Problem 4-6BA (Continued)
Part 2 (all adjusting entries dated December 31, 2013)
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.
Part 3 (all reversing entries dated January 1, 2014)
(a) Salaries Payable ……………………………………. 400
Salaries Expense ……………………………. 400
To reverse accrued wages.
Problem 4-6BA (Concluded)
Part 4
Instructor note: Entries are shown without an account reference column because no posting is required.
2014
Jan. 4 Salaries Expense …………………………………… 1,200
Cash …………………………..………………….. 1,200
To record payroll.
SERIAL PROBLEM – SP 4
Serial Problem, Success Systems (20 minutes) — Part 1
<Note: The general ledger is displayed at the end of Part 2>
Closing entries
2013
Dec. 31 Computer Services Revenue …………………….. 403 31,284
Income Summary ……………………………….. 901 31,284
To close the revenue account.
31 Income Summary ……………………………………… 901 17,036
Depreciation Exp–Office Equipment ……. 612 400
Depreciation Exp–Computer Equipment .. 613 1,250
Wages Expense …………………………………. 623 3,875
Insurance Expense ……………………………. 637 555
To close the expense accounts.
31 Income Summary ……………………………………… 901 14,248
A. Lopez, Capital ………………………………… 301 14,248
To close the Income Summary account.
Note: All accounts with numbers that start with the digits 1 or 2 (the permanent
accounts) are unaffected by the closing process.
Serial Problem, SP 4 (Continued)
Part 2
SUCCESS SYSTEMS
Post-Closing Trial Balance
December 31, 2013
Debit Credit
Cash ……………………………………………………………………. $ 58,160
Accounts receivable …………………………………………….. 5,668
Computer supplies ………………………………………………. 580
Accounts payable ………………………………………………… 1,100
Wages payable …………………………………………………….. 500
Unearned computer services revenue ………………….. 1,500
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
55,000
55,000
2
3,300
51,700
5
2,220
49,480
8
1,420
48,060
15
4,800
52,860
17
805
52,055
20
1,940
50,115
22
1,400
51,515
31
875
50,640
31
3,600
47,040
Nov.
1
320
46,720
2
4,633
51,353
5
1,125
50,228
18
2,208
52,436
22
250
52,186
28
384
51,802
30
1,750
50,052
30
2,000
48,052
Dec.
2
1,025
47,027
3
500
46,527
4
3,950
50,477
10
750
49,727
14
1,500
51,227
20
5,625
56,852
28
3,000
59,852
29
192
59,660
31
1,500
58,160
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
15
4,800
1,400
22
1,400
0
28
5,208
5,208
Nov.
8
5,668
10,876
18
2,208
8,668
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
Nov.
5
1,125
2,545
Dec.
15
1,100
3,645
31
3,065
580
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
Oct.
2
3,300
3,300
Dec.
31
2,475
825
Office Equipment
Acct. No. 163
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
8,000
8,000
Accumulated Depreciation—Office Equipment
Acct. No. 164
Date
Explanation
PR
Debit
Credit
Balance
Dec.
31
400
400
Serial Problem, SP 4 (Continued)
Computer Equipment
Acct. No. 167
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
20,000
20,000
Accumulated Depreciation—Computer Equipment
Acct. No. 168
Date
Explanation
PR
Debit
Credit
Balance
Dec.
31
1,250
1,250
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
Dec.
14
1,500
1,500
A. Lopez, Capital
Acct. No. 301
Date
Explanation
PR
Debit
Credit
Balance
Oct.
1
83,000
83,000
Dec.
31
Closing
14,248
97,248
31
Closing
7,100
90,148
A. Lopez, 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
Nov.
2
4,633
16,041
8
5,668
21,709
24
3,950
25,659
Dec.
20
5,625
31,284
31
Closing
31,284
0
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
Oct.
31
875
875
Nov.
30
1,750
2,625
Dec.
10
750
3,375
31
500
3,875
31
Closing
3,875
0
Insurance Expense
Acct. No. 637
Date
Explanation
PR
Debit
Credit
Balance
Dec.
31
555
555
31
Closing
555
0
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
Dec.
31
3,065
3,065
31
Closing
3,065
0
Advertising Expense
Acct. No. 655
Date
Explanation
PR
Debit
Credit
Balance
Oct.
20
1,940
1,940
Dec.
2
1,025
2,965
31
Closing
2,965
0
Mileage Expense
Acct. No. 676
Date
Explanation
PR
Debit
Credit
Balance
Nov.
1
320
320
28
384
704
Dec.
29
192
896
31
Closing
896
0
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
Date
Explanation
PR
Debit
Credit
Balance
Oct.
17
805
805
Dec.
3
500
1,305
31
Closing
1,305
0
Income Summary
Acct. No. 901
Date
Explanation
PR
Debit
Credit
Balance
Dec.
31
Closing
31,284
31,284
31
Closing
17,036
14,248
31
Closing
14,248
0