CHAPTER 4 Completing the Accounting Cycle
Prob. 4-4A (Continued)
3. Page 26
Post.
Ref. Debit Credit
20Y7
Mar. 31 Supplies Expense 52 22,500
Supplies 13 22,500
Supplies used ($30,000 – $7,500).
31 Depreciation Expense—Trucks 56 6,200
Accumulated Depr.—Trucks 19 6,200
Truck depreciation.
31 Wages Expense 51 600
Wages Payable 22 600
Accrued wages.
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-4A (Continued)
4.
Account Debit Credit
No. Balances Balances
Cash 11 12,000
Supplies 13 7,500
Accumulated Depreciation—Trucks 19 21,200
Accounts Payable 21 4,000
Wages Payable 22 600
Kaya Tarango, Capital 31 96,000
Kaya Tarango, Drawing 32 15,000
Service Revenue 41 160,000
Wages Expense 51 45,600
Supplies Expense 52 22,500
315,150 315,150
Adjusted Trial Balance
March 31, 20Y7
Lakota Freight Co.
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-4A (Continued)
5.
Service revenue $160,000
Expenses:
Wages expense $45,600
Supplies expense 22,500
Rent expense 10,600
Kaya Tarango, capital, April 1, 20Y6 $ 96,000
Net income for the year $ 51,150
Withdrawals (15,000)
Lakota Freight Co.
Statement of Owner’s Equity
For the Year Ended March 31, 20Y7
Lakota Freight Co.
Income Statement
For the Year Ended March 31, 20Y7
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-4A (Continued)
Current assets:
Cash $12,000
Supplies 7,500
Less accumulated depreciation 33,350 $76,650
Trucks $ 60,000
Less accumulated depreciation 21,200 38,800
Total property, plant, and equipment 115,450
Total assets $136,750
Current liabilities:
Accounts payable $ 4,000
Liabilities
Lakota Freight Co.
Balance Sheet
March 31, 20Y7
Assets
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-4A (Concluded)
6. Page 27
Post.
Ref. Debit Credit
20Y7
Mar. 31 Service Revenue 41 160,000
Wages Expense 51 45,600
Supplies Expense 52 22,500
Rent Expense 53 10,600
Truck Expense 54 9,000
Depreciation Expense—Equipment 55 8,350
7.
Account Debit Credit
No. Balances Balances
Cash 11 12,000
Supplies 13 7,500
Prepaid Insurance 14 1,800
Equipment 16 110,000
JOURNAL
March 31, 20Y7
Closing Entries
Date
Lakota Freight Co.
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A
1. and 2.
Page 1
Post.
Ref. Debit Credit
20Y9
July 1 Cash 11 25,700
Accounts Receivable 12 30,200
Supplies 14 5,100
Office Equipment 18 12,100
Samantha Hogan, Capital 31 73,100
3 Cash 11 10,800
Unearned Fees 23 10,800
5 Office Equipment 18 6,900
Accounts Payable 21 6,900
6 Cash 11 17,300
Accounts Receivable 12 17,300
10 Miscellaneous Expense 59 680
Cash 11 680
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
Page 2
Post.
Ref. Debit Credit
20Y9
July 17 Cash 11 14,100
Fees Earned 41 14,100
26 Cash 11 16,300
Accounts Receivable 12 16,300
27 Salary Expense 51 2,000
Cash 11 2,000
29 Miscellaneous Expense 59 440
Cash 11 440
31 Miscellaneous Expense 59 910
Cash 11 910
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
2., 6., and 9.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 1 25,700 25,700
1 1 8,100 17,600
2 1 6,100 11,500
3 1 10,800 22,300
18 2 1,400 45,520
24 2 11,500 57,020
26 2 16,300 73,320
27 2 2,000 71,320
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 1 30,200 30,200
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 1 5,100 5,100
Date
Date
Balance
Balance
Date
Account: Supplies
Cash
Account:
Account: Accounts Receivable
Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 1 8,100 8,100
31 Adjusting 3 2,700 5,400
Account No. 16
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 1 12,100 12,100
5 1 6,900 19,000
Account No. 19
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 5 1 6,900 6,900
12 1 4,100 2,800
Account No. 22
Date
Balance
Prepaid Rent
Account:
Account: Prepaid Insurance
Account: Office Equipment
Balance
Date
Account: Accumulated Depreciation
Account: Accounts Payable
Balance
Date
Account: Salaries Payable
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
Account No. 23
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 1 1 73,100 73,100
31 Closing 4 68,130 141,230
31 Closing 4 27,100 114,130
Account No. 32
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 12 1 19,200 19,200
17 2 14,100 33,300
20 2 12,200 45,500
Account: Fees Earned
Balance
Date
Balance
Date
Unearned Fees
Account:
Account: Samantha Hogan, Capital
Account: Samantha Hogan, Drawing
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
20Y9
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 31 Adjusting 3 2,700 2,700
31 Closing 4 2,700 — —
Account No. 53
Post.
