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
1,150
Cash
17,150
Service Revenue
186,000
Depreciation Expense
11,500
Supplies
1,500
Equipment
165,000
Supplies Expense
2,500
Insurance Expense
2,510
Capital Stock
24,000
Miscellaneous Expense
2,000
Retained Earnings
77,950
Prepaid Insurance
6,275
Dividends
48,000
Journalize the entries to close the appropriate accounts.
Service Revenue
186,000
Income Summary
186,000
Income Summary
92,600
Depreciation Expense
11,500
Insurance Expense
2,510
Rent Expense
32,700
Salary Expense
41,390
Supplies Expense
2,500
Miscellaneous Expense
2,000
Income Summary
93,400
Retained Earnings
93,400
Retained Earnings
48,000
Dividends
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 30, prepare the closing entries for Perez Roofing Company.
22,500.00
3,575.00
2,850.00
13,785.00
27,750.00
3,250.00
1,150.00
6,500.00
5,000.00
17,500.00
1,750.00
47,200.00
4,840.00
1,275.00
925.00
1,350.00
80,600.00
80,600.00
Sep. 30
Service Revenue
47,200.00
Income Summary
47,200.00
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
Income Summary
38,810.00
Retained Earnings
38,810.00
Retained Earnings
1,750.00
Dividends
1,750.00
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 prepare 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
Capital Stock
10,000.00
Retained Earnings
9,725.00
Dividends
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
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
Income Summary
21,885.00
Retained Earnings
21,885.00
Retained Earnings
6,250.00
Dividends
6,250.00
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 prepare 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
20,750.00
Accumulated Depreciation
2,150.00
Accounts Payable
14,300.00
Notes Payable
11,500.00
Capital Stock
7,500.00
Retained Earnings
46,225.00
Dividends
3,250.00
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
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
Retained Earnings
5,865.00
Income Summary
5,865.00
Retained Earnings
3,250.00
Dividends
3,250.00
197. Marcus Enterprises began in 2011 when Damien Marcus invested $8,000 in exchange for capital
stock. The following is the work sheet for the company at the end of the first year in business.
Marcus Enterprises
Work Sheet
For the Year Ended December 31, 2011
Adjusted Trial
Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
25,000
25,000
Accounts Receivable
7,000
7,000
Supplies
1,000
1,000
Equipment
18,500
18,500
Accum. Depr. – Equip.
3,500
3,500
Accounts Payable
11,000
11,000
Wages Payable
1,000
1,000
Capital Stock
8,000
8,000
Dividends
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
83,000
83,000
29,500
59,500
53,500
23,500
Net Income (Loss)
30,000
30,000
59,500
59,500
53,500
53,500
Prepare an income statement, retained earnings statement, and classified balance sheet for Marcus Enterprises for the year ended December 31,
2011.
198. Marcus Enterprises began in 2011 when Damien Marcus invested $8,000 in exchange for capital
stock. The following is the work sheet for the company at the end of the first year in business.
Marcus Enterprises
Work Sheet
For the Year Ended December 31, 2011
Adjusted Trial
Balance
Income Statement
Balance Sheet
Fees earned
$59,500
Wages expense
$19,000
Rent expense
7,000
Depreciation expense
3,500
Total expenses
29,500
Retained earnings, January 1, 2011
$ 0
Net income
$30,000
Increase in retained earnings
28,000
Current assets:
Current liabilities:
Accounts receivable
7,000
Wages payable
1,000
Supplies
1,000
Total liabilities
$12,000
Total current assets
$33,000
Property, plant, and equipment:
Less accum. depreciation
3,500
Retained earnings
28,000
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
25,000
25,000
Accounts Receivable
7,000
7,000
Supplies
1,000
1,000
Equipment
18,500
18,500
Accum. Depr. – Equip.
3,500
3,500
Accounts Payable
11,000
11,000
Wages Payable
1,000
1,000
Capital Stock
8,000
8,000
Dividends
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
83,000
83,000
29,500
59,500
53,500
23,500
Net Income (Loss)
30,000
30,000
59,500
59,500
53,500
53,500
Prepare the required closing entries for Marcus Enterprises for the year ended December 31, 2011.
