ACCT 201 Principles of Financial Accounting Practice Examination Combined Chapters 1-4 Dr. Fred Barbee Solution to Short-Problem #3

Short Problem #3

The balances for the accounts of Perkin's Janitorial, Inc., for the year ended December 31 are shown below. Each account shown had a normal balance.

Accounts Payable	$21,750
Accounts Receivable	29,500
Cash	???
Janitorial Supplies	1,700
Building	68,000
Supplies Expense	12,600
Common Stock	25,000
Janitorial Revenue	139,000
Equipment	44,500
Wages Expense	37,200
Utilities Expense	3,700
Notes Payable	52,500
Land	35,000
Unearned Janitorial Fees	3,250

Calculate the correct balance for Cash and prepare a trial balance.

Solution

Perkin's Janitorial Trial Balance December 31
Cash**	$9,300
Accounts Receivable	29,500
Janitorial Supplies	1,700
Land	35,000
Building	68,000
Equipment	44,500
Accounts Payable		$21,750
Unearned Janitorial Fees		3,250
Notes Payable		52,500
Common Stock		25,000
Janitorial Revenue		139,000
Wages Expense	37,200
Utilities Expense	3,700
Supplies Expense	12,600
Totals	$241,500	$241,500

       (**Total Credits = $241,500; Total debits excluding cash = $232,200. $241,500 - $231,200 = $9,300).