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
20Y9
July 31 Adjusting 3 540 540
31 Closing 4 540 — —
Account No. 55
Account: Depreciation Expense
Balance
Date
Account: Insurance Expense
Account: Rent Expense
Balance
Date
Account: Supplies Expense
Date
Balance
Salary Expense
Account:
Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
Account No. 59
Post.
Item Ref. Debit Credit Debit Credit
20Y9
3.
Account Debit Credit
No. Balances Balances
Cash 11 52,470
Accounts Receivable 12 35,400
Supplies 14 6,500
Prepaid Rent 15 8,100
Prepaid Insurance 16 6,100
Office Equipment 18 19,000
Accumulated Depreciation 19 0
Accounts Payable 21 2,800
Salaries Payable 22 0
Arborvite Consulting
Unadjusted Trial Balance
July 31, 20Y9
Date
Account: Miscellaneous Expense
Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
6. Page 3
Post.
Ref. Debit Credit
20Y9
July 31 Insurance Expense 55 510
Prepaid Insurance 16 510
Insurance expired.
Equipment depreciation.
31 Salary Expense 51 190
Salaries Payable 22 190
Accrued salaries.
31 Rent Expense 52 2,700
Prepaid Rent 15 2,700
Rent expired.
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
7.
Account Debit Credit
No. Balances Balances
Cash 11 52,470
Accounts Receivable 12 35,400
Accounts Payable 21 2,800
Salaries Payable 22 190
Unearned Fees 23 4,100
Samantha Hogan, Capital 31 73,100
Samantha Hogan, Drawing 32 27,100
Fees Earned 41 80,700
Salary Expense 51 4,190
Adjusted Trial Balance
July 31, 20Y9
Arborvite Consulting
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
8.
Fees earned $80,700
Expenses:
Salary expense $4,190
Rent expense 2,700
Supplies expense 2,600
Depreciation expense 540
Samantha Hogan, capital, July 1, 20Y9 $ 0
Investments during month $ 73,100
Net income 68,130
Withdrawals (27,100)
Arborvite Consulting
Statement of Owner’s Equity
For the Month Ended July 31, 20Y9
Arborvite Consulting
Income Statement
For the Month Ended July 31, 20Y9
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Continued)
Current assets:
Cash $52,470
Accounts receivable 35,400
Supplies 3,900
Prepaid rent 5,400
Total assets $121,220
Current liabilities:
Accounts payable $ 2,800
Salaries payable 190
Assets
Liabilities
Arborvite Consulting
Balance Sheet
July 31, 20Y9
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-5A (Concluded)
9. Page 4
Post.
Ref. Debit Credit
20Y9
July 31 Fees Earned 41 80,700
Salary Expense 51 4,190
Rent Expense 52 2,700
Supplies Expense 53 2,600
Depreciation Expense 54 540
Samantha Hogan, Drawing 32 27,100
10.
Account Debit Credit
No. Balances Balances
Cash 11 52,470
Accounts Receivable 12 35,400
Supplies 14 3,900
Prepaid Rent 15 5,400
Prepaid Insurance 16 5,590
JOURNAL
July 31, 20Y9
Closing Entries
Date
Arborvite Consulting
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-1B
1.
Revenues:
Fees earned $283,750
Rent revenue 3,000
Total revenues $286,750
Expenses:
Salaries and wages expense $147,000
Advertising expense 86,800
Utilities expense 30,000
Travel expense 18,750
2.
Tami Garrigan, capital, July 1, 20Y0 $361,300
Last Chance Company
Statement of Owner’s Equity
For the Year Ended June 30, 20Y1
Last Chance Company
Income Statement
For the Year Ended June 30, 20Y1
CHAPTER 4 Completing the Accounting Cycle
Prob. 4-1B (Continued)
3.
Current assets:
Cash $ 5,100
Accounts receivable 26,500
Prepaid insurance 2,300
Equipment $140,000
Less accumulated depreciation 59,000 81,000
Total property, plant, and equipment 308,000
Total assets $342,425
Current liabilities:
Accounts payable $ 9,750
Salaries and wages payable 1,900
Unearned rent 1,500
Liabilities
Last Chance Company
Balance Sheet
June 30, 20Y1
Assets