CHAPTER 4 The Accounting Cycle
4–101
Continuing Problem (Continued)
Account: Fees Earned Account No. 41
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y5
July
1
Balance
✓
6,200
11
1
1,000
7,200
16
2
2,000
9,200
23
2
2,500
11,700
30
2
1,500
13,200
31
2
3,000
16,200
31
Adjusting
3
1,400
17,600
31
Adjusting
3
3,600
21,200
31
Closing
4
21,200
—
—
Account: Wages Expense Account No. 50
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y5
July
1
Balance
✓
400
14
1
1,200
1,600
28
2
1,200
2,800
31
Adjusting
3
140
2,940
31
Closing
4
2,940
—
—
Account: Office Rent Expense Account No. 51
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y5
July
1
Balance
✓
800
1
1
1,750
2,550
31
Closing
4
2,550
—
—
Account: Equipment Rent Expense Account No. 52
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y5
July
1
Balance
✓
675
13
1
700
1,375
31
Closing
4
1,375
—
—
CHAPTER 4 The Accounting Cycle
4–102
Continuing Problem (Continued)
Account: Utilities Expense Account No. 53
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y5
July
1
Balance
✓
300
27
2
915
1,215
31
Closing
4
1,215
—
—
Account: Music Expense Account No. 54
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y5
July
1
Balance
✓
1,590
21
2
620
2,210
31
2
1,400
3,610
31
Closing
4
3,610
—
—
Account: Advertising Expense Account No. 55
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y5
July
1
Balance
✓
500
8
1
200
700
22
2
800
1,500
31
Closing
4
1,500
—
—
Account: Supplies Expense Account No. 56
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y5
July
1
Balance
✓
180
31
Adjusting
3
745
925
31
Closing
4
925
—
—
CHAPTER 4 The Accounting Cycle
Continuing Problem (Continued)
Account: Insurance Expense Account No. 57
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y5
July
31
Adjusting
3
225
225
31
Closing
4
225
—
—
Account: Depreciation Expense Account No. 58
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y5
July
31
Adjusting
3
50
50
31
Closing
4
50
—
—
Credit
Debit
Credit
1
Balance
415
4
Closing
Credit
No.
9,945
4,150
2,475
7,500
CHAPTER 4 The Accounting Cycle
4–104
© 2019 Cengage Learning. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
COMPREHENSIVE PROBLEM 1
1. and 2.
JOURNAL Page 5
Date
Post.
Ref.
Debit
Credit
20Y8
May
3
Cash
11
4,500
Unearned Fees
23
4,500
5
Cash
11
2,450
Accounts Receivable
12
2,450
9
Miscellaneous Expense
59
225
Cash
11
225
13
Accounts Payable
21
640
Cash
11
640
15
Accounts Receivable
12
9,180
Fees Earned
41
9,180
16
Salary Expense
51
630
Salaries Payable
22
120
Cash
11
750
17
Cash
11
8,360
Fees Earned
41
8,360
CHAPTER 4 The Accounting Cycle
4–105
Comp. Prob. 1 (Continued)
JOURNAL Page 6
Date
Post.
Ref.
Debit
Credit
20Y8
May
20
Supplies
14
735
Accounts Payable
21
735
21
Accounts Receivable
12
4,820
Fees Earned
41
4,820
25
Cash
11
7,900
Fees Earned
41
7,900
27
Cash
11
9,520
Accounts Receivable
12
9,520
28
Salary Expense
51
750
Cash
11
750
30
Miscellaneous Expense
59
260
Cash
11
260
31
Miscellaneous Expense
59
810
Cash
11
810
31
Cash
11
3,300
Fees Earned
41
3,300
31
Accounts Receivable
12
2,650
Fees Earned
41
2,650
31
Dividends
33
10,500
Cash
11
10,500
CHAPTER 4 The Accounting Cycle
4–106
Comp. Prob. 1 (Continued)
2., 6., and 9.
Account: Cash Account No. 11
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
1
Balance
✓
22,100
3
5
4,500
26,600
5
5
2,450
29,050
9
5
225
28,825
13
5
640
28,185
16
5
750
27,435
17
5
8,360
35,795
25
6
7,900
43,695
27
6
9,520
53,215
28
6
750
52,465
30
6
260
52,205
31
6
810
51,395
31
6
3,300
54,695
31
6
10,500
44,195
Account: Accounts Receivable Account No. 12
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
1
Balance
✓
3,400
5
5
2,450
950
15
5
9,180
10,130
21
6
4,820
14,950
27
6
9,520
5,430
31
6
2,650
8,080
Account: Supplies Account No. 14
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
1
Balance
✓
1,350
20
6
735
2,085
31
Adjusting
7
1,370
715
CHAPTER 4 The Accounting Cycle
Comp. Prob. 1 (Continued)
Account: Prepaid Rent Account No. 15
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
1
Balance
✓
3,200
31
Adjusting
7
1,600
1,600
Account: Prepaid Insurance Account No. 16
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
1
Balance
✓
1,500
31
Adjusting
7
275
1,225
Account: Office Equipment Account No. 18
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
1
Balance
✓
14,500
Post.
Item
Ref.
Debit
Credit
Debit
20Y8
May
Balance
✓
Adjusting
Ref.
Debit
Credit
Credit
20Y8
May
1
Balance
✓
5
6
Ref.
