5.1
Completing the worksheet
The trial balance of Torres Company as of February28, 2010, appears below.
Torres Company
Worksheet (Partial)
Month Ended February 28, 2010

1 Cash - Debit - 36,500.00
2 Accounts Recievable - Debit - 3,200.00
3 Supplies - Debit - 2,100.00
4 Prepaid Rent - Debit - 12,000.00
5 Equipment - Debit - 23,000.00
6 Accumulated Deprcited - Equipment -
7 Accounts Payable - Credit - 6,000.00
8 Paul Torres, Capital - Credit - 49,250.00
9 Paul Torres, Drawing - Debit - 1,500.00
10 Fees Income - Credit - 27,000.00
11 Depreciation Expense - Equipment -
12 Rent Expense -
13 Salaries Expense - Debit - 3,150.00
14 Supplies Expense -
15 Utilities Expense - Debit - 800.00
16 Totals Debit - 82,250.00 Credit - 82,250.00

INSTRUCTIONS
1. Record the trial balance in the Trial Balance section of the worksheet.
2. Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $1,000; depreciation expense for the period, $500.
Analyze: Why do you think the account Accumulated Depreciation- Equipment has a zero balance on the trial balance shown?

5.2
Reconstructing a partial worksheet
The adjusted balance of Dennis Ortiz, Attorney-at-Law, as of November 30, 2010, after the company had completed the first month of operations, appears below.
Appropriate adjustments have been made for the following items,

a. Supplies used during the month, $3,600.
b. Expired rent for the month, $3,400.
c. Depreciation expense for the month, $550.

Dennis Ortiz, Attorney-at-Law
Adjusted Trial Balance
Month ended November 30, 2010
Cash - Debit - 35,050
Accounts Recievable - Debit - 8,500
Supplies - Debit - 6,800
Prepaid Rent - Debit - 40,800
Equipment - Debit - 68,000
Accumulated Deprcited - Equipment - Credit - 500
Accounts Payable - Credit - 17,000
Dennis Ortiz, Capital - Credit - 80,000
Dennis Ortiz, Drawing - Debit - 6,000
Fees Income - Credit - 85,700
Depreciation Expense - Equipment - Debit - 550
Rent Expense - Debit - 3,400
Salaries Expense - Debit - 10,800
Supplies Expense - Debit - 3,600
Utilities Expense - Debit - 1,750
Totals - Debit 183,250 Credit - 183,250

INSTRUCTIONS
1. Record the adjusted trial balance in the adjusted Trial Balance columns of the worksheet.
2. Prepare the adjusting entries in the Adjustments columns.
3. Complete the Trial Balance columns of the worksheet prior to making the adjusting enties.
Analyze: Which contra asset account is on the adjusted trial balance?

6.4
Managers often consult financial statements for specific types of information.20Indicate weather each ot the following items would appear on the income statement, statement of owner's equity, or the balance sheet. Use I for the income statement, E for the statement of owner's equity, and b for the balance sheet. It an item appears on more than one statement, use all letters that apply to that item.
1. Accumulated depreciation on the firm's equipment
2. Amount of depreciation charged off on the firm's equipment during the preiod.
3. Original cost of the firm's equipment.
4. Book value of the firm's equipment.
5. Total expenses for the period.
6. Accounts payable of the business.
7. Owner's withdrawls for the period.
8. Cash on Hand
9. Revenue earned during the period.
10. Total assets of the business.
11. Net income for the period.
12. Owner's capital at the end of the period.
13. Supplies on hand.
14. Cost of supplies used during the period.
15. Accounts receivable of the business.

7.1
Identifying the journal to record transactions.
The accounting system of Dave's wildlife Resort includes the journals listed below. Indicate the specific journal in which each of the transactions listed below would be recorded.
JOURNALS
Cash receipts journal
Cash payments journal
Sales journal
General journal
Purchases journal

May 1 Sold merchandise on credit
May 2 Accepted a return of merchandise from a credit customer
May 3 Sold merchandise for cash
May 4 Purchased merchandise on credit
May 5 Gave a $400 allowance for damaged merchandise
May 6 Collected sums on account from credit customers
May 7 Received an additional cash investment from the owner
May 8 Issued a check to pay a creditor on account