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Title: Exercise 4-12
Part 1
QA_Ori:
DYLAN DELIVERY COMPANY
Work Sheet
For Year Ended December 31, 2013
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
Net Income..................................... 39,000
______ ______ 39,000
Totals............................................. 263,000
263,000
596,000
596,000
2. Closing entries
Closing entries
Delivery Fees Earned 263,000
Income Summary 263,000
To close the revenue account.
Income Summary 224,000
Title: Exercise 4-13A
QA_Ori:
1. Adjusting entries
31-Oct Rent Expense 2,800
Rent Payable 2,800
To record accrued rent income.
2. Subsequent entries without reversing
5-Nov Rent Payable 2,800
To record collection of 2 months’ rent.
3. Reversing entries and subsequent entries
1-Nov Rent Payable 2,800
Rent Expense 2,800
8-Nov Cash
0
Rent Earned 1,700
To record collection of 2 months’ rent.
Title: Exercise 4-14A
QA_Ori:
Reversing entries are appropriate for accounting adjustments (a) and (e)
1-Sep Service Fees Earned 6,000
To reverse accrued salaries.
Title: Exercise 4-15
QA_Ori:
Income Summary balance after closing revenues and expenses:
K. Capri, Capital balance after all closing entries:
Beginning balance.................................. $20,000
Title: Exercise 4-16
QA_Ori:
31-Dec Net Sales
1,014,34
5
Income Summary 1,014,345
To close the expense accounts.
Title: Exercise 4-17
QA_Ori:
WESTCOTT COMPANY
December 31, 2013
Unadjusted
Trial Balance
Dr. Cr.
Adjustments
Dr. Cr.
Adjusted
Trial Balance
Dr. Cr.
Cash................................................ 21 21
Accounts receivable............................ 12 12
Supplies............................................ 24 (d) 9 15
Prepaid insurance............................... 18 (e) 15 3
Title: Problem 4-2A
QA_Ori:
INSTRUCTOR NOTE: Ledger accounts are shown after Part 7 as they would appear after all entries are
posted.
Part 2 — Transactions for April
1-Apr Cash 101 30,000
Computer Equipment 167 20,000
J. Nozomi, Capital 301 50,000
Owner invested in the business.
2-Apr Rent Expense 640 1,800
Cash 101 1,800
Paid one month’s rent.
Paid two weeks’ salaries.
29-Apr Repairs Expense 684 350
Cash 101 350
Repaired the computer.
30-Apr Telephone Expense 688 750
Cash 101 750
Paid the telephone bill.
30-Apr J. Nozomi, Withdrawals 302 1,500
Cash 101 1,500
Owner withdrew cash.
Part 3
ADVENTURE TRAVEL
Unadjusted Trial Balance
30-Apr-13
No. Account Title Debit Credit
10
1 Cash $27,000
10
6 Accounts receivable 0
12
4 Office supplies 1,000
68
4 Repairs expense 350
68
8 Telephone expense 750
Totals $58,000 $58,000
Part 4
Adjusting entries
Prepaid Insurance 128 133
To record expired insurance ($2,400/12 x2/3).
To record accrued commissions.
ADVENTURE TRAVEL
Adjusted Trial Balance
30-Apr-13
No. Account Title Debit Credit
10
1 Cash $27,000
10
6 Accounts receivable 1,750
12
61
2 Depreciation expense—
Computer equipment 500
62
2 Salaries expense 3,620
63
7 Insurance expense 133
64
0 Rent expense 1,800
65
Part 5
ADVENTURE TRAVEL
Income Statement
For Month Ended April 30, 2013
Commissions earned $9,750
Expenses
Depreciation expense—Computer equipment $500
Salaries expense 3,620
ADVENTURE TRAVEL
Statement of Owner’s Equity
For Month Ended April 30, 2013
J. Nozomi, Capital, April 1, 2013 $0
Add: Owner investments $50,000
Net Income 2,197
52,197
ADVENTURE TRAVEL
Balance Sheet
30-Apr-13
Assets
Cash $27,000
Accounts receivable 1,750
Office supplies 600
Liabilities
Equity
Part 6
Closing entries
30-Apr Commissions Earned 405 9,750
Income Summary 901 9,750
To close the revenue account.
To close the withdrawals account.
