CHAPTER 4 Completing the Accounting Cycle
Prob. 4-4B (Concluded)
6. Page 27
Post.
Ref. Debit Credit
20Y7
Jan. 31 Service Revenue 41 155,000
Wages Expense 51 72,900
Rent Expense 52 7,600
Truck Expense 53 5,350
Depreciation Expense—Equipment 54 5,250
Supplies Expense 55 5,150
7.
Account Debit Credit
No. Balances Balances
Cash 11 13,100
Supplies 13 2,850
Prepaid Insurance 14 4,350
Equipment 16 113,000
Accumulated Depreciation—Equipment 17 17,250
JOURNAL
January 31, 20Y7
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
20Y9
Apr. 1 Cash 11 20,000
Accounts Receivable 12 14,700
Supplies 14 3,300
Office Equipment 18 12,000
Jeff Horton, Capital 31 50,000
4 Cash 11 9,400
Unearned Fees 23 9,400
5 Office Equipment 18 8,000
Accounts Payable 21 8,000
6 Cash 11 11,700
Accounts Receivable 12 11,700
10 Miscellaneous Expense 59 350
Cash 11 350
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
Page 2
Post.
Ref. Debit Credit
20Y9
Apr. 17 Cash 11 6,600
Fees Earned 41 6,600
18 Supplies 14 725
Cash 11 725
26 Cash 11 26,500
Accounts Receivable 12 26,500
27 Salary Expense 51 1,650
Cash 11 1,650
29 Miscellaneous Expense 59 540
Cash 11 540
30 Miscellaneous Expense 59 760
Cash 11 760
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
20Y9
Apr. 1 1 20,000 20,000
1 1 6,000 14,000
10 1 350 30,550
12 1 6,400 24,150
14 1 1,650 22,500
17 2 6,600 29,100
18 2 725 28,375
24 2 4,450 32,825
26 2 26,500 59,325
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 1 1 14,700 14,700
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
20Y9
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
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 2 1 4,200 4,200
30 Adjusting 3 350 3,850
Account No. 18
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 30 Adjusting 3 400 400
Account No. 21
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 30 Adjusting 3 275 275
Balance
Date
Account: Office Equipment
Account: Accounts Payable
Account: Accumulated Depreciation
Balance
Date
Account: Salaries Payable
Prepaid Rent
Account:
Account: Prepaid Insurance
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
Account No. 23
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 1 1 50,000 50,000
30 Closing 4 53,775 103,775
30 Closing 4 18,000 85,775
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 12 1 21,900 21,900
17 2 6,600 28,500
20 2 16,800 45,300
24 2 4,450 49,750
30 2 5,160 54,910
30 2 2,590 57,500
30 Adjusting 3 7,050 64,550
30 Closing 4 64,550 — —
Account: Fees Earned
Balance
Date
Unearned Fees
Account:
Account: Jeff Horton, Capital
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
Account No. 51
Post.
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 30 Adjusting 3 2,800 2,800
30 Closing 4 2,800 — —
Account No. 53
Post.
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Apr. 30 Adjusting 3 400 400
30 Closing 4 400 — —
Account No. 55
Post.
Balance
Account: Depreciation Expense
Balance
Date
Balance
Salary Expense
Account:
Account: Insurance Expense
Balance
Account: Supplies Expense
Balance
Date
Account: Rent Expense
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
Account No. 59
Post.
3.
Account Debit Credit
No. Balances Balances
Cash 11 43,535
Accounts Receivable 12 17,790
Supplies 14 4,025
Prepaid Rent 15 6,000
Prepaid Insurance 16 4,200
Office Equipment 18 20,000
Accumulated Depreciation 19 0
Accounts Payable 21 1,600
Salaries Payable 22 0
Unearned Fees 23 9,400
Unadjusted Trial Balance
April 30, 20Y9
Balance
Account: Miscellaneous Expense
Rosebud Consulting
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
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
Unearned Fees 9,400 (f) 7,050 2,350 2,350
Jeff Horton, Capital 50,000 50,000 50,000
Jeff Horton, Drawing 18,000 18,000 18,000
Fees Earned 57,500 (f) 7,050 64,550 64,550
Salary Expense 3,300 (d) 275 3,575 3,575
Supplies Expense (b) 2,800 2,800 2,800
Debit Credit
Trial Balance
Income
StatementAdjustments SheetTrial Balance
Rosebud Consulting
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended April 30, 20Y9
BalanceUnadjusted Adjusted
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
6. Page 3
Post.
