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Accounts Receivable Subsidiary Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Accounts Payable Subsidiary Ledger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Accounts Receivable Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Accounts Payable Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Work Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Bank Reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Depreciation Schedule for Delivery Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Owner’s Equity Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Post-Closing Trial Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
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SALES JOURNAL
S5
20xx
Date
Account Debited
Inv.
No.
Ref.
Accts. Rec. Dr.
Sales Cr.
Cost of Goods
Sold Dr.
Merchandise
Inventory Cr.
7
Willington Hotels
621
✔
9 1 0 0
4 5 5 0
1
2
10
Carthage Community College
622
✔
5 5 0 0
2 7 5 0
2
3
13
Salem Hotel
623
✔
12 0 0 0
6 0 0 0
3
1
May
4
20
Wallton Apartments
624
✔
28 3 5 0
14 1 7 5
4
5
20
Tollson Motel
625
✔
11 0 0 0
5 5 0 0
5
6
23
Carthage Community College
626
✔
17 5 0 0
8 7 5 0
6
7
28
Wallton Apartments
627
✔
9 8 0 0
4 9 0 0
7
8
28
Willington Hotels
628
✔
15 0 0 0
7 5 0 0
8
9
31
Salem Hotel
629
✔
8 8 0 0
4 4 0 0
9
10
11 7 0 5 0
5 8 5 2 5
10
11
(112)(411)
(505)(120)
11
12
12
13
13
14
14
15
15
PURCHASES JOURNAL
P 12
20xx
Date
1
May
Account Credited
7
Terms
Ref.
Lexis Fine Furniture
1/15, n/30
✔
Merchandise
Inventory Dr.
Accounts
Payable Cr.
2 2 2 0 0
1
2
20
Lexis Fine Furniture
3/15, n/30
✔
1 9 0 0 0
2
3
21
Georgia Carpet Mills
2/10,n/60
✔
1 5 8 0 0
3
4
24
American Mattress Co.
n/30
✔
1 0 8 0 0
4
5
28
Cabbot Recliners, Inc.
1/15,n/30
✔
1 1 5 0 0
5
6
28
Austin Cabinet Makers
2/30,n/60
✔
7 5 0 0
6
7
8 6 8 0 0
7
8
(120)(201)
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
Copyright © 2004 by John Wiley & Sons, Inc.
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CASH RECEIPTS JOURNAL
CR 10
Date
20xx
1
May
Bank
Deposit
1
Walton Apartments, Inc.
2
3
Cash sales
3
3
Bank Deposit
✔
Cash
Dr.
8 8 2 0
5 1 2 0 0
6 0 0 2 0
1
2
3
4
6
Bell and Gateway, CPAs
✔
1 4 7 0
4
5
6
Tollson Motel
✔
5 0 9 6
5
6
6
Carthage Community College
✔
2 0 0 9
6
7
8
Willington Hotels
✔
9 0 1 6
7
✔
1 9 6 0
8
3 1 0 0 0
9
8
9
Bell and Gateway, CPAs
9
10
Cash sales
10
10
Bank Deposit
11
13
Wallton Apartments Inc.
12
14
Brent Davis Capital
13
16
Willington Hotels
14
17
Cash Sales
15
17
Bank Deposit
16
20
Carthage Community College
✔
5 3 9 0
16
17
23
Salem Hotel
✔
1 1 7 6 0
17
18
24
Cash Sales
3 5 2 0 0
18
19
24
Bank Deposit
20
29
Other Receivables (Truck Sale)
21
30
Dorothy Knight
22
31
Cash Sales
23
31
Bank Deposit
5 0 5 5 1
✔
301
✔
10
4 4 0 0
11
1 0 0 0 0
12
8 9 1 8
13
2 1 7 5 0
14
4 5 0 6 8
15
5 2 3 5 0
119
✔
19
4 5 0 0
20
6 5 0
21
2 1 8 0 0
22
2 6 9 5 0
24
23 4 9 3 9
25
(x)
23
23 4 9 3 9
(101)
24
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
41
41
42
42
43
43
44
44
45
45
Copyright © 2004 by John Wiley & Sons, Inc.
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CASH RECEIPTS JOURNAL
CR 10
Sales
Discounts
1
1 8 0
Accounts
Receivable Cr.
Sales
Cr.
Maxicard
Sales Cr.
Other
Accounts Cr.
Cost of Goods
Sold Dr.
Merchandise
Inventory Cr.
9 0 0 0
2
1
4 3 2 0 0
8 0 0 0
2 5 6 0 0
3
2
3
4
3 0
1 5 0 0
4
5
1 0 4
5 2 0 0
5
6
4 1
2 0 5 0
6
7
1 8 4
9 2 0 0
7
8
4 0
2 0 0 0
9
8
2 7 5 0 0
3 5 0 0
1 5 5 0 0
10
10
11
4 4 0 0
11
12
13
9
1 0 0 0 0
1 8 2
12
9 1 0 0
14
13
1 4 7 5 0
7 0 0 0
1 0 8 7 5
15
14
15
16
1 1 0
5 5 0 0
16
17
2 4 0
1 2 0 0 0
17
18
3 0 0 0 0
5 2 0 0
1 7 6 0 0
19
18
19
20
4 5 0 0
21
20
6 5 0
22
21
1 4 6 0 0
7 2 0 0
1 0 9 0 0
23
22
23
24
1 1 1 1
6 0 6 0 0
13 0 0 5 0
3 0 9 0 0
25
(414)
(112)
(401)
(401)
1 4 5 0 0
(X)
8 0 4 7 5
24
(505/120)
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
41
41
42
42
43
43
44
44
45
45
Copyright © 2004 by John Wiley & Sons, Inc.
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CASH PAYMENTS JOURNAL
CP 11
20xx
Date
1
May
Check
No.
Payee
Account Debited
3
525
Cabbot Recliners, Inc.
Cabbot Recliners, Inc.
1
2
6
526
Zeekle Auto Shop
Repairs and Maintenance-Delivery Trucks
2
3
8
527
Wallace Office Superstore
Wallace Office Superstore
3
4
9
528
Eastern Freight
Merchandise Inventory
4
5
13
529
Lexis Fine Furniture
Lexis Fine Furniture
5
6
14
530
Old Hickory Furniture
Old Hickory Furniture
7
15
531
Brent Davis
8
15
532
Ohio State Bank
9
6
7
FICA Taxes Payable
8
Federal Income Tax WH Withholding Payable
9
10
17
533
American Mattress Co.
American Mattress Co.
10
11
20
534
Georgia Carpet Mills
Georgia Carpet Mills
11
12
20
535
Daily Advocate
13
20
536
Lexis Fine Furniture
Lexis Fine Furniture
13
14
20
537
Austin Cabnet Makers
Austin Cabnet Makers
14
15
21
538
Reliable Freight
Merchandise Inventory
15
16
28
539
Falcon Truck
Repairs and Maintenance-Delivery Trucks
17
29
540
Daily Advocate
18
29
541
Brent Davis
Brent Davis, Drawing
18
19
30
542
George Collins
Office Supplies
19
Store Supplies
20
30
543
Ohio State Bank
Interest Expense
21
Mortgage Payable
22
23
30
544
Oxford Utilities
Utilities Expense
23
24
31
545
Brent Davis
20
21
22
12
16
17
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
41
41
42
42
43
43
44
44
45
45
Copyright © 2004 by John Wiley & Sons, Inc.
