Depreciation Expense 54
Post.
Item Ref. Debit Credit Debit Credit
July 31 Adjusting
31 Closing
Insurance Expense 55
Post.
Item Ref. Debit Credit Debit Credit
July 31 Adjusting
31 Closing
Miscellaneous Expense 59
Post.
Item Ref. Debit Credit Debit Credit
July 10
29
31
31 Closing
3.
Cash 11
Accounts Receivable 12
Supplies 14
Prepaid Rent 15
Prepaid Insurance 16
Office Equipment 18
Accumulated Depreciation 19
Accounts Payable 21
Salaries Payable 22
Unearned Fees 23
Common Stock 31
Retained Earnings 32
Balance
Date
20Y2
Balance
Date
20Y2
Acct.
No.
Debit
Balances
Credit
Balances
Balance
Date
20Y2
Diamond Consulting
Unadjusted Trial Balance
July 31, 20Y2
Dividends 33
Fees Earned 41
Salary Expense 51
Rent Expense 52
Supplies Expense 53
Depreciation Expense 54
Insurance Expense 55
Miscellaneous Expense 59
5.
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 32,450
Accounts Receivable 16,450
Supplies 3,800
Prepaid Rent 4,800
Prepaid Insurance 4,500
Office Equipment 14,000
Accum. Depreciation –
Accounts Payable 1,300
Salaries Payable –
Unearned Fees 5,500
Common Stock 45,000
Retained Earnings –
Dividends 12,500
Fees Earned 41,600
Salary Expense 3,500
Rent Expense –
Supplies Expense –
Depreciation Expense –
Insurance Expense –
Miscellaneous Expense 1,400
93,400 93,400
6.
Page 3
Post.
Ref. Debit Credit
July 31
31
Diamond Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 20Y2
JOURNAL
Date
Description
20Y2
Adjusting Entries
Adjusted
Income
Balance
Unadjusted Trial Balance
Adjustments
Trial Balance
Statement
Sheet
31
31
31
31
7.
Cash 11
Accounts Receivable 12
Supplies 14
Prepaid Rent 15
Prepaid Insurance 16
Office Equipment 18
Accumulated Depreciation 19
Accounts Payable 21
Salaries Payable 22
Unearned Fees 23
Common Stock 31
Retained Earnings 32
Dividends 33
Fees Earned 41
Salary Expense 51
Rent Expense 52
Supplies Expense 53
Depreciation Expense 54
Insurance Expense 55
Miscellaneous Expense 59
Diamond Consulting
Adjusted Trial Balance
July 31, 20Y2
Acct.
No.
Debit
Balances
Credit
Balances
8.
Net income
Common
Stock
Retained
Earnings
Total
Balances, July 1, 20Y2
Issued common stock
Net income
Dividends
Balances, July 31, 20Y2
Current assets:
Total current assets
Property, plant, and equipment:
Income Statement
For the Month Ended July 31, 20Y2
Revenues:
Expenses:
Diamond Consulting
Total expenses
Diamond Consulting
Statement of Stockholders’ Equity
For the Month Ended July 31, 20Y2
Diamond Consulting
Balance Sheet
July 31, 20Y2
Assets
Total property, plant, and equipment
Total assets
Current liabilities:
Total liabilities
Total stockholders’ equity
Total liabilities and stockholders’ equity
Liabilities
Stockholders’ Equity
9.
Page 4
Post.
Ref. Debit Credit
July 31
31
10.
Cash 11
Accounts Receivable 12
Supplies 14
Prepaid Rent 15
Prepaid Insurance 16
Office Equipment 18
Accumulated Depreciation 19
Accounts Payable 21
Salaries Payable 22
Unearned Fees 23
Common Stock 31
Retained Earnings 32
20Y2
Closing Entries
JOURNAL
Date
Description
Diamond Consulting
Post-Closing Trial Balance
July 31, 20Y2
Acct. No.
Debit
Balances
Credit
Balances
Problem 4-5A
Score:
Key Code:
Instructions
Answers are entered in the cells with gray backgrounds.
In the general ledger accounts, only normal balance columns will be graded.
In graded sections, enter a zero in cells you would otherwise leave blank.
1. and 2.
