Problem 4-6BA (40 minutes)
Part 1
SOLUTIONS CO.
Work Sheet
For Year Ended December 31, 2015
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Dr. Cr. Dr. Cr. Dr. Cr.
Cash……….…………….…..….….. 10,000 10,000
Accounts receivable……..….…. (e) 2,450 2,450
Supplies……………………………. 7,600 (b) 4,150 3,450
Notes payable…………………….. 30,000 30,000
G. Clay, Capital……….…........... 14,200 14,200
G. Clay, Withdrawals.…………… 9,500 9,500
Rental fees earned…….………... 32,450 (d)
(e)
4,000
2,450
38,900
Depreciation expense—
Machinery………………………..
(f) 3,800 3,800
Problem 4-6BA (Continued)
Part 2 (all adjusting entries dated December 31, 2015)
Instructor note: Entries are shown without an account reference column because no posting is required.
(a) Salaries Expense…………….…………………….. 400
Salaries Payable……………….….…………. 400
To record accrued wages.
(d) Unearned Rental Fees…………….……………… 4,000
Rental Fees Earned…………….…………… 4,000
To record earned fees.
To record depreciation.
Part 3 (all reversing entries dated January 1, 2016)
(a) Salaries Payable..………………………………….. 400
Salaries Expense…………………………….. 400
To reverse accrued wages.
To reverse accrued revenues.
Problem 4-6BA (Concluded)
Part 4
Instructor note: Entries are shown without an account reference column because no posting is required.
2016
Jan. 4 Salaries Expense…………….…………………….. 1,200
Cash……………………………………………..… 1,200
To record payroll.
SERIAL PROBLEM – SP 4
Serial Problem, Business Solutions (20 minutes) — Part 1
<Note: The general ledger is displayed at the end of Part 2>
Closing entries
2015
Dec. 31 Computer Services Revenue ……………..……… 403 31,284
Income Summary……………..………………… 901 31,284
To close the revenue account.
31 Income Summary…………………………………….… 901 16,824
Depreciation Exp–Office Equipment....... 612 400
Depreciation Exp–Computer Equipment... 613 1,250
31 Income Summary…………………………………….… 901 14,460
S. Rey, Capital………..………………………….. 301 14,460
To close the Income Summary account.
Serial Problem, SP 4 (Continued)
Part 2
BUSINESS SOLUTIONS
Post-Closing Trial Balance
December 31, 2015
Debit Credit
Cash……………………………………………………………….……… $ 48,372
Office equipment……………………………………………………. 8,000
Accumulated depreciation—Office equipment............ $ 400
Computer equipment……………………..………………….…… 20,000
Accumulated depreciation—Computer equipment…… 1,250
Accounts payable……………………………………………..……. 1,100
Serial Problem, SP 4 (Continued)
[Instructor Note: Ledger includes all entries from prior three months. The Working
Papers shorten the solution by showing account balances as of December 31.]
General Ledger
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Oct. 1 45,000 45,000
2 3,300 41,700
Nov. 1 320 36,932
2 4,633 41,565
5 1,125 40,440
18 2,208 42,648
22 250 42,398
28 384 42,014
30 1,750 40,264
30 2,000 38,264
31 1,500 48,372
Serial Problem, SP 4 (Continued)
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Oct. 6 4,800 4,800
12 1,400 6,200
24 3,950 12,618
Dec. 4 3,950 8,668
28 3,000 5,668
Computer Supplies Acct. No. 126
Date Explanation PR Debit Credit Balance
Oct. 3 1,420 1,420
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Oct. 5 2,220 2,220
Dec. 31 555 1,665
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Serial Problem, SP 4 (Continued)
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Oct. 3 1,420 1,420
8 1,420 0
Dec. 15 1,100 1,100
Wages Payable Acct. No. 210
Date Explanation PR Debit Credit Balance
Dec. 31 500 500
Unearned Computer Services Revenue Acct. No. 236
Date Explanation PR Debit Credit Balance
S. Rey, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Oct. 31 3,600 3,600
Nov. 30 2,000 5,600
Dec. 31 1,500 7,100
31 Closing 7,100 0
Serial Problem, SP 4 (Continued)
Computer Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Oct. 6 4,800 4,800
12 1,400 6,200
28 5,208 11,408
Depreciation Expense—Office Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Dec. 31 400 400
31 Closing 400 0
Depreciation Expense—Computer Equipment Acct. No. 613
Date Explanation PR Debit Credit Balance
Dec. 31 1,250 1,250
31 Closing 1,250 0
Wages Expense Acct. No. 623
Date Explanation PR Debit Credit Balance
Rent Expense Acct. No. 640
Date Explanation PR Debit Credit Balance
Dec. 31 2,475 2,475
31 Closing 2,475 0
Serial Problem, SP 4 (Concluded)
Computer Supplies Expense Acct. No. 652
Date Explanation PR Debit Credit Balance
Advertising Expense Acct. No. 655
Date Explanation PR Debit Credit Balance
Oct. 20 1,728 1,728
Dec. 2 1,025 2,753
31 Closing 2,753 0
Mileage Expense Acct. No. 676
Date Explanation PR Debit Credit Balance
Miscellaneous Expense Acct. No. 677
Date Explanation PR Debit Credit Balance
Nov. 22 250 250
Dec. 31 Closing 250 0
Repairs Expense—Computer Acct. No. 684