Chapter 4: Completing the Accounting Cycle
179.
On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the
year
ended March 31 for Banes Domino’s Company, journalize the four closing entries.
Cash 30,000
Accounts Receivable 45,200
Supplies 5,000
Equipment 169,900
Accumulated Depreciation 32,000
Accounts Payable 12,500
Jack Banes, Capital 71,600
Jack Banes, Drawing 47,000
Fees Earned 510,000
Salary Expense 244,500
Rent Expense 48,000
Depreciation Expense 25,000
Supplies Expense 9,500
Miscellaneous Expense 2,000
626,100 626,100
Chapter 4: Completing the Accounting Cycle
180.
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:
$ 27,600
Rent Expense
$ 32,700
64,500
Salary Expense
41,390
73,325
Salaries Payable
8,150
17,150
Service Revenue
186,000
13,500
Supplies
1,500
165,000
Supplies Expense
2,500
2,510
Ramona Cross, Capital
99,950
6,275
Ramona Cross, Drawing
48,000
Journalize the entries to close the appropriate accounts.
Income Summary
Chapter 4: Completing the Accounting Cycle
181.
On the basis of the following information taken from the Adjusted Trial Balance columns of the work sheet for
the
month ended September 30, journalize the closing entries for Perez Roofing Company.
Cash
22,500
Accounts Receivable
3,575
Office Supplies
2,850
Repair Parts
3,785
Machinery
Accumulated Depreciation
17,750
3,250
Accounts Payable
1,150
Notes Payable
6,500
Sam Perez, Capital
Sam Perez, Drawing
Service Revenue
Wages Expense
1,750
4,840
2,500
47,200
Office Supplies Expense
1,275
Repair Parts Expense
925
Depreciation Expense
1,350
60,600
60,600
Chapter 4: Completing the Accounting Cycle
182.
The following adjusted trial balance is the result of the adjustments made at the end of the month of March for
Erik
Martin Company. Use these adjusted values to journalize the closing entries for Erik Martin Company.
Cash
24,750
Accounts Receivable
5,750
Office Supplies
3,525
Store Supplies
4,785
Machinery
9,750
Accumulated Depreciation
2,150
Accounts Payable
3,550
Notes Payable
7,500
Erik Martin, Capital
19,725
Erik Martin, Drawing
6,250
Service Revenue
36,500
Wages Expense
6,425
Office Supplies Expense
1,465
Store Supplies Expense
5,150
Depreciation Expense
1,575
69,425
69,425
Chapter 4: Completing the Accounting Cycle
183.
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
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
Ladonna Douglas, Capital
53,725
Ladonna Douglas, Drawing
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
Chapter 4: Completing the Accounting Cycle
184.
Austin Enterprises was started by Daniel Austin. During the current year, Daniel Austin invested $8,000 in
the
business. Based on the following end-of-year spreadsheet, prepare an income statement, statement of
owner’s
equity, and balance sheet for Austin Enterprises for the year ended December 31.
Austin Enterprises
End-of-Period Spreadsheet
For the Year Ended December 31
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
Daniel Austin, Capital
8,000
8,000
Daniel Austin, 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
Fees earned
Expenses:
3,500
Total expenses
29,500
Daniel Austin, capital, January 1
Investment during the year
Net income for the year
Less withdrawals
Chapter 4: Completing the Accounting Cycle
Chapter 4: Completing the Accounting Cycle
185.
Prepare closing entries from the following end–of-period spreadsheet.
Austin Enterprises
End-of-Period Spreadsheet
For the Year Ended December 31
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.
5,000
5,000
Accounts Payable
11,000
11,000
Wages Payable
1,000
1,000
Don Austin, Capital
8,000
8,000
Don Austin, 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
30,000
30,000
59,500
59,500
55,000
55,000
Fees Earned
Dec. 31
Income Summary
Dec. 31
Income Summary
Dec. 31
Don Austin, Capital
Chapter 4: Completing the Accounting Cycle
186.
The following is the adjusted trial balance for Miller Company.
Miller Company
Adjusted Trial Balance
December 31
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
Diane Miller, Capital
11,200
Diane Miller, 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
Income Summary
Income Summary
Diane Miller, Capital
Chapter 4: Completing the Accounting Cycle
187.
Reconstruct the adjusting and closing entries from the following.
Prepaid
Insurance
Accounts
Receivabl
Unearned
Revenues
Wages Payable
1,200
6,000
1,350
530
200
1,500
435
530
1,000
7,500
915
Madison Cox,
Capital
Madison Cox,
Drawing
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 Expense
Insurance
Expense
Utilities
Expense
2,600
1,145
200
180
530
1,145
200
180
3,130
0
0
0
0
Chapter 4: Completing the Accounting Cycle
Chapter 4: Completing the Accounting Cycle
188.
Reconstruct adjusting and closing entries for the month ended September 30 from the T-accounts below.
Prepaid
Insurance
Accounts
Receivable
Unearned
Revenues
Wages
Payable
1,350
1,250
1,050
385
130
275
235
385
1,220
1,525
815
Diane Lin,
Capital
Diane Lin,
Drawing
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
0
5,510
0
Wages
Expense
Rent
Expense
Insurance
Expense
Utilities
Expense
3,600
1,880
130
95
385
1,880
130
95
3,985
0
0
0
0
Chapter 4: Completing the Accounting Cycle
Chapter 4: Completing the Accounting Cycle
189.
The following are all the steps in the accounting cycle. List them in the order in which they should be done.
–
Closing entries are journalized and posted to the ledger.
–
An unadjusted trial balance is prepared.
–
An optional end-of-period spreadsheet (work sheet) is prepared.
–
A post-closing trial balance is prepared.
–
Adjusting entries are journalized and posted to the ledger.
–
Transactions are analyzed and recorded in the journal.
–
Adjustment data are assembled and analyzed.
–
Financial statements are prepared.
–
An adjusted trial balance is prepared.
–
Transactions are posted to the ledger.
Chapter 4: Completing the Accounting Cycle
190. 1) Dana Bowen Company is completing its first year of operations on April 30. Reconstruct
the entries for the year ended April 30 from the T accounts below. Record them,
assigning
letters to each transaction, as follows:
a – l Transaction
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
Accounts
Receivable
Supplies
Prepaid
Insurance
6,500
1,250
870
1,940
900
385
540
725
400
420
1,940
2,500
50
350
930
Equipment
Accumulated
Depreciation
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 Expense
Rent Expense
Supplies Expense
900
420
400
540
1,250
225
2,500
385
590