Student Name:
Class:
NOTE: Ledger accounts begin at cell A150, and show all entries that need to be posted.
Date Account Titles Acct. No. Debit Credit
Apr 1 101 30,000
167 20,000
301 50,000 «- Correct!
2640 1,800
101 1,800 «- Correct!
3124 1,000
101 1,000 «- Correct!
10 128 2,400
101 2,400 «- Correct!
14 622 1,600
101 1,600 «- Correct!
24 101 8,000
405 8,000 «- Correct!
28 622 1,600
101 1,600 «- Correct!
29 684 350
101 350 «- Correct!
30 688 750
101 750 «- Correct!
30 302 1,500
101 1,500 «- Correct!
Apr 30 637 133
128 133 «- Correct!
30 650 400
124 400 «- Correct!
30 612 500
168 500 «- Correct!
30 622 420
209 420 «- Correct!
30 106 1,750
Repaired the computer.
Prepaid Insurance
Cash
Salaries Expense
Cash
Paid the telephone bill.
Owner withdrew cash.
To record expired insurance.
To record cost of supplies used.
To record depreciation.
To record accrued salaries.
Prepaid Insurance
Salaries Payable
Problem 04-02A
McGraw-Hill/Irwin
Instructor
General Journal
ADVENTURE TRAVEL
Cash
Acquired office supplies
Paid 12 months’ premium in advance.
Paid two weeks‘ salaries.
Cash
Repairs Expense
Cash
Computer Equipment
J. Nozomi, Capital
Rent Expense
Cash
Office Supplies
Cash
Owner invested in the business.
Paid one month’s rent
Collected commissions from airlines.
Paid two weeks‘ salaries.
Transactions for April (Part 2):
Accounts Receivable
Office Supplies Expense
Office Supplies
Depreciation Expense – Computer Equipment
Accumulated Depreciation – Computer Equipment
Salaries Expense
Telephone Expense
Cash
J. Nozomi, Withdrawals
Cash
Adjusting Entries (Part 4):
Insurance Expense
Cash
Commissions Earned
Salaries Expense
Student Name:
Class:
Problem 04-02A
McGraw-Hill/Irwin
Instructor
405 1,750 «- Correct!
To record accrued commissions.
Commissions Earned
Student Name:
Class:
Problem 04-02A
McGraw-Hill/Irwin
Instructor
Apr 30 405 9,750
901 9,750 «- Correct!
30 901 7,553
612 500 «- Correct!
622 3,620 «- Correct!
637 133 «- Correct!
640 1,800 «- Correct!
650 400 «- Correct!
684 350 «- Correct!
688 750 «- Correct!
30 901 2,197
301 2,197 «- Correct!
30 301 1,500
302 1,500 «- Correct!
Account Titles Debits Credits
27,000$
1,000
2,400
20,000
50,000$
1,500
8,000
3,200
1,800
350
750
58,000$ 58,000$
Correct! Correct!
Account Titles Debits Credits
27,000$
1,750
600
2,267
20,000
500$
420
50,000
1,500
9,750
500
3,620
To close the revenue account.
Salaries expense
Salaries payable
J. Nozomi, Capital
J. Nozomi, Withdrawals
Commissions earned
Depreciation expense – computer equipment
To close the withdrawals account.
To close the Income Summary account.
To close the expense accounts.
Closing Entries (Part 6)
Office Supplies Expense
Repairs Expense
Telephone Expense
Commissions Earned
Income Summary
Income Summary
Depreciation Expense, Computer Equipment
Insurance Expense
Rent Expense
Cash
Income Summary
Salaries Expense
J. Nozomi, Capital
J. Nozomi, Capital
J. Nozomi, Withdrawals
J. Nozomi, Capital
J. Nozomi, Withdrawals
Commissions earned
Depreciation expense – computer equipment
Salaries expense
Insurance expense
Accounts receivable
Office supplies
Prepaid insurance
Computer equipment
Accumulated depreciation – computer equipment
Salaries payable
Rent expense
Office supplies expense
Repairs expense
Telephone expense
Totals
Cash
Accounts receivable
Office supplies
Prepaid insurance
Computer equipment
Accumulated depreciation – computer equipment
Student Name:
Class:
Problem 04-02A
McGraw-Hill/Irwin
Instructor
133
1,800
400
350
750
60,670$ 60,670$
Correct! Correct!
Insurance expense
Rent expense
Office supplies expense
Repairs expense
Totals
Telephone expense
Student Name:
Class:
Problem 04-02A
McGraw-Hill/Irwin
Instructor
9,750$
500$
3,620
133
1,800
400
350
750
7,553
2,197$
Correct!
–$
50,000$
2,197 52,197
52,197
(1,500)
50,697$
Correct!
27,000$
1,750
600
2,267
20,000$
(500) 19,500
51,117$
420$
50,697
51,117$
Correct!
Debits Credits
27,000$
1,750
600
2,267
20,000
500$
420
50,697
51,617$ 51,617$
Correct! Correct!