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CASH PAYMENTS JOURNAL
CP 11
Ref.
1
✔
2
624
3
✔
4
120
5
✔
6
✔
Other
Accounts Dr.
Advertising
Expense Dr.
Salaries
Payable Dr.
Accounts
Payable Dr.
Merchandise
Inventory Cr.
4 0 0 0
5 5 0
5 0 0
2 9 0 0
7
16 7 0 0
3 3 4
8 3 5 0
1 6 7
2 4 3 0 9
Cash
Cr.
4 0 0 0
1
5 5 0
2
5 0 0
3
2 9 0 0
4
1 6 3 6 6
5
8 1 8 3
6
2 4 3 0 9
7
8
214
11 9 0 0
9
216
16 1 0 0
10
✔
6 8 0 0
6 8 0 0
10
11
✔
4 8 0 0
9 6
4 7 0 4
11
1 5 0 0
12
22 2 0 0
2 2 2
2 1 9 7 8
13
19 1 0 0
3 8 2
1 8 7 1 8
14
2 2 0 0
15
12
13
8
2 8 0 0 0
1 5 0 0
✔
14
✔
15
120
2 2 0 0
16
624
8 2 0
17
3 5 0 0
9
8 2 0
16
3 5 0 0
17
1 6 0 0 0
18
18
306
16 0 0 0
19
125
7 5
20
127
8 0
21
905
9 0 0
22
275
1 1 0 0
2 0 0 0
22
23
732
9 5 0
9 5 0
23
19
2 5
26
2 1 1 8 8
53 5 7 5
(X)
20
21
24
25
1 8 0
5 0 2 5
(610)
4 5 4 9 7
(212)
82 4 5 0
(201)
1 2 0 1
(120)
2 1 1 8 8
24
18 5 3 4 6
25
(101)
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
41
41
42
42
43
43
44
44
45
45
Copyright © 2004 by John Wiley & Sons, Inc.
5
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GENERAL JOURNAL
J 12
Date
20xx
1
May
2
2
Account Titles and Explanation
Ref.
Debit
Credit
Delivery Trucks (new)
163
42 0 0 0
1
Accumulated Depreciation-Delivery Trucks
164
9 0 0 0
2
3
Delivery Trucks (old)
163
3 6 0 0 0
3
4
Notes Payable, 8%, 3-Month
200
1 5 0 0 0
4
5
To record exchange of old delivery truck
5
6
for a similar new delivery truck
6
7
8
7
10
Notes Receivable
9
Accounts Receivable / Jake Lansing
10
To record acceptance of 30-day, 8%
11
note of payment in full of open account
115
112
6 0 0 0
✔
8
6 0 0 0
10
11
12
13
9
12
15
Store Salaries Expense
626
25 0 0 0
13
14
Office Salaries Expense
727
8 1 0 0
14
15
FICA Taxes Payable
214
2 6 8 1
15
16
Federal Income Tax Withholding Payable
216
6 1 1 0
16
17
Salaries Payable
212
24 3 0 9
17
18
Accrue Salaries
18
19
20
19
15
Payroll Taxes Expense
730
21
FICA Taxes Payable
214
2 6 8 1
21
22
Federal Unemployment Tax Payable
224
1 6 6
22
State Unemployment Tax Payable
226
1 0 4 1
23
23
24
3 8 8 8
20
Accrue Payroll Taxes
24
25
26
25
23
27
Sales Returns & Allowances
412
112
Accounts Receivable/Tollson Motel
28
1 0 0 0
✔
26
1 0 0 0
CM 129, Inv. 625
28
29
30
29
23
31
Merchandise Inventory
120
Cost of Goods Sold
505
5 0 0
30
5 0 0
32
33
34
35
27
31
32
24
Allowance for Doubtful Accounts
113
112
Accounts Receivable/Dorothy Knight
Write off - bad account
6 5 0
✔
33
6 5 0
34
35
36
36
37
37
38
38
39
39
40
40
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GENERAL JOURNAL
J 13
Date
20xx
1
May
29
2
Account Titles and Explanation
Ref.
Depreciation Expense - Delivery Truck
617
Accumulated Depreciation-Delivery Trucks
3
Debit
Credit
3 0 0
164
1
3 0 0
2
Record Depreciation on truck
3
4
4
5
29
6
Other Receivables
Accumulated Depreciation-Delivery Trucks
119
4 5 0 0
164
14 9 0 0
5
6
7
Delivery Truck
163
1 7 5 0 0
7
8
Gain on Disposal Trucks
812
1 9 0 0
8
9
Record Sale of Truck
9
10
10
11
30
12
112
Accounts Receivable/Dorothy Knight
Allowance for Doubtful Accounts
13
✔
6 5 0
113
11
6 5 0
12
Reinstate account written off
13
14
14
15
31
Store Salaries Expense
626
17 7 5 0
15
16
Office Salaries Expense
727
11 4 0 0
16
17
FICA Taxes Payable
214
18
Federal Income Tax Withholding Payable
19
Salaries Payable
20
2 3 3 2
17
216
5 6 3 0
18
212
21 1 8 8
19
Accrue Salaries
20
21
21
22
31
Payroll Tax Expense
730
3 4 1 1
22
23
FICA Taxes Payable
214
2 3 3 2
23
24
Federal Unemployment Tax Payable
224
2 0 4
24
25
State Unemployment Tax Payable
226
8 7 5
25
26
Accrue payroll taxes
26
27
27
28
28
GENERAL JOURNAL
J 14
Date
20xx
1
May
2
(a)
Account Titles and Explanation
Ref.
Debit
Credit
Adjusting Entries
31
3
4
1
Credit Card Expense
613
Maxicard Payable
240
1 2 3 6
2
1 2 3 6
To accrue credit card fees (30,900x4%)
4
5
6
7
8
9
3
5
(b)
31
Maxicard payable
240
1 5 3 0
6
Miscellaneous Expense
735
1 2 0
7
Cash
101
Bank Reconciliation
8
9
10
Copyright © 2004 by John Wiley & Sons, Inc.
1 6 5 0
10
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GENERAL JOURNAL
J 15
Date
20xx
1
May
2
(c)
Account Titles and Explanation
Ref.
