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Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
30 428,498
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Balance
Item
Account No. 515
Post.
Date
Account No. 514
Insurance Expense
2014
Advertising Expense Account No. 513
Post.
Salaries Expense
ItemDate
Balance
2014
Account No. 511
Balance
Item
Date
Post.
Passenger Service Revenue
Balance
Account No. 313
Balance
Date Item
2014
June
Post.
2014
Item
Account No. 411
A. Phylum, Withdrawals
Date
Date
Rent Expense
Item
Post.
Post. Balance
2014
2014
Balance
Account No. 510
Post.
Date
P4. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
Balance
Gas and Oil Expense
Item
2014
3-17
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
Ref. Debit Credit Debit Credit
P4. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
Date
Item
2014
Post.
Account No. 519Interest Expense
Balance
Item
Balance
Account No. 518
Account No. 516
Post.
Maintenance Expense
2014
Balance
Date
Post.
Spare Parts Expense
Item
Date Item
2014
Depreciation Expense—Limousines Account No. 517
Post.
2014
Date
Balance
3-18
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
4.
9,812
14,227
P4. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
Cash
Accounts Receivable
Note: Prepaid Rent does not appear on the adjusted trial balance because it now has
a zero balance.
Hertz Limo Service
Adjusted Trial Balance
June 30, 2014
3-19
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
$440,683
$ 89,300
$ 78,211
56,571
Gas and oil expense
P4. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Continued)
Hertz Limo Service
Income Statement
For the Year Ended June 30, 2014
A. Phylum, capital, June 30, 2013
Statement of Owner's Equity
Net income
Expenses:
Revenues:
For the Year Ended June 30, 2014
Hertz Limo Service
Passenger service revenue
3-20
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
$ 9,812
14,227
$ 45,000
5.
P4. Determining Adjusting Entries and Tracing Their Effects to Financial Statements
(Concluded)
Cash
Accounts receivable
Adjusting entries affect net income on the income statement. After the adjustments
Notes payable
Assets
Hertz Limo Service
Balance Sheet
Liabilities
June 30, 2014
3-21
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Balance Balance
after after
A
djustmen
t
A
djustmen
t
Amount of
(+ or –)
Amount of
Adjustment
Income Adjustment
Statement Account
Interest Expense
3-22
Bal. 1,320 (b) 440 Bal. 9,240
Bal. 5,940 Bal. 11,000 (d) 550
Bal. 22,000 Bal. 72,600 Bal. 49,400
Bal. 4,400 Bal. 4,280 (a) 2,398
Office Supplies
Interest Payable
1. and 2.
Accounts Receivable
P6. Determining Adjusting Entries, Posting to T Accounts, and Preparing an Adjusted Trial
Balance
Accumulated Depreciation—
Office Equipment
Accounts Payable Notes Payable
Bal.
Cash
Office EquipmentPrepaid Rent
1,540
Salaries Payable B. Cooper, CapitalUnearned Service Revenue
B. Cooper, Withdrawals Service Revenue Salaries Expense
Rent Expense Utilities Expense Office Supplies Expense
3-23
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
3.
16,500
10,450
4. a.
b.
Balance sheet, income statement, statement of owner's equity
Balance sheet, income statement, statement of owner's equity
P6. Determining Adjusting Entries, Posting to T Accounts, and Preparing an Adjusted Trial
Balance (Concluded)
Brave Advisors Service
Adjusted Trial Balance
December 31, 2014
Cash
Accounts Receivable
3-24
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
a. June 30 12,000
b. 30 11,520
e. 30 3,167
[( / 12
[( / 36
f. 30 7,300
g. 30 1,750
h. 30 3,500
2.
months )
months )
In transaction "c," no revenue is recognized because even though a contract has
To record service revenue earned
on a contract to be billed in August
Depreciation Expense—Buildings
To record accrued interest on mortgage
Accounts Receivable
Unearned Service Revenue
To record annual depreciation
$3,366
187
To record expired insurance
$3,167
1,450 $2,900
P7. Preparing Adjusting Entries
Insurance Expense
1.
Interest Expense
To record accrued salaries
Salaries Expense
3-25
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
