Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √7,500
31 Adjusting
Equipment 16
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √113,000
Accumulated Depreciation – Equipment
17
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √12,000
31 Adjusting
Trucks 18
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √90,000
Accumulated Depreciation – Trucks 19
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √27,100
31 Adjusting
Accounts Payable 21
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √4,500
Wages Payable 22
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting
Jeanne McQuay, Capital 31
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √126,400
31 Closing
31 Closing
Jeanne McQuay, Drawing 32
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √3,000
31 Closing
2016
2016
2016
2016
Date
2016
Date
2016
Balance
Date
Balance
Date
2016
Balance
Date
Balance
2016
Date
Date
Date
Balance
Date
2016
Balance
Balance
Balance
Balance
Income Summary 33
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Closing
31 Closing
31 Closing
Service Revenue 41
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √155,000
31 Closing
Wages Expense 51
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √72,000
31 Adjusting
31 Closing
Rent Expense 52
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √7,600
31 Closing
Truck Expense 53
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √5,350
31 Closing
Depreciation Expense – Equipment 54
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting
31 Closing
Date
2016
Date
2016
Date
2016
Date
2016
2016
Date
2016
Balance
Balance
Balance
Balance
Balance
Date
Balance
Supplies Epense 55
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting
31 Closing
Depreciation Expense – Trucks
56
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting
31 Closing
Insurance Expense 57
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting
31 Closing
Miscellaneous Expense 59
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √5,450
31 Closing
4.
Accounts Payable
Jeanne McQuay, Capital
Jeanne McQuay, Drawing
Service Revenue
Wages Expense
Rent Expense
Truck Expense
Depreciation Expense – Equipment
Supplies Expense
Depreciation Expense – Trucks
Insurance Expense
Miscellaneous Expense
Balance
Balance
Credit
Balances
Date
2016
2016
Accumulated Depreciation – Trucks
Wages Payable
Supplies
January 31, 2016
Equipment
Prepaid Insurance
Cash
Balance
Balance
Date
2016
2016
Date
Debit
Balances
RECESSIVE INTERIORS
Adjusted Trial Balance
Accumulated Depreciation – Equipment
Date
Trucks
5.
Expenses:
Net income
Current assets: Current liabilities
Total liabilities
Total current assets
Property, plant, and equipment:
Total property, plant, and equipment
Assets
Jeanne McQuay, capital, February 1, 2015
Liabilities
Owner’s Equity
RECESSIVE INTERIORS
Jeanne McQuay, capital, January 31, 2016
For the Year Ended January 31, 2016
January 31, 2016
Balance Sheet
Statement of Owner’s Equity
RECESSIVE INTERIORS
Income Statement
Revenues:
For the Year Ended January 31, 2016
RECESSIVE INTERIORS
Total expenses
Total assets Total liabilities and owner’s equity
6.
Page 27
Post.
Ref. Debit Credit
Jan. 31
31
Miscellaneous Expense
31
31
7.
Accounts Payable
Jeanne McQuay, Capital
Debit
Balances
January 31, 2016
Credit
Balances
RECESSIVE INTERIORS
Wages Payable
Equipment
Accumulated Depreciation – Equipment
Cash
Supplies
Prepaid Insurance
Trucks
Accumulated Depreciation – Trucks
Post-Closing Trial Balance
Date
Closing Entries
2016
Description
JOURNAL
Problem 4-4B
Score:
Instructions
Answers are entered in the cells with gray backgrounds.
In the general ledger accounts, only normal balance columns will be graded.
For correct grading in the trial balances and work sheet, enter a zero in cells you would otherwise leave blank.
1.
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 13,100 – – 13,100 – – – 13,100 –
Supplies 8,000 – (a) 5,150 2,850 – – – 2,850 –
Prepaid Insurance 7,500 – (b) 3,150 4,350 – – – 4,350 –
Jeanne McQuay, Capital 126,400 – – – 126,400 – – – 126,400
Jeanne McQuay, Drawing 3,000 – – 3,000 – – – 3,000
Service Revenue 155,000 – – – 155,000 – 155,000 – –
Wages Expense 72,000 (e) 900 – 72,900 – 72,900 – – –
Rent Expense 7,600 – – 7,600 – 7,600 – – –
Truck Expense 5,350 – – 5,350 – 5,350 – – –
3.