Debit
Credit
1
31
3
Bad Debt Expense
612
Allowance For Doubtful Accounts
4
1 1 7 8
113
2
1 1 7 8
To accrue bad debt expense ((94,450 x 4%)-2,600)
4
5
6
5
(d)
31
7
Interest Receivable
118
Interest Receivable
8
2 1
820
6
2 1
To accrue interest on note (6,000 x 6% x 21/360)
9
(e)
31
11
Cost of Goods Sold
505
Merchandise Inventory
12
2 4 7 4
120
10
2 4 7 4
Inventory Adjustment (243,399 - 240,925)
13
(f)
31
Office Supplies Expense
15
Office Supplies
16
Office Supplies used (4,275-2,050)
728
2 2 2 5
125
14
2 2 2 5
17
18
Store Supplies Expense
19
659
Store Supplies
20
1 5 0 5
127
18
1 5 0 5
Store Supplies Used (2,580 - 1,075)
19
20
21
21
(g)
31
23
Insurance Expense
722
Prepaid Insurance
24
5 1 0
130
22
5 1 0
Record expired insurance
23
24
25
26
15
16
17
22
11
12
13
14
7
8
9
10
3
25
(h)
31
Depreciation Expense - Buildings
713
1 5 0 0
26
27
Depreciation Expense - Office Equipment
715
6 0 0
27
28
Depreciation Expense - Delivery Trucks
617
1 7 5 0
28
29
Accumulated Depreciation - Buildings
146
1 5 0 0
29
30
Accumulated Depreciation - Office Equipment
152
6 0 0
30
Accumulated Depreciation - Delivery Trucks
164
1 7 5 0
31
31
32
Record Depreciation
32
33
34
35
36
33
(i)
31
Interest Expense
905
Interest Payable
230
Accrue interest on note (15,000 x 8% x 1/12)
1 0 0
34
1 0 0
35
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
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GENERAL JOURNAL
J 16
Date
20xx
1
May
2
Account Titles and Explanation
Ref.
Debit
Credit
Closing Entries
31
1
Sales
401
27 8 0 0 0
2
3
Gain on Disposal of Truck
812
1 9 0 0
3
4
Interest Revenue
820
2 1
4
5
Income Summary
6
350
27 9 9 2 1
To close credit balances
6
7
8
9
5
7
May
31
Income Summary
350
23 1 9 0 3
8
Sales Returns & allowances
412
1 0 0 0
9
10
Sales Discounts
414
1 1 1 1
10
11
Cost of Goods Sold
505
14 0 9 7 4
11
12
Advertising Expense
610
5 0 2 5
12
13
Bad Debt Expense
612
1 1 7 8
13
14
Credit Card Expense
613
1 2 3 6
14
15
Depreciation Expense - Delivery Truck
617
2 0 5 0
15
16
Repairs and Maintenance - Delivery Trucks
624
1 3 7 0
16
17
Store Salaries Expense
626
42 7 5 0
17
18
Store Supplies Expense
659
1 5 0 5
18
19
Depreciation Expense - Building
713
1 5 0 0
19
20
Depreciation Expense - Office Equipment
715
6 0 0
20
21
Insurance Expense
722
5 1 0
21
22
Office Salaries Expense
727
19 5 0 0
22
23
Office Supplies Expense
728
2 2 2 5
23
24
Payroll Tax Expense
730
7 2 9 9
24
25
Utilities Expense
732
9 5 0
25
26
Miscellaneous Expense
735
1 2 0
26
Interest Expense
905
1 0 0 0
27
28
To Close Debit Balances
29
30
31
32
27
28
29
Income Summary
350
Brent David, Capital
48 0 1 8
301
30
48 0 1 8
To Close Income Summary
31
32
33
33
34
Brent David, Capital
301
35
Brent David, Drawing
306
36
To Close Account
16 0 0 0
34
16 0 0 0
35
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
9
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 10
GENERAL LEDGER
Cash
ACCOUNT NO.
20xx
Date
May
Item
1
31
31
31
Ref.
✔
CR10
CP11
J14
Balance
Debit
Credit
23 4 9 3 9
18 5 3 4 6
1 6 5 0
Petty Cash
Item
1
Ref.
20xx
Date
1
10
23
24
30
31
31
Debit
Item
Ref.
✔
J12
J12
J12
J13
S9
CR10
Debit
105
Credit
6 5 0
11 7 0 5 0
60 6 0 0
112
Balance
Debit
4
3
3
3
3
15
9
5
9
8
7
8
5
4
0
0
0
3
0
0
4
0
0
0
5
0
5
5
0
0
0
0
0
0
0
ACCOUNT NO.
Item
Ref.
✔
J12
J13
J15
Balance
20xx
Date
1
10
0
9
3
3
Balance
Debit
Credit
6 0 0 0
1 0 0 0
6 5 0
Debit
Credit
6 5 0
6 5 0
1 1 7 8
Notes Receivable
May
4
7
3
8
ACCOUNT NO.
Balance
20xx
Date
1
24
30
31
9
8
5
8
2 0 0
Allowance for Doubtful Accounts
May
6
1
6
4
✔
Balance
Accounts Receivable
May
2
26
7
7
ACCOUNT NO.
20xx
Date
May
101
Balance
Debit
113
Balance
Debit
2
1
2
3
6
9
6
7
0
5
0
7
0
0
0
8
ACCOUNT NO.
Item
Balance
Copyright © 2004 by John Wiley & Sons, Inc.
10
Ref.
Debit
✔
J12
6 0 0 0
Credit
Balance
Debit
1 5 0 0 0
2 1 0 0 0
115
Heritage Home Solution 2004.qrk
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9:15 AM
Page 11
GENERAL LEDGER
Interest Receivable
20xx
Date
May
ACCOUNT NO.
Item
1
31
Ref.
✔
J15
Balance
Debit
20xx
Date
Credit
1 0 0
1 2 1
2 1
Other Receivable
ACCOUNT NO.
Item
May 29
29
Ref.
Debit
J13
4 5 0 0
CR10
May
1
31
31
31
31
10
21
23
31
Credit
4 5 0 0
4 5 0 0
Ref.
✔
P12
S9
CR10
CP11
CP11
CP11
J12
J15
Balance
Debit
86 8 0 0
58 5 2 5
80 4 7 5
1 2 0 1
2 9 0 0
2 2 0 0
5 0 0
2 4 7 4
1
30
31
Ref.
✔
CP11
J15
Balance
Debit
1
30
31
1
8
9
9
7
0
2
3
0
2
0
4
0
7
6
8
3
9
0
0
7
0
9
9
9
9
2
0
0
5
0
9
9
9
9
5
Credit
Balance
Debit
2 2 2 5
4 2 0 0
4 2 7 5
2 0 5 0
7 5
Store Supplies
May
29
37
31
23
23
24
24
24
24
ACCOUNT NO.
Item
20xx
Date
120
Balance
Debit
Credit
Office Supplies
May
0
ACCOUNT NO.
Item
20xx
Date
119
Balance
Debit
Merchandise Inventory
20xx
Date
118
Balance
Debit
ACCOUNT NO.
Item
Ref.
✔
CP11
J15
Balance
Copyright © 2004 by John Wiley & Sons, Inc.
11
Debit
Credit
Balance
Debit
1 5 0 5
2 5 0 0
2 5 8 0
1 0 7 5
8 0
125
127
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Page 12
GENERAL LEDGER
Prepaid Insurance
20xx
Date
May
ACCOUNT NO.
Item
1
31
Ref.
Debit
✔
J15
Balance
Credit
5 1 0
Land
May
Item
1
Ref.
Debit
Item
1
Ref.
