31 29,240
31 23,900
31 5,340
31 4,000
To close the expense accounts
To close the Income Summary account
G. Ranke, Capital
Painting Revenue
To close the revenue account
Income Summary
Income Summary
2014
To close the Withdrawals account
P8. Preparation of Closing Entries
Dec.
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Debit Credit Debit Credit Debit Credit Debit Credit
63,600 63,600 63,600
37,088 37,088 37,088
39,200 (a) 34,800 4,400 4,400
1,560 (b) 1,072 488 488
7,180 (c) 6,244 936 936
40,000 40,000 40,000
800,000 800,000 800,000
78,800 (d) 28,000 106,800 106,800
740,000 740,000 740,000
130,000 (e) 72,000 202,000 202,000
63,200 63,200 63,200
31,120 (f) 6,320 37,440 37,440
91,012 91,012 91,012
83,800 (g) 75,600 8,200 8,200
600,000 600,000 600,000
625,296 625,296 625,296
120,000 120,000 120,000
822,800 (g) 75,600 898,400 898,400
90,400 90,400 90,400
314,000 (h) 1,720 315,720 315,720
48,000 48,000 48,000
225,400 225,400 225,400
54,000 54,000 54,000
2,553,228 2,553,228 (a) 34,800 34,800 34,800
(b) 1,072 1,072 1,072
(c) 6,244 6,244 6,244
(d) 28,000 28,000 28,000
(e) 72,000 72,000 72,000
(f) 6,320 6,320 6,320
(h) 1,720 1,720 1,720
225,756 225,756 2,661,268 2,661,268 791,556 988,800 1,869,712 1,672,468
197,244 197,244
988,800 988,800 1,869,712 1,869,712
Theater Furnishings
Adjustments
Net Income
Usher Wages Expense
Building
P. Julio, Capital
Depreciation Expense—Theater
Accumulated Depreciation—Building
Prepaid Insurance
Accumulated Depreciation—Office
Julio Theater Company—Work Sheet—For the Year Ended June 30, 2014
Office Wages Expense
Gift Books Liability
Mortgage Payable
Interest Expense
Wages Payable
Land
Accounts Receivable
Accounts Payable
Account Name
Cash
Accumulated Depreciation—Theater
Office Supplies
Office Equipment
P. Julio, Withdrawals
Furnishings
Depreciation Expense—Office
Depreciation Expense—Building
Furnishings
Equipment
Utilities Expense
Balance SheetIncome StatementAdjusted Trial Balance
Cleaning Supplies
P9. Preparation of a Work Sheet, Financial Statements, and Adjusting, Closing, and Reversing Entries
1.
Trial Balance
Credit
Theater Rental Revenue
Equipment
Ticket Sales Revenue
Insurance Expense
Office Supplies Expense
Cleaning Supplies Expense
Debit
4-42
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2.
$898,400
90,400
$625,296
P9. Preparation of a Work Sheet, Financial Statements, and Adjusting, Closing, and Reversing
Entries (Continued)
Statement of Owner’s Equity
Theater rental revenue
Julio Theater Company
Income Statement
For the Year Ended June 30, 2014
Revenues
Ticket sales revenue
Julio Theater Company
For the Year Ended June 30, 2014
P. Julio, capital, June 30, 2013
4-43
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$ 63,600
37,088
$ 91,012
$702,540
P9. Preparation of a Work Sheet, Financial Statements, and Adjusting, Closing, and Reversing
Entries (Continued)
June 30, 2014
Liabilities
P. Julio, capital
Balance Sheet
Julio Theater Company
Cash
Owner’s Equity
Accounts receivable
Assets
Accounts payable
4-44
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Debit Credit
30 34,800
30 1,072
30 28,000
30 72,000
30 6,320
30 75,600
30 1,720
Gift Books Liability
To record gift books redeemed
equipment for the year
the year
To record depreciation on theater
furnishings for the year
To record accrued wages at the end of
Usher Wages Expense
Depreciation Expense—Theater Furnishings
Depreciation Expense—Office Equipment
Depreciation Expense—Building
To record depreciation on building for
June
To record expired insurance
Insurance Expense
the period
Accumulated Depreciation—Theater
To record depreciation on office
3.
P9. Preparation of a Work Sheet, Financial Statements, and Adjusting, Closing, and Reversing
Entries (Continued)
2014
Adjusting entries:
Office Supplies Expense
Date Description
General Journal
4-45
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Debit Credit
30 898,400
30 791,556
30 197,244
30 120,000
1 1,720
4. Even though the work sheet has columns for the income statement and balance
sheet, it is not a substitute for the financial statements. First, the work sheet does
Reversing entry:
July Wages Payable
P9. Preparation of a Work Sheet, Financial Statements, and Adjusting, Closing, and Reversing
Entries (Concluded)
Date Description
2014
Ticket Sales Revenue
General Journal
To close the revenue accounts
Income Summary
To close the expense accounts
To close the Income Summary account
Income Summary
P. Julio, Capital
To close the Withdrawals account
Closing entries:
June
4-46
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Page 1
Post.
Ref. Debit Credit
1 111 20,000
1 511 1,700
1 117 1,920
2 144 16,800
5 119 1,872
8 512 240
15 111 1,600
21 212 900
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
the first half of the month
1., 3., and 6.
Rusin Company
Cash
To record receipt of revenue for
credit from Rusin Company
Accounts Payable
To make payment on account to
To purchase newspaper
advertisement
one-seventh down
Advertising Expense
Repair Supplies
To purchase repair supplies on
Repair Equipment
To purchase repair equipment,
Prepaid Insurance
To purchase one-year policy
Store Rent Expense
To pay one month’s rent
2014
June Cash
Owner’s investment
Date Description
General Journal
4-47
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Page 2
Post.
Ref. Debit Credit
30 111 3,900
30 313 1,200
30 513 160
30 514 1,196
30 515 280
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
Depreciation Expense—Repair Equipment
To record depreciation for one month
Accumulated Depreciation—Repair
Repair Supplies Expense
June Insurance Expense
Adjusting entries:
To record owner withdrawal
To record receipt of revenue for the
last half of the month
B. Lutz, Withdrawals
General Journal
June Cash
2014
Date Description
4-48
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