Page 1
Post.
Ref. Debit Credit
July 1 11 13,500
12 20,800
14 3,200
18 7,500
31 45,000
115 4,800
11 4,800
216 4,500
11 4,500
411 5,500
23 5,500
518 6,500
21 6,500
Page 2
Post.
Ref. Debit Credit
Cash
Accounts Receivable
Fees Earned
Salary Expense
Cash
JOURNAL
Cash
Accounts Receivable
Miscellaneous Expense
Cash
Accounts Payable
Supplies
Date
Description
20Y2
Cash
Fees Earned
11 600
20 12 6,650
41 6,650
24 11 4,000
41 4,000
26 11 12,000
Accounts Receivable
An asterisk (*) will appear to the right of an incorrect entry.
JOURNAL
Date
Description
20Y2
Name:
Solution
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.
Cash
Prepaid Insurance
Cash
Cash
Unearned Fees
Office Equipment
Cash
Accounts Receivable
Supplies
Office Equipment
Common Stock
Prepaid Rent
Accounts Payable
Cash
Accounts Receivable
Fees Earned
Cash
Fees Earned
Cash
29 59 325
11 325
31 59 675
11 675
31 11 5,200
41 5,200
31 12 3,000
41 3,000
31 33 12,500
11 12,500
Post.
Item Ref. Debit Credit Debit Credit
July 1 1 13,500 13,500
1 1 4,800 8,700
Balance
Date
20Y2
2 1 4,500 4,200
4 1 5,500 9,700
6 1 15,300 25,000
10 1400 24,600
12 1 5,200 19,400
14 1 1,750 17,650
17 2 9,450 27,100
18 2600 26,500
24 2 4,000 30,500
26 2 12,000 42,500
27 2 1,750 40,750
29 2325 40,425
31 2675 39,750
31 2 5,200 44,950
31 2 12,500 32,450
Accounts Receivable 12
Post.
Item Ref. Debit Credit Debit Credit
July 1 1 20,800 20,800
6 1 15,300 5,500
12 1 13,300 18,800
20 2 6,650 25,450
26 2 12,000 13,450
31 2 3,000 16,450
Supplies 14
Post.
Item Ref. Debit Credit Debit Credit
July 1 1 3,200 3,200
18 2600 3,800
31 Adjusting 3 2,275 1,525
Prepaid Rent 15
Post.
Item Ref. Debit Credit Debit Credit
July 1 1 4,800 4,800
31 Adjusting 3 2,400 2,400
Prepaid Insurance 16
Post.
Item Ref. Debit Credit Debit Credit
July 2 1 4,500 4,500
31 Adjusting 3 375 4,125
Office Equipment 18
Post.
Item Ref. Debit Credit Debit Credit
July 1 1 7,500 7,500
5 1 6,500 14,000
Miscellaneous Expense
Cash
Cash
Fees Earned
Accounts Receivable
Fees Earned
Miscellaneous Expense
Cash
Balance
Date
20Y2
Balance
Date
20Y2
Dividends
Cash
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Accumulated Depreciation 19
Post.
Item Ref. Debit Credit Debit Credit
July 31 Adjusting 3 750 750
Accounts Payable 21
Post.
Item Ref. Debit Credit Debit Credit
July 5 1 6,500 6,500
12 1 5,200 1,300
Salaries Payable 22
Post.
Item Ref. Debit Credit Debit Credit
July 31 Adjusting 3 175 175
Unearned Fees 23
Post.
Item Ref. Debit Credit Debit Credit
July 4 1 5,500 5,500
31 Adjusting 3 2,750 2,750
Common Stock 31
Post.
Item Ref. Debit Credit Debit Credit
July 1 1 45,000 45,000
Retained Earnings 32
Post.
Item Ref. Debit Credit Debit Credit
July 1 Balance 0
31 Closing 4 33,475 33,475
31 Closing 4 12,500 20,975
Dividends 33
Post.
Item Ref. Debit Credit Debit Credit
July 31 2 12,500 12,500
31 Closing 4 12,500 – –
Fees Earned 41
Post.
