Question

Thunder Cat Services specializes in training and veterinary services to household pets, such as dogs, birds, lizards, fish, horses, and of course, cats. After the first 11 months of operations in 2021, Thunder Cat has the following account balances: THUNDER CAT SERVICES Trial Balance November 30, 2021 Accounts Debits Credits Cash $ 19,400 Supplies 1,500 Prepaid Rent 7,200 Equipment 83,700 Buildings 240,000 Accounts Payable $ 9,800 Deferred Revenue 2,000 Common Stock 125,000 Retained Earnings 75,500 Dividends 9,000 Service Revenue 264,000 Salaries Expense 65,000 Advertising Expense 18,200 Utilities Expense 32,300 Totals $ 476,300 $476,300 The following transactions occur during December 2021: December December December December December December December December December December 1- Throughout the month, Thunder Cat provides services to customers for cash, $27,400. (Hint: Record the 31 entire month's services in a single entry.) 4 Purchase pet supplies on account, $2,900. 8 Pay for fliers to be distributed to local residences to advertise the company's services, $3,200. 9 Pay for supplies purchased on December 4. 12 Issue additional shares of common stock for cash, $5,000. 16 Pay cash on accounts payable, $6,300. 19 Purchase equipment with cash, $7,700. 22 Pay utilities for December, $4,500. 24 Receive cash from customers for services to be provided next January, $2,300. 27 One of Thunder Cat's trainers takes part-time job at the zoo and earns a salary of $1,200. The zoo and Thunder Cat Services are separate companies. 30 Pay employee salaries for the current month, $7,000. 31 Pay dividends to stockholders, $3,000. December December

Answer 1

Answer -

Assets and expenses are debited when they are increases and credited when they are decreases. Here, cash, supplies, prepaid rent, building, and equipment are the asset accounts. And advertising expense, salaries expense, and utility expense are the expense accounts.

Liabilities, stockholders' equity, and revenue are credited when they are increases and debited when they are decreases. Here, accounts payable and deferred revenue are the liability accounts. Common stock and retained earnings are the stockholder's equity accounts. Service revenue is a revenue account.

Now,

1. Answer -

Date	Account titles	Debit	Credit
December 01	Cash	$27,400
	Service revenue		$27,400
December 04	Supplies	$2,900
	Accounts payable		$2,900
December 08	Advertising expense	$3,200
	Cash		$3,200
December 09	Accounts payable	$2,900
	Cash		$2,900
December 12	Cash	$5,000
	Common stock		$5,000
December 16	Accounts payable	$6,300
	Cash		$6,300
December 19	Equipment	$7,700
	Cash		$7,700
December 22	Utilities expense	$4,500
	Cash		$4,500
December 24	Cash	$2,300
	Deferred revenue		$2,300
December 27	No Journal entry required
December 30	Salaries expense	$7,000
	Cash		$7,000
December 31	Dividends	$3,000
	Cash		$3,000

2. Answer -

Cash
No.	Date	Debit	Credit	Balance
1.	December 01			$19,400
2.	December 01	$27,400		$46,800
3.	December 08		$3,200	$43,600
4.	December 09		$2,900	$40,700
5.	December 12	$5,000		$45,700
6.	December 16		$6,300	$39,400
7.	December 19		$7,700	$31,700
8.	December 22		$4,500	$27,200
9.	December 24	$2,300		$29,500
10.	December 30		$7,000	$22,500
11.	December 31		$3,000	$19,500

Calculation:

Balance = $19400 + $27400 - $3200 - $2900 + $5000 - $6300 - $7700 - $4500 + $2300 - $7000 - $3000

= $19500

Supplies
No.	Date	Debit	Credit	Balance
1.	December 01			$1,500
2.	December 04	$2,900		$4,400

Calculation:

Balance = $1500 + $2900 = $4400

Prepaid rent
No.	Date	Debit	Credit	Balance
1.	December 01			$7,200

Buildings
No.	Date	Debit	Credit	Balance
1.	December 01			$240,000

Equipment
No.	Date	Debit	Credit	Balance
1.	December 01			$83,700
2.	December 19	$7,700		$91,400

Calculation:

Balance = $83700 + $7700 = $91400

Accounts payable
No.	Date	Debit	Credit	Balance
1.	December 01			$9,800
2.	December 04		$2,900	$12,700
3.	December 09	$2,900		$9,800
4.	December 16	$6,300		$3,500

Calculation:

Balance = $9800 + $2900 - $2900 - $6300

= $3500

Deferred revenue
No.	Date	Debit	Credit	Balance
1.	December 01			$2,000
2.	December 24		$2,300	$4,300

Calculation:

Balance = $2000 + $2300 = $4300

Common stock
No.	Date	Debit	Credit	Balance
1.	December 01			$125,000
2.	December 12		$5,000	$130,000

Calculation:

Balance = $125000 + $5000 = $130000

Retained earnings
No.	Date	Debit	Credit	Balance
1.	December 01			$75,500

Dividends
No.	Date	Debit	Credit	Balance
1.	December 01			$9,000
2.	December 31	$3,000		$12,000

Calculation:

Balance = $9000 + $3000 = $12000

Service revenue
No.	Date	Debit	Credit	Balance
1.	December 01			$264,000
2.	December 01		$27,400	$291,400

Calculation:

Balance = $264000 + $27400 = $291400

Advertising expense
No.	Date	Debit	Credit	Balance
1.	December 01			$18,200
2.	December 08	$3,200		$21,400

Calculation:

Balance = $18200 + $3200 = $21400

Salaries expense
No.	Date	Debit	Credit	Balance
1.	December 01			$65,000
2.	December 30	$7,000		$72,000

Calculation:

Balance = $65000 + $7000 = $72000

Utilities expense
No.	Date	Debit	Credit	Balance
1.	December 01			$32,300
2.	December 22	$4,500		$36,800

Calculation:

Balance = $32300 + $4500 = $36800

3. Answer -

Thunder Cat Services
Trial Balance
December 31, 2021
	Debit	Credit
Cash	$19,500
Supplies	$4,400
Prepaid rent	$7,200
Buildings	$240,000
Equipment	$91,400
Accounts payable		$3,500
Deferred revenue		$4,300
Common stock		$130,000
Retained earnings		$75,500
Dividends	$12,000
Service revenue		$291,400
Advertising expense	$21,400
Salaries expense	$72,000
Utilities expense	$36,800
Total	$504,700	$504,700

Calculation:

Debit-side total:

= Cash + Supplies + Prepaid rent + Building + Equipment + Dividends + Advertising expense + Salaries expense + Utility expense

= $19500 + $4400 + $7200 + $240000 + $91400 + $12000 + $21400 + $72000 + $36800

= $504700

Credit-side total:

= Accounts payable + Deferred revenue + Common stock + Retained earnings + Service revenue

= $3500 + $4300 + $130000 + $75500 + $291400

= $504700