CHAPTER 4 Completing the Accounting Cycle
Appendix Ex. 4–26 (Concluded)
Current assets: Current liabilities:
Cash $ 12 Accounts payable $ 36
ALERT SECURITY SERVICES CO.
Balance Sheet
October 31, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Appendix Ex. 4–27
2014
Oct. 31 Accounts Receivable 13
Fees Earned 13
Accrued fees.
Appendix Ex. 4–28
2014
Oct. 31 Fees Earned 213
Income Summary 213
Adjusting Entries
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1A
1.
Fees earned $368,100
Rent revenue 1,000
Total revenues $369,100
Expenses:
2.
Retained earnings, August 1, 2013 $128,100
PROBLEMS
WATCHDOG COMPANY
Retained Earnings Statement
For the Year Ended July 31, 2014
WATCHDOG COMPANY
Income Statement
For the Year Ended July 31, 2014
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1A (Continued)
3.
Current assets: Current liabilities:
Cash $ 10,800 Accounts payable $ 15,700
Accounts receivable 43,300 Salaries and wages payable 1,800
WATCHDOG COMPANY
Balance Sheet
July 31, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1A (Concluded)
4. 2014
July 31 Fees Earned 368,100
Rent Revenue 1,000
Income Summary 369,100
5.
Debit Credit
Balances Balances
Cash 10,800
Accounts Receivable 43,300
WATCHDOG COMPANY
Post-Closing Trial Balance
July 31, 2014
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2A
1.
Revenues:
Service fees $480,000
Rent revenue 25,000
Retained earnings, May 1, 2013 $144,300
IRONSIDE SECURITY SERVICES
Retained Earnings Statement
For the Year Ended April 30, 2014
IRONSIDE SECURITY SERVICES
Income Statement
For the Year Ended April 30, 2014
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2A (Continued)
Current assets: Current liabilities:
Cash $18,000 Accounts payable $ 6,000
Accounts receivable 37,200 Salaries payable 1,500
IRONSIDE SECURITY SERVICES
Balance Sheet
April 30, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2A (Concluded)
2. 2014
Apr. 30 Service Fees 480,000
Rent Revenue 25,000
Income Summary 505,000
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A
1., 3., and 6.
June 30 Bal. 11,000
June 30 Bal. 21,500 June 30 Adj. 17,900
Cash
Laundry Supplies
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
June 30 Clos. 221,500 June 30 Clos. 232,200
Clos. 10,700
June 30 Clos. 232,200 June 30 Bal. 232,200
Income Summary
Laundry Revenue
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 11,000 11,000 11,000
Laundry Supplies 21,500 (a) 17,900 3,600 3,600
Income
StatementAdjustments
EPICENTER LAUNDRY
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended June 30, 2014
BalanceUnadjusted Adjusted
SheetTrial Balance
Debit Credit
Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
3.
2014
June 30 Laundry Supplies Expense 17,900
Laundry Supplies 17,900
4.
Debit Credit
Balances Balances
Cash 11,000
Laundry Supplies 3,600
Prepaid Insurance 3,900
EPICENTER LAUNDRY
Adjusted Trial Balance
June 30, 2014
Adjusting Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
5.
Laundry revenue $232,200
Expenses:
Wages expense $126,300
Retained earnings, July 1, 2013 $65,600
Net income for the year $10,700
Retained Earnings Statement
For the Year Ended June 30, 2014
EPICENTER LAUNDRY
Income Statement
For the Year Ended June 30, 2014
EPICENTER LAUNDRY
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
Current assets: Current liabilities:
Cash $ 11,000 Accounts payable $11,800
EPICENTER LAUNDRY
Balance Sheet
June 30, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Concluded)
6.
2014
June 30 Laundry Revenue 232,200
Income Summary 232,200
7.
Debit Credit
Balances Balances
Cash 11,000
EPICENTER LAUNDRY
Post-Closing Trial Balance
June 30, 2014
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A
1., 3., and 6.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
Account No. 13
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
Account No. 17
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
Cash
Account:
Account: Supplies
Balance
Date
Date
Balance
Balance
Date
Account: Prepaid Insurance
Account: Accumulated Depreciation—Equipment
Balance
Date
Account: Equipment
Balance
Date
Account: Trucks
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
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
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
2014
Balance
Date
Accumulated Depreciation—Trucks
Account:
Account: Accounts Payable
Balance
Date
Date
Balance
Balance
Date
Account: Wages Payable
Account: Capital Stock
Balance
Date
Account: Retained Earnings
Balance
Date
Account: Dividends
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
Account No. 34
Post.
Item Ref. Debit Credit Debit Credit
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 53
Post.
Item Ref. Debit Credit Debit Credit
Account: Supplies Expense
Balance
Date
Account: Rent Expense
Balance
Date
Account: Service Revenue
Balance
Date
Account: Wages Expense
Balance
Date
Date
Balance
Income Summary
Account:
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (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. 56
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 57
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 59
Post.
Item Ref. Debit Credit Debit Credit
2014
Balance
Date
Account: Miscellaneous Expense
Balance
Date
Truck Expense
Account:
Account: Depreciation Expense—Trucks
Account: Depreciation Expense—Equipment
Date
Account: Insurance Expense
Date
Balance
Balance
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Capital Stock 26,000 26,000 26,000
Retained Earnings 70,000 70,000 70,000
Dividends 15,000 15,000 15,000
Service Revenue 160,000 160,000 160,000
Income
StatementAdjustments
LAKOTA FREIGHT CO.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended March 31, 2014
BalanceUnadjusted Adjusted
SheetTrial Balance
Debit Credit
Trial Balance