85 9 0 0
Debit
ACCOUNT NO.
Item
1
31
Ref.
Debit
✔
J15
Balance
May
Ref.
Debit
✔
Balance
May
Ref.
Copyright © 2004 by John Wiley & Sons, Inc.
Debit
Credit
✔
Balance
31
J15
12
151
Balance
Debit
ACCOUNT NO.
Item
1
20 0 0 0 0
20 1 5 0 0
5 5 0 0 0
Accumulated Depreciation - Office Equipment
20xx
Date
Credit
146
Balance
Credit
ACCOUNT NO.
Item
1
Credit
1 5 0 0
Office Equipment
20xx
Date
145
Balance
Debit
35 0 0 0 0
Accumulated Depreciation - Buildings
20xx
Date
Credit
✔
Balance
140
Balance
Debit
ACCOUNT NO.
20xx
Date
May
Credit
✔
Balance
Buildings
May
5 2 0 0
4 6 9 0
ACCOUNT NO.
20xx
Date
130
Balance
Debit
Balance
Credit
32 0 0 0
6 0 0
32 6 0 0
152
Heritage Home Solution 2004.qrk
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Page 13
GENERAL LEDGER
Delivery Trucks
20xx
Date
May
ACCOUNT NO.
Item
1
2
2
29
Ref.
✔
J12
J12
J13
Balance
Debit
20xx
Date
May
36 0 0 0
17 5 0 0
Ref.
✔
J12
J13
J13
J15
Balance
Debit
May
Ref.
Balance
9 0 0 0
3 0 0
14 9 0 0
1 7 5 0
Debit
J12
May
1
31
31
0
0
0
0
0
0
0
0
Item
Ref.
✔
P12
CP11
Balance
Debit
Credit
86 8 0 0
82 4 5 0
Ref.
May 15
31
31
Copyright © 2004 by John Wiley & Sons, Inc.
J12
J13
CP11
13
Debit
Credit
24 3 0 9
21 1 8 8
45 4 9 7
200
Balance
Credit
15 0 0 0
201
Balance
Credit
60 2 5 0
14 7 0 5 0
64 6 0 0
ACCOUNT NO.
Item
164
23 6 0 0
14 6 0 0
14 9 0 0
0
1 7 5 0
ACCOUNT NO.
Salaries Payable
20xx
Date
Credit
15 0 0 0
Accounts Payable
20xx
Date
5
5
5
0
ACCOUNT NO.
Item
2
3
5
9
2
Balance
Credit
Credit
Notes Payable
20xx
Date
5
9
5
4
ACCOUNT NO.
Item
1
2
29
29
31
Balance
Debit
Credit
42 0 0 0
Accumulated Depreciation - Delivery Trucks
163
Balance
Credit
24 3 0 9
45 4 9 7
0
212
Heritage Home Solution 2004.qrk
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9:15 AM
Page 14
GENERAL LEDGER
FICA Taxes Payable
20xx
Date
May
ACCOUNT NO.
Item
1
15
15
31
31
15
Ref.
✔
J12
J12
J13
J13
CP11
Balance
Debit
20xx
Date
May
8
8
3
3
1
1
2
2
Ref.
✔
J12
J13
CP11
Balance
Debit
May
Ref.
6 1 1 0
5 6 3 0
16 1 0 0
Debit
✔
J12
J13
Balance
Credit
1 6 6
2 0 4
State Unemployment Tax Payable
20xx
Date
May
Ref.
Debit
✔
J12
J13
Balance
Interest Payable
20xx
Date
May
0
1
2
4
6
6
216
1
2
2
1
6
2
7
1
1
2
8
7
0
1
4
4
0
0
0
0
Ref.
6 2 0
7 8 5
9 9 0
Credit
Balance
Credit
1 0 4 1
8 7 5
1 9 0 0
2 9 4 1
3 8 1 6
31
Copyright © 2004 by John Wiley & Sons, Inc.
Debit
Credit
✔
Balance
J15
14
Balance
Credit
8 0 0
1 0 0
224
Balance
Credit
ACCOUNT NO.
Item
1
0
8
6
9
2
2
ACCOUNT NO.
Item
1
15
31
9
5
2
5
9
0
ACCOUNT NO.
Item
1
15
31
1
4
7
9
1
0
Balance
Credit
Credit
Federal Unemployment Tax Payable
20xx
Date
1
1
1
1
2
1
ACCOUNT NO.
Item
1
15
31
15
6
6
3
3
11 9 0 0
Federal Income Tax Withholding Payable
Balance
Credit
Credit
2
2
2
2
214
9 0 0
226
230
Heritage Home Solution 2004.qrk
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9:15 AM
Page 15
GENERAL LEDGER
Maxicard Payable
20xx
Date
May
ACCOUNT NO.
Item
1
31
31
Ref.
✔
J14
J14
Balance
Debit
20xx
Date
May
Ref.
1 5 3 0
Debit
30
CP11
Credit
20 0 0 0 0
1 1 0 0
19 8 9 0 0
Brent Davis, Capital
May
1
14
31
31
ACCOUNT NO.
Item
Ref.
✔
CR10
J16
J16
Balance
Debit
10 0 0 0
48 0 1 8
16 0 0 0
38
39
44
42
4
4
2
6
5
5
5
5
7
7
8
8
0
0
8
8
ACCOUNT NO.
Item
Ref.
May 29
CP11
31
Debit
Credit
16 0 0 0
J16
306
Balance
Debit
16 0 0 0
16 0 0 0
Income Summary
20xx
Date
301
Balance
Credit
Credit
Brent David, Drawing
20xx
Date
275
Balance
Credit
✔
Balance
20xx
Date
4 0 0
1 6 3 6
1 0 6
ACCOUNT NO.
Item
1
Credit
1 2 3 6
Mortgage Payable
240
Balance
Credit
0
ACCOUNT NO.
Item
Ref.
May 31
31
31
Copyright © 2004 by John Wiley & Sons, Inc.
J16
J16
J16
15
Debit
Credit
27 9 9 2 1
23 1 9 0 3
48 0 1 8
Balance
Credit
27 9 9 2 1
48 0 1 8
0
350
Heritage Home Solution 2004.qrk
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9:15 AM
Page 16
GENERAL LEDGER
Sales
ACCOUNT NO.
20xx
Date
Item
Ref.
May 31
31
31
31
S9
CR10
CR10
J16
Debit
Credit
11 7 0 5 0
13 0 0 5 0
30 9 0 0
27 8 0 0 0
Sales Return and Allowances
20xx
Date
Debit
May 23
J12
1 0 0 0
31
J16
Item
Credit
Item
31
Ref.
Debit
CR10
1 1 1 1
J16
Balance
Debit
1 0 0 0
0
Credit
414
Balance
Debit
1 1 1 1
1 1 1 1
Cost of Goods Sold
0
ACCOUNT NO.
Item
Ref.
May 23
31
31
31
31
J12
S9
CR10
J15
J16
Debit
Credit
5 0 0
58 5 2 5
80 4 7 5
2 4 7 4
505
Balance
Debit
( 5 0
58 0 2
13 8 5 0
14 0 9 7
14 0 9 7 4
Advertising Expense
0 )
5
0
4
0
ACCOUNT NO.
