CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
3. Page 26
Post.
Ref. Debit Credit
2014
Mar. 31 Supplies Expense 52 22,500
Supplies 13 22,500
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
4.
Debit Credit
Balances Balances
Cash 12,000
Supplies 7,500
Adjusted Trial Balance
March 31, 2014
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
Kaya Tarango, capital, April 1, 2013 $ 96,000
LAKOTA FREIGHT CO.
Statement of Owner’s Equity
For the Year Ended March 31, 2014
LAKOTA FREIGHT CO.
Income Statement
For the Year Ended March 31, 2014
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
Current assets: Current liabilities:
Cash $12,000 Accounts payable $4,000
LAKOTA FREIGHT CO.
Balance Sheet
March 31, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Concluded)
6. Page 27
Post.
Ref. Debit Credit
2014
Mar. 31 Service Revenue 41 160,000
Income Summary 33 160,000
7.
Debit Credit
Balances Balances
Cash 12,000
Supplies 7,500
JOURNAL
March 31, 2014
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
2014
July 1 Cash 11 13,500
Accounts Receivable 12 20,800
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Page 2
Post.
Ref. Debit Credit
2014
July 17 Cash 11 9,450
Fees Earned 41 9,450
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
2014
July 1 1 13,500 13,500
1 1 4,800 8,700
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
2014
July 1 1 20,800 20,800
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
Cash
Account:
Account: Accounts Receivable
Balance
Date
Date
Balance
Balance
Date
Account: Supplies
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
2014
Prepaid Rent
Account:
Account: Prepaid Insurance
Balance
Date
Date
Balance
Account: Accumulated Depreciation
Balance
Date
Account: Office Equipment
Balance
Date
Account: Salaries Payable
Balance
Date
Account: Accounts Payable
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
Account: Income Summary
Balance
Date
Balance
Date
Date
Balance
Balance
Date
Account: Steffy Lopez, Drawing
Unearned Fees
Account:
Account: Steffy Lopez, Capital
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2014
July 12 1 13,300 13,300
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2014
July 14 1 1,750 1,750
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
2014
Account No. 53
Post.
Item Ref. Debit Credit Debit Credit
2014
Balance
Date
Account: Rent Expense
Balance
Date
Account: Supplies Expense
Account: Fees Earned
Balance
Date
Date
Balance
Salary Expense
Account:
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
Account No. 55
Post.
Item Ref. Debit Credit Debit Credit
Account No. 59
Post.
Item Ref. Debit Credit Debit Credit
2014
Account: Depreciation Expense
Balance
Date
Account: Miscellaneous Expense
Balance
Date
Account: Insurance Expense
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
3.
Debit Credit
Balances Balances
Cash 32,450
Accounts Receivable 16,450
Unadjusted Trial Balance
July 31, 2014
DIAMOND CONSULTING
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
5. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 32,450 32,450 32,450
Accounts Receivable 16,450 16,450 16,450
DIAMOND CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 2014
BalanceUnadjusted Adjusted Income
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
6. Page 3
Post.
Ref. Debit Credit
2014
July 31 Insurance Expense 55 375
Prepaid Insurance 16 375
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
7.
Debit Credit
Balances Balances
Cash 32,450
Accounts Receivable 16,450
Adjusted Trial Balance
July 31, 2014
DIAMOND CONSULTING
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
8.
Fees earned $44,350
Expenses:
Salary expense $3,675
Steffy Lopez, capital, July 1, 2014 $ 0
Investments during month $45,000
DIAMOND CONSULTING
Income Statement
For the Month Ended July 31, 2014
DIAMOND CONSULTING
Statement of Owner’s Equity
For the Month Ended July 31, 2014
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Current assets: Current liabilities:
Cash $32,450 Accounts payable $1,300
DIAMOND CONSULTING
Balance Sheet
July 31, 2014
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Concluded)
9. Page 4
Post.
Ref. Debit Credit
2014
10.
Debit Credit
Balances Balances
Cash 32,450
Accounts Receivable 16,450
JOURNAL
July 31, 2014
Closing Entries
Date
DIAMOND CONSULTING
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1B
1.
Revenues:
Fees earned $283,750
Rent revenue 3,000
2.
Tami Garrigan, capital, July 1, 2013 $361,300
Net loss for the year $12,025
LAST CHANCE COMPANY
Statement of Owner’s Equity
For the Year Ended June 30, 2014
LAST CHANCE COMPANY
Income Statement
For the Year Ended June 30, 2014