a. (cont’d.)
42
,
835$ 3
,
500 110
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Accounts receivabl
e
December 31, 201
5
PROBLEM 5.5
A
SILVER LINING, INC. (continued)
SILVER LINING, INC.
Adjusted Trial Balanc
e
Cash
Office su
pp
lies
,
b.
64
,
000$
,
,
,
8,000$
Retained earnings (1/1/15)
Statement of Retained Earnings
For the Year Ended December 31, 2015
SILVER LINING, INC.
Consultin
g
services revenu
e
PROBLEM 5.5
A
SILVER LINING, INC. (continued)
Revenues:
SILVER LINING, INC.
For the Year Ended December 31, 201
5
Income Statement
,
b. (cont’d)
Asset
s
$ 42
,
835
3
,
500
110
900
,
,
,
,
,
,
,
,
,
,
,
,
,
Balance Shee
t
Cash
Office su
pp
lies
Pre
p
aid rent
PROBLEM 5.5
A
SILVER LINING, INC. (continued)
Accounts receivabl
e
SILVER LINING, INC.
December 31, 201
5
,
c.
Dec. 31 64
,
000
Income Summar
y
64
,
000
,
,
,
To close dividends declared in 2015 to Retained
Earnin
g
s.
Consultin
g
Services Revenu
e
To close revenue earned.
PROBLEM 5.5
A
SILVER LINING, INC.
December 31, 201
5
(1)
General Journal
SILVER LINING, INC. (continued)
,
d.
42
,
835$ 3
,
500 110 900 180
,
,
,
,
,
,
,
,
PROBLEM 5.5
A
SILVER LINING, INC. (continued)
SILVER LINING, INC.
December 31, 201
5
Accounts receivabl
e
Office su
pp
lies
After-Closing Trial Balanc
e
Cash
,
f.
3
,
825
$
$
$
Less: Total rent ex
p
ense October throu
g
h
PROBLEM 5.5
A
SILVER LINING, INC. (concluded)
Rent ex
p
ense incurred in 2015
,
$
a.
Dec. 31 5
,
000
Su
pp
lies 5
,
000
,
p
p
,
,
,
,
PROBLEM 5.6
A
BRUSHSTROKE ART STUDIO, INC
.
December 31, 201
5
(1)
General Journal
BRUSHSTROKE ART STUDIO, INC.
70 Minutes, Strong
Su
pp
l
y
Ex
p
ense
To record su
pp
lies used in December.
To record income taxes ex
p
ense accrued in
To record portion of prepaid rent expired in December.
December.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,
a. (cont’d)
Computations for each of the adjusting journal entries:
1. $6,000 (supplies per trial balance) – $1,000 (at 12/31) = $5,000 used in December.
2. $2,500 (prepaid rent per trial balance)/2 months remaining at 11/30/15 = $1,250 per month.
BRUSHSTROKE ART STUDIO, INC. (continued
)
PROBLEM 5.6
A
a. (cont’d.)
22
,
380$ 71
,
940 1
,
000 1
,
250
,
,
,
,
,
,
p
,
,
,
,
,
,
,
,
PROBLEM 5.6
A
BRUSHSTROKE ART STUDIO, INC. (continued
)
Cash
Su
pp
lies
Client fees receivabl
e
BRUSHSTROKE ART STUDIO, INC. (continued
)
December 31, 201
5
Adjusted Trial Balanc
e
Pre
p
aid studio rent
,
b.
86
,
000$
,
p
,
,
,
20,000$
PROBLEM 5.6
A
BRUSHSTROKE ART STUDIO, INC. (continued
)
Revenues:
BRUSHSTROKE ART STUDIO, INC
.
For the Year Ended December 31, 201
5
Income Statement
Client fees earned
Ex
p
enses:
For the Year Ended December 31, 2015
Retained earnings (1/1/15)
BRUSHSTROKE ART STUDIO, INC.
Statement of Retained Earnings
,
pp