Page 26
Post.
Ref. Debit Credit
Accumulated Depreciation – Trucks
Accumulated Depreciation – Equipment
Wages Expense
Depreciation Expense – Equipment
Wages Payable
Depreciation Expense – Trucks
Jan. 31 55 5,150
13 5,150
31 57 3,150
14 3,150
1., 3., and 6.
Cash
11
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √13,100
Supplies 13
Post.
Item Ref. Dr. Cr. Dr. Cr.
Prepaid Insurance 14
Date
Balance
An asterisk (*) will appear to the right of an incorrect entry.
RECESSIVE INTERIORS
GENERAL LEDGER
Balance
Date
2016
Cells with non-gray backgrounds are protected and cannot be edited.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended January 31, 2016
Adjusted
Income
Balance
Solution
Name:
Section:
ON
Description
Supplies
Supplies Expense
Unadjusted Trial Balance
Adjustments
JOURNAL
Date
2016
Adjusting Entries
Insurance Expense
Prepaid Insurance
Trial Balance
Statement
Sheet
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √7,500
31 Adjusting 26 3,150 4,350
Equipment 16
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √113,000
Accumulated Depreciation – Equipment
17
Post.
Item Ref. Dr. Cr. Dr. Cr.
Trucks 18
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √90,000
Accumulated Depreciation – Trucks 19
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √27,100
31 Adjusting 26 4,000 31,100
Accounts Payable 21
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √4,500
Wages Payable 22
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Jan. 31 Balance √126,400
31 Closing 27 3,000 169,550
Balance
2016
Date
2016
Jeanne McQuay, Drawing 32
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √3,000
31 Closing 27 3,000 – –
Income Summary 33
Post.
Item Ref. Dr. Cr. Dr. Cr.
31 Closing 27 108,850 46,150
31 Closing 27 46,150 – –
2016
Balance
Wages Expense 51
Post.
2016
Balance
Balance
Balance
Date
Balance
Date
2016
Balance
Date
Balance
Date
Date
2016
2016
Date
Date
2016
Balance
Balance
Date
Balance
Date
2016
Balance
Jan. 31 Balance √12,000
31 Adjusting 26 5,250 17,250
2016
Item Ref. Dr. Cr. Dr. Cr.
Truck Expense 53
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Balance √5,350
31 Closing 27 5,350 – –
Depreciation Expense – Equipment 54
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting 26 5,250 5,250
31 Closing 27 5,250 – –
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting 26 5,150 5,150
31 Closing 27 5,150 – –
Date
2016
2016
Balance
Depreciation Expense – Trucks
56
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting 26 4,000 4,000
31 Closing 27 4,000 – –
Insurance Expense 57
Post.
Item Ref. Dr. Cr. Dr. Cr.
Jan. 31 Adjusting 26 3,150 3,150
31 Closing 27 3,150 – –
Post.
Jan. 31 Balance √5,450
31 Closing 27 5,450 – –
2016
Balance
Date
2016
Accumulated Depreciation – Trucks
Trucks
4.
13,100 –
2,850 –
4,350 –
113,000 –
– 17,250
Truck Expense 5,350 –
Depreciation Expense – Equipment 5,250 –
Supplies Expense 5,150 –
Balance
Date
Date
Cash
Date
Date
2016
Balance
RECESSIVE INTERIORS
Date
2016
Prepaid Insurance
Equipment
Accumulated Depreciation – Equipment
Balance
Supplies
Adjusted Trial Balance
January 31, 2016
Debit
Balances
Credit
Balances
Balance
Jan. 31 Balance √72,000
31 Adjusting 26 900 72,900
31 Closing 27 72,900 – –
Post.
Jan. 31 Balance √7,600
31 Closing 27 7,600 – –
2016
2016
Balance
Date
Supplies expense
Depreciation expense – equipment
Depreciation expense – trucks
Insurance expense
Miscellaneous expense
Less withdrawals
Increase in owner’s equity
Equipment
Accumulated depreciation
Trucks
Accumulated depreciation
Jeanne McQuay, capital
Depreciation Expense – Trucks 4,000 –
Insurance Expense 3,150 –
5.