Commissions earned
Expenses:
Depreciation expense, computer equipment
Salaries expense
Insurance expense
Rent expense
J. Nozomi, Capital, April 1, 2013
Plus: Investment by owner
Net income
Total
Less withdrawals
J. Nozomi, Capital, April 30, 2013
Office supplies expense
Repairs expense
Telephone expense
Total expenses
Net income
Cash
Accounts receivable
Office supplies
Prepaid insurance
Account Titles
Accounts receivable
Cash
Computer equipment
Accumulated depreciation – computer equipment
Total assets
Salaries payable
J. Nozomi, Capital
Total liabilities and equity
Totals
Office supplies
Prepaid insurance
Computer equipment
Accumulated depreciation, computer equipment
Salaries payable
J. Nozomi, Capital
Student Name:
Class:
Problem 04-02A
McGraw-Hill/Irwin
Instructor
Cash Account No. 101
Date Explanation PR Debit Credit Balance
Apr 1 30,000 30,000
2 1,800 28,200
3 1,000 27,200
10 2,400 24,800
14 1,600 23,200
24 8,000 31,200
28 1,600 29,600
29 350 29,250
30 750 28,500
30 1,500 27,000 «- Correct!
Accounts Receivable Account No. 106
Date Explanation PR Debit Credit Balance
Apr 30 Adjusting 1,750 1,750 «- Correct!
Office Supplies Account No. 124
Date Explanation PR Debit Credit Balance
Apr 3 1,000 1,000
30 Adjusting 400 600 «- Correct!
Prepaid Insurance Account No. 128
Date Explanation PR Debit Credit Balance
Apr 10 2,400 2,400
30 Adjusting 133 2,267 «- Correct!
Computer Equipment Account No. 167
Date Explanation PR Debit Credit Balance
Apr 1 20,000 20,000 «- Correct!
Accumulated Depreciation,
Computer Equipment Account No. 168
Date Explanation PR Debit Credit Balance
Apr 30 Adjusting – 500 500 «- Correct!
Salaries Payable Account No. 209
Date Explanation PR Debit Credit Balance
Apr 30 Adjusting 420 420 «- Correct!
J. Nozomi, Capital Account No. 301
Date Explanation PR Debit Credit Balance
Apr 1 50,000 50,000
30 Closing 2,197 52,197
30 Closing 1,500 50,697 «- Correct!
J. Nozomi, Withdrawals Account No. 302
Date Explanation PR Debit Credit Balance
Apr 30 1,500 1,500
30 Closing 1,500 – «- Correct!
General Ledger
ADVENTURE TRAVEL
Student Name:
Class:
Problem 04-02A
McGraw-Hill/Irwin
Instructor
Commissions Earned Account No. 405
Date Explanation PR Debit Credit Balance
Apr 24 8,000 8,000
30 Adjusting 1,750 9,750
30 Closing 9,750 – «- Correct!
Depreciation Expense,
Computer equipment Account No. 612
Date Explanation PR Debit Credit Balance
Apr 30 Adjusting 500 500
30 Closing 500 – «- Correct!
Salaries Expense Account No. 622
Date Explanation PR Debit Credit Balance
Apr 14 1,600 1,600
28 1,600 3,200
30 Adjusting 420 3,620
30 Closing 3,620 – «- Correct!
Insurance Expense Account No. 637
Date Explanation PR Debit Credit Balance
Apr 30 Adjusting 133 133
30 Closing 133 – «- Correct!
Rent Expense Account No. 640
Date Explanation PR Debit Credit Balance
Apr 2 1,800 1,800
30 Closing 1,800 – «- Correct!
Office Supplies Expense Account No. 650
Date Explanation PR Debit Credit Balance
Apr 30 400 400
30 Closing 400 – «- Correct!
Repairs Expense Account No. 684
Date Explanation PR Debit Credit Balance
Apr 29 350 350
30 Closing 350 – «- Correct!
Telephone Expense Account No. 688
Date Explanation PR Debit Credit Balance
Apr 30 750 750
30 Closing 750 – «- Correct!
Income Summary Account No. 901
Date Explanation PR Debit Credit Balance
Apr 30 Closing 9,750 9,750
30 Closing 7,553 2,197
30 Closing 2,197 – «- Correct!
ADVENTURE TRAVEL
Apr 1 30,000$
120,000
21,800
31,000
10 2,400
14 1,600
24 8,000
28 1,600
29 350
30 750
167
168
209
301
302
405
612
622
637
640
Office Supplies Expense
Repairs Expense
Telephone Expense
Commissions earned but not billed
Income Summary
2/3 of a month’s insurance expired
Office supplies on hand
Depreciation on computer
Unpaid and unrecorded salaries
Nozomi withdrew cash for personal use
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Check figures:
58,000$
133$
2,197$
50,697$
51,117$
51,617$
Paid salaries
Nozomi invested cash
Nozomi invested computer equipment
Paid first month’s rent
Purchased office supplies for cash
Paid annual insurance premium
Computer Equipment
Collected commissions earned
Paid salaries
Paid for computer repair
Paid telephone bill
Rent Expense
Accumulated Depreciation – Computer Equipment
Salaries Payable
J. Nozomi, Capital
J. Nozomi, Withdrawals
Commissions Earned
Depreciation – Computer Equipment
(7) Post-closing trial balance totals
Given Data P04-02A:
(3) Unadjusted trial balance totals
(4a) Debit Insurance Expense
(5) Net income
J. Nozomi, Capital (4/30/2013)
Total assets
Salaries Expense
Insurance Expense
Student Name:
Class:
90,950$
5,000$
37,500
800
10,600
3,600
2,700
60,200
30,750$
KARISE REPAIRS
Net income
33,000$
30,750
63,750
(16,000)
47,750$
KARISE REPAIRS
C. Karise, Capital, December 31, 2013
Assets
14,000$
1,300
2,050
17,350$
50,000
(5,000) 45,000
62,350$
Current liabilities
Problem 04-04A
McGraw-Hill/Irwin
Instructor
C. Karise, Capital, January 1, 2013
Current assets
Cash
Office supplies
Prepaid insurance
December 31, 2013
Balance Sheet
Add: Net income
For the Year Ended December 31, 2013
Income Statement
KARISE REPAIRS
For Year Ended December 31, 2013
Statement of Owner’s Equity
Repair fees earned
Expenses:
Depreciation expense – Equipment
Wages expense
Insurance expense
Rent expense
Office supplies expense
Utilities expense
Total expenses
Less: Withdrawals
Total current assets
Plant assets
Equipment
Accumulated depreciation – Equipment
Total assets
Student Name:
Class:
Problem 04-04A
McGraw-Hill/Irwin
Instructor
14,000$
600
14,600
Equity
47,750
62,350$
Correct!
Cash
Office supplies
Wages expense
Insurance expense
Rent expense
Office supplies expense
Utilities expense
Income summary
Prepaid insurance
Accumulated depreciation – Equipment
Accounts payable
Depreciation expense – Equipment
Wages payable
C. Karise, Capital
C. Karise, Withdrawals
Repair fees earned
Totals
Work Sheet
For Year Ended December 31, 2013
KARISE REPAIRS
Accounts payable
Wages payable
Total current liabilities
C. Karise, Capital
Total liabilities and equity
Student Name:
Class:
Problem 04-04A
McGraw-Hill/Irwin
Instructor
Debit Credit
(1) 90,950
Correct! 90,950
(2) 60,200
Correct! 5,000
37,500
(3) 30,750
Correct! 30,750
(4) 16,000
Correct! 16,000
None of the $800 insurance expense had expired during the year. Instead, assume it is a prepayment of the
Insurance Expense
Rent Expense
Office Supplies Expense
To close the expense accounts.
Utilities Expense
Describe the financial statement changes that would result from these two assumptions.
C. Karise, Withdrawals
There are no earned and unpaid wages at the end of the year.
Income Summary
C. Karise, Capital
Depreciation Expense – Equipment
Wages Expense
To close the Income Summary account.
The balance sheet would reflect the following:
– Net income would be increased by $800 + $600 = $1,400.
The income statement would reflect the following:
would not report any insurance expense and net income would be increased
(a) If none of the $800 insurance expense had expired, the income statement
Financial Statement Changes:
zero), wages expense would be $600 less and net income would be $600 more.
(b) If there were no earned and unpaid wages (meaning Wages Payable equals
by $800.
– Total current liabilities would be $600 less.
– There would not be any wages payable.
– Prepaid insurance and total assets would be increased by $800.
General Journal
KARISE REPAIRS
To close the withdrawals account.
To close the revenue account.
Repair Fees Earned
Closing entries:
Dec. 31, 2013
Income Summary
C. Karise, Capital
Income Summary
Student Name:
Class:
Problem 04-04A
McGraw-Hill/Irwin
Instructor
– Total liabilities would be decreased by $600.
– Total equity would be increased by $1,400.
101 14,000$
124 1,300
128 2,050
167 50,000
168 5,000$
201 14,000
210 600
301 33,000
302 16,000
401 90,950
612 5,000
623 37,500
637 800
640 10,600
650 3,600
690 2,700
143,550$ 143,550$
Check figures:
(1) Ending capital balance 47,750$
Net Income 30,750$
(2) Post-closing trial balance totals 67,350$
Wages payable
C. Karise, Capital
Office supplies expense
Utilities expense
Totals
C. Karise, Withdrawals
Repair fees earned
Depreciation expense-Equipment
Wages expense
Insurance expense
Rent expense
Office supplies
Prepaid insurance
Equipment
Accumulated depreciation – Equipment
Accounts payable
December 31, 2013
Adjusted Trial Balance
KARISE REPAIRS
Given Data P04-04A:
Cash