Item
May 31
31
Ref.
Debit
CP11
5 0 2 5
J16
Credit
610
Balance
Debit
5 0 2 5
5 0 2 5
Bad Debt Expense
20xx
Date
412
ACCOUNT NO.
May 31
20xx
Date
11 7 0 5 0
24 7 1 0 0
27 8 0 0 0
0
1 0 0 0
Sales Discounts
20xx
Date
Balance
Credit
ACCOUNT NO.
Ref.
20xx
Date
401
0
ACCOUNT NO.
Item
May 31
31
Copyright © 2004 by John Wiley & Sons, Inc.
16
Ref.
Debit
J15
J16
1 1 7 8
Credit
Balance
Debit
1 1 7 8
1 1 7 8
0
612
Heritage Home Solution 2004.qrk
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9:15 AM
Page 17
GENERAL LEDGER
Credit Card Expense
20xx
Date
ACCOUNT NO.
Ref.
Debit
May 31
Item
J14
1 2 3 6
31
J16
20xx
Date
Item
Ref.
Debit
J13
J15
J16
3 0 0
1 7 5 0
Repairs and Maintenance - Delivery Trucks
May
Item
Ref.
CP11
CP11
J16
Debit
Balance
Debit
2 0 5 0
3 0 0
2 0 5 0
0
624
Credit
Balance
Debit
1 3 7 0
5 5 0
1 3 7 0
0
ACCOUNT NO.
Item
Ref.
May 15
31
31
J12
J13
J16
Debit
Credit
25 0 0 0
17 7 5 0
42 7 5 0
Store Supplies Expense
626
Balance
Debit
25 0 0 0
42 7 5 0
0
ACCOUNT NO.
Ref.
Debit
May 31
J15
1 5 0 5
31
J16
Item
659
Balance
Debit
1 5 0 5
0
ACCOUNT NO.
Ref.
Debit
May 31
Item
J15
1 5 0 0
31
J16
Copyright © 2004 by John Wiley & Sons, Inc.
Credit
1 5 0 5
Depreciation Expense - Buildings
20xx
Date
617
Credit
5 5 0
8 2 0
Store Salaries Expense
20xx
Date
0
ACCOUNT NO.
6
28
31
20xx
Date
1 2 3 6
ACCOUNT NO.
May 29
31
31
20xx
Date
Credit
1 2 3 6
Depreciation Expense - Delivery Trucks
613
Balance
Debit
17
Credit
713
Balance
Debit
1 5 0 0
1 5 0 0
0
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 18
GENERAL LEDGER
Depreciation Expense - Office Equipment
20xx
Date
ACCOUNT NO.
Item
Ref.
May 30
J15
31
J16
Debit
Item
Ref.
J15
J16
Debit
5 1 0
Item
Ref.
J12
J13
J16
Debit
Credit
8 1 0 0
11 4 0 0
19 5 0 0
Office Supplies Expense
5 1 0
0
728
Balance
Debit
8 1 0 0
19 5 0 0
0
ACCOUNT NO.
Ref.
Debit
May 31
J15
2 2 2 5
31
J16
Item
Credit
728
Balance
Debit
2 2 2 5
2 2 2 5
Payroll Taxes Expense
0
ACCOUNT NO.
Item
May 15
31
31
Ref.
Debit
J12
J13
J16
3 8 8 8
3 4 1 1
Utilities Expense
20xx
Date
722
Balance
Debit
ACCOUNT NO.
May 15
31
31
20xx
Date
Credit
5 1 0
Office Salaries Expense
20xx
Date
0
ACCOUNT NO.
May 31
31
20xx
Date
6 0 0
6 0 0
Insurance Expense
20xx
Date
Credit
6 0 0
715
Balance
Debit
Credit
Balance
Debit
7 2 9 9
3 8 8 8
7 2 9 9
0
ACCOUNT NO.
Item
Ref.
May 30
31
Copyright © 2004 by John Wiley & Sons, Inc.
CP11
J16
18
Debit
Credit
9 5 0
9 5 0
Balance
Debit
9 5 0
0
730
732
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 19
GENERAL LEDGER
Miscellaneous Expense
20xx
Date
ACCOUNT NO.
Item
Ref.
May 31
J14
31
J16
Debit
Debit
May 29
J13
1 9 0 0
31
J16
Item
Credit
812
Balance
Credit
1 9 0 0
1 9 0 0
Interest Revenue
0
ACCOUNT NO.
Item
Ref.
May 31
31
J15
J16
Debit
Credit
2 1
2 1
Interest Expense
20xx
Date
0
ACCOUNT NO.
Ref.
20xx
Date
1 2 0
1 2 0
Gain on Disposal of Truck
20xx
Date
Credit
1 2 0
735
Balance
Debit
2 1
0
ACCOUNT NO.
Item
Ref.
MAY 30
31
31
Copyright © 2004 by John Wiley & Sons, Inc.
CP11
J15
J16
19
Debit
Credit
Balance
Debit
1 0 0 0
9 0 0
1 0 0 0
0
9 0 0
1 0 0
820
Balance
Credit
905
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 20
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
Bell and Gateway, CPAs
ADDRESS
109 Westview Dr. Belmont, OH 45830
20xx
Date
Apr
May
26
30
6
9
Item
Invoice 612
Invoice 619
Ref.
Debit
S8
S8
CR10
CR10
1 5 0 0
2 0 0 0
NAME
Carthage Community College
ADDRESS
1927 Herbert Street, Streetor, OH 45831
20xx
Date
Apr 26
May 6
10
20
23
Item
Invoice 614
Invoice 622
Invoice 626
NAME
Dorothy Knight
ADDRESS
9007 Neely Rd., Fulton, OH 45849
20xx
Date
Jan 15
MAY 24
30
30
Item
Debit
S8
CR10
S9
CR10
S9
2 0 5 0
Ref.
Invoice 535
Write off
Reinstate
Copyright © 2004 by John Wiley & Sons, Inc.
Ref.
S4
J12
J13
CR10
20
Credit
Balance
1 5 0 0
2 0 0 0
1 5 0 0
3 5 0 0
2 0 0 0
- 0 -
Credit
Balance
2 0 5 0
5 5 0 0
5 5 0 0
1 7 5 0 0
Debit
Credit
6 5 0
6 5 0
6 5 0
6 5 0
2 0
5 5
1 7 5
5
0
0
0
0
0
0
0
Balance
6
6
-
5
0
5
0
0
0
-
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 21
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
Jake Lansing
ADDRESS
291 Hightower, Oxford, OH 45861
20xx
Date
Apr 14
May 10
Item
Invoice 601
Ref.
Debit
S8
J12
6 0 0 0
NAME
Salem Hotel
ADDRESS
1412 St. Louis Street, Oxford, OH 45861
20xx
Date
Apr 12
May 13
23
31
Item
Ref.