155,000$
72,900$
7,600
5,350
126,400$
46,150$
Current assets: Current liabilities
13,100$ 4,500$
2,850 900
4,350 Total liabilities 5,400$
6.
Page 27
Post.
Insurance Expense
Income Summary
Jeanne McQuay, Capital
Truck Expense
Depreciation Expense – Equipment
Supplies Expense
Depreciation Expense – Trucks
Ref. Debit Credit
Jan. 31 41 155,000
33 155,000
31 33 108,850
51 72,900
52 7,600
7.
Post-Closing Trial Balance
January 31, 2016
Debit
Balances
Credit
Balances
Income Summary
Rent Expense
Wages Expense
Liabilities
Wages payable
Rent expense
Truck expense
Balance Sheet
January 31, 2016
Supplies
Assets
Expenses:
Wages expense
Net income for the year
For the Year Ended January 31, 2016
RECESSIVE INTERIORS
Income Statement
For the Year Ended January 31, 2016
Revenues:
2016
Closing Entries
Prepaid insurance
RECESSIVE INTERIORS
Statement of Owner’s Equity
RECESSIVE INTERIORS
RECESSIVE INTERIORS
Jeanne McQuay, capital, February 1, 2015
Service Revenue
Income Summary
Date
Service revenue
JOURNAL
Description
Accounts payable
Cash
13,100 –
2,850 –
4,350 –
Supplies
Cash
Prepaid Insurance
Accumulated Depreciation – Trucks
Accumulated Depreciation – Equipment
Wages Payable
Problem 4-5A
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.
For correct grading in the trial balances and work sheet, enter a zero in cells you would otherwise leave blank.
1. and 2.
Page 1
Post.
Ref. Debit Credit
July 1
1
2
4
5
6
10
12
12
14
Page 2
Post.
Ref. Debit Credit
July 17
18
20
24
26
27
2016
JOURNAL
Date
JOURNAL
Date
2016
Name:
2
Description
Section:
0%
Cells with non-gray backgrounds are protected and cannot be edited.
Description
29
31
31
31
31
2., 6., and 9.
Cash
11
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
1
2
4
6
10
12
14
17
18
24
26
27
29
31
31
31
Accounts Receivable 12
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
6
12
20
26
31
Supplies 14
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
18
31 Adjusting
Prepaid Rent 15
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
31 Adjusting
Prepaid Insurance 16
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 2
31 Adjusting
Office Equipment 18
Post.
Balance
Balance
Balance
Date
Date
2016
Balance
Balance
Balance
2016
2016
Date
2016
GENERAL LEDGER
Date
Date
2016
Item Ref. Dr. Cr. Dr. Cr.
July 1
5
Accumulated Depreciation 19
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
Accounts Payable 21
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 5
12
Salaries Payable 22
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
Unearned Fees 23
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 4
31 Adjusting
Steffy Lopez, Capital 31
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
31 Closing
31 Closing
Steffy Lopez, Drawing 32
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31
31 Closing
Date
2016
2016
Date
2016
Date
2016
Date
Balance
Balance
Balance
Date
2016
Balance
Date
2016
Balance
Balance
Date
2016
Income Summary 33
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Closing
31 Closing
31 Closing
Fees Earned 41
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 12
17
20
24
30
30
31 Adjusting
31 Closing
Salary Expense 51
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 14
27
31 Adjusting
31 Closing
Rent Expense 52
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Supplies Expense 53
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Balance
Balance
Balance
Date
2016
2016
Date
Date
2016
Date
2016
2016
Date
Balance
Balance
Depreciation Expense 54
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Insurance Expense 55
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Miscellaneous Expense 59
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 10
29
31
31 Closing
3.
Accounts Receivable
Unearned Fees
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
Balance
Accounts Payable
Balance
Supplies
Prepaid Rent
Steffy Lopez, Drawing
Prepaid Insurance
Office Equipment
Accumulated Depreciation
2016
2016
Date
Date
Salaries Payable
Date
Steffy Lopez, Capital
DIAMOND CONSULTING
2016
Balance
Unadjusted Trial Balance
July 31, 2016
Cash
Debit
Balances
Credit
Balances
5.
