CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1B (Continued)
3.
Current assets: Current liabilities:
Cash $ 5,100 Accounts payable $ 9,750
LAST CHANCE COMPANY
Balance Sheet
June 30, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1B (Concluded)
4. 2014
June 30 Fees Earned 283,750
Rent Revenue 3,000
Income Summary 286,750
5.
Debit Credit
Balances Balances
Cash 5,100
Accounts Receivable 26,500
LAST CHANCE COMPANY
Post-Closing Trial Balance
June 30, 2014
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2B
1.
Revenues:
Service fees $468,000
Rent revenue 5,000
Total revenues $473,000
Expenses:
Retained earnings, November 1, 2013 $195,000
Net income for the year $113,000
THE GORMAN GROUP
Retained Earnings Statement
For the Year Ended October 31, 2014
THE GORMAN GROUP
Income Statement
For the Year Ended October 31, 2014
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2B (Continued)
Current assets: Current liabilities:
Cash $ 11,000 Accounts payable $ 33,300
Accounts receivable 28,150 Salaries payable 3,300
THE GORMAN GROUP
Balance Sheet
October 31, 2014
Assets Liabilities
2. 2014
Oct. 31 Service Fees 468,000
Rent Revenue 5,000
Income Summary 473,000
31 Income Summary 360,000
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B
1., 3., and 6.
Aug. 31 Bal. 3,800
Aug. 31 Bal. 9,000 Aug. 31 Adj. 7,000
Cash
Laundry Supplies
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
Aug. 31 Clos. 220,650 Aug. 31 Clos. 248,000
Clos. 27,350
Income Summary
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 3,800 3,800 3,800
Laundry Supplies 9,000 (c) 7,000 2,000 2,000
Prepaid Insurance 6,000 (d) 5,300 700 700
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
LA MESA LAUNDRY
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended August 31, 2014
BalanceUnadjusted Adjusted Income
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
3.
2014
Aug. 31 Wages Expense 2,200
Wages Payable 2,200
4.
Debit Credit
Balances Balances
Cash 3,800
Laundry Supplies 2,000
Prepaid Insurance 700
LA MESA LAUNDRY
Adjusted Trial Balance
August 31, 2014
Adjusting Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
5.
Laundry revenue $248,000
Expenses:
Wages expense $138,000
Retained earnings, September 1, 2013 $ 80,000
Retained Earnings Statement
For the Year Ended August 31, 2014
LA MESA LAUNDRY
Income Statement
For the Year Ended August 31, 2014
LA MESA LAUNDRY
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
Current assets: Current liabilities:
Cash $ 3,800 Accounts payable $ 7,800
LA MESA LAUNDRY
Balance Sheet
August 31, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Concluded)
6.
2014
Aug. 31 Laundry Revenue 248,000
Income Summary 248,000
7.
Debit Credit
Balances Balances
Cash 3,800
Laundry Supplies 2,000
LA MESA LAUNDRY
Post-Closing Trial Balance
August 31, 2014
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B
1., 3., and 6.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
2014
2014
Jan. 31 Balance 97,500
31 Adjusting 26 3,150 4,350
Account No. 16
Post.
Account: Equipment
Balance
Date
Balance
Cash
Account:
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
Account No. 19
Post.
Post.
Item Ref. Debit Credit Debit Credit
2014
Jan. 31 Adjusting 26 900 900
Account No. 31
31 Closing 27 3,000 139,550
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
2014
Account: Capital Stock
Account: Dividends
Balance
Date
Balance
Date
Balance
Accumulated Depreciation—Trucks
Account:
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
Account No. 34
Post.
Item Ref. Debit Credit Debit Credit
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2014
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
Income Summary
Account:
Account: Service Revenue
Balance
Date
Date
Balance
Balance
Date
Account: Wages Expense
Balance
Date
Account: Rent Expense
Balance
Date
Account: Truck Expense
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (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
Account: Supplies Expense
Balance
Date
Balance
Date
Account: Depreciation Expense—Trucks
Balance
Date
Account: Insurance Expense
Balance
Date
Account: Miscellaneous Expense
Account: Depreciation Expense—Equipment
Balance
Date
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 13,100 13,100 13,100
Capital Stock 30,000 30,000 30,000
Retained Earnings 96,400 96,400 96,400
Dividends 3,000 3,000 3,000
Service Revenue 155,000 155,000 155,000
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
RECESSIVE INTERIORS
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended January 31, 2014
BalanceUnadjusted Adjusted Income
3. Page 26
Post.
Ref. Debit Credit
2014
Jan. 31 Supplies Expense 55 5,150
Supplies 13 5,150
Supplies used ($8,000 – $2,850).
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
4.
Debit Credit
Balances Balances
Cash 13,100
Supplies 2,850
Prepaid Insurance 4,350
Dividends 3,000
Service Revenue 155,000
Wages Expense 72,900
Adjusted Trial Balance
January 31, 2014
RECESSIVE INTERIORS
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
5.
Service revenue $155,000
Expenses:
Wages expense $72,900
Rent expense 7,600
Retained earnings, February 1, 2013 $ 96,400
RECESSIVE INTERIORS
Retained Earnings Statement
For the Year Ended January 31, 2014
RECESSIVE INTERIORS
Income Statement
For the Year Ended January 31, 2014