Invoice 599
Invoice 623
S8
S9
CR10
S9
Invoice 629
NAME
Tollson Motel
ADDRESS
1943 Ester Place, Riding, OH 45863
20xx
Date
Apr 26
May 6
21
23
Item
Invoice 613
Invoice 625
Credit Memo No. 129
Copyright © 2004 by John Wiley & Sons, Inc.
21
Debit
Credit
Balance
6 0 0 0
6 0 0 0
- 0 -
Credit
Balance
5 0 0 0
1 2 0 0 0
1 2 0 0 0
8 8 0 0
Ref.
Debit
S8
CR10
S9
J12
5 2 0 0
Credit
5 2 0 0
1 1 0 0 0
1 0 0 0
5
1 7
5
1 3
0
0
0
8
0
0
0
0
0
0
0
0
Balance
5 2
1 1 0
1 0 0
0
0
0
0
0
0
0
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 22
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
NAME
Wallton Apartments, Inc.
ADDRESS
304 Colter Ave., Oxford, OH 45861
20xx
Date
Apr
24
30
May 1
13
20
28
Item
Invoice 611
Invoice 620
NAME
Willington Hotels
ADDRESS
1200 Hovey, Oxford, OH 45861
20xx
Date
Apr 30
May 7
8
16
28
Item
Invoice 617
Invoice 621
Invoice 628
Copyright © 2004 by John Wiley & Sons, Inc.
22
Ref.
Debit
S8
S8
CR10
CR10
S9
S9
9 0 0 0
4 4 0 0
Credit
9 0 0 0
4 4 0 0
2 8 3 5 0
9 8 0 0
Ref.
Debit
S8
S9
CR10
CR10
S9
9 2 0 0
9 1 0 0
Credit
9 2 0 0
9 1 0 0
1 5 0 0 0
Balance
9 0 0 0
13 4 0 0
4 4 0 0
- 0 2 8 3 5 0
3 8 1 5 0
Balance
9 2 0 0
18 3 0 0
9 1 0 0
- 0 1 5 0 0 0
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 23
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME
American Mattress Co.
ADDRESS
1212 Northgate Street, St.Louis, MO 60662
20xx
Date
Apr 18
May 17
24
Item
Ref.
n/30
P11
CP11
P12
n/30
NAME
Austin Cabinet Makers
ADDRESS
231 Deemer Ave., Austin, TX 70808
20xx
Date
Apr 22
May 20
28
Item
Ref.
2/30, n/60
P11
CP11
P12
2/30, n/60
NAME
Cabbot Recliners, Inc.
ADDRESS
111 Third Street, New York, NY 10016
20xx
Date
Apr 19
May 3
28
Item
n/30
1/15, n/30
NAME
Georgia Carpet Mills
ADDRESS
333 State Street, Atlanta, GA 43210
20xx
Date
Apr 18
May 20
21
Item
2/30, n/60
2/10, n/60
Copyright © 2004 by John Wiley & Sons, Inc.
23
Debit
Credit
6 8 0 0
6 8 0 0
1 0 8 0 0
Debit
Credit
1 9 1 0 0
1 9 1 0 0
7 5 0 0
Ref.
Debit
P11
CP11
P12
4 0 0 0
Ref.
Debit
P11
CP11
P12
4 8 0 0
Credit
4 0 0 0
11 5 0 0
Credit
4 8 0 0
15 8 0 0
Balance
6 8 0 0
- 0 1 0 8 0 0
Balance
1 9 1 0 0
- 0 7 5 0 0
Balance
4 0 0 0
- 0 11 5 0 0
Balance
4 8 0 0
- 0 15 8 0 0
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 24
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
NAME
Lexis Fine Furniture
ADDRESS
310 Eastland Drive, Salem, NC 19432
20xx
Date
Apr 14
May 7
15
20
20
Item
Ref.
2/30, n/60
1/15, n/30
P11
P12
CP11
CP11
P12
3/15, n/30
NAME
Old Hickory Furniture, Inc.
ADDRESS
117 East Ave., Bellmore, MA 38402
20xx
Date
Apr 30
May 14
Item
2/15, n/30
NAME
Wallace Office Superstore
ADDRESS
Vetmar Ave., Baton Rouge, LA 70212
20xx
Date
Apr 28
May 7
Item
n/15
Copyright © 2004 by John Wiley & Sons, Inc.
Credit
16 7 0 0
22 2 0 0
16 7 0 0
22 2 0 0
19 0 0 0
Ref.
Debit
P11
CP11
8 3 5 0
Ref.
Debit
P11
CP11
24
Debit
0
0
0
0
Credit
Balance
3 8 5 0
3 8 5 0
- 0 -
Credit
Balance
5 0 0
5 0 0
Balance
16 7 0
38 9 0
22 2 0
- 0
19 0 0
5 0 0
- 0 -
Heritage Home Solution 2004.qrk
3/16/04
9:15 AM
Page 25
HERITAGE HOME FURNITURE
Accounts Receivable Schedule
May 31, 20xx
1
Carthage Community College
1 7 5 0 0
1
2
Salem Hotel
1 3 8 0 0
2
3
Tollson Motel
1 0 0 0 0
3
4
Wallton Apartments, Inc.
3 8 1 5 0
4
5
Willington Hotels
1 5 0 0 0
5
6
7
6
Total Accounts Receivable
9 4 4 5 0
7
8
8
9
9
10
10
11
11
12
12
13
13
HERITAGE HOME FURNITURE
Accounts Payable Schedule
May 31, 20xx
1
American Mattress Co.
1 08 0 0
1
2
Austin Cabinet Makers
75 0 0
2
3
Cabbot Recliners, Inc.
1 15 0 0
3
4
Georgia Carpet Mills
1 58 0 0
4
5
Lexis Fine Furniture
1 90 0 0
6
7
5
6
Total Accounts Payable
6 46 0 0
7
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
Copyright © 2004 by John Wiley & Sons, Inc.
25
Heritage Home Solution 2004.qrk
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Page 26
HERITAGE HOME FURNITURE
Worksheet
For the Month Ended May 31, 20xx
Acct.
Trial Balance
No.
Account Title.