Debit
Credit
Credit
1
Balance
✓
Adjusting
7
CHAPTER 4 The Accounting Cycle
4–108
Comp. Prob. 1 (Continued)
Account: Unearned Fees Account No. 23
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
1
Balance
✓
2,500
3
5
4,500
7,000
31
Adjusting
7
3,790
3,210
Account: Common Stock Account No. 31
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
1
Balance
✓
30,000
Account: Retained Earnings Account No. 32
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
1
Balance
✓
12,300
31
Closing
8
33,425
45,725
31
Closing
8
10,500
35,225
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
31
6
10,500
10,500
31
Closing
8
10,500
—
—
CHAPTER 4 The Accounting Cycle
4–109
Comp. Prob. 1 (Continued)
Account: Fees Earned Account No. 41
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
15
5
9,180
9,180
17
5
8,360
17,540
21
6
4,820
22,360
25
6
7,900
30,260
31
6
3,300
33,560
31
6
2,650
36,210
31
Adjusting
7
3,790
40,000
31
Closing
8
40,000
—
—
Account: Salary Expense Account No. 51
Date
Item
Post.
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
16
5
630
630
28
6
750
1,380
31
Adjusting
7
325
1,705
31
Closing
8
1,705
—
—
Account: Rent Expense Account No. 52
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
31
Adjusting
7
1,600
1,600
31
Closing
8
1,600
—
—
Account: Supplies Expense Account No. 53
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
31
Adjusting
7
1,370
1,370
31
Closing
8
1,370
—
—
CHAPTER 4 The Accounting Cycle
Comp. Prob. 1 (Continued)
Account: Depreciation Expense Account No. 54
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
31
Adjusting
7
330
330
31
Closing
8
330
—
—
Account: Insurance Expense Account No. 55
Post.
Balance
Date
Item
Ref.
Debit
Credit
Debit
Credit
20Y8
May
31
Adjusting
7
275
275
31
Closing
8
275
—
—
Item
Ref.
Debit
Credit
Balance
Debit
Credit
20Y8
May
5
31
6
1,295
31
Closing
8
CHAPTER 4 The Accounting Cycle
4–111
Comp. Prob. 1 (Continued)
3.
Kelly Consulting
Unadjusted Trial Balance
May 31, 20Y8
Account
Debit
Credit
No.
Balances
Balances
Cash
11
44,195
Accounts Receivable
12
8,080
Supplies
14
2,085
Prepaid Rent
15
3,200
Prepaid Insurance
16
1,500
Office Equipment
18
14,500
Accumulated Depreciation
19
330
Accounts Payable
21
895
Salaries Payable
22
0
Unearned Fees
23
7,000
Common Stock
31
30,000
Retained Earnings
32
12,300
Dividends
33
10,500
Fees Earned
41
36,210
Salary Expense
51
1,380
Rent Expense
52
0
Supplies Expense
53
0
Depreciation Expense
54
0
Insurance Expense
55
0
Miscellaneous Expense
59
1,295
86,735
86,735
CHAPTER 4 The Accounting Cycle
4–112
Comp. Prob. 1 (Continued)
5. Optional (Appendix)
Kelly Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended May 31, 20Y8
Account Title
Unadjusted
Trial Balance
Adjustments
Adjusted
Trial Balance
Income
Statement
Balance
Sheet
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
44,195
44,195
44,195
Accounts Receivable
8,080
8,080
8,080
Supplies
2,085
(b) 1,370
715
715
Prepaid Rent
3,200
(e) 1,600
1,600
1,600
Prepaid Insurance
1,500
(a) 275
1,225
1,225
Office Equipment
14,500
14,500
14,500
Accumulated Depreciation
330
(c) 330
660
660
Accounts Payable
895
895
895
Salaries Payable
(d) 325
325
325
Unearned Fees
7,000
(f) 3,790
3,210
3,210
Common Stock
30,000
30,000
30,000
Retained Earnings
12,300
12,300
12,300
Dividends
10,500
10,500
10,500
Fees Earned
36,210
(f) 3,790
40,000
40,000
Salary Expense
1,380
(d) 325
1,705
1,705
Rent Expense
(e) 1,600
1,600
1,600
Supplies Expense
(b) 1,370
1,370
1,370
Depreciation Expense
(c) 330
330
330
Insurance Expense
(a) 275
275
275
Miscellaneous Expense
1,295
1,295
1,295
86,735
86,735
7,690
7,690
87,390
87,390
6,575
40,000
80,815
47,390
Net income
33,425
33,425
40,000
40,000
80,815
80,815
CHAPTER 4 The Accounting Cycle
4–113
Comp. Prob. 1 (Continued)
6. JOURNAL Page ______ 7
Date
Post.
Ref.
Debit
Credit
20Y8
Adjusting Entries
May
31
Insurance Expense
55
275
Prepaid Insurance
16
275
Insurance expired.
31
Supplies Expense
53
1,370
Supplies
14
1,370
Supplies used ($2,085 – $715).
31
Depreciation Expense
54
330
Accumulated Depreciation
19
330
Equipment depreciation.
31
Salary Expense
51
325
Salaries Payable
22
325
Accrued salaries.
31
Rent Expense
52
1,600
Prepaid Rent
15
1,600
Rent expired.
31
Unearned Fees
23
3,790
Fees Earned
41
3,790
Unearned fees ($7,000 – $3,210).