Copyright © 2016 Pearson Education, Inc.
12–21
PROBLEM 12A-4 (CONTINUED)
(3)
GENERAL JOURNAL
PAGE 2
Date
201X
Account Titles and Description
PR
Dr.
Cr.
Adjusting Entries
Dec.
31
Income Summary
332
4
4
5
0
00
Merchandise Inventory
112
4
4
5
0
00
31
Merchandise Inventory
112
4
8
0
0
00
Income Summary
332
4
8
0
0
00
31
Lumber Supplies Expense
664
1
7
7
00
Lumber Supplies
113
1
7
7
00
31
Insurance Expense
665
1
8
0
00
Prepaid Insurance
114
1
8
0
00
31
Depreciation Expense, Lumber Equipment
663
2
0
0
00
Acc. Depreciation, Lumber Equipment
122
2
0
0
00
31
Wages Expense
660
8
5
00
Wages Payable
221
8
5
00
Closing Entries
31
Sales
440
23
1
0
0
00
Purchases Discount
551
2
8
5
00
Purchases Returns and Allowances
552
2
9
0
00
Income Summary
332
23
6
7
5
00
31
Income Summary
332
19
1
0
2
00
Sales Returns and Allowances
441
2
2
0
00
Purchases
550
14
6
0
0
00
Wages Expense
660
2
5
6
5
00
Advertising Expense
661
3
7
0
00
Rent Expense
662
7
9
0
00
Lumber Supplies Expense
664
1
7
7
00
Insurance Expense
665
1
8
0
00
Dep. Exp., Lumber Equipment
663
2
0
0
00
31
Income Summary
332
4
9
2
3
00
J. Cullen, Capital
330
4
9
2
3
00
31
J. Cullen, Capital
330
3
3
0
0
00
J. Cullen, Withdrawals
331
3
3
0
0
00
PROBLEM 12A-4 (CONTINUED)
CULLEN LUMBER
GENERAL LEDGER
CASH
ACCOUNT NO. 110
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
1
3
7
0
00
ACCOUNT NO. 111
Debit
Credit
Dec.
31
Balance
√
1
2
6
0
00
Date
201X
Explanation
Post
Ref.
Debit
Balance
31
GJ2
4
0
0
4
0
0
00
Date
201X
Explanation
Post
Ref.
Debit
Balance
Debit
Credit
Dec.
31
√
7
7
00
31
GJ2
7
0
0
00
PROBLEM 12A-4 (CONTINUED)
PREPAID INSURANCE
ACCOUNT NO. 114
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
2
1
2
00
31
Adjusting
GJ2
1
8
0
00
3
2
00
LUMBER EQUIPMENT
ACCOUNT NO. 121
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
2
6
0
0
00
ACCOUNT NO. 122
201X
Explanation
Ref.
Debit
Balance
Debit
Credit
Dec.
31
Balance
√
5
0
31
Adjusting
GJ2
2
0
7
3
0
ACCOUNTS PAYABLE
ACCOUNT NO. 220
Date
201X
Explanation
Post
Ref.
Debit
Balance
31
Balance
1
1
8
0
00
Date
201X
Explanation
Post
Ref.
Debit
Balance
Debit
Credit
Dec.
Adjusting
GJ2
5
8
5
PROBLEM 12A-4 (CONTINUED)
J. CULLEN, CAPITAL
ACCOUNT NO. 330
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
6
5
4
4
00
31
Closing
GJ2
4
9
2
3
00
11
4
6
7
00
31
Closing
GJ2
3
3
0
0
00
8
1
6
7
00
ACCOUNT NO. 331
31
GJ2
3
0
00
ACCOUNT NO. 332
201X
Explanation
Ref.
Debit
Balance
Debit
Credit
31
GJ2
9
2
3
00
ACCOUNT NO. 440
201X
Explanation
Ref.
Debit
Balance
Debit
Credit
Dec.
31
Balance
√
23
1
0
0
00
PROBLEM 12A-4(CONTINUED)
SALES RETURNS AND ALLOWANCES
ACCOUNT NO. 441
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
2
2
0
00
31
Closing
GJ2
2
2
0
00
–
—
–
PURCHASES
ACCOUNT NO. 550
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
14
6
0
0
00
31
Closing
GJ2
14
6
0
0
00
–
—
–
ACCOUNT NO. 551
Date
201X
Explanation
Post
Ref.
Debit
Balance
Debit
Credit
Dec.
31
Balance
√
2
8
5
00
31
Closing
GJ2
2
8
5
00
—
–
ACCOUNT NO. 552
Debit
Credit
Dec.
31
Balance
√
2
9
0
00
31
Closing
GJ2
2
9
0
00
—
–
Date
201X
Explanation
Post
Ref.
Debit
Balance
Debit
Credit
Dec.
