Account Name
Trial Balance
Adjustments
Adjusted
Income
Statement
Balance Sheet
Trial Balance
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
120
Accounts Receivable
80
Prepaid Insurance
48
Supplies
40
Equipment
160
Accumulated
Depreciation–Equipment
24
Accounts Payable
48
Unearned Revenue
32
Common Stock
256
Dividends
8
Service Revenue
192
Wages Expense
96
552
552
Account Name
Trial Balance
Adjustments
Debit
Debit
Debit
Debit
Debit
Cash
Prepaid Insurance
PROBLEM
1. Prepare closing entries for December from the following Income Statement columns of the work sheet
of Custom Cleaning Service, Inc., assuming that a $500 dividend was paid during the period (omit
explanations).
Income Statement
Debit
Credit
Cleaning Revenue
2,600
Wages Expense
1,200
Rent Expense
400
Supplies Expense
300
Income Taxes Expense
40
1,940
2,600
Net Income
660
2,600
2,600
General Journal
Page 1
Date
Description
Post.
Ref.
Debit
Credit
2. From the following items in the Income Statement columns of the work sheet of ElKay Corporation,
prepare the closing entries at December 31, assuming that a $75 dividend was paid during the period
(omit explanations).
Income Statement
Debit
Credit
Service Revenue
1,800
Wages Expense
1,200
Rent Expense
400
Supplies Expense
200
Income Taxes Expense
100
Depreciation Expense–Building
150
2,050
1,800
Net Loss
250
2,050
2,050
General Journal
Page 1
Date
Description
Post.
Ref.
Debit
Credit
Cleaning Revenue
Income Summary
Income Summary
Wages Expense
Rent Expense
Supplies Expense
Income Taxes Expense
Income Summary
Retained Earnings
Retained Earnings
Dividends
3. From the following items in the Income Statement columns of the work sheet of Dane Corporation,
prepare the closing entries at December 31, assuming that a $100 dividend was paid during the period
(omit explanations).
Income Statement
Debit
Credit
Service Revenue
Income Summary
Income Summary
Wages Expense
Rent Expense
Supplies Expense
Income Taxes Expense
Depreciation Expense–Building
Retained Earnings
Income Summary
Retained Earnings
Dividends
Service Revenue
6,000
Wages Expense
3,600
Rent Expense
1,200
Supplies Expense
600
Income Taxes Expense
300
Depreciation Expense–Building
500
6,200
6,000
Net Loss
200
6,200
6,200
General Journal
Page 1
Date
Description
Post.
Ref.
Debit
Credit
Service Revenue
Income Summary
6,000
Income Summary
Wages Expense
3,600
Rent Expense
1,200
Supplies Expense
600
Income Taxes Expense
300
Depreciation Expense–Building
500
Retained Earnings
4. The Trial Balance and Adjusted Trial Balance columns of Owen Cleaning Corporation’s work sheet
are shown below. (The Adjustments columns have been omitted.) Using this information, prepare the
post-closing trial balance for Owen Cleaning Corporation as of June 30, 2013.
Account Name
Trial Balance
Adjusted
Trial Balance
Debit
Credit
Debit
Credit
Cash
2,600
2,600
Accounts Receivable
380
400
Prepaid Rent
570
540
Office Supplies
2,600
1,740
Office Equipment
10,800
10,800
Accumulated Depreciation–Office Equipment
2,160
3,920
Accounts Payable
720
780
Common Stock
10,600
10,600
Dividends
850
850
Cleaning Revenue
7,800
7,820
Wages Expense
2,400
2,600
Utilities Expense
1,080
1,140
21,280
21,280
Rent Expense
30
Office Supplies Expense
860
Depreciation Expense–Office Equipment
1,760
Wages Payable
200
Income Taxes Expense
400
Income Taxes Payable
400
23,720
23,720
Cash
Accounts Receivable
Prepaid Rent
Office Supplies
Office Equipment
Accumulated Depreciation–Office Equipment
$ 3,920
Accounts Payable
Wages Payable
Retained Earnings
100
Dividends
5. Presented below are the Retained Earnings, Dividends, and Income Summary accounts for Shawano
Company for the year ended December 31, 2013. Closing entries have been entered and posted.
Prepare a statement of retained earnings.
Dividends
Income Summary
5/1
3,800
12/31
9,800
12/31
4,500
12/31
19,000
8/19 6,000
12/31
14,500
Retained Earnings
12/31 9,800
1/1
8,000
12/31
14,500
Retained earnings, December 31, 2012
Net income
Subtotal
Less dividends
Retained earnings, December 31, 2013
6. Using the information below from the Income Statement and Balance Sheet columns of Tople
Corporation’s work sheet for the month ended April 30, 2013, prepare the income statement, statement
of retained earnings, and balance sheet.
Income Statement
Balance Sheet
Account Name
Debit
Credit
Debit
Credit
Cash
12
Accounts Receivable
24
Prepaid Insurance
4
Income Taxes Payable
Common Stock
Retained Earnings
___180*
Supplies
8
Equipment
40
Accumulated Depreciation–Equipment
6
Accounts Payable
10
Unearned Revenue
4
Common Stock
50
Dividends
6
Service Revenue
60
Wages Expense
20
Insurance Expense
8
Depreciation Expense–Equipment
6
Income Taxes Expense
2
Income Taxes Payable
2
Wages Payable
2
Supplies Expense
4
40
60
94
74
Net Income
20
20
60
60
94
94
Service revenue
Expenses
Wages expense
Insurance expense
Depreciation expense–equipment
Supplies expense
Income taxes expense
2
Net income
Retained earnings, April 1, 2012
Net income
Subtotal
Less dividends
Retained earnings, April 30, 2013
7. The Trial Balance and Adjusted Trial Balance columns of Roland Cleaning Corporation’s work sheet
are shown below. (The Adjustments columns have been omitted.) In the journal provided, prepare the
seven adjusting entries and the four closing entries for the month ended June 30, 2013. Omit
explanations.
Account Name
Trial Balance
Adjusted
Trial Balance
Debit
Credit
Debit
Credit
Cash
2,600
2,600
Accounts Receivable
380
400
Prepaid Rent
570
540
Office Supplies
2,600
1,740
Office Equipment
10,800
10,800
Accumulated Depreciation–Office Equipment
2,160
4,320
Accounts Payable
720
780
Common Stock
10,600
10,600
Dividends
850
850
Cleaning Revenue
7,800
7,820
Wages Expense
2,400
2,550
Utilities Expense
1,080
1,140
21,280
21,280
Rent Expense
30
Office Supplies Expense
860
Depreciation Expense–Office Equipment
2,160
Wages Payable
150
Income Taxes Expense
50
Income Taxes Payable
50
23,720
23,720
General Journal
Page 1
Date
Description
Post.
Ref.
Debit
Credit
June
Accounts Receivable
Cleaning Revenue
Rent Expense
Prepaid Rent
Office Supplies Expense
Office Supplies
Depreciation Expense–Office Equipment
Accumulated Depreciation–Office Equipment
