Part 7
aDVENTURE TRAVEL
Post-Closing Trial Balance
30-Apr-13
Debit Credit
Cash $27,000
Accounts receivable 1,750
Ledger as of April 30
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
1 30000 30000
2 1800 28200
3 1000 27200
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Accumulated Depreciation–Computer Equipment Acct. No. 168
Date Explanation PR Debit Credit Balance
Salaries Payable Acct. No. 209
Date Explanation PR Debit Credit Balance
J. Nozomi, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
J. Nozomi, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Commissions Earned Acct. No. 405
Date Explanation PR Debit Credit Balance
Depreciation Expense–Computer Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Salaries Expense Acct. No. 622
Date Explanation PR Debit Credit Balance
14 1600 1600
Insurance Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
Rent Expense Acct. No. 640
Date Explanation PR Debit Credit Balance
O4ce Supplies Expense Acct. No. 650
Date Explanation PR Debit Credit Balance
Repairs Expense Acct. No. 684
Date Explanation PR Debit Credit Balance
Telephone Expense Acct. No. 688
Date Explanation PR Debit Credit Balance
Income Summary Acct. No. 901
Date Explanation PR Debit Credit Balance
Title: Problem 4-3A
QA_Ori:
Part 1
ACE CONSTRUCTION CO.
Work Sheet
For Year Ended June 30, 2013
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Income
Statement
No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash……………………………………
18,500 18,500
126 Supplies………………………………..
9,900 (a) 6,600 3,300
128 Prepaid insurance…………………….
7,200 (b) 3,800 3,400
167 Equipment……………………………..
132,000 132,000
168 Accumulated depreciation—
Equipment………………………………. 26,250 (c) 8,400 34,650
Part 2 Adjusting entries (all dated June 30, 2013)
Instructor note: Entries are shown without an account reference column because no posting is required.
(a) Supplies Expense 6,600
Supplies 6,600
(c) Depreciation Expense—Equipment 8,400
Accumulated Depreciation—Equipment 8,400
To record depreciation.
To record interest expense for June.
Closing entries (all dated June 30, 2013)
Instructor note: Entries are shown without an account reference column because no posting is required.
1 Construction Fees Earned 132,100
Income Summary 132,100
To close the revenue account.
2 Income Summary 101,210
Depreciation Expense–Equipment 8,400
Wages Expense 48,660
To close the Income Summary account.
Part 3
ACE Construction Co.
Income Statement
For Year Ended June 30, 2013
Construction fees earned 132100
Expenses
Depreciation expense—
ACE COnstruction Co.
Statement of Owner’s Equity
For Year Ended June 30, 2013
V. Ace, Capital, June 30, 2012 $53,660
Add: Owner contribution $35,000
ACE Construction Co.
Balance Sheet
30-Jun-13
Assets
Current assets
Total current assets $25,200
Plant assets
Equipment 132,000
Accumulated depreciation—Equipment -34,650 97,350
Equity
Part 4
(a) This error enters the wrong amount in the correct accounts. The ending
balance of the Supplies account should be $3,300, but the entry reduces
The adjusted trial balance columns in the work sheet will be equal, but the
This error is not likely to be detected as a result of completing the work
(b) This error inserts a credit in the adjusted trial balance when a debit should
have been inserted. As a result, the trial balance will not balance (the
Title: Problem 4-4A
QA_Ori:
Part 1
KARISE REPAIRS
Income Statement
For Year Ended December 31, 2013
Repair fees earned $90,950
Expenses
Depreciation expense—Equipment $5,000
Wages expense 37,500
KARISE REPAIRS
Statement of Owner’s Equity
For Year Ended December 31, 2013
C. Karise, Capital, Jan. 1, 2013 $33,000
Karise REPAIRS
Balance Sheet
31-Dec-13
Assets
Current assets
Cash $14,000
Liabilities
Current liabilities
Equity
Parts 2 and 3
KARISE REPAIRS
Work Sheet
For Year Ended December 31, 2013
Adjusted
Trial Balance
Closing Entry Information
Post-Closing
Trial Balance
No. Account Title Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash……………………………. 14,000 14,000
124 Office supplies…………………. 1,300 1,300
3
)
302 C. Karise, Withdrawals……….. 16,000 (
4
)
16,000
2
)
637 Insurance expense…………… 800 (
2
)
800
1 Repair Fees Earned 90,950
Income Summary 90,950
To close the revenue account.
Part 4
(a) If none of the $800 insurance expense had expired, the income statement
(b) If there were no earned and unpaid wages (meaning Wages Payable equals
Financial Statement Changes
The income statement would reflect the following:
Net income would be increased by $800 + $600 = $1,400.
The balance sheet would reflect the following:
Parts 2 and 3