Debit
Credit
1
101
Cash
7 65 33
1
2
105
Petty Cash
2 00
2
3
112
Accounts Receivable
9 44 50
3
4
113
Allowance for Doubtful Accounts
5
115
Notes Receivable
6
118
Interest Receivable
7
119
Other Receivables
8
120
Merchandise Inventory
24 33 99
8
9
125
Office Supplies
42 75
9
10 127
Store Supplies
25 80
10
11 130
Prepaid Insurance
52 00
11
12 140
Land
8 59 00
12
13 145
Buildings
35 00 00
13
14 146
Accumulated Depreciation–Building
15 151
Office Equipment
16 152
Accumulated Depreciation–Office Equipment
17 163
Delivery Trucks
18 164
Accumulated Depreciation–Delivery Trucks
19 200
Notes Payable
15000
20 201
Accounts Payable
64600
21 212
Salaries Payable
22 214
FICA Taxes Payable
10026
22
23 216
Federal Income Tax Withholding Payable
11740
23
24 224
Federal Unemployment Tax Payable
25 226
State Unemployment Tax Payable
26 230
2600
4
2 10 00
5
1 00
6
7
200000
5 50 00
14
15
32000
4 20 00
16
17
18
19
20
21
990
24
3816
25
Interest Payable
800
26
27 240
Maxicard Payable
400
27
28 275
Mortgage Payable
198900
28
29 301
Brent Davis, Capital
394570
29
30 306
Brent Davis, Drawing
1 60 00
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
26
Heritage Home Solution 2004.qrk
3/16/04
Adjustments
Debit
1
Page 27
Adjusted Trial Balance
Credit
b
9:15 AM
Debit
Credit
Debit
Credit
Balance Sheet
Debit
Credit
7 4 8 83
74883
1
2
2 00
200
2
3
9 4 4 50
94450
3
4
c
1650
Income Statement
1178
5
6
d
21
3778
37 7 8
4
2 1 0 00
21000
5
1 21
121
6
7
7
8
e
2474
2 4 0 9 25
240925
8
9
f
2225
2 0 50
2050
9
10
f
1505
1 0 75
1075
10
11
g
510
4 6 90
4690
11
12
8 5 9 00
85900
12
13
3 5 0 0 00
350000
13
14
h
1500
15
2 01 5 0 0
2 0 15 0 0
5 5 0 00
16
h
600
17
55000
32 6 0 0
18
h
1750
15
3 26 0 0
4 2 0 00
14
42000
16
17
1750
17 5 0
18
19
15 0 0 0
1 50 0 0
19
20
64 6 0 0
6 46 0 0
21
20
21
22
10 0 2 6
1 00 2 6
22
23
11 7 4 0
1 17 4 0
23
24
990
990
24
25
3816
38 1 6
25
26
I
100
900
900
26
a
1236
106
106
27
28
1 98 9 0 0
1 9 89 0 0
28
29
3 94 5 7 0
3 9 45 7 0
29
27 b
30
1530
1 6 0 00
16000
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
27
Heritage Home Solution 2004.qrk
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9:15 AM
Page 28
HERITAGE HOME FURNITURE
Worksheet
For the Month Ended May 31, 20xx
Acct.
Trial Balance
No.
Account Title.
Debit
Credit
1
401
Sales
278000
1
2
412
Sales Returns and Allowances
10 00
2
3
414
Sales Discounts
11 11
3
4
505
Cost of Goods Sold
5
610
Advertising Expense
6
612
Bad Debt Expense
6
7
613
Credit Card Expense
7
8
617
Depreciation Expense - Delivery Trucks
9
624
Repairs and Maintenance - Delivery Trucks
13 85 00
4
50 25
5
3 00
8
13 70
9
10 626
Store Salaries Expense
4 27 50
11 659
Store Supplies Expense
11
12 713
Depreciation Expense - Building
12
13 715
Depreciation Expense - Office Equipment
13
14 722
Insurance Expense
14
15 727
Office Salaries Expense
16 728
Office Supplies Expense
17 730
Payroll Tax Expense
18 732
Utilities Expense
19 735
Miscellaneous Expense
20 812
Gain of Disposal of Truck
21 820
Interest Revenue
22 905
Interest Expense
1 99 50
15
72 99
17
9 50
18
16
19
1900
20
21
9 00
23
24
10
1 21 53 42
Net Income
22
1 215342
23
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
28
Heritage Home Solution 2004.qrk
3/16/04
Adjustments
Debit
9:15 AM
Page 29
Adjusted Trial Balance
Credit
Debit
1
Income Statement
Credit
Debit
2 78 0 0 0
Balance Sheet
Credit
Debit
Credit
2 7 80 0 0
1
2
1 0 00
1 00 0
2
3
1 1 11
1 11 1
3
4
e
2474
1 4 0 9 74
14 0 97 4
4
5 0 25
5 02 5
5
6
c
1178
1 1 78
1 17 8
6
7
a
1236
1 2 36
1 23 6
7
8
h
1750
2 0 50
2 05 0
8
9
5
9
1 3 70
1 37 0
10
4 2 7 50
4 2 75 0
10
11
f
1505
1 5 05
1 50 5
11
12 h
1500
1 5 00
1 50 0
12
13 h
600
6 00
60 0
13
14 g
510
5 10
51 0
14
1 9 5 00
1 9 50 0
15
2 2 25
2 22 5
16
17
7 2 99
7 29 9
17
18
9 50
95 0
18
1 20
12 0
19
15
16
f
19 b
2225
120
20
1900
21
22
23
d
I
21
100
14749
19 0 0
21
21
1 0 00
14749
1 2 2 0 1 97
20
21
1 00 0
1 2 20 1 9 7
23 1 90 3
24
4 8 01 8
25
27 9 92 1
22
2 7 99 2 1
2 7 99 2 1
9 882 9 4
988294
9 4 02 7 6
23
4 80 1 8
24
9 8 82 9 4
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
29
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9:15 AM
Page 30
HERITAGE HOME FURNITURE
Bank Reconciliation
May 31, 20xx
1
Balance per bank statement
8 3 1 1 1
2
3
2
Add:
Deposits in Transit, 5/31
2 6 9 5 0
4
5
1
3
4
Subtract: Outstanding Checks
5
6
No. 523
1 4 0 0
6
7
No. 526
5 5 0
7
8
No. 533
6 8 0 0
8
9
No. 536
2 1 9 7 8
9
10
No. 540
3 5 0 0
10
11
No. 544
9 5 0
11
12
13
Adjusted balance per bank
3 5 1 7 8
12
7 4 8 8 3
13
14
14
15
15
16
16
17
Balance per books
18
Subtract:
19
Check printing fee
20
Monthly service charge
21
Maxicard fee
22
Adjusted balance per books
7 6 5 3 3
17
18
7 5
19
4 5
1 5 3 0
20
1 6 5 0
21
7 4 8 8 3
22
23
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
30
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Page 31
HERITAGE HOME FURNITURE
Depreciation Schedule for Delivery Trucks
Item:
Delivery Truck
Cost:
$42,000
Estimated Life: 4 years
Year
(20xx)
Acquisition Date:
Estimated Salvage:
Depreciation Method:
May 2, 20xx
$4,000
Declining balance, double the
straight-line rate
Beginning Book Value x Depreciation Rate
= Annual Depreciation
1
$ 42,000
50%
21,000
2
21,000
50%
10,500
3
10,500
50%
5,250
4
5,250
50%
1,250 (limit)
Depreciation for the month of May: Year 1 Depreciation x 1/12
21,000 x 1/12 = $1,750
Copyright © 2004 by John Wiley & Sons, Inc.
