Exercise 4-5 (10 minutes)
Income Summary balance after closing revenues and expenses:
Revenues: $70,000 + $7,000…………………………………………… = $77,000 Cr.
K. Capri, Capital balance after all closing entries:
4-1
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Exercise 4-6 (25 minutes)
1.
Work Sheet—partial
Account Title Debit Credit
Rent earned…………………………………… $120,000
Salaries expense……………………………. $46,300
Insurance expense…………………………. 7,400
0
2. Closing entries
(1) Rent Earned…………………………………………. 120,000
Income Summary…………………………… 120,000
To close the revenue account.
(2) Income Summary………………………………….. 94,400
(3) Income Summary………………………………….. 25,600
4-2
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Education.
Exercise 4-7 Part 1 (30 minutes)
DYLAN DELIVERY COMPANY
Work Sheet
For Year Ended December 31, 2015
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
and Statement of
Owner’s Equtiy
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash……………………………………. 16,000 16,000 16,000
Accounts receivable………………. 34,000 34,000 34,000
Office supplies……………………… 5,000 (c) 3,000 2,000 2,000
Trucks………………………………….
350,000 350,000 350,000
Accum. Depreciation—Trucks…. 80,000 (a) 40,000 120,000 120,000
Land…………………………………….
160,000 160,000 160,000
4-3
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4-4
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Exercise 4-7 (Continued)
2. Closing entries
Delivery Fees Earned……………………………. 263,000
Income Summary………………………………….. 224,000
Depreciation Expense—Trucks……….. 80,000
Income Summary………………………………….. 39,000
S. Dylan, Capital……………………………………. 34,000
S. Dylan, Capital on the balance sheet
Beginning balance………………………………… $307,000
4-5
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Education.
Exercise 4-8 (35 minutes)
Closing entries
(1) Services Revenue………………………………….401 76,000
Income Summary……………………………901 76,000
To close the revenue account.
(2) Income Summary…………………………………..901 47,800
(3) Income Summary…………………………………..901 28,200
M. Muncel, Capital…………………………..301 28,200
To close income summary.
Posted ledger accounts
M. Muncel, Capital No. 301 Salaries Expense No. 622
Date PR Debit Credit Balance Date PR Debit Credit Balance
May31 40,000 May31 20,000
M. Muncel, Withdrawals No. 302 Insurance Expense No. 637
Date PR Debit Credit Balance Date PR Debit Credit Balance
Services Revenue No. 401 Rent Expense No. 640
Date PR Debit Credit Balance Date PR Debit Credit Balance
Depreciation Expense No. 603 Income Summary No. 901
Date PR Debit Credit Balance Date PR Debit Credit Balance
(3) 28,200 0
4-6
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Education.
Exercise 4-9 (30 minutes)
1.
2015
Dec. 31 Services Revenue………………………………….404 44,000
31 Income Summary…………………………………..901 33,100
Depreciation Expense—Equipment....612 3,000
31 Income Summary…………………………………..901 10,900
31 T. Cruz, Capital………………………………………301 7,000
2.
CRUZ COMPANY
Post-Closing Trial Balance
December 31, 2015
Debit Credit
Cash……………………………………………………… $19,000
Supplies………………………………………………… 13,000
4-7
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Exercise 4-10 (40 minutes)
Salon Marketing Company
Work Sheet
Adjusted
Trial Balance
Closing Entry
Information
Post-Closing
Trial Balance
No. Account Title Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash……………………………. 9,200 9,200
106 Accounts receivable……. 25,000 25,000
153 Equipment…………………… 42,000 42,000
154 Accumulated depre-
ciation—Equipment……. 17,500 17,500
______ ______ (3) 13,800 ______ ______ ______
4-8
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Exercise 4-11 (20 minutes)
WILSON TRUCKING COMPANY
Income Statement
For Year Ended December 31, 2015
Trucking fees earned……………………………………….. $130,000
Expenses
WILSON TRUCKING COMPANY
Statement of Owner’s Equity
For Year Ended December 31, 2015
K. Wilson, Capital, December 31, 2014………………. $175,000
4-9
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Exercise 4-12 (20 minutes)
WILSON TRUCKING COMPANY
Balance Sheet
December 31, 2015
Assets
Current assets
Cash…………………………………………………….. $ 8,000
Accounts receivable……………………………… 17,500
Liabilities
Current liabilities
Accounts payable………………………………….. $ 12,000
Equity
*From Exercise 4-11
* K. Wilson Capital is computed as:
Beginning balance
…………………………………………………………………………………………….. $175,000
4-10
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(
20
4-11
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