PROBLEM 4-4C (Continued)
(b) LEIKER MANAGEMENT SERVICES
Balance Sheet
December 31, 2017
Assets
Current assets
Cash ………………………………………… $ 11,500
Accounts receivable …………………. 23,600
Liabilities and Owner’s Equity
Current liabilities
Current maturity of mortgage payable …….. $10,000
Accounts payable …………………………..……… 10,400
PROBLEM 4-4C (Continued)
(c) Dec. 31 Insurance Expense ………………………….. 1,700
Prepaid Insurance …………………….. 1,700
(d) Dec. 31 Service Revenue …………………………….. 75,600
Rent Revenue …………………………………. 26,200
Income Summary ……………………… 101,800
31 Income Summary ……………………………. 16,900
Owner’s Capital ……………………….. 16,900
PROBLEM 4-4C (Continued)
(e) LEIKER MANAGEMENT SERVICES
Post-Closing Trial Balance
December 31, 2017
Debit
Credit
Cash ……………………………………………………….. $ 11,500
Accumulated Depreciation—Buildings ……… $ 2,500
Equipment …………………………..………………….. 49,000
Accumulated Depreciation—Equipment ……. 3,900
Accounts Payable ……………………………………. 10,400
PROBLEM 4-5C
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 1
Cash …………………………………………….
101
12,000
Owner’s Capital …………………….
301
12,000
1
Equipment ……………………………………
157
6,000
Cash …………………………………….
101
Accounts Payable …………………
201
3,000
3
Supplies ……………………………………….
128
1,300
Accounts Payable …………………
201
1,300
5
Prepaid Insurance …………………………
130
2,400
Cash …………………………………….
101
2,400
12
Accounts Receivable …………………….
112
2,500
Service Revenue …………………..
400
2,500
18
Accounts Payable …………………………
201
1,800
Cash …………………………………….
101
1,800
20
Salaries and Wages Expense …………
726
1,200
Cash …………………………………….
101
1,200
21
Cash …………………………………………….
101
1,400
Accounts Receivable …………….
112
1,400
25
Accounts Receivable …………………….
112
7,000
Service Revenue …………………..
400
7,000
31
Gasoline Expense …………………………
633
200
Cash …………………………………….
101
31
306
900
Cash …………………………………….
101
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
8,100
1,300
2,400
6,000
(a) 1,500
(d) 900
(c) 200
9,600
400
2,200
6,000
9,600
400
2,200
6,000
Key: (a) Service Revenue Earned; (b) Depreciation Expense; (c) Insurance Expired; (d) Cleaning Supplies Used;
PROBLEM 4-5C (Continued)
(a), (e)&(f)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
J1
12,000
12,000
1
J1
3,000
9,000
5
J1
2,400
6,600
J1
1,800
4,800
J1
1,200
3,600
J1
1,400
5,000
J1
4,800
J1
3,900
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
July 12
J1
2,500
2,500
J1
1,100
J1
7,000
8,100
J2
1,500
9,600
Supplies No. 128
Date
Explanation
Ref.
Debit
Credit
Balance
July 3
J1
1,300
1,300
J2
Prepaid Insurance No. 130
Date
Explanation
Ref.
Debit
Credit
Balance
July 5
J1
2,400
2,400
J2
2,200
Equipment No. 157
Date
Explanation
Ref.
Debit
Credit
Balance
PROBLEM 4-5C (Continued)
Accumulated Depreciation—Equipment No. 158
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
300
300
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
J1
J1
J1
Salaries and Wages Payable No. 212
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
600
600
Owner’s Capital No. 301
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
J1
12,000
31
Closing
J3
31
Closing
J3
Owner’s Drawings No. 306
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
J1
900
900
31
Closing
J3
900
0
Income Summary No. 350
Date
Explanation
Ref.
Debit
Credit
Balance
Closing
J3
31
Closing
J3
3,400
Closing
J3
PROBLEM 4-5C (Continued)
Service Revenue No. 400
Date
Explanation
Ref.
Debit
Credit
Balance
July 12
J1
2,500
2,500
J1
9,500
31
Adjusting
J2
Closing
J3
Gasoline Expense No. 633
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
J1
200
31
Closing
J3
200
0
Supplies Expense No. 634
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
900
900
31
Closing
J3
900
0
Depreciation Expense No. 711
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
300
31
Closing
J3
300
0
Insurance Expense No. 722
Date
Explanation
Ref.
Debit
Credit
Balance
July 31
Adjusting
J2
200
200
31
Closing
J3
200
0
Salaries and Wages Expense No. 726
Date
Explanation
Ref.
Debit
Credit
Balance
July 20
J1
1,200
1,200
Adjusting
J2
600
1,800
PROBLEM 4-5C (Continued)
(d) VICK’S WINDOW WASHING
Income Statement
For the Month Ended July 31, 2017
Revenues
Service revenue……………………………………….. $11,000
Expenses
Salaries and wages expense …………………….. $1,800
VICK’S WINDOW WASHING
Owner’s Equity Statement
For the Month Ended July 31, 2017
Owner’s Capital, July 1 …………………………………… $ 0
Add: Investments ………………………………………….. $12,000
Net income …………………………………………… 7,600 19,600
VICK’S WINDOW WASHING
Balance Sheet
July 31, 2017
Assets
Current assets
Cash ……………………………………………………….. $3,900
Accounts receivable ………………………………… 9,600
PROBLEM 4-5C (Continued)
VICK’S WINDOW WASHING
Balance Sheet (Continued)
July 31, 2017
Assets (Continued)
Property, plant, and equipment
Equipment …………………………………………………… 6,000
Liabilities and Owner’s Equity
Current liabilities
Accounts payable …………………………..……….. $2,500
(e)
General Journal J2
Date
Account Titles and Explanation
Ref.
Debit
Credit
July 31
Accounts Receivable …………………….
112
1,500
Service Revenue …………………..
400
1,500
31
Depreciation Expense …………………..
711
300
Accumulated Depreciation—
Equipment ………………………..
158
300
Insurance Expense ……………………….
722
Prepaid Insurance …………………
130
200
Supplies Expense …………………………
634
Supplies ……………………………….
128
900
Salaries and Wages Expense …………
726
PROBLEM 4-5C (Continued)
(f)
General Journal J3
Date
Account Titles and Explanation
Ref.
Debit
Credit
Service Revenue …………………………...
400
Income Summary ………………….
350
31
Income Summary ………………………….
350
3,400
Salaries and Wages Expense …
726
1,800
Depreciation Expense ……………
711
Insurance Expense ………………..
722
Gasoline Expense …………………
633
31
Income Summary ………………………….
350
7,600
Owner’s Capital …………………….
301
7,600
31
301
Owner’s Drawings …………………
306
(g) VICK’S WINDOW WASHING
Post-Closing Trial Balance
July 31, 2017
Debit
Credit
Cash ……………………………………………………….….. $ 3,900
Accounts Receivable …………………………..………. 9,600
Supplies …………………………………………………….. 400