Unadjusted Adjusted
Trial Balance Adjustments Trial Balance
34,000$ 34,000$
14,000 22,000
16,000 2,000
8,540 2,960
84,000 84,000
14,000$ 20,000$
9,100 10,000
– 1,000
– 7,000
18,000 15,000
52,000 52,000
15,000 15,000
25,000 25,000
5,000 5,000
123,240 134,240
– 6,000
67,000 74,000
1,200 2,200
– 5,580
14,500 14,500
– 14,000
12,100 13,000
256,340$ 256,340$ 279,240$ 279,240$
25,000$
5,000$
4,960$
124,960$
Given Data P03-04A:
Prepaid insurance
Office equipment
July 31, 2013
JKL COMPANY
Accounts receivable
Cash
Office supplies
Accumulated depreciation, Office equipment
Accounts payable
Interest payable
Salaries payable
Unearned consulting fees
Long-term notes payable
Common stock
Dividends
Consulting fees earned
Depreciation expense, Office equipment
Salaries expense
Interest expense
Retained earnings
Insurance expense
Rent expense
Office supplies expense
Advertising expense
Totals
Total assets
Additional information:
Current-year dividends
Check figures:
(2) Net income
Retained earnings at July 31, 2012
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
307 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!
30 319 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
405 1,750 «- Correct!
Instructor
McGraw-Hill/Irwin
Problem 03-07A
ADVENTURE TRAVEL
General Journal
Cash
Computer Equipment
Common stock
Owner invested in the business in exchange for stock.
Rent Expense
Cash
Paid one month’s rent
Office Supplies
Cash
Acquired office supplies
Prepaid Insurance
Cash
Paid 12 months’ premium in advance.
Salaries Expense
Cash
Paid two weeks’ salaries.
Cash
Commissions Earned
Collected commissions from airlines.
Salaries Expense
Cash
Paid two weeks’ salaries.
Repairs Expense
Cash
Repaired the computer.
Telephone Expense
Cash
Paid the telephone bill.
Dividends
Cash
Owner withdrew cash.
Adjusting Entries (Part 4):
Insurance Expense
Prepaid Insurance
To record expired insurance.
Office Supplies Expense
Office Supplies
To record cost of supplies used.
Depreciation Expense – Computer Equipment
Accumulated Depreciation – Computer Equipment
To record depreciation.
Salaries Expense
Salaries Payable
To record accrued salaries.
Accounts Receivable
Commissions Earned
To record accrued commissions.
Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 03-07A
Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 03-07A
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
318 2,197 «- Correct!
30 318 1,500
319 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
Closing Entries (Part 6)
Commissions Earned
Income Summary
To close the revenue account.
Income Summary
Depreciation Expense, Computer Equipment
Salaries Expense
Insurance Expense
Rent Expense
Office Supplies Expense
Repairs Expense
Telephone Expense
To close the expense accounts.
Income Summary
Retained earnings
To close the Income Summary account.
Retained earnings
Dividends
To close the Dividends account.
ADVENTURE TRAVEL
Unadjusted Trial Balance
April 30, 2013
Cash
Accounts receivable
Office supplies
Prepaid insurance
Computer equipment
Accumulated depreciation – computer equipment
Salaries payable
Common stock
Dividends
Retained earnings
Commissions earned
Depreciation expense – computer equipment
Salaries expense
Insurance expense
Rent expense
Office supplies expense
Repairs expense
Telephone expense
Totals
ADVENTURE TRAVEL
Adjusted Trial Balance
April 30, 2013
Cash
Accounts receivable
Office supplies
Prepaid insurance
Computer equipment
Accumulated depreciation – computer equipment
Salaries payable
Common stock
Dividends
Commissions earned
Depreciation expense – computer equipment
Salaries expense
Retained earnings
Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 03-07A
133
1,800
400
350
750
60,670$ 60,670$
Correct! Correct!
Insurance expense
Rent expense
Office supplies expense
Repairs expense
Telephone expense
Totals
Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 03-07A
9,750$
500$
3,620
133
1,800
400
350
750
7,553
2,197$
Correct!
–$
2,197
2,197
(1,500)
697$
Correct!
27,000$
1,750
600
2,267
20,000$
(500) 19,500
51,117$
420$
50,000
697
51,117$
Correct!
Debits Credits
27,000$
1,750
600
2,267
20,000
500$
420
50,000
697
51,617$ 51,617$
Correct! Correct!
ADVENTURE TRAVEL
Income Statement
For Month Ended April 30, 2013
Commissions earned
Expenses:
Depreciation expense, computer equipment
Salaries expense
Insurance expense
Rent expense
Office supplies expense
Repairs expense
Telephone expense
Add: Net income
Less: Dividends
Retained earnings, April 30, 2013
ADVENTURE TRAVEL
Total expenses
Net income
ADVENTURE TRAVEL
Statement of Retained Earnings
For Month Ended April 30, 2013
Retained earnings, April 1, 2013
Balance Sheet
April 30, 2013
Assets
Cash
Accounts receivable
Office supplies
Prepaid insurance
Computer equipment
Accumulated depreciation – computer equipment
Total assets
Liabilities
Salaries payable
Owner’s Equity
Retained earnings
Total liabilities and equity
ADVENTURE TRAVEL
Post-Closing Trial Balance
April 30, 2013
Common stock
Account Titles
Cash
Accounts receivable
Office supplies
Prepaid insurance
Computer equipment
Accumulated depreciation, computer equipment
Salaries payable
Retained earnings
Totals
Common stock
Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 03-07A
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!
Common Stock Account No. 307
Date Explanation PR Debit Credit Balance
Apr 1 50,000 50,000 «- Correct!
Retained Earnings Account No. 318
Date Explanation PR Debit Credit Balance
30 Closing 2,197 2,197
30 Closing 1,500 697 «– Correct!
Dividends Account No. 319
Date Explanation PR Debit Credit Balance
Apr 30 1,500 1,500
30 Closing 1,500 – «- Correct!
ADVENTURE TRAVEL
General Ledger
Student Name:
Class:
Instructor
McGraw-Hill/Irwin
Problem 03-07A
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
Paid cash dividends
Cash
Accounts Receivable
Office Supplies
Prepaid Insurance
Computer Equipment
168
209
307
318
319
405
612
622
637
Rent Expense
Office Supplies Expense
Repairs Expense
Telephone Expense
Income Summary
b. Office supplies on hand
c. Depreciation on computer
d. Unpaid and unrecorded salaries
e. Commissions earned but not billed
Check figures:
58,000$
133$
Total assets
(7) Post-closing trial balance totals
(5) Net income
Nozomi invested cash
Nozomi invested computer equipment
Paid first month’s rent
Purchased office supplies for cash
Paid annual insurance premium
Given Data P03-07A:
Paid salaries
Collected commissions earned
Paid salaries
Paid for computer repair
Paid telephone bill
Accumulated Depreciation – Computer Equipment
Salaries Payable
Common stock
Dividends
Commissions Earned
Retained earnings
Depreciation expense – Computer Equipment
Salaries Expense
Insurance Expense
(3) Unadjusted trial balance totals
(4a) Debit Insurance Expense