Practice Problems

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

a. See the work sheet below.

GREEN HILLS RIDING STABLE, INCORPORATE

Work Sheet

For the Month Ended 2010 July 31

Acct.	Account Titles	Trial Balance		Adjustments		Adjusted Balance		Income Statement		Statement of Retained Earnings		Balance Sheet
No.		Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
100	Cash	10,700				10,700						10,700
103	Accounts Receivable	S,100				3,100						S,100
130	Land	40,000				40,000						40,000
140	Buildings	24,000				24,000						24,000
200	Accounts Payable		1,100				1,100						1,100
201	Notes Payable		40,000				40,000						40,000
300	Capital Stock		35,000				35,000						35,000
310	Retained Earnings 2010 July 1		3,100				3,100				3,100
320	Dividends	1,000				1,000				1,000
402	Horse Boarding Fees Revenue		4,500				4,500		4,500
404	Riding and Lesson Fees Revenue		3,500				3,600		3,600
507	Salaries Expense	1,400		(2) 300		1,700		1,700
513	Feed Expense	1,100				1,100		1,100
540	Interest Expense	200				200		200
563	Miscellaneous Expense	300 87,300	37,300			SOO		SOO
520	Depreciation Expense Buildings			(1) 200		200		200
141	Accumulated Depreciation Buildings				(1) 200		200						200
206	Salaries Payable			EOO	(2) 300 5oo	87,500	300 37,300						300
	Net Income							4,000 4,100	8,100		4,100
	Retained Earnings, 2010 July 31							8,100	8,100	1,000	7,200	82,300	76,600
										6,200 7,200	7,200	S2,S00	6,200 32,800

GREEN HILLS RIDING STABLE, INCORPORATED

General Journal

Date		Account Titles and Explanation	Post. Ref.	Debt	Credit
2010		Adjusting Entries
July	31	Depredation Expense Buildings (-SE)	520	200
		Accumulated Depreciation Buildings (-A)	141		200
		To record depreciation expense.

	31	Salaries Expense (-SE)	507	300
		Salaries Payable (+L)	206		300
		To record accrued salaries.

GREEN HILLS RIDING STABLE, INCORPORATED

General Journal

Date		Account Titles and Explanation	Post. Ref.	Debt	Credit
2010		Closing Entries
July	31	Horse Boarding Fees Revenue	402	4500
		Riding Lesson Fees Revenue	404	3600
		Income Summary	600		8100
		To close revenue accounts.

	31	Income Summary	600	4000
		Salaries Expense	507		1700
		Feed Expense	513		1100
		Interest Expense	540		200
		Miscellaneous Expense	568		800
		Depreciation Expense – Buildings	520		200
		To close expense accounts.

	31	Income Summary	600	4100
		Retained Earnings	310		4100
		To close Income Summary account.

	31	Retained Earnings	310	1000
		Dividends	320		1000
		To close dividends account.