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Chapter 04 - The Accounting Cycle
Accounts Payable
2,400
Accrued Expenses Payable
3,920
Income Taxes Payable
2,700
Unearned Rent Fees
500
Common Stock
5,000
Retained Earnings
2,700
Dividends
2,000
Rent Fees Earned
37,000
Furniture Rental Revenue
1,200
Interest Revenue
100
Wages Expense
19,000
Depreciation Expense
1,800
Utilities Expense
320
Insurance Expense
700
Maintenance Expense
9,000
Income Tax Expense
2,700
58,520
58,520
Prepare the closing entry required to transfer the income or loss at the end of the period.
ANSWER:
Dec. 31
Income Summary
4,780
Retained Earnings
4,780
POINTS:
1
DIFFICULTY:
Moderate
Bloom's: Applying
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-03 - LO: 04-03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.08 - Closing Entries
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
181. After the accounts have been adjusted at January 31, the end of the fiscal year, the following balances are taken from
the ledger of Harrison's Dog Walking Service Company:
Retained Earnings
$349,000
Dividends
6,000
Fees Earned
124,600
Chapter 04 - The Accounting Cycle
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Page 86
Accounts Receivable
9,750
Office Supplies
2,525
Store Supplies
4,785
Machinery
10,750
Accumulated Depreciation
2,150
Accounts Payable
14,300
Notes Payable
11,500
Common Stock
33,725
Retained Earnings
20,000
Dividends
13,250
Service Revenue
41,500
Wages Expense
37,425
Rent Expense
3,000
Advertising Expense
2,750
Office Supplies Expense
1,465
Store Supplies Expense
2,150
Depreciation Expense
575
123,175
123,175
ANSWER:
July 31
Service Revenue
41,500
Income Summary
41,500
31
Income Summary
47,365
Wages Expense
37,425
Rent Expense
3,000
Advertising Expense
2,750
Office Supplies Expense
1,465
Store Supplies Expense
2,150
Depreciation Expense
575
31
Retained Earnings
5,865
Income Summary
5,865
31
Retained Earnings
13,250
Dividends
13,250
POINTS:
1
DIFFICULTY:
Moderate
Bloom's: Applying
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.04-03 - LO: 04-03
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.08 - Closing Entries
ACCT.AICPA.FN.03 - Measurement
DATE CREATED:
7/22/2017 6:18 PM
DATE MODIFIED:
10/16/2017 4:41 PM
187. The following is the adjusted trial balance for Miller Company.
Miller Company
Adjusted Trial Balance
December 31
Cash
8,130
Chapter 04 - The Accounting Cycle
Copyright Cengage Learning. Powered by Cognero.
Page 89
Kirk Enterprises
End-of-Period Spreadsheet
For the Year Ended July 31
Unadjusted Trial
Balance
Adjustments
Adjusted Trial
Balance
Debit
Credit
Debit
Credit
Debit
Credit
Cash
36,000
Prepaid Insurance
12,000
Accounts Receivable
56,000
Supplies
12,000
Equipment
60,000
Accum. Depreciation
12,000
Unearned Revenue
20,000
Accounts Payable
32,000
Wages Payable
Common Stock
84,000
Dividends
4,000
Service Revenue
80,000
Advertising Expense
28,000
Wage Expense
20,000
Insurance Expense
Supplies Expense
Depreciation Expense
Totals
228,000
228,000
REQUIRED: Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the
Adjusted Trial Balance columns.
a) Depreciation expense, $1,000
b) Wages accrued, but not paid, $2,000.
c) Supplies on hand, $8,000.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance at July 31, $9,000.
ANSWER:
Kirk Enterprises
End-of-Period Spreadsheet
For the Year Ended July 31
Unadjusted Trial
Adjustments
Adjusted Trial
Debit
Credit
Debit
Credit
Debit
Credit
Cash
36,000
36,000
Prepaid
Insurance
12,000
(e) 3,000
9,000
Accounts
Receivable
56,000
56,000
Supplies
12,000
(c) 4,000
8,000
Equipment
60,000
60,000
Accumulated
