193. After all adjustments have been made, but before the accounts have been closed, the following balances
were taken from the ledger of Ramona’s Designs:
Accounts Payable
$ 27,600
Rent Expense
$ 32,700
Accounts Receivable
64,500
Salary Expense
41,390
Accumulated Depreciation
73,325
Salaries Payable
8,150
Cash
17,150
Service Revenue
186,000
Depreciation Expense
13,500
Supplies
1,500
Equipment
165,000
Supplies Expense
2,500
Insurance Expense
2,510
Ramona Cross, Capital
99,950
Prepaid Insurance
6,275
Ramona Cross, Drawing
48,000
Journalize the entries to close the appropriate accounts.
Service Revenue
186,000
Income Summary
186,000
Income Summary
92,600
Depreciation Expense
13,500
Insurance Expense
2,510
Rent Expense
32,700
Salary Expense
41,390
Supplies Expense
2,500
Income Summary
93,400
Ramona Cross, Capital
93,400
Ramona Cross, Capital
48,000
Ramona Cross, Drawing
48,000
194. On the basis of the following information taken from the Adjusted Trial Balance columns of the work
sheet for the month ended September 30th, journalize the closing entries for Perez Roofing Company.
Cash
$22,500.00
Accounts Receivable
3,575.00
Office Supplies
2,850.00
Repair Parts
3,785.00
Machinery
17,750.00
Accumulated Depreciation
3,250.00
Accounts Payable
1,150.00
Notes Payable
6,500.00
Sam Perez, Capital
2,500.00
Sam Perez, Drawing
1,750.00
Service Revenue
47,200.00
Wages Expense
4,840.00
Office Supplies Expense
1,275.00
Repair Parts Expense
925.00
Depreciation Expense
1,350.00
$60,600.00
$60,600.00
Sep 30
Service Revenue
47,200.00
Income Summary
47,200.00
Sep 30
Income Summary
8,390.00
Wages Expense
4,840.00
Office Supplies Expense
1,275.00
Repair Parts Expense
925.00
Depreciation Expense
1,350.00
Closing Entry – Expenses
Sep 30
Income Summary
38,810.00
Sam Perez, Capital
38,810.00
Closing Entry – Income Summary
Sep 30
Sam Perez, Capital
1,750.00
Sam Perez, Drawing
1,750.00
Closing Entry – Drawing
195. The following adjusted trial balance is the result of the adjustments made at the end of the month of March
for Erik Martin Company. Utilize these adjusted values to perform the closing entries for Erik Martin Company.
Cash
$24,750.00
Accounts Receivable
5,750.00
Office Supplies
3,525.00
Store Supplies
4,785.00
Machinery
9,750.00
Accumulated Depreciation
2,150.00
Accounts Payable
3,550.00
Notes Payable
7,500.00
Erik Martin, Capital
19,725.00
Erik Martin, Drawing
6,250.00
Service Revenue
36,500.00
Wages Expense
6,425.00
Office Supplies Expense
1,465.00
Store Supplies Expense
5,150.00
Depreciation Expense
1, 575.00
________
$69,425.00
$69,425.00
March 31
Service Revenue
36,500.00
Income Summary
36,500.00
Closing Entry – Service Revenue
March 31
Income Summary
14,615.00
Wages Expense
6,425.00
Office Supplies Expense
1,465.00
Store Supplies Expense
5,150.00
Depreciation Expense
1,575.00
Closing Entry – Expenses
March 31
Income Summary
21,885.00
Erik Martin, Capital
21,885.00
Closing Entry – Income Summary
March 31
Erik Martin, Capital
6,250.00
Erik Martin, Drawing
6,250.00
Closing Entry – Drawing
196. The following adjusted trial balance is the result of the adjustments made at the end of the month of July
for Ladonna Douglas Company. Utilize these adjusted values to perform the closing entries for Ladonna
Douglas Company.