Item Ref. Debit Credit Debit Credit
July 12 1 13,300 13,300
17 2 9,450 22,750
20 2 6,650 29,400
24 2 4,000 33,400
31 2 5,200 38,600
31 2 3,000 41,600
31 Adjusting 3 2,750 44,350
31 Closing 4 44,350 – –
Salary Expense 51
Post.
Item Ref. Debit Credit Debit Credit
July 14 1 1,750 1,750
27 2 1,750 3,500
31 Adjusting 3 175 3,675
31 Closing 4 3,675 – –
Rent Expense 52
Post.
Item Ref. Debit Credit Debit Credit
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
Balance
Date
20Y2
July 31 Adjusting 3 2,400 2,400
31 Closing 4 2,400 – –
Supplies Expense 53
Post.
Item Ref. Debit Credit Debit Credit
July 31 Adjusting 3 2,275 2,275
31 Closing 4 2,275 – –
Depreciation Expense 54
Post.
Item Ref. Debit Credit Debit Credit
July 31 Adjusting 3 750 750
31 Closing 4 750 – –
Insurance Expense 55
Post.
Item Ref. Debit Credit Debit Credit
Date
July 31 Adjusting 3 375 375
31 Closing 4 375 – –
Miscellaneous Expense 59
Post.
Item Ref. Debit Credit Debit Credit
July 10 1400 400
29 2325 725
31 2675 1,400
31 Closing 4 1,400 – –
Cash 11 32,450 –
Accounts Receivable 12 16,450 –
Supplies 14 3,800 –
Prepaid Rent 15 4,800 –
Prepaid Insurance 16 4,500 –
Office Equipment 18 14,000 –
Accumulated Depreciation 19 – –
Accounts Payable 21 – 1,300
Salaries Payable 22 – –
Unearned Fees 23 – 5,500
Common Stock 31 – 45,000
Retained Earnings 32 – –
Dividends 33 12,500 –
Fees Earned 41 – 41,600
Salary Expense 51 3,500 –
Rent Expense 52 – –
Supplies Expense 53 – –
Depreciation Expense 54 – –
Insurance Expense 55 – –
Miscellaneous Expense 59 1,400 –
93,400 93,400
5.
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 32,450 – – 32,450 – – – 32,450 –
Accounts Receivable 16,450 – – 16,450 – – – 16,450 –
Supplies 3,800 – (b) 2,275 1,525 – – – 1,525 –
Prepaid Rent 4,800 – (e) 2,400 2,400 – – – 2,400 –
Prepaid Insurance 4,500 – (a) 375 4,125 – – – 4,125 –
Office Equipment 14,000 – – 14,000 – – – 14,000 –
Accum. Depreciation – – (c) 750 – 750 – – – 750
Accounts Payable 1,300 – – – 1,300 – – – 1,300
Salaries Payable – – (d) 175 – 175 – – – 175
Unearned Fees 5,500 (f) 2,750 – – 2,750 – – – 2,750
Common Stock 45,000 – – – 45,000 – – – 45,000
Balance
Date
20Y2
Balance
20Y2
Balance
Date
20Y2
Acct.
No.
Debit
Balances
Credit
Balances
Diamond Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 20Y2
Balance
Date
20Y2
Unadjusted Trial Balance
July 31, 20Y2
Adjusted
Income
Balance
Unadjusted Trial Balance
Adjustments
Trial Balance
Statement
Sheet
Dividends 12,500 – – 12,500 – – – 12,500 –
Fees Earned 41,600 – (f) 2,750 – 44,350 – 44,350 – –
Salary Expense 3,500 (d) 175 – 3,675 – 3,675 – – –
Rent Expense – (e) 2,400 – 2,400 – 2,400 – – –
Supplies Expense – (b) 2,275 – 2,275 – 2,275 – – –
Depreciation Expense – (c) 750 – 750 – 750 – – –
Insurance Expense – (a) 375 – 375 – 375 – – –
Miscellaneous Expense 1,400 – – 1,400 – 1,400 – – –
93,400 93,400 8,725 8,725 94,325 94,325 10,875 44,350 83,450 49,975
Net income 33,475 – – 33,475
44,350 44,350 83,450 83,450
6.
Page 3
Post.
