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PROBLEM 4-2A (Continued)
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Closing entry
J14
61,000
61,000
31
Closing entry
J14
50,100
10,900
31
Closing entry
J14
10,900
0
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
61,000
61,000
31
Closing entry
J14
61,000
0
Advertising Expense No. 610
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
8,400
8,400
31
Closing entry
J14
8,400
0
Supplies Expense No. 631
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
4,000
4,000
31
Closing entry
J14
4,000
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
5,600
5,600
31
Closing entry
J14
5,600
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
3,500
3,500
31
Closing entry
J14
3,500
0
PROBLEM 4-2A (Continued)
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
28,000
28,000
31
Closing entry
J14
28,000
0
Interest Expense No. 905
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
600
600
31
Closing entry
J14
600
0
(e) ALSHWER COMPANY
Post-Closing Trial Balance
December 31, 2015
Debit
Credit
Cash .................................................................... $ 5,300
Accounts Receivable ......................................... 10,800
Supplies .............................................................. 1,500
Prepaid Insurance .............................................. 2,000
Equipment .......................................................... 27,000
Accumulated Depreciation—
Equipment ...................................................... $ 5,600
PROBLEM 4-3A
(a) FLEMING COMPANY
Income Statement
For the Year Ended December 31, 2015
Revenues
Service revenue............................................. $60,000
Expenses
Salaries and wages expense ........................ $30,000
Depreciation expense ................................... 3,100
FLEMING COMPANY
Retained Earnings Statement
For the Year Ended December 31, 2015
Retained Earnings, January 1 .......................................... $ 7,500
Add: Net income ............................................................. 22,100
FLEMING COMPANY
Balance Sheet
December 31, 2015
Assets
Current assets
Cash ............................................................... $8,900
Accounts receivable ..................................... 10,800
Prepaid insurance ......................................... 2,800
PROBLEM 4-3A (Continued)
FLEMING COMPANY
Balance Sheet (Continued)
December 31, 2015
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ........................................... $9,000
(b)
General Journal
Date
Account Titles and Explanation
Ref.
Debit
Credit
Dec. 31
Service Revenue ..................................
400
60,000
Income Summary........................
350
60,000
31
Income Summary ................................
350
37,900
Maintenance and Repairs
Expense....................................
622
1,600
Depreciation Expense ................
711
3,100
Insurance Expense .....................
722
1,800
Salaries and Wages Expense ....
726
30,000
Utilities Expense .........................
732
1,400
31
Income Summary ................................
350
22,100
Retained Earnings ......................
320
22,100
31
Retained Earnings ...............................
320
11,000
Dividends ....................................
332
11,000
PROBLEM 4-3A (Continued)
(c)
Retained Earnings No. 320
12/31 11,000
1/1 Bal. 7,500
12/31 22,100
Dividends No. 332
12/31 Bal. 11,000
12/31 11,000
Income Summary No. 350
12/31 37,900
12/31 60,000
Maintenance and Repairs
Expense No. 622
12/31 Bal. 1,600
12/31 1,600
12/31 Bal. 3,100
12/31 3,100
12/31 Bal. 1,800
12/31 1,800
PROBLEM 4-4A
(a) JARMUZ MANAGEMENT SERVICES
Worksheet
For the Year Ended December 31, 2015
Account Titles
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
Accounts Receivable
Prepaid Insurance
Land
Buildings
Equipment
Accounts Payable
Unearned Rent Revenue
Mortgage Payable
Common Stock
13,800
28,300
3,600
67,000
127,000
59,000
12,500
6,000
120,000
90,000
(c) 4,500
(a) 1,200
13,800
28,300
2,400
67,000
127,000
59,000
12,500
1,500
120,000
90,000
13,800
28,300
2,400
67,000
127,000
59,000
12,500
1,500
120,000
90,000
4-74 Copyright © 2011 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 10/e, Solutions Manual (For Instructor Use
4-46 Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only)
PROBLEM 4-4A (Continued)
(b) JARMUZ MANAGEMENT SERVICES
Balance Sheet
December 31, 2015
Assets
Current assets
Cash ........................................... $13,800
Accounts receivable ................. 28,300
Prepaid insurance ..................... 2,400
Total current assets .......... $ 44,500
PROBLEM 4-4A (Continued)
(c) Dec. 31 Insurance Expense ............................... 1,200
31 Depreciation Expense .......................... 6,600
Accumulated Depreciation—
31 Unearned Rent Revenue ...................... 4,500
31 Interest Expense ................................... 10,000
(d) Dec. 31 Service Revenue ................................... 90,700
31 Income Summary ................................. 99,300
Salaries and Wages Expense ....... 42,000
Advertising Expense .................... 20,500
Interest Expense ........................... 10,000
31 Income Summary ................................. 24,900
31 Retained Earnings ................................ 22,000
PROBLEM 4-4A (Continued)
(e) JARMUZ MANAGEMENT SERVICES
Post-Closing Trial Balance
December 31, 2015
Debit
Credit
Cash ................................................................. $ 13,800
Accounts Receivable ...................................... 28,300
Prepaid Insurance ........................................... 2,400
Land ................................................................. 67,000
Buildings ......................................................... 127,000
Accumulated Depreciation—Buildings ......... $ 3,000
PROBLEM 4-5A
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 1
Cash ....................................................
101
20,000
Common Stock ..........................
311
20,000
1
Equipment ..........................................
157
9,000
Cash ...........................................
101
4,000
Accounts Payable .....................
201
5,000
3
Supplies ..............................................
126
2,100
Accounts Payable .....................
201
2,100
5
Prepaid Insurance ..............................
130
1,800
Cash ...........................................
101
1,800
12
Accounts Receivable .........................
112
4,500
Service Revenue .......................
400
4,500
18
Accounts Payable ..............................
201
2,900
Cash ...........................................
101
2,900
20
Salaries and Wages Expense ............
726
2,500
Cash ...........................................
101
2,500
21
Cash ....................................................
101
3,400
Accounts Receivable ................
112
3,400
25
Accounts Receivable .........................
112
6,000
Service Revenue .......................
400
6,000
31
Gasoline Expense ..............................
633
350
Cash ...........................................
101
350
31
Dividends ............................................
332
5,600
Cash ...........................................
101
5,600
