Part 6
Closing entries
31-Jul Storage Fees Earned
40
1 10,950
90
31-Jul Income Summary
90
1 8,225
Depreciation Exp—Buildings
60
6 1,500
62
31-Jul Income Summary
90
1 2,725
30
31-Jul L. Plume, Capital
30
1 2,000
30
Part 7
SAFE STORAGE CO.
Post-Closing Trial Balance
31-Jul-13
Debit Credit
Cash $22,850
Accounts receivable 1,150
Salaries payable 100
L. Plume, Capital 180,725
Totals $182,325 $182,325
Ledger as of July 31
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
July 1 30000 30000
2 2000 28000
5 2400 25600
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
July 31 Adjusting 1150 1150
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
July 5 2400 2400
31 Adjusting 875 1525
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
July 10 7200 7200
L. Plume, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
July 31 2000 2000
31 Closing 2000 0
Storage Fees Earned Acct.No. 401
Date Explanation PR Debit Credit Balance
31 Closing 2725 0
Part 3
Title: Problem 4-3B
QA_Ori:
Part 1
POWER DEMOLITION COMPANY
Work Sheet
For Year Ended April 30, 2013
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Income
Statement
No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash………………………………………
7,000 7,000
126 Supplies…………………………………..
16,000 (a) 8,100 7,900
128 Prepaid insurance………………………..
12,600 (b) 10,600 2,000
167 Equipment………………………………..
200,000 200,000
168 Accumulated depreciation—
Equipment……………………………….
14,000 (c) 7,000 21,000
201 Accounts payable……………………..… 6,800 (d) 800 7,600
) 0
Prepaid Insurance 10,600
To record expiration of insurance.
Closing entries (all on April 30, 2013)
Instructor note: Entries are shown without an account reference column because no posting is required.
1 Demolition Fees Earned
187,00
0
Income Summary 187,000
To close the revenue account.
2 Income Summary 109,450
Depreciation Expense–Equipment 7,000
Wages Expense 43,400
Part 3
POWER Demolition Company
Income Statement
For Year Ended April 30, 2013
Demolition fees earned $187,000
Expenses
Depreciation expense–Equipment $7,000
Wages expense 43,400
Interest expense 3,600
POWER Demolition Company
Statement of Owner’s Equity
For Year Ended April 30, 2013
J. Bonn, Capital, April 30, 2012 $46,900
POWER Demolition Company
Balance Sheet
30-Apr-13
Assets
Current assets
Cash $7,000
Liabilities
Current liabilities
Accounts payable $7,600
Interest payable 300
Equity
Part 4
(a) This error enters the wrong amount in the correct accounts. The ending
balance of the Prepaid Insurance account should be $2,000, but the entry
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 debit in the balance sheet columns instead of the
income statement columns. In the unlikely event that this error is not
In all likelihood, the error will be discovered in the process of drafting the
balance sheet because the accountant will realize that repairs expense is
Title: Problem 4-4B
QA_Ori:
Part 1
santo company
Income Statement
For Year Ended December 31, 2013
Repair fees earned $54,700
Expenses
Depreciation expense—Equipment $2,000
santo company
Statement of Owner’s Equity
For Year Ended December 31, 2013
P. Santo, Capital, December 31, 2012 $35,650
santo company
Balance Sheet
31-Dec-13
Assets
Current assets
Cash $14,450
Store supplies 5,140
Liabilities
Current liabilities
Equity
Parts 2 and 3
SANTO COMPANY
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………………………….. 14,450 14,450
125 Store supplies………………… 5,140 5,140
210 Wages payable………….….. 2,700 2,700
301 P. Santo, Capital……………… 35,650 (4) 15,000 (3) 18,940 39,590
302 P. Santo, Withdrawals.......... 15,000 (4) 15,000