Problem 4-5A
Score:
Key Code:
Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry.
In the general ledger accounts, only normal balance columns will be graded.
For correct grading in the trial balances and work sheet, enter a zero in cells you would otherwise leave blank.
1. and 2.
Page 1
Post.
Ref. Debit Credit
July 1
1
2
4
5
6
10
12
12
14
Page 2
Post.
Ref. Debit Credit
July 17
18
20
24
26
27
29
31
31
31
31
2014
JOURNAL
Date
Name:
JOURNAL
Date
2014
Section:
0%
2
Cells with non-gray backgrounds are protected and cannot be edited.
Description
Description
2., 6., and 9.
Cash
11
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
1
2
4
6
10
12
14
17
18
24
26
27
29
31
31
31
Accounts Receivable 12
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
6
12
20
26
31
Supplies 14
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
18
31 Adjusting
Prepaid Rent 15
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
31 Adjusting
Prepaid Insurance 16
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 2
31 Adjusting
Office Equipment 18
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
5
Accumulated Depreciation 19
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
Accounts Payable 21
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 5
12
Salaries Payable 22
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
Unearned Fees 23
Post.
Item Ref. Dr. Cr. Dr. Cr.
Balance
Balance
Balance
2014
Date
Date
Date
2014
Balance
Date
2014
Balance
Balance
Date
2014
Balance
2014
Balance
Date
2014
Date
2014
Date
2014
Date
2014
Balance
Balance
Date
2014
GENERAL LEDGER
July 4
31 Adjusting
Steffy Lopez, Capital 31
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1
31 Closing
31 Closing
Steffy Lopez, Drawing 32
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31
31 Closing
Income Summary 33
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Closing
31 Closing
31 Closing
Fees Earned 41
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 12
17
20
24
30
30
31 Adjusting
31 Closing
Salary Expense 51
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 14
27
31 Adjusting
31 Closing
Rent Expense 52
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Supplies Expense 53
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Depreciation Expense 54
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Insurance Expense 55
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 31 Adjusting
31 Closing
Miscellaneous Expense 59
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 10
29
31
31 Closing
3.
Balance
Date
2014
Date
Date
2014
Date
Date
2014
2014
Balance
2014
Balance
2014
Date
Date
Balance
Balance
2014
Balance
Balance
Balance
2014
Date
2014
Date
2014
Balance
Unadjusted Trial Balance
Date
DIAMOND CONSULTING
Balance
Accounts Receivable
Unearned Fees
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
5.
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 32,450
Accounts Receivable 16,450
Supplies 3,800
Prepaid Rent 4,800
Prepaid Insurance 4,500
Office Equipment 14,000
Accum. Depreciation
Accounts Payable 1,300
Salaries Payable
Unearned Fees 5,500
Steffy Lopez, Capital 45,000
Steffy Lopez, Drawing 12,500
Fees Earned 41,600
Salary Expense 3,500
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense 1,400
93,400 93,400
6.
Page 3
Post.
Ref. Debit Credit
July 31
31
31
31
31
31
7.
Accounts Receivable
Unearned Fees
Fees Earned
Salary Expense
Accounts Payable
Supplies
Prepaid Rent
Date
2014
Adjusting Entries
Steffy Lopez, Drawing
Prepaid Insurance
Office Equipment
Accumulated Depreciation
DIAMOND CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 2014
Credit
Balances
Salaries Payable
July 31, 2014
Steffy Lopez, Capital
DIAMOND CONSULTING
Adjusted Trial Balance
July 31, 2014
Office Equipment
Supplies
Prepaid Rent
Cash
Prepaid Insurance
Salaries Payable
Steffy Lopez, Capital
Steffy Lopez, Drawing
Balance
Sheet
Trial Balance
Unadjusted Trial Balance
Statement
Adjusted
Income
Accumulated Depreciation
Accounts Payable
Debit
Balances
Cash
Adjustments
JOURNAL
Description
Debit
Balances
Credit
Balances
Rent Expense
Supplies Expense
Depreciation Expense
Insurance Expense
Miscellaneous Expense
8.
Net income
Total
Current assets: Current liabilities
Total liabilities
Total current assets
Property, plant, and equipment:
Total property, plant, and equipment
Total assets Total liabilities and owner’s equity
9.
Page 4
Post.
Ref. Debit Credit
July 31
31
Miscellaneous Expense
31
31
10.
