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CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
Current assets: Current liabilities:
Cash $13,100 Accounts payable $ 4,500
RECESSIVE INTERIORS
Balance Sheet
January 31, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Concluded)
6. Page 27
Post.
Ref. Debit Credit
2014
Jan. 31 Service Revenue 41 155,000
Income Summary 34 155,000
31 Income Summary 34 108,850
7.
Debit Credit
Balances Balances
Cash 13,100
Supplies 2,850
JOURNAL
January 31, 2014
Closing Entries
Date
RECESSIVE INTERIORS
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B
1. and 2.
Page 1
Post.
Ref. Debit Credit
2014
Apr. 1 Cash 11 20,000
Accounts Receivable 12 14,700
Supplies 14 3,300
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Page 2
Post.
Ref. Debit Credit
2014
Apr. 17 Cash 11 6,600
Fees Earned 41 6,600
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
2., 6., and 9.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
2014
Apr. 1 1 20,000 20,000
14 1 1,650 22,500
17 2 6,600 29,100
18 2 725 28,375
24 2 4,450 32,825
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
2014
Date
Balance
Cash
Account:
Balance
Date
Account: Accounts Receivable
Balance
Date
Account: Supplies
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
2014
Apr. 1 1 6,000 6,000
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
2014
Apr. 1 1 12,000 12,000
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
Prepaid Rent
Account:
Balance
Date
Date
Balance
Account: Office Equipment
Account: Accounts Payable
Balance
Date
Account: Accumulated Depreciation
Balance
Date
Account: Salaries Payable
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 34
Post.
Item Ref. Debit Credit Debit Credit
2014
Account: Dividends
Balance
Date
Account: Income Summary
Balance
Date
Balance
Date
Date
Balance
Account: Capital Stock
Balance
Date
Unearned Fees
Account:
Account: Retained Earnings
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2014
Apr. 12 1 21,900 21,900
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2014
Apr. 14 1 1,650 1,650
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 53
Post.
Item Ref. Debit Credit Debit Credit
2014
Account: Supplies Expense
Balance
Date
Account: Rent Expense
Balance
Date
Account: Fees Earned
Balance
Date
Date
Balance
Salary Expense
Account:
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 55
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 59
Post.
Item Ref. Debit Credit Debit Credit
2014
Apr. 10 1 350 350
Account: Insurance Expense
Balance
Date
Account: Depreciation Expense
Balance
Date
Account: Miscellaneous Expense
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
3.
Debit Credit
Balances Balances
Cash 43,535
Accounts Receivable 17,790
Supplies 4,025
Unadjusted Trial Balance
April 30, 2014
ROSEBUD CONSULTING
5. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 43,535 43,535 43,535
Accounts Receivable 17,790 17,790 17,790
Income
StatementAdjustments
ROSEBUD CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended April 30, 2014
BalanceUnadjusted Adjusted
SheetTrial Balance
Debit Credit
Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
6. Page 3
Post.
Ref. Debit Credit
2014
Apr. 30 Insurance Expense 55 350
Prepaid Insurance 16 350
Insurance expired.
30 Supplies Expense 52 2,800
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
7.
Debit Credit
Balances Balances
Cash 43,535
Accounts Receivable 17,790
Supplies 1,225
Adjusted Trial Balance
April 30, 2014
ROSEBUD CONSULTING
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
8.
Fees earned $64,550
Expenses:
Salary expense $3,575
Retained earnings, April 1, 2014 $ 0
Net income for month $53,775
ROSEBUD CONSULTING
Income Statement
For the Month Ended April 30, 2014
ROSEBUD CONSULTING
Retained Earnings Statement
For the Month Ended April 30, 2014
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Current assets: Current liabilities:
Cash $43,535 Accounts payable $ 1,600
ROSEBUD CONSULTING
Balance Sheet
April 30, 2014
Assets Liabilities
9. Page 4
Post.
Ref. Debit Credit
2014
Apr. 30 Fees Earned 41 64,550
Income Summary 34 64,550
10.
Debit Credit
Balances Balances
Cash 43,535
Accounts Receivable 17,790
JOURNAL
April 30, 2014
Closing Entries
Date
ROSEBUD CONSULTING
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
1. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 9,945 9,945 9,945
Dividends 1,750 1,750 1,750
Fees Earned 16,200 (a) 1,400 21,200 21,200
(e) 3,600
CONTINUING PROBLEM
SheetTrial Balance
Debit Credit
Trial Balance
Income
Statement
PS MUSIC
End-of-Period Spreadsheet (Work Sheet)
Adjustments
For the Two Months Ended July 31, 2014
BalanceUnadjusted Adjusted
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
2.
Fees earned $21,200
Expenses:
Music expense $3,610
Wages expense 2,940
Retained earnings, June 1, 2014 $ 0
Net income for the period $4,955
PS MUSIC
Retained Earnings Statement
For the Two Months Ended July 31, 2014
PS MUSIC
Income Statement
For the Two Months Ended July 31, 2014
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
Current assets: Current liabilities:
Cash $9,945 Accounts payable $8,350
PS MUSIC
Balance Sheet
July 31, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
3. Page 4
Post.
Ref. Debit Credit
2014
July 31 Fees Earned 41 21,200
Income Summary 34 21,200
Closing Entries
Date
JOURNAL
