E4-19 Preparing a worksheet
Learning Objective 2
The unadjusted trial balance of Data Solution at November 30, 2018, follows:
Additional information at November 30, 2018:
a. Accrued Service Revenue, $800.
b. Depreciation, $350.
c. Accrued Salaries Expense, $650.
d. Prepaid Rent expired, $700.
e. Office Supplies used, $550.
Requirements
1. Complete Data Solution’s worksheet for the month ended November 30, 2018.
2. How much was net income for November?
SOLUTION
E4-19, cont.
Requirement 2
Note: Exercise E4-20 should be used only after completing Exercise E4-19.
E4-20 Preparing financial statements from the completed worksheet
Learning Objectives 1, 2
1. Ending Retained Earnings $1,650
Use your answer from Exercise E4-19 to prepare Data Solution’s financial statements.
Requirements
1. Complete the income statement for the month ended November 30, 2018.
2. Complete the statement of retained earnings for the month ended November 30, 2018. Assume
beginning Retained Earnings was $0.
3. Complete the classified balance sheet as of November 30, 2018. Use the report form.
SOLUTION
E4-21 Preparing closing entries from an adjusted trial balance
Learning Objective 3
The adjusted trial balance of Stone Sign Company follows:
Requirements
1. Assume Stone Sign Company has a January 31 year-end. Journalize Stone’s closing entries at
January 31.
2. How much net income or net loss did Stone Sign Company earn for the year ended January 31? How
can you tell?
SOLUTION
Requirement 1
E4-22 Preparing closing entries from T-accounts
Learning Objective 3
Selected accounts for Kebby Photography at December 31, 2018, follow:
Requirements
1. Journalize Kebby Photography’s closing entries at December 31, 2018.
2. Determine Kebby Photography’s ending Retained Earnings balance at December 31, 2018.
E4-23 Determining the effects of closing entries on the Retained Earnings account
Learning Objective 3
McGregor Insurance Agency started the year with a beginning Retained Earnings balance of $27,500.
During the year, McGregor Insurance Agency earned $34,000 of Service Revenue and incurred $23,500
of various expenses. Dividends of $12,000 from the business were paid to stockholders. After the
closing entries are recorded and posted, what will be the balance of Retained Earnings?
E4-24 Preparing a worksheet and closing entries
Learning Objectives 2, 3
1. Net Income $15,350
Cynthia Elmer, CPA, had the following partial worksheet:
Requirements
1. Complete the worksheet.
2. Prepare the closing entries for Cynthia Elmer, CPA.
E4-24, cont.
Requirement 2