Practice Problems

Complete these exercises and practice problems. Check your answers after you finish.

Demonstration problem

Solution

a.
GREEN HILLS RIDING STABLE, INCORPORATED
General Journal
Date Account Titles and Explanation Post. Ref. Debit Credit
2010 July 1 Cash (+A) 100 2 5 0 0 0
Capital Stock (+SE)  300 2 5 0 0 0
Additional capital stock issued
1 Buildings (+A)  140 2 4 0 0 0
Cash (-A) 100 2 4 0 0 0
Paid for building
8 Account Payable (-L) 200 8 0 0
Cash (-A) 100 8 0 0
Paid accounts payable
10 Cash (+A) 100 5 4 0 0
Accounts Receivable (-A) 103 5 4 0 0
Collected accounts receivable
12 Feed Expense (-SE) 513 1 1 0 0
Accounts Payable (+L)  200 1 1 0 0
Purchased feed on account
15 Accounts Receivable (+A) 103 4 5 0 0
Horse Boarding Fee Revenue (+SE) 402 4 5 0 0
Billed boarding fees for July
24 Miscellaneous Expense (-SE) 568 8 0 0
Cash (-A) 100 8 0 0
Paid miscellaneous expenses for July.
31 Interest Expense (-SE) 540 2 0 0
Cash (-A) 100 2 0 0
Paid interest
31 Salaries Expense (-SE) 507 1 4 0 0
Cash (-A) 100 1 4 0 0
Paid salaries for July
31 Accounts Receivable (+A) 103 3 6 0 0
Riding and Lesson Fee Revenue (+SE)  404 3 6 0 0
Billed riding and lesson fees for July.
31 Dividends (-SE) 320 1 0 0 0
Cash (-A) 100 1 0 0 0
Paid a dividend to stockholders

b.

GREEN HILLS RIDING STABLE, INCORPORATED - General Ledger
Land   Account No. 100
Date Explanation Post
Ref.		 Debt Credit Balance
2010 June 30 Balance 7 5 0 0 0 Dr
July 1 Stockholders' investment G1 2 5 0 0 0 3 2 5 0 0 Dr
1 Buildings G1 2 4 0 0 0 8 5 0 0 Dr
8 Accounts payable G1 8 0 0 7 7 0 0 Dr
10 Accounts receivable G1 5 4 0 0 1 3 1 0 0 Dr
24 Miscellaneous expense G1 8 0 0 1 2 3 0 0 Dr
31 Interest expense G1 2 0 0 1 2 1 0 0 Dr
31 Salaries expense G1 1 4 0 0 1 0 7 0 0 Dr
31 Dividends G1 1 0 0 0 9 7 0 0 Dr
Accounts Receivable Account No. 103
Date Explanation Post
Ref.		 Debt Credit Balance
2010 June 30 Balance 5 4 0 0 Dr
July 10 Cash G1 5 4 0 0 . 0 .
15 Horse boarding fees G1 4 5 0 0 4 5 0 0 Dr
31 Riding and &essons fees G1 3 6 0 0 8 1 0 0 Dr
land  Account No. 130
Date Explanation Post
Ref.		 Debt Credit Balance
2010 June 30 Balance 4 0 0 0 0 Dr
Buildings Account No. 140
Date Explanation Post
Ref.		 Debt Credit Balance
2010 July 1 Cash G1 2 4 0 0 0 2 4 0 0 0 Dr
Accounts Payable   Account No. 200
Date Explanation Post
Ref.		 Debt Credit Balance
2010 June 30 Balance 8 0 0 Cr
July 8 Cash G1 8 0 0 . 0 .
12 Feed expense G1 1 1 0 0 0 1 1 0 0 Cr
Date Explanation Post Ref. Debt Credit Balance
2010 June 30 Balance 4 0 0 0 0 Cr
Date Explanation Post Ref. Debt Credit Balance
2010 June 30 Balance 1 0 0 0 0 Cr
July 1 Cash G1 2 5 0 0 0 3 5 0 0 0 Cr
Date Explanation Post Ref. Debt Credit Balance
2010 June 30 Balance 2 1 0 0 Cr
Dividends Account No. 320
Date Explanation Post Ref. Debt Credit Balance
2010 July 31 Cash G1 1 0 0 0 1 0 0 0 Dr
Date Explanation Post Ref. Debt Credit Balance
2010 July 15 Accounts receivable G1 4 5 0 0 4 5 0 0 Cr
Date Explanation Post Ref. Debt Credit Balance
2010 July 31 Accounts receivable G1 3 6 0 0 3 6 0 0 Cr
Date Explanation Post Ref. Debt Credit Balance
2010 July 31 Cash G1 1 4 0 0 1 4 0 0 Dr
Date Explanation Post Ref. Debt Credit Balance
2010 July 12 Accounts payable G1 1 1 0 0 1 1 0 0 Dr
Date Explanation Post Ref. Debt Credit Balance
2010 July 31 Cash G1 2 0 0 2 0 0 Dr
Date Explanation Post Ref. Debt Credit Balance
2010 July 24 Cash G1 8 0 0 8 0 0 Dr



c.

GREEN HILLS RIDING STABLE,INCORPORATED  Trial Balance
2010 July 31
Acct. No. Account Title Debits Credits
100 Cash $9,700
103 Accounts Receivable 8,100
130 Land 40,000
140 Buildings 24,000
200 Accounts Payable $1,100
201 Notes Payable 40,000
300 Capital Stock 35,000
310 Retained Earnings 2,100
320 Dividends 1,000
402 Horse Boarding Fee Revenue 4,500
404 Riding and Lesson Fee Revenue 3,600
507 Salaries Expense 1,400
513 Feed Expense 1,100
540 Interest Expense 200
568 Miscellaneous Expense 800
$86,300 $86,300