Problem 4-1B (Continued)
Part 4
SAFE STORAGE CO.
Adjusted Trial Balance
July 31, 2015
No. Account Title Debit Credit
101 Cash………………………………………….…………….…. $ 22,850
106 Accounts receivable…………………..…………….…. 1,150
124 Office supplies…………………..…….…………….…… 1,525
401 Storage fees earned………………………………..…… 10,950
606 Depreciation expense–Buildings..…….............. 1,500
622 Salaries expense…………………………….….……….. 2,100
637 Insurance expense………………………………….…… 400
688 Telephone expense………………………….………….. 400
Totals………………………………………………….……….$192,550 $192,550
Problem 4-1B (Continued)
Part 5
SAFE STORAGE CO.
Income Statement
4-1
Education.
For Month Ended July 31, 2015
Storage fees earned………………..……….….. $10,950
Expenses
Depreciation expense–Buildings………… $1,500
Salaries expense………………………….……. 2,100
Insurance expense………………..…………... 400
SAFE STORAGE CO.
Statement of Owner’s Equity
For Month Ended July 31, 2015
L. Plume, Capital, July 1, 2015..………....... $ 0
Add: Owner’s investment……….………….. $180,000
Net income………………………….….…. 2 ,725
Problem 4-1B (Continued)
Part 5
SAFE STORAGE CO.
Balance Sheet
July 31, 2015
Assets
Cash………………………………………………….… $ 22,850
Accounts receivable……………………………. 1,150
4-2
Buildings…………………………………………….. $150,000
Accumulated depreciation–Buildings..... (1 ,500) 148 ,500
Total assets……………………………………….… $180 ,825
Liabilities
Problem 4-1B (Continued)
Part 6
Closing entries
July 31 Storage Fees Earned…….…………….……....401 10,950
Income Summary.……………………………901 10,950
To close the revenue account.
Office Supplies Expense..………...........650 875
Repairs Expense……………………………..684 950
Telephone Expense………………………….688 400
To close the expense accounts.
Part 7
SAFE STORAGE CO.
Post-Closing Trial Balance
July 31, 2015
Debit Credit
Cash………………………………………………….… $ 22,850
4-3
Accounts receivable……………………………. 1,150
4-4
Problem 4-1B (Continued)
Ledger as of July 31
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
July 1 30,000 30,000
2 2,000 28,000
5 2,400 25,600
10 7,200 18,400
30 400 24,850
31 2,000 22,850
Accounts Receivable Acct. No. 106
31 Adjusting 875 1,525
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
July 10 7,200 7,200
31 Adjusting 400 6,800
Buildings Acct. No. 173
Date Explanation PR Debit Credit Balance
4-5
Problem 4-1B (Continued)
L. Plume, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
July 1 180,000 180,000
31 Closing 2,725 182,725
31 Closing 2,000 180,725
L. Plume, Withdrawals Acct. No. 302
Salaries Expense Acct. No. 622
Date Explanation PR Debit Credit Balance
July 14 1,000 1,000
28 1,000 2,000
31 Adjusting 100 2,100
31 Closing 2,100 0
Insurance Expense Acct. No. 637
4-6
Problem 4-1B (Concluded)
Office Supplies Expense Acct. No. 650
Date Explanation PR Debit Credit Balance
July 31 Adjusting 875 875
31 Closing 875 0
Repairs Expense Acct. No. 684
Date Explanation PR Debit Credit Balance
4-7
Problem 4-2B (90 minutes) Part 1
POWER DEMOLITION COMPANY
Work Sheet
For Year Ended April 30, 2015
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
and Statement
of Owner’s
Equity
No
.
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash……….……………....…..…..…..7,000 7,000 7,000
126 Supplies…………………………………
16,000 (a) 8,100 7,900 7,900
128 Prepaid insurance……..……....…...
12,600 (b) 10,600 2,000 2,000
167 Equipment…………….....…..…..…..
200,000 200,000 200,000
168 Accumulated depreciation—
Equipment..………………………….
14,000 (c) 7,000 21,000 21,000
201 Accounts payable……..…..…..…... 6,800 (d) 800 7,600 7,600
203 Interest payable……………………… (h) 300 300 300
637 Insurance expense………………….. (b) 10,600 10,600 10,600
640 Rent expense….……………….…..…
13,200 (f) 3,000 16,200 16,200
652 Supplies expense…....…....…....... (a) 8,100 8,100 8,100
683 Property taxes expense…............
9,700 (g) 550 10,250 10,250
684 Repairs expense………..…....…..…4,700 4,700 4,700
690 Utilities expense……………………...
4,800
______
(d)
800
_____
5,600
______
5,600
______
______
Totals…………………………………….
324,700
324,700
32,350
32,350
338,350
338,350
109,450 187,00 228,900 151,350
4-8
0
Problem 4-2B (Continued)
Part 2 Adjusting entries (all on April 30, 2015)
Instructor note: Entries are shown without an account reference column because no posting is required.
(a) Supplies Expense…………………………….……….. 8,100
Supplies…………………………….…………….… 8,100
To record consumption of supplies.
(e) Wages Expense…………….…….…………….……… 2,000
Wages Payable…………………..…………….… 2,000
To record accrued wages.
(f) Rent Expense…………………………………..….……. 3,000
Rent Payable………………………………………. 3,000
To record remainder of annual rent.
4-10
(2) Income Summary………………………..….……… 109,450
Depreciation Expense–Equipment...... 7,000
Wages Expense…………………….………… 43,400
Interest Expense……………………………... 3,600
Insurance Expense………………………….. 10,600
Rent Expense………………………………….. 16,200
To close the Income Summary account.
(4) J. Bonn, Capital………………………………..……. 12,000
J. Bonn, Withdrawals………..…….………. 12,000
To close the withdrawals account.
4-11