Ref. Debit Credit
20Y9
Apr. 30 Insurance Expense 55 350
Prepaid Insurance 16 350
Insurance expired.
30 Salary Expense 51 275
Salaries Payable 22 275
Accrued salaries.
30 Rent Expense 53 2,000
Prepaid Rent 15 2,000
Rent expired.
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
7.
Account Debit Credit
No. Balances Balances
Cash 11 43,535
Accounts Receivable 12 17,790
Supplies 14 1,225
Prepaid Rent 15 4,000
Prepaid Insurance 16 3,850
Office Equipment 18 20,000
Accumulated Depreciation 19 400
Accounts Payable 21 1,600
Salaries Payable 22 275
Adjusted Trial Balance
April 30, 20Y9
Rosebud Consulting
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
8.
Fees earned $64,550
Expenses:
Salary expense $3,575
Supplies expense 2,800
Jeff Horton, capital, April 1, 20Y9 $ 0
Investment during month $ 50,000
Net income 53,775
Rosebud Consulting
Statement of Owner’s Equity
For the Month Ended April 30, 20Y9
Rosebud Consulting
Income Statement
For the Month Ended April 30, 20Y9
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Continued)
Current assets:
Cash $43,535
Accounts receivable 17,790
Property, plant, and equipment:
Office equipment $20,000
Less accumulated depreciation 400
Total property, plant, and equipment 19,600
Total assets $90,000
Current liabilities:
Accounts payable $ 1,600
Salaries payable 275
Unearned fees 2,350
Total liabilities $ 4,225
Assets
Liabilities
Rosebud Consulting
Balance Sheet
April 30, 20Y9
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5B (Concluded)
9. Page 4
Post.
Ref. Debit Credit
20Y9
Apr. 30 Fees Earned 41 64,550
Salary Expense 51 3,575
Supplies Expense 52 2,800
10.
Account Debit Credit
No. Balances Balances
Cash 11 43,535
Accounts Receivable 12 17,790
Supplies 14 1,225
Prepaid Rent 15 4,000
Prepaid Insurance 16 3,850
JOURNAL
April 30, 20Y9
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
Accounts Receivable 2,750 (a) 1,400 4,150 4,150
Supplies 1,020 (b) 745 275 275
Unearned Revenue 7,200 (e) 3,600 3,600 3,600
Peyton Smith, Capital 9,000 9,000 9,000
Peyton Smith, Drawing 1,750 1,750 1,750
Fees Earned 16,200 (a) 1,400 21,200 21,200
(e) 3,600
Music Expense 3,610 3,610 3,610
Wages Expense 2,800 (f) 140 2,940 2,940
Office Rent Expense 2,550 2,550 2,550
Net income 4,955 4,955
21,200 21,200 26,095 26,095
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, 20Y9
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
Office rent expense 2,550
Advertising expense 1,500
Equipment rent expense 1,375
Utilities expense 1,215
Peyton Smith, capital, June 1, 20Y9 $ 0
Investments during the two months $ 9,000
PS Music
Statement of Owner’s Equity
For the Two Months Ended July 31, 20Y9
PS Music
Income Statement
For the Two Months Ended July 31, 20Y9
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
Current assets:
Cash $9,945
Accounts receivable 4,150
Supplies 275
Prepaid insurance 2,475
Total assets $24,295
Current liabilities:
Accounts payable $8,350
Wages payable 140
Unearned revenue 3,600
Total liabilities $12,090
Liabilities
Owner’s Equity
PS Music
Balance Sheet
July 31, 20Y9
Assets
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
3. Page 4
Post.
Ref. Debit Credit
20Y9
July 31 Fees Earned 41 21,200
Wages Expense 50 2,940
Office Rent Expense 51 2,550
Equipment Rent Expense 52 1,375
Utilities Expense 53 1,215
Music Expense 54 3,610
Closing Entries
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 Balance 3,920
1 1 5,000 8,920
1 1 1,750 7,170
11 1 1,000 12,320
13 1 700 11,620
14 1 1,200 10,420
16 2 2,000 12,420
21 2 620 11,800
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 Balance 1,000
2 1 1,000 — —
Date
Date
Balance
Cash
Account:
Account: Accounts Receivable
Balance
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
Account No. 14
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 1 2,700 2,700
31 Adjusting 3 225 2,475
Account No. 17
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 31 Adjusting 3 50 50
Account No. 21
Balance
Date
Account: Accumulated Depreciation
Balance
Date
Account: Accounts Payable
Account: Office Equipment
Account: Supplies
Account: Prepaid Insurance