31
Balance
√
2
4
8
0
00
31
Adjusting
GJ2
8
5
00
2
5
6
5
00
31
Closing
GJ2
5
5
00
–
—
–
PROBLEM 12A-4(CONTINUED)
ADVERTISING EXPENSE
ACCOUNT NO. 661
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
3
7
0
00
31
Closing
GJ2
3
7
0
00
–
—
–
RENT EXPENSE
ACCOUNT NO. 662
Date
201X
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Balance
√
7
9
0
00
31
Closing
GJ2
7
9
0
00
–
—
–
Date
201X
Explanation
Post
Ref.
Debit
Balance
Debit
Credit
Dec.
31
Adjusting
GJ2
2
0
0
00
2
0
0
00
31
Closing
GJ2
2
0
00
–
—
–
Date
201X
Explanation
Post
Ref.
Debit
Balance
Debit
Credit
Date
201X
Explanation
Post
Ref.
Debit
Balance
Debit
Credit
Dec.
31
Adjusting
GJ2
1
8
0
00
1
8
0
00
31
Closing
GJ2
1
0
00
–
—
–
PROBLEM 12A-4 (CONCLUDED)
(4)
CULLEN LUMBER
POST-CLOSING TRIAL BALANCE
DECEMBER 31, 201X
Dr.
Cr.
Cash
1
3
7
0
00
Accounts Receivable
1
2
6
0
00
Merchandise Inventory
4
8
0
0
00
Lumber Supplies
1
0
0
00
Prepaid Insurance
3
2
00
Lumber Equipment
2
6
0
0
00
Acc. Depr., Lumber Equipment
7
3
0
00
Accounts Payable
1
1
8
0
00
Wages Payable
8
5
00
J. Cullen, Capital
8
1
6
7
00
10
1
6
2
00
10
1
6
2
00
(5)
Jan.
1
Wages Payable
221
8
5
00
Wages Expense
660
8
5
00
(Reversing Entry)
PROBLEM 12B-1
WRIGHT CO.
INCOME STATEMENT
FOR YEAR ENDED DECEMBER 31, 201X
Revenue:
Gross Sales
$2
8
5
0
00
Less: Sales Ret. & Allow.
$
1
1
9
00
Sales Discount
6
4
00
1
8
3
00
Net Sales
$2
6
6
7
00
Cost of Goods Sold:
Merchandise Inventory, 1/1/1X
$
4
1
0
00
Purchases
$
8
9
0
00
Less: Purch. Ret. & Allow.
$
1
7
5
00
Purch. Discount
1
3
5
00
3
1
0
00
Net Purchases
5
8
0
00
Add: Freight-In
1
1
0
00
Net Cost of Purchases
6
9
0
00
Cost of Goods Avail. for Sale
$1
1
0
0
00
Less: Merch. Inv., 12/31 /1X
2
3
0
00
Cost of Goods Sold
8
7
0
00
Gross Profit
$1
7
9
7
00
Operating Expenses:
Salaries Expense
$
4
0
0
00
Insurance Expense
1
9
0
00
Advertising Expense
1
7
5
00
Rent Expense
2
2
5
00
Depreciation Exp., Store Equip.
1
7
0
00
Total Operating Expenses
1
1
6
0
00
Net Income from Operations
$
6
3
7
00
Other Income:
Rental Income
2
2
0
00
Net Income
$
8
5
7
00
PROBLEM 12B-2
JAGER CO.
STATEMENT OF OWNER’S EQUITY
PROBLEM 12B–2 (CONCLUDED)
JAGER CO.
BALANCE SHEET
DECEMBER 31, 201X
Assets
Current Assets:
Cash
$22
0
0
0
00
Petty Cash
1
1
0
00
Accounts Receivable
1
5
5
0
00
Merchandise Inventory
4
1
0
0
00
Supplies
3
2
5
00
Prepaid Insurance
4
5
0
00
Total Current Assets
$28
5
3
5
00
Plant and Equipment:
Store Equipment
$2
5
0
0
00
Less: Acc. Depr., Store Equip.
7
5
0
00
$1
7
5
0
00
Automobile
$1
8
0
0
00
Less: Acc. Depr., Auto
1
2
5
00
1
6
7
5
00
Total Plant and Equipment
3
4
2
5
00
Total Assets
$31
9
6
0
00
Liabilities
Current Liabilities:
Mortgage Payable
$
2
0
0
00
Accounts Payable
2
6
0
0
00
Salaries Payable
8
0
0
00
Taxes Payable
2
5
0
0
00
Unearned Rent
19
0
0
0
00
Total Current Liabilities
$25
1
0
0
00
Long-Term Liabilites
Mortgage Payable
5
5
0
00
Total Liabilities
$25
6
5
0
00
Owner’s Equity
H. Jager, Capital
6
3
1
0
00
Total Liabilities & Owner’s Equity
$31
9
6
0
00