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
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
Steffy Lopez, Capital 45,000
Steffy Lopez, Drawing 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
31
31
31
31
7.
Accounts Receivable
Unearned Fees
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
2016
Adjusting Entries
Credit
Balances
Prepaid Insurance
Supplies
Prepaid Rent
Cash
DIAMOND CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 2016
DIAMOND CONSULTING
Adjusted Trial Balance
Date
Balance
Sheet
Trial Balance
Unadjusted Trial Balance
Statement
Adjusted
Income
Salaries Payable
Steffy Lopez, Capital
Steffy Lopez, Drawing
Accumulated Depreciation
Accounts Payable
July 31, 2016
Office Equipment
Debit
Balances
Adjustments
JOURNAL
Description
8.
Net income
Total
Current assets: Current liabilities
Total liabilities
Total current assets
Property, plant, and equipment:
Total property, plant, and equipment
Total assets Total liabilities and owner’s equity
July 31, 2016
Unearned fees
Owner’s Equity
For the Month Ended July 31, 2016
DIAMOND CONSULTING
Liabilities
Increase in owner’s equity
Assets
DIAMOND CONSULTING
Income Statement
Net income for the month
Steffy Lopez, capital, July 31, 2016
Balance Sheet
Statement of Owner’s Equity
Steffy Lopez, capital, July 1, 2016
Total revenues
Revenues:
DIAMOND CONSULTING
For the Month Ended July 31, 2016
Total expenses
Expenses:
9.
Page 4
Post.
Ref. Debit Credit
July 31
31
Miscellaneous Expense
31
31
10.
Accounts Receivable
Unearned Fees
JOURNAL
Description
Date
Closing Entries
Debit
Balances
Credit
Balances
Salaries Payable
DIAMOND CONSULTING
Post-Closing Trial Balance
July 31, 2016
Steffy Lopez, Capital
Office Equipment
Accumulated Depreciation
Cash
Supplies
Prepaid Rent
Accounts Payable
Prepaid Insurance
2016
Problem 4-5A
Solution
Scoring:
Key Code:
Instructions
Answers are entered in the cells with gray backgrounds.
In the general ledger accounts, only normal balance columns will be graded.
For correct grading in the trial balances and work sheet, enter a zero in cells you would otherwise leave blank.
1. and 2.
Page 1
Post.
Ref. Debit Credit
Accounts Receivable
Fees Earned
Salary Expense
Cash
July 1 11 13,500
12 20,800
14 3,200
611 15,300
12 15,300
10 59 400
11 400
12 21 5,200
11 5,200
Page 2
Post.
Ref. Debit Credit
Fees Earned
Accounts Receivable
July 17 11 9,450
41 9,450
18 14 600
11 600
Cash
Fees Earned
Cash
Supplies
Accounts Receivable
Miscellaneous Expense
Cash
Accounts Payable
Cash
JOURNAL
Date
2016
Description
Accounts Receivable
Supplies
Cash
An asterisk (*) will appear to the right of an incorrect entry.
Description
Cash
Name:
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.
JOURNAL
Date
2016
Steffy Lopez, Capital
Office Equipment
Accounts Payable
Cash
Cash
Unearned Fees
Office Equipment
Cash
29 59 325
11 325
31 59 675
11 675
2., 6., and 9.
Cash
11
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 13,500 13,500
1 1 4,800 8,700
2 1 4,500 4,200
4 1 5,500 9,700
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. Dr. Cr. Dr. Cr.
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. Dr. Cr. Dr. Cr.
July 1 1 3,200 3,200
18 2600 3,800
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 4,800 4,800
Date
2016
Balance
Prepaid Insurance 16
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 2 1 4,500 4,500
GENERAL LEDGER
Date
2016
2016
Date
2016
Balance
Balance
Date
Date
2016
Cash
Miscellaneous Expense
Cash
Miscellaneous Expense
Balance
Balance
Accounts Receivable
Steffy Lopez, Drawing
Cash