Cash
$34,750.00
Accounts Receivable
9,750.00
Office Supplies
2,525.00
Store Supplies
4,785.00
Machinery
10,750.00
Accumulated Depreciation
2,150.00
Accounts Payable
14,300.00
Notes Payable
11,500.00
Ladonna Douglas, Capital
53,725.00
Ladonna Douglas, Drawing
13,250.00
Service Revenue
41,500.00
Wages Expense
37,425.00
Rent Expense
3,000.00
Advertising Expense
2,750.00
Office Supplies Expense
1,465.00
Store Supplies Expense
2,150.00
Depreciation Expense
575.00
________
$123,175.00
$123,175.00
July 31
Service Revenue
41,500.00
Income Summary
41,500.00
Closing Entry – Service Revenue
July 31
Income Summary
47,365.00
Wages Expense
37,425.00
Rent Expense
3,000.00
Advertising Expense
2,750.00
Office Supplies Expense
1,465.00
Store Supplies Expense
2,150.00
Depreciation Expense
575.00
Closing Entry – Expenses
July 31
Ladonna Douglas, Capital
5,865.00
Income Summary
5,865.00
Closing Entry – Income Summary
July 31
Ladonna Douglas, Capital
13,250.00
Ladonna Douglas, Drawing
13,250.00
Closing Entry – Drawing
197. Marcus Enterprises was started by Damien Marcus in 2010. During 2010, Damien Marcus invested
$8,000 in the business. Based on the following worksheet, prepare an income statement, statement of owner’s
equity, and balance sheet for Marcus Enterprises for the year ended December 31, 2010.
Marcus Enterprises
Worksheet
For the Year Ended December 31, 2010
Adjusted Trial
Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
26,500
26,500
Accounts Receivable
7,000
7,000
Supplies
1,000
1,000
Equipment
18,500
18,500
Accumulated Depr-Equip
5,000
5,000
Accounts Payable
11,000
11,000
Wages Payable
1,000
1,000
Damien Marcus, Capital
8,000
8,000
Damien Marcus, Drawing
2,000
2,000
Fees Earned
59,500
59,500
Wages Expense
19,000
19,000
Rent Expense
7,000
7,000
Depreciation Expense
3,500
3,500
Totals
84,500
84,500
29,500
59,500
55,000
25,000
Net Income (Loss)
30,000
30,000
59,500
59,500
55,000
55,000
198. Prepare closing entries from the following work sheet.
Lakendra Enterprises
Worksheet
For the Year Ended December 31, 2010
Adjusted Trial
Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
26,500
26,500
Accounts Receivable
7,000
7,000
Supplies
1,000
1,000
Equipment
18,500
18,500
Accumulated Depr-Equip
5,000
5,000
Accounts Payable
11,000
11,000
Wages Payable
1,000
1,000
Lakendra Thomas, Capital
8,000
8,000
Lakendra Thomas, Drawing
2,000
2,000
Fees Earned
59,500
59,500
Wages Expense
19,000
19,000
Rent Expense
7,000
7,000
Depreciation Expense
3,500
3,500
Totals
84,500
84,500
29,500
59,500
55,000
25,000
Net Income (Loss)
30,000
30,000
59,500
59,500
55,000
55,000
Dec 31
Fees Earned
59,500
Income Summary
59,500
Dec 31
Income Summary
29,500
Wages Expense
19,000
Rent Expense
7,000
Depreciation Expense
3,500
Dec 31
Income Summary
30,000
Lakendra Thomas, Capital
30,000
Dec 31
Lakendra Thomas, Capital
2,000
Lakendra Thomas, Drawing
2,000
199. The following is the adjusted trial balance for Sandeep Company.
Sandeep Company
Adjusted Trial Balance
December 31, 2010
Cash
8,130
Accounts Receivable
3,300
Prepaid Expenses
2,750
Equipment
10,400
Accumulated Depreciation
2,200
Accounts Payable
2,700
Notes Payable
1,000
Rena Sandeep, Capital
11,200
Rena Sandeep, Drawing
4,870
Fees Earned
36,600
Wages Expense
12,450
Rent Expense
4,900
Utilities Expense
3,475
Depreciation Expense
2,150
Miscellaneous Expense
1,275
Totals
53,700
53,700
Prepare closing entries and the post closing trial balance.