Ref. Debit Credit
July 31 55 375
16 375
31 53 2,275
14 2,275
31 54 750
19 750
Supplies 14 1,525 –
Prepaid Rent 15 2,400 –
Prepaid Insurance 16 4,125 –
Office Equipment 18 14,000 –
Accumulated Depreciation 19 – 750
Accounts Payable 21 – 1,300
Salaries Payable 22 – 175
Revenues:
Fees earned
3,675$
2,400
2,275
750
375
1,400
(10,875)
Net income 33,475$
Salaries Payable
Rent Expense
Prepaid Rent
Unearned Fees
Fees Earned
Salary Expense
JOURNAL
Date
Description
20Y2
Adjusting Entries
Insurance Expense
Prepaid Insurance
Supplies Expense
Supplies
Depreciation Expense
Accumulated Depreciation
Expenses:
Total expenses
Salary expense
Rent expense
Supplies expense
Depreciation expense
Insurance expense
Miscellaneous expense
Common
Stock
Retained
Earnings
Total
Balances, July 1, 20Y2 –$ –$ –$
Issued common stock 45,000 – 45,000
Net income – 33,475 33,475
Dividends – (12,500) (12,500)
Balances, July 31, 20Y2 45,000$ 20,975$ 65,975$
Prepaid insurance
Office equipment
Accumulated depreciation
Cash
Accounts receivable
Prepaid rent
Total property, plant, and equipment
13,250
Total assets 70,200$
Current liabilities:
1,300$
Salaries payable
Common stock
9.
Page 4
Post.
Ref. Debit Credit
July 31 41 44,350
51 3,675
Rent Expense
53 2,275
Depreciation Expense 54 750
Insurance Expense 55 375
59 1,400
32 33,475
Accounts Receivable 12 16,450 –
Supplies 14 1,525 –
July 31, 20Y2
Diamond Consulting
Prepaid Rent 15 2,400 –
Prepaid Insurance 16 4,125 –
Office Equipment 18 14,000 –
Accumulated Depreciation 19 – 750
Accounts Payable 21 – 1,300
Salaries Payable 22 – 175
Unearned Fees 23 – 2,750
Common Stock 31 – 45,000
Diamond Consulting
Statement of Stockholders’ Equity
For the Month Ended July 31, 20Y2
Diamond Consulting
Balance Sheet
Liabilities
Accounts payable
July 31, 20Y2
20Y2
Closing Entries
Fees Earned
Salary Expense
Supplies Expense
JOURNAL
Date
Description
Miscellaneous Expense
Retained Earnings
Retained Earnings 32 – 20,975
70,950 70,950
Problem 4-5B
Score:
Key Code:
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry.
In the general ledger accounts, only normal balance columns will be graded.
In graded sections, enter a zero in cells you would otherwise leave blank.
1. and 2.
Page 1
Post.
Ref. Debit Credit
April 1
1
2
4
5
6
[Key code here]
Cells with non-gray backgrounds are protected and cannot be edited.
JOURNAL
Date
Description
20Y6
Name:
Section:
0%
10
12
12
14
Page 2
Post.
Ref. Debit Credit
April 17
18
20
24
26
27
29
30
JOURNAL
Date
Description
20Y6
30
30
30
2., 6., and 9.
Cash
11
Post.
Item Ref. Debit Credit Debit Credit
April 1
1
2
4
6
10
12
14
17
18
24
26
27
29
30
30
30
Accounts Receivable 12
Post.
Item Ref. Debit Credit Debit Credit
April 1
Balance
Date
20Y6
GENERAL LEDGER
Balance
Date
20Y6
6
12
20
26
30
Supplies 14
Post.
Item Ref. Debit Credit Debit Credit
April 1
18
30 Adjusting
Prepaid Rent 15
Post.
Item Ref. Debit Credit Debit Credit
April 1
30 Adjusting
Prepaid Insurance 16
Post.
Item Ref. Debit Credit Debit Credit
April 2
30 Adjusting
Office Equipment 18
Post.
Item Ref. Debit Credit Debit Credit
April 1
5
Accumulated Depreciation 19
Post.
Balance
Date
20Y6
Balance
Date
20Y6
Balance
Balance
Date
20Y6
Balance
Date
20Y6