Dec. 31
Fees Earned
59,500
Income Summary
59,500
Income Summary
29,500
Wages Expense
19,000
Rent Expense
7,000
Depreciation Expense
3,500
Income Summary
30,000
Retained Earnings
30,000
Retained Earnings
2,000
Dividends
2,000
199. The following is the adjusted trial balance for Sandeep Company.
Sandeep Company
Adjusted Trial Balance
December 31, 2011
Cash
18,130
Accounts Receivable
3,300
Prepaid Expenses
2,750
Equipment
30,400
Accumulated Depreciation
12,200
Accounts Payable
2,700
Notes Payable
1,000
Capital Stock
10,000
Retained Earnings
21,200
Dividends
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
83,700
83,700
200. Reconstruct the adjusting and closing entries from the following T accounts.
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
Retained Earnings
12,350
Retained Earnings
4,870
Dividends
4,870
Sandeep Company
Post-Closing Trial Balance
December 31, 2011
Cash
18,130
Accounts Receivable
3,300
Prepaid Expenses
2,750
Equipment
30,400
Accumulated Depreciation
12,200
Accounts Payable
2,700
Notes Payable
1,000
Capital Stock
10,000
Retained Earnings
28,680
Totals
54,580
54,580
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
Retained
Earnings
Divid
ends
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
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
Fees Earned
9,935
Income Summary
9,935
2)
Income Summary
4,655
Wages Expense
3,130
Rent Expense
1,145
Insurance Expense
200
Utilities Expense
180
3)
Income Summary
5,280
Retained Earnings
5,280
4)
Retained Earnings
2,100
Dividends
2,100
201. Reconstruct adjusting and closing entries for the month ended September 30, 2011 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
Retained
Earnings
Divide
nds
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
1)
Insurance Expense
130
Prepaid Insurance
130
2)
Accounts Receivable
275
Fees Earned
3)
Unearned Revenue
235
Fees Earned
235
4)
Wages Expense
385
Wages Payable
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)
Retained Earnings
580
4)
202.
1)
Bowen Company is completing its first year of operations
on April 30, 2012. Reconstruct the entries for the year
ended April 30, 2012 from the T accounts below. Record
them as follows:
A – L Journal Entries
M- R Adjusting Journal Entries
2)
Prepare the income statement, retained earnings
statement, and classified 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
8,500
1,250
870
1,940
2,500
385
540
725
400
900
420
1,940
2,600
50
350
830
Equipment
Accumulated
Depreciation
Accounts
Payable
Wages
Payable
2,500
130
870
225
Unearned
Revenues
Capital Stock
Retained
Earnings
Dividends
830
8,500
350
490
Fees Earned
Wages Expense
Rent
Expense
Supplies
Expense
900
420
400
540
1,250
225
2,600
385
490
Insurance
Expense
Depreciation
Expense
Miscellaneo
us Expense
Income
Summary
725
130
50
203. The balances in the ledger of Good Landscape Services as of January 31, 2014 before adjustments are as
follows:
Cash
$ 6,750
Retained Earnings
$22,925
Supplies
3,900
Dividends
3,425
Prepaid Insurance
8,400
Service Revenue
56,300
Equipment
41,750
Salary Expense
24,300
Accumulated Depreciation
9,950
Rent Expense
6,000
Capital Stock
6,850
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) retained earnings statement
(no additional investments were made during the month), and (3) classified balance sheet.
(c)
On the basis of the work sheet in (a), journalize the closing entries as of January 31, 2014.
(a)
)
)
Account Title
Debit
Credit
Debit
Credit
)
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
)
Capital Stock
6,850
)
Retained Earnings
22,925
Dividends
3,425
)
Service Revenue
56,300
)
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
)
204. Complete the following work sheet for Danilo Enterprises.
Danilo Enterprises
Work Sheet
For the Year Ended December 31, 2011
Adjusted Trial
Balance
Income Statement
Balance
Sheet
Current assets:
Cash
Current liabilities:
Supplies
Salaries payable
$ 1,650
Total current assets
$14,950
equipment:
Retained earnings 36,650
Equipment
$41,750
Total stockholders’ equity
43,500
Total property, plant,
and equipment
30,200
Total liabilities and
Total assets
$45,150
stockholders’ equity
$45,150
(c)
Income Summary
56,300
Income Summary
39,150
Rent Expense
6,000
Supplies Expense
3,000
Insurance Expense
1,100
Miscellaneous Expense
1,500
Income Summary
17,150
Retained Earnings
3,425
Dividends
3,425
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
14,500
Accounts Receivable
7,500
Supplies
500
Equipment
20,500
Accum. Depr. – Equip.
15,000
Accounts Payable
9,500
Wages Payable
3,060
Capital Stock
5,000
Retained Earnings
13,240
Dividends
1,000
Fees Earned
34,000
Wages Expense
18,000
Rent Expense
9,300
Depreciation Expense
8,500
Totals
79,800
79,800
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
14,500
14,500
Accounts Receivable
7,500
7,500
Supplies
500
500
Equipment
20,500
20,500
Accum. Depr – Equip.
15,000
15,000
Accounts Payable
9,500
9,500
Wages Payable
3,060
3,060
Capital Stock
5,000
5,000
Retained Earnings
13,240
13,240
Dividends
1,000
1,000
Fees Earned
34,000
34,000
Wages Expense
18,000
18,000
Rent Expense
9,300
9,300
Depreciation Expense
8,500
8,500
Totals
79,800
79,800
35,800
34,000
44,000
45,800
Net Loss
1,800
1,800
35,800
35,800
45,800
45,800