Fees Earned
36,600
Income Summary
36,600
Income Summary
24,250
Wages Expense
12,450
Rent Expense
4,900
Utilities Expense
3,475
Depreciation Expense
2,150
Miscellaneous Expense
1,275
Income Summary
12,350
Rena Sandeep, Capital
12,350
Rena Sandeep, Capital
4,870
Rena Sandeep, Drawing
4,870
Sandeep Company
Post Closing Trial Balance
Cash
8,130
Accounts Receivable
3,300
Prepaid Expenses
2,750
Equipment
10,400
Accumulated Depreciation
2,200
Accounts Payable
2,700
Notes Payable
1,000
Rena Sandeep, Capital
18,680
200. Reconstruct the adjusting and closing entries from the following T-Accounts.
Prepaid
Insurance
Accou
nts
Receiv
able.
Unearned
Revenues
Wages
Payable
1,200
6,000
1,350
530
200
1,500
435
530
1,000
7,500
915
Madison
Cox, Capital
Madis
on
Cox,
Drawi
ng
Income
Summary
Fees Earned
7,000
2,100
9,935
8,000
5,280
2,100
4,655
1,500
2,100
0
5,280
435
10,180
0
9,935
0
Wages
Expense
Rent
Expens
e
Insurance
Expense
Utilities
Expense
2,600
1,145
200
180
530
1,145
200
180
3,130
0
0
0
0
Adjusting Entries:
Closing Entries:
1)
Fees Earned
9,935
Income Summary
9,935
2)
Income Summary
4,655
Wages Expense
3,130
Rent Expense
1,145
Insurance Expense
200
Income Summary
5,280
Madison Cox, Drawing
2,100
1)
Insurance Expense
200
Prepaid Insurance
200
2)
Accounts Receivable
1,500
Fees Earned
1,500
3)
Unearned Revenue
435
Fees Earned
435
4)
Wages Expense
530
Wages Payable
530
201. Reconstruct adjusting and closing entries for the month ended September 30, 2010 from the T-accounts
below.
Prepaid
Insurance
Accou
nts
Receiv
able.
Unearned
Revenues
Wages
Payable
1,350
1,250
1,050
385
130
275
235
385
1,220
1,525
815
Mai Lui,
Capital
Mai
Lui,
Drawin
g
Income
Summary
Fees Earned
7,000
2,400
5,510
5,000
580
2,400
6,090
275
2,400
0
580
235
4,020
5,510
Wages
Expense
Rent
Expens
e
Insurance
Expense
Utilities
Expense
3,600
1,880
130
95
385
1,880
130
95
3,985
0
0
0
0
Adjusting Entries:
1)
Insurance Expense
130
Prepaid Insurance
130
2)
Accounts Receivable
275
Fees Earned
275
3)
Unearned Revenue
235
Fees Earned
235
4)
Wages Expense
385
Wages Payable
385
1)
Fees Earned
5,510
Income Summary
5,510
2)
Income Summary
6,090
Wages Expense
3,985
Rent Expense
1,880
Insurance Expense
130
Utilities Expense
95
3)
Mai Lui, Capital
580
Income Summary
580
4)
Mai Lui, Capital
2,400
202.
1)
Dana Bowen Company is completing its first year of
operations on April 30, 2010. Reconstruct the entries for the
year ended April 30, 2010 from the T-accounts
below. Record them as follows:
A – L Journal Entries
M- R Adjusting Journal Entries
2)
Balance and prepare the Income Statement, Statement of
Owner’s Equity, and the Balance Sheet from the T-Accounts.
3)
Prepare the four closing entries (S – V).
4)
Prepare the Post-Closing Trial Balance.