31
Heritage Home Solution 2004.qrk
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Page 32
HERITAGE HOME FURNITURE
Income Statement
For the Month Ended May 31, 20xx
1
Revenues
2
Sales
3
Less: Sales Returns and Allowances
4
1
278 0 0 0
1 00 0
Sales Discounts
1 11 1
2
3
2 1 1 1
4
5
Net Sales
275 8 8 9
5
6
Cost of Goods Sold
140 9 7 4
6
7
Gross Profit
134 9 1 5
7
8
Operating Expenses
9
Selling Expenses
10
Store Salaries Expense
11
8
9
4 2 75 0
10
Advertising Expense
5 02 5
11
12
Depreciation Expense - Delivery Truck
2 05 0
12
13
Store Supplies Expense
1 50 5
13
14
Credit Card Expense
1 23 6
14
15
Repairs and Maintenance - Delivery Truck
1 37 0
15
16
Bad Debt Expense
1 17 8
16
17
Total Selling Expenses
55 1 1 4
18
19
17
18
Administrative Expenses
19
20
Office Salaries Expense
21
Payroll Tax Expense
7 29 9
21
22
Office Supplies Expense
2 22 5
22
23
Depreciation Expense - Building
1 50 0
23
24
Utilities Expense
95 0
24
25
Depreciation Expense - Office Supplies
60 0
25
26
Insurance Expense
51 0
26
27
Miscellaneous Expense
12 0
27
28
29
30
1 9 50 0
Total Administrative Expense
20
32 7 0 4
Total Operating Expense
Income from Operations
28
87 8 1 8
29
47 0 9 7
30
31
31
32
32
33
Other Revenues and Gains
34
Gain of disposal of Truck
35
Interest Revenue
36
37
33
19 0 0
2 1
34
1 92 1
35
Other Expenses and Losses
36
Interest Expense
1 00 0
9 2 1
38
39
37
38
Net Income
48 0 1 8
40
Copyright © 2004 by John Wiley & Sons, Inc.
39
40
32
Heritage Home Solution 2004.qrk
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9:15 AM
Page 33
HERITAGE HOME FURNITURE
Owner’s Equity Statement
For the Month Ended May 31, 20xx
1
Brent Davis Capital, May 1
2
Add:
3
3 8 4 5 7 0
1
Additional investment
1 0 0 0 0
2
Net income for May
4 8 0 1 8
3
4 4 2 5 8 8
4
1 6 0 0 0
6
4 2 6 5 8 8
7
4
5
5
6
Less:
Drawings
7
Brent Davis, Capital, May 31
8
8
9
9
10
10
11
11
12
12
13
13
14
14
15
15
16
16
17
17
18
18
19
19
20
20
21
21
22
22
23
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
33
Heritage Home Solution 2004.qrk
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9:15 AM
Page 34
HERITAGE HOME FURNITURE
Balance Sheet
May 31, 20xx
1
2
Assets
1
Current Assets
3
Cash
4
Petty Cash
5
Accounts receivable
6
Allowance for Doubtful Accounts
7
Notes Receivable
8
Interest Receivable
9
Merchandise Inventory
2
7 4 8 8 3
3
2 0 0
4
9 4 4 5 0
3 7 7 8
5
9 0 6 7 2
6
2 1 0 0 0
7
1 2 1
8
2 4 0 9 2 5
9
10
Office Supplies
2 0 5 0
10
11
Store supplies
1 0 7 5
11
12
Prepaid Insurance
4 6 9 0
13
Total Current Assets
12
4 3 5 6 1 6
13
14
14
15
15
16
Property, Plant and Equipment
17
Cost
18
Land
19
Buildings
20
21
Accumulated
Net Book
16
Depreciation
Value
17
85 9 00
8 5 9 0 0
18
350 0 00
2 0 1 5 0 0
1 4 8 5 0 0
19
Office Equipment
55 0 00
3 2 6 0 0
2 2 4 0 0
20
Delivery Trucks
42 0 00
1 7 5 0
4 0 2 5 0
21
532 9 00
2 3 5 8 5 0
22
Total Property, Plant & Equipment
23
Total Assets
2 9 7 0 5 0
22
7 3 2 6 6 6
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
34
Heritage Home Solution 2004.qrk
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Page 35
HERITAGE HOME FURNITURE
Balance Sheet (Continued)
May 31, 20xx
1
2
Liabilities and Owner’s Equity
1
Current Liabilities
2
3
Notes payable
1 5 0 0 0
3
4
Accounts payable
6 4 6 0 0
4
5
FICA taxes payable
1 0 0 2 6
5
6
Federal income taxes withholding payable
1 1 7 4 0
6
7
Federal unemployment taxes payable
9 9 0
7
8
State unemployment taxes payable
3 8 1 6
8
9
Interest payable
9 0 0
9
Maxicard payable
1 0 6
10
10
11
Total current liabilities
1 0 7 17 8
12
13
14
15
16
12
Long-term liabilities
13
Mortgage payable
1 9 8 9 0 0
Total long-term liabilities
14
1 9 8 90 0
Total liabilities
3 0 6 07 8
17
18
19
15
16
17
Owner’s Equity
18
Brent Davis, Capital
4 2 6 58 8
20
21
11
19
20
Total liabilities and owner’s equity
7 3 2 66 6
21
22
22
23
23
24
24
25
25
26
26
27
27
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
Copyright © 2004 by John Wiley & Sons, Inc.
35
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Page 36
HERITAGE HOME FURNITURE
Post-Closing Trial Balance
May 31, 20xx
Acct.
No.
Account Title
Debit
Credit
1
101.
Cash
2
105
Petty Cash
7 4 8 8 3
1
2 0 0
2
3
112
Accounts Receivable
4
113
Allowance for Doubtful Accounts
5
115
Notes Receivable
6
118
Interest Receivable
7
120
Merchandise Inventory
24 0 9 2 5
7
8
125
Office Supplies
2 0 5 0
8
9 4 4 5 0
3
3 7 7 8
4
2 1 0 0 0
5
1 2 1
6
9
127
Store Supplies
1 0 7 5
9
10
130
Prepaid Insurance
4 6 9 0
10
11
140
Land
12
145
Buildings
13
146
Accumulated Depreciation–Buildings
14
151
Office Equipment
15
152
Accumulated Depreciation–Office Equipment
16
163
Delivery Trucks
17
164
Accumulated Depreciation–Delivery Trucks
1 7 5 0
17
18
200
Notes Payable, 10%, 3-month
1 5 0 0 0
18
19
201
Accounts Payable
6 4 6 0 0
19
20
216
Federal Income Tax Withholding Payable
1 0 0 2 6
20
21
224
Federal Unemployment Tax Payable
1 1 7 4 0
21
22
226
State Unemployment Tax Payable
9 9 0
22
23
230
Interest Payable
3 8 1 6
23
24
240
Maxicard Payable
9 0 0
24
25
275
Mortgage Payable
1 0 6
25
26
301
Brent Davis, Capital
42 6 5 8 8
26
97 2 2 9 4
27
8 5 9 0 0
11
35 0 0 0 0
12
20 1 5 0 0
5 5 0 0 0
14
3 2 6 0 0
4 2 0 0 0
27
97 2 2 9 4
13
15
16
28
28
29
29
30
30
31
31
32
32
33
33
34
34
35
35
36
36
37
37
38
38
39
39
40
40
41
41
42
42
43
43
44
44
45
45
46
46
47
47
48
48
Copyright © 2004 by John Wiley & Sons, Inc.
36