Page 3
Post.
Ref. Debit Credit
2014
30 411 5,500
30 314 3,576
30 311 1,200
To close the Income Summary account
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
To close the Withdrawals account
June Repair Revenue
B. Lutz, Capital
Income Summary
To close the revenue account
Description
Closing entries:
General Journal
Date
4-49
© 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.
17,140
Lutz Repair Service
Cash
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
Adjusted Trial Balance
June 30, 2014
4-50
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
5.
$5,500
$0
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
Lutz Repair Service
Lutz Repair Service
Statement of Owner’s Equity
For the Month Ended June 30, 2014
B. Lutz, capital, June 1, 2014
Income Statement
For the Month Ended June 30, 2014
Revenue
Repair revenue
Expenses
4-51
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
$17,140
1,760
$15,372
$20,724
7.
17,140
Lutz Repair Service
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
Liabilities
Post-Closing Trial Balance
June 30, 2014
Cash
B. Lutz, capital
Accounts payable
Owner’s Equity
Assets
Cash
Prepaid insurance
Lutz Repair Service
Balance Sheet
June 30, 2014
4-52
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Page 4
Post.
Ref. Debit Credit
1 511 1,700
1 212 1,200
6 119 3,452
15 111 3,656
20 512 240
23 212 2,400
31 111 3,268
31 313 1,200
8., 9., and 12.
To record receipt of revenue for the
first half of the month
from Rusin Company
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
To record owner withdrawal
To record receipt of revenue for the
B. Lutz, Withdrawals
last half of the month
Cash
To make payment on account to
Rusin Company
Accounts Payable
To purchase additional advertisement
Advertising Expense
Company
Cash
To purchase repair supplies on credit
Repair Supplies
To make monthly payment to Bilbao
To pay one month’s rent
Accounts Payable
2014
July Store Rent Expense
Date Description
General Journal
4-53
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
Page 5
Post.
Ref. Debit Credit
31 514 2,476
$4,128 – $1,652 = $2,476
31
515 280
31 411 6,924
31 314 4,856
31 314 2,068
31 311 1,200
To close the Withdrawals account
Income Summary
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
To close the expense accounts
Income Summary
B. Lutz, Capital
To close the revenue account
July Repair Revenue
Closing entries:
To record depreciation for one month
Repair Equipment
Accumulated Depreciation—Repair
To close the Income Summary account
Depreciation Expense—
insurance
To record supplies used during July
Repair Supplies Expense
Adjusting entries:
To record one month’s expired
2014
General Journal
DescriptionDate
4-54
© 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
1 J1 20,000 20,000
1 J1 1,700 18,300
1 J4 1,700 15,440
1 J4 1,200 14,240
Ref. Debit Credit Debit Credit
1 J1 1,920 1,920
Ref. Debit Credit Debit Credit
5 J1 1,872 1,872
Date Item
Balance
Repair Supplies Account No. 119
Post.
2014
June
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
2.
June
Date Item
2014
Post.
2014
Prepaid Insurance Account No. 117
Balance
July
June
Cash Account No. 111
Date Item
Balance
Post.
4-55
© 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
2 J1 14,400 14,400
5 J1 1,872 16,272
Ref. Debit Credit Debit Credit
1 J1 20,000 20,000
30 J3 1,924 21,924
Ref. Debit Credit Debit Credit
30 J2 1,200 1,200
B. Lutz, Capital Account No. 311
Balance
Date Item
June
2014
Closing entry
Post.
Date Item
2014
June
P10. The Complete Accounting Cycle Without a Work Sheet: Two Months (second month optional)
(Continued)
Post.
Accounts Payable Account No. 212
Balance
Balance
2014
Post.
Date Item
Accumulated Depreciation—Repair Equipment Account No. 145
2014
Balance
Date Item
Repair Equipment Account No. 144
Post.
2014
June
Date Item Post.
B. Lutz, Withdrawals Account No. 313
Balance
4-56
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.