10.
8,662
800
P5. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
Cash
Prepaid Insurance
Stoker’s Repair Service
Adjusted Trial Balance
June 30, 2014
4-33
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11.
$3,462
$ 850
$10,362
1,034
L. Stoker, capital, May 31, 2014
Net income
Expenses
Repair revenue
Stoker’s Repair Service
Statement of Owner’s Equity
For the Month Ended June 30, 2014
Revenue
P5. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
Store rent expense
Stoker’s Repair Service
Income Statement
For the Month Ended June 30, 2014
4-34
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
$ 8,662
800
13.
8,662
P5. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Concluded)
June 30, 2014
Cash
Cash
Stoker’s Repair Service
Balance Sheet
Assets
Stoker’s Repair Service
Post-Closing Trial Balance
June 30, 2014
Prepaid insurance
4-35
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
1.
31 66,430
31 43,580
31 22,850
31 14,000
2.
Alternate Problems
2014
Income Summary
To close the revenue account
To close the Withdrawals account
J. Villa Capital
To close the Income Summary account
To close the expense accounts
Dec. Consulting Fees Earned
P6. Preparation of Closing Entries
Income Summary
account to zero and transfer the balances to the owner’s Capital account. In this way
Closing entries are necessary to set the income statement accounts and withdrawals
4-36
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Bal. —
Bal. —
Bal. —
Bal. —
Bal. —
Bal. —
Bal. —
Bal. —
Bal. —
Supplies Expense
1. and 2.
Advertising Expense
Maintenance Expense
Utilities Expense
Wages Expense
Revenue from Court Fees
Revenue from Locker Fees
Income Summary
P7. Closing Entries Using T Accounts and Preparation of Financial Statements
M. Kilda, Capital
4-37
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Bal. —
Bal. —
Bal. —
Bal. —
Depreciation Expense—Equipment
P7. Closing Entries Using T Accounts and Preparation of Financial Statements (Continued)
Property Taxes Expense
Depreciation Expense—Building
Miscellaneous Expense
4-38
© 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.
$1,356,200
$ 942,300
Kilda Recreational Club
M. Kilda, capital, June 30, 2013
Income Statement
For the Year Ended June 30, 2014
P7. Closing Entries Using T Accounts and Preparation of Financial Statements (Continued)
Statement of Owner’s Equity
For the Year Ended June 30, 2014
Revenue
Revenue from court fees
Kilda Recreational Club
4-39
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$ 52,400
19,200
$ 146,000
18,000
4. complish two purposes: (1) to set the stage for the next accounting period by clear-
Closing entries are journal entries made at the end of the accounting period to ac-
Liabilities
Accounts payable
Wages payable
Kilda Recreational Club
Balance Sheet
June 30, 2014
P7. Closing Entries Using T Accounts and Preparation of Financial Statements (Concluded)
Assets
Cash
Prepaid advertising
4-40
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.