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, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Concluded)
6. Page 27
Post.
Ref. Debit Credit
2016
31 Income Summary 34 46,150
Retained Earnings 32 46,150
7.
Debit Credit
Balances Balances
Cash 13,100
Supplies 2,850
Prepaid Insurance 4,350
JOURNAL
January 31, 2016
Closing Entries
Date
RECESSIVE INTERIORS
Post-Closing Trial Balance
1. and 2.
Page 1
Post.
Ref. Debit Credit
2016
Apr. 1 Cash 11 20,000
2 Prepaid Insurance 16 4,200
Cash 11 4,200
4 Cash 11 9,400
Unearned Fees 23 9,400
5 Office Equipment 18 8,000
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Page 2
Post.
Ref. Debit Credit
2016
24 Cash 11 4,450
Fees Earned 41 4,450
26 Cash 11 26,500
Accounts Receivable 12 26,500
27 Salary Expense 51 1,650
Cash 11 1,650
Date
JOURNAL
2., 6., and 9.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 20,000 20,000
29 2 540 57,135
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 14,700 14,700
6 1 11,700 3,000
12 1 21,900 24,900
20 2 16,800 41,700
Date
Balance
Cash
Account:
Account: Accounts Receivable
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 6,000 6,000
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 12,000 12,000
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 5 1 8,000 8,000
12 1 6,400 1,600
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
Prepaid Rent
Account:
Balance
Date
Balance
Date
Balance
Date
Account: Office Equipment
Account: Accounts Payable
Balance
Date
Account: Salaries Payable
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 0
30 Closing 4 53,775 53,775
Unearned Fees
Account:
Account: Retained Earnings
Balance
Date
Date
Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 12 1 21,900 21,900
17 2 6,600 28,500
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 14 1 1,650 1,650
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
2016
Apr. 30 Adjusting 3 400 400
30 Closing 4 400 — —
Account: Depreciation 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, 2016
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
Accum. Depreciation (c) 400 400 400
Accounts Payable 1,600 1,600 1,600
Salaries Payable (d) 275 275 275
Unearned Fees 9,400 (f) 7,050 2,350 2,350
Common Stock 50,000 50,000 50,000
Retained Earnings
Dividends 18,000 18,000 18,000
ROSEBUD CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended April 30, 2016
BalanceUnadjusted Adjusted Income
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
6. Page 3
Post.
Ref. Debit Credit
2016
Apr. 30 Insurance Expense 55 350
Prepaid Insurance 16 350
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
Adjusted Trial Balance
April 30, 2016
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
Rent expense 2,000
ROSEBUD CONSULTING
Income Statement
For the Month Ended April 30, 2016
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Current assets: Current liabilities:
Cash $43,535 Accounts payable $ 1,600
Accounts receivable 17,790 Salaries payable 275
ROSEBUD CONSULTING
Balance Sheet
April 30, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Concluded)
9. Page 4
Post.
Ref. Debit Credit
2016
Apr. 30 Fees Earned 41 64,550
Income Summary 34 64,550
30 Income Summary 34 10,775
10.
Debit Credit
Balances Balances
Cash 43,535
Accounts Receivable 17,790
Supplies 1,225
JOURNAL
April 30, 2016
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
Wages Payable (f) 140 140 140
Unearned Revenue 7,200 (e) 3,600 3,600 3,600
Common Stock 9,000 9,000 9,000
Dividends 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
Advertising Expense 1,500 1,500 1,500
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, 2016
BalanceUnadjusted Adjusted
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
2.
Fees earned $21,200
Expenses:
Retained earnings, June 1, 2016 $ 0
Net income for the period $4,955
PS MUSIC
Retained Earnings Statement
For the Two Months Ended July 31, 2016
PS MUSIC
Income Statement
For the Two Months Ended July 31, 2016
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
Current assets: Current liabilities:
Cash $9,945 Accounts payable $8,350
Accounts receivable 4,150 Wages payable 140
PS MUSIC
Balance Sheet
July 31, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
3. Page 4
Post.
Ref. Debit Credit
2016
July 31 Fees Earned 41 21,200
Income Summary 34 21,200
31 Income Summary 34 16,245
Wages Expense 50 2,940
Insurance Expense 57 225
Depreciation Expense 58 50
Miscellaneous Expense 59 1,855
Closing Entries
Date
JOURNAL