c.
117
,
050$ 9
,
600
16
,
000 6
,
000 2
,
150
300
,
000 240
,
000$
40
,
000 24
,
000 3
,
,
,
,
,
p
,
,
,
Cash
Unex
p
ired insurance
PROBLEM 5.2
A
AFFORDABLE LAWN CARE, INC. (concluded
)
December 31, 201
5
After-Closing Trial Balanc
e
AFFORDABLE LAWN CARE, INC
Trucks
Accounts receivabl
e
Accumulated de
p
reciation: trucks
Mowin
g
e
q
ui
p
ment
Pre
p
aid rent
Su
pp
lies
Accumulated de
p
reciation: mowin
g
e
q
ui
p
ment
a.
52
,
000$
6
,
000$ 9
,
000 440
48
,
000 1
,
,
,
,
,
,
Client revenue earned
Ex
p
enses:
Insurance ex
p
ense
Su
pp
lies ex
p
ense
Salar
y
ex
p
ens
e
Office rent ex
p
ense
PROBLEM 5.3
A
MYSTIC MASTERS, INC.
Revenues:
45 Minutes, Strong
MYSTIC MASTERS, INC.
For the Year Ended December 31, 201
5
Income Statement
a. (cont’d)
Asset
s
960$ 300
2
,
000 1
,
,
,
,
,
,
,
PROBLEM 5.3
A
MYSTIC MASTERS, INC. (continued
)
Accounts receivabl
e
Unex
p
ired insurance
MYSTIC MASTERS, INC.
December 31, 201
5
Balance Shee
t
Cash
b.
Dec. 31 52
,
000
Income Summar
y
52
,
000
31 83
,
240
Insurance Ex
p
ense 6
,
000
Office Rent Ex
p
ense 9
,
000
Su
pp
lies Ex
p
ense 440
Salar
y
Ex
p
ense 48
,
000
,
,
g
,
,
,
31 31
,
240
Income Summar
y
31
,
240
Client Revenue Earned
To close Client Revenue Earned.
Retained Earnin
g
s
Income Summar
y
(
3
)
(
2
)
PROBLEM 5.3
A
MYSTIC MASTERS, INC.
December 31, 201
5
(1)
General Journal
MYSTIC MASTERS, INC. (continued
)
To transfer net loss in 2015 to the Retained
Note: No dividends were declared in 2015.
Earnin
g
s account
(
$52,000 – $83,240 = $31,240 loss
)
.
p
,
c.
960$ 300
2
,
000 1
,
500 200
8
,
400 5
,
200$ 6
,
540
,
,
p
PROBLEM 5.3
A
MYSTIC MASTERS, INC. (concluded
)
Furniture & fixtures
MYSTIC MASTERS, INC.
December 31, 201
5
After-Closing Trial Balanc
e
Pre
p
aid rent
Accumulated de
p
reciation: furniture & fixtures
Cash
Su
pp
lies
Accounts receivabl
e
Unex
p
ired insurance
Accounts
p
a
y
abl
e
a.
Month Ended Quarter Ended 9 Months Ended
Sept. 30 Sept. 30 Sept. 30
16
,
000$ 54
,
000$ 144
,
000$
,
,
,
,
,
,
,
,
p
pp
Ex
p
enses:
For the Following Time Periods
Revenue:
Commissions earned
Income Statement
PROBLEM 5.4
A
GUARDIAN INSURANCE AGENC
Y
25 Minutes, Easy
GUARDIAN INSURANCE AGENC
Y
,
,
a.
Dec. 31 1
,
500
Consultin
g
Services Revenu
e
1
,
500
31 2
,
500
Consultin
g
Services Revenu
e
2
,
500
Accounts Receivabl
e
To record revenue accrued at the end of Dec.
Unearned Consultin
g
Services Revenu
e
To convert unearned revenue to earned revenue in Dec.
(
2
)
PROBLEM 5.5
A
SILVER LINING, INC.
December 31, 201
5
(1)
General Journal
SILVER LINING, INC.
70 Minutes, Strong
(
)
(
)
(
)
a. (cont’d)
Computations for each of the adjusting journal entries:
1. Accounts receivable increased by the $1,500 of accrued revenue in December.
9. $7,500 total income taxes expense – $6,900 (per trial balance) = $600 accrued in December.
SILVER LINING, INC. (continued)
PROBLEM 5.5
A
a. (cont’d.)
42
,
835$ 3
,
500 110
Pre
p
aid rent 900 180
54
,
000 36
,
000$ 1
,
,
,
,
,
,
,
,
,
,
,
,
Accounts receivabl
e
December 31, 201
5
PROBLEM 5.5
A
SILVER LINING, INC. (continued)
SILVER LINING, INC.
Accumulated de
p
reciation: office e
q
ui
p
ment
Office e
q
ui
p
ment
Adjusted Trial Balanc
e
Cash
Unex
p
ired insurance
Office su
pp
lies
b.
64
,
000$
700$
9
,
000 3
,
825 1
,
,
,
,
,
8,000$
12,455
Retained earnings (1/1/15)
Add: Net income
Statement of Retained Earnings
For the Year Ended December 31, 2015
SILVER LINING, INC.
Ex
p
enses:
De
p
reciation ex
p
ense: office e
q
ui
p
ment
Rent ex
p
ense
Office su
pp
lies ex
p
ense
Consultin
g
services revenu
e
PROBLEM 5.5
A
SILVER LINING, INC. (continued)
Revenues:
SILVER LINING, INC.
For the Year Ended December 31, 201
5
Income Statement