Cash
Accou
nts
Receiv
able
Supplies
Prepaid
Insurance
6,500
1,250
870
1,940
900
385
540
725
400
420
1,940
2,500
50
350
930
Equipment
Accum
ulated
Deprec
iation
Accounts
Payable
Wages
Payable
2,500
130
870
225
Unearned
Revenues
Dana
Bowen
,
Capital
Dana
Bowen,
Drawing
Income
Summary
930
6,500
350
590
2,500
Fees Earned
Wages
Expens
e
Rent
Expense
Supplies
Expense
900
420
400
540
1,250
225
2,500
385
590
Insurance
Expense
Deprec
iation
Expens
e
Miscellaneo
us Expense
725
130
50
Cash
6,500
Dana Bowen, Capital
6,500
b)
Equipment
2,500
Dana Bowen, Capital
2,500
Rent Expense
400
Cash
400
d)
Cash
900
Fees Earned
Accounts Receivable
1,250
Fees Earned
1,250
Supplies
870
Accounts Payable
g)
Wages Expense
420
Cash
420
h)
Prepaid Insurance
1,940
Cash
1,940
Cash
2,500
Fees Earned
2,500
Miscellaneous Expense
50
Cash
k)
Dana Bowen, Drawing
350
Cash
350
Cash
930
Unearned Revenue
Supplies Expense
Supplies
540
n)
Accounts Receivable
385
Fees Earned
385
o)
Insurance Expense
725
Prepaid Insurance
p)
Depreciation Expense
130
Accumulated Depreciation
130
q)
Wages Expense
225
Wages Payable
Unearned Revenues
590
Fees Earned
590
203. The balances in the ledger of Good Landscape Services as of January 31, 2014 before adjustments, are as
follows:
Cash
$ 6,750
Dalton Good, Capital
$29,775
Supplies
3,900
Dalton Good, Drawing
3,425
Prepaid Insurance
8,400
Service Revenue
56,300
Equipment
41,750
Salary Expense
24,300
Accumulated
Rent Expense
6,000
Depreciation
9,950
Miscellaneous Expense
1,500
Adjustment data are as follows: supplies on hand, January 31, $900; insurance expired for January, $1,100; depreciation on equipment for January,
$1,600; salaries accrued, January 31, $1,650.
(a)
Prepare a ten-column work sheet for Good Landscape Services for January, 2014.
(b)
On the basis of the work sheet in (a), present the following in good order: (1) income statement, (2) statement of owner’s equity
(no additional investments were made during the month), and (3) balance sheet.
(c)
On the basis of the work sheet in (a), journalize the closing entries as of January 31, 2014.
(a)
)
)
)
Trial Balance
Adjustments
Account Title
Dr.
Dr.
)
Cash
6,750
)
Supplies
3,900
(a) 3,000
)
Prepaid Insurance
8,400
(b) 1,100
)
Equipment
41,750
)
Accumulated Depreciation
9,950
(c) 1,600
)
Dalton Good, Capital
29,775
)
Dalton Good, Drawing
3,425
)
Service Revenue
63,200
)
Salary Expense
24,300
(d) 1,650
)
Rent Expense
6,000
)
Miscellaneous Expense
1,500
)
96,025
96,025
)
)
Supplies Expense
(a) 3,000
)
Insurance Expense
(b) 1,100
)
Depreciation Expense
(c) 1,600
)
Salaries Payable
d) 1,650
)
7,350
7,350
)
Net Income
)
(
Dr.
Dr.
Dr.
(
7,300
7,300
204. Complete the following worksheet for Danilo Enterprises.
Danilo Enterprises
Worksheet
For the Year Ended December 31, 2010
Adjusted Trial
Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
14,500
Accounts Receivable
7,500
Supplies
500
Equipment
20,500
Accumulated Depr-Equip
15,000
Accounts Payable
9,500
Wages Payable
3,060
Tony Danilo, Capital
18,240
Tony Danilo, Drawing
1,000
Fees Earned
34,000
Wages Expense
18,000
Rent Expense
9,300
Depreciation Expense
8,500
Totals
79,800
79,800
Net Income (Loss)
(c)
Jan. 31
Service Revenue
56,300
Income Summary
56,300
Income Summary
39,150
Salary Expense
25,950
Rent Expense
6,000
Miscellaneous Expense
1,500
Supplies Expense
2,100
Insurance Expense
1,100
Depreciation Expense
2,500
Income Summary
17,150
Dalton Good, Capital
17,150
Dalton Good, Capital
3,425
Dalton Good, Drawing
3,425
