Learn How to Solve P3-6A Solis Company

with excelwizard

Qixmjqo5rjmnpgsjjjrw?cache=true

Problem Details for P3-6A Solis Company

This is the trial balance of Solis Company on September 30.

SOLIS COMPANY

Trial Balance September 30, 2014

Trial Balance Details

  • Cash $ 19,200
  • Accounts Receivable 2,600
  • Supplies 2,100
  • Equipment 8,000
  • Accounts Payable $ 4,800
  • Unearned Service Revenue 1,100
  • Common Stock 15,000
  • Retained Earnings 11,000
  • $31,900 $31,900

The October transactions were as follows.

  • Oct. 5 Received $1,300 in cash from customers for accounts receivable due.
  • 10 Billed customers for services performed $5,100.
  • 15 Paid employee salaries $1,200.
  • 17 Performed $600 of services in exchange for cash.
  • 20 Paid $1,900 to creditors for accounts payable due.
  • 29 Paid a $300 cash dividend.
  • 31 Paid utilities $400.

Prepare a general ledger using T-accounts. Enter the opening balances in the ledger accounts as of October 1.

Step 1 - Put Opening Balances into T-Accounts

The first step to solve this problem is to put the opening balances into T-Accounts. The table below show the opening balance for each item. 

Opening Balances

Accounts Debit Credit
Cash 19200
Accounts Receivable 2600
Supplies 2100
Equipment  8000
Accounts Payable 4800
Unearned Service Revenue 1100
Common Stock 15000
Retained Earnings 11000

Overview of T-Account Recording

If you're not fully sure how to setup T-Accounts, watch this quick video to get up to speed. Having a solid grasp of this concept is important for the rest of this lesson.

Step 2 - Record Journal Entries

Now to we have all the data in the the T-Accounts. We need to record the journal entries. 

Journal Entries

Date Account Debit Credit
5-Oct Cash 1300
  Accounts Receivable 1300
10-Oct Accounts Receivable 5100
  Service Revenue 5100
15-Oct Salaries 1200
  Cash 1200
17-Oct Cash 600
  Service Revenue 600
20-Oct Accounts Payable 1900
  Cash 1900
29-Oct Dividends 300
  Cash 300
31-Oct Utilities Expense 400
  Cash 400

Step 3 - Updating the T-Accounts

The next step is to record the adjusting entries in the T-Account

Cash T-Account

Date Debit Date Credit
1-Oct 19200 15-Oct 1200
5-Oct 1300 20-Oct 1900
17-Oct 600 29-Oct 300
31-Oct 400
Bal 17300

Download the P3-6A EXCEL spreadsheet for all accounts

Step 4 - Building the Trial Balance

This Section is Locked!

Unlock this lesson for $2 to view all sections.

All P3-6A Solutions in Excel

This Section is Locked!

Unlock this lesson for $2 to view all sections.

Signup and Unlock for $2

Grades

Nobody has graded this lesson yet.

n 0.0%
Academics Accounting

  • 21 Unlocks
  • 4182 Total Reads
  • 28 minutes Est. Learning Time
Top Seller