Accounts Receivable
Unearned Fees
Debit
Balances
Credit
Balances
Salaries Payable
DIAMOND CONSULTING
Post-Closing Trial Balance
July 31, 2014
Prepaid Insurance
JOURNAL
Description
Steffy Lopez, Capital
Office Equipment
Accumulated Depreciation
Cash
Supplies
Prepaid Rent
Accounts Payable
Date
Closing Entries
2014
Liabilities
Unearned fees
Owner’s Equity
July 31, 2014
Steffy Lopez, capital, July 31, 2014
Balance Sheet
Statement of Owner’s Equity
Steffy Lopez, capital, July 1, 2014
Increase in owner’s equity
Assets
Total revenues
DIAMOND CONSULTING
Income Statement
Net income for the month
For the Month Ended July 31, 2014
DIAMOND CONSULTING
Revenues:
DIAMOND CONSULTING
For the Month Ended July 31, 2014
Total expenses
Expenses:
Problem 4-5A
Solution
Scoring:
Key Code:
Instructions
Answers are entered in the cells with gray backgrounds.
In the general ledger accounts, only normal balance columns will be graded.
For correct grading in the trial balances and work sheet, enter a zero in cells you would otherwise leave blank.
1. and 2.
Page 1
Post.
Ref. Debit Credit
July 1 11 13,500
12 20,800
Page 2
Post.
Ref. Debit Credit
Supplies
Fees Earned
Accounts Receivable
Miscellaneous Expense
Salary Expense
Miscellaneous Expense
Steffy Lopez, Drawing
Accounts Receivable
Fees Earned
Accounts Receivable
Cash
Fees Earned
Cash
Cash
Fees Earned
July 17 11 9,450
41 9,450
Fees Earned
Cash
JOURNAL
Date
2014
Description
Accounts Receivable
Name:
Section:
ON
Cells with non-gray backgrounds are protected and cannot be edited.
An asterisk (*) will appear to the right of an incorrect entry.
Description
Cash
JOURNAL
Date
2014
Fees Earned
Salary Expense
Accounts Receivable
Miscellaneous Expense
Accounts Payable
Accounts Receivable
Supplies
Steffy Lopez, Capital
Prepaid Rent
Office Equipment
Accounts Payable
Cash
Prepaid Insurance
Unearned Fees
Office Equipment
Cash
2., 6., and 9.
Cash
11
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 13,500 13,500
1 1 4,800 8,700
2 1 4,500 4,200
Accounts Receivable 12
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 20,800 20,800
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 3,200 3,200
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 4,800 4,800
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 2 1 4,500 4,500
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 7,500 7,500
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 5 1 6,500 6,500
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 4 1 5,500 5,500
2014
Date
2014
2014
Balance
Date
2014
Balance
Date
Balance
Date
Date
2014
Date
2014
Date
2014
Date
2014
Balance
Balance
Balance
Balance
Balance
GENERAL LEDGER
Date
2014
Balance
Date
Balance
2014
Steffy Lopez, Capital 31
Post.
Item Ref. Dr. Cr. Dr. Cr.
July 1 1 45,000 45,000
Date
2014
Balance
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
Post.
Item Ref. Dr. Cr. Dr. Cr.
Date
2014
2014
Balance
Date
2014
2014
2014
Balance
Date
Date
Balance
Balance
Date
2014
Balance
Balance
Date
Balance
2014
Date
2014
2014
3,800 –
4,800 –
6.
Page 3
Post.
Ref. Debit Credit
July 31 55 375
16 375
19 750
22 175
Salaries Payable
Prepaid Insurance
Office Equipment
Accumulated Depreciation
Accounts Payable
Prepaid Rent
Unearned Fees
Fees Earned
Supplies Expense
Depreciation Expense
Accumulated Depreciation
Salary Expense
Rent Expense
Steffy Lopez, Drawing
Supplies
Prepaid Rent
Salaries Payable
Steffy Lopez, Capital
2014
Adjusting Entries
Date
Insurance Expense
Prepaid Insurance
Supplies
Prepaid Rent
JOURNAL
Description
4,500 –
Accumulated Depreciation
Accounts Payable
Salaries Payable
Steffy Lopez, Capital
Steffy Lopez, Drawing
Prepaid Insurance
Office Equipment
8.
44,350$
3,675$
2,400
9.
Page 4
Post.
Office Equipment
Accumulated Depreciation
Accounts Payable
Insurance Expense
Income Summary
Steffy Lopez, Capital
Steffy Lopez, Capital
Salary Expense
Rent Expense
Salaries Payable
Steffy Lopez, Drawing
Cash
Supplies
Prepaid Rent
Prepaid Insurance
Supplies Expense
Depreciation Expense
DIAMOND CONSULTING
Steffy Lopez, Capital
Ref. Debit Credit
July 31 41 44,350
33 44,350
31 33 10,875
Fees Earned
Income Summary
Income Summary
Date
2014
Closing Entries
DIAMOND CONSULTING
Income Statement
For the Month Ended July 31, 2014
Revenues:
Salary expense
Rent expense
Expenses:
Fees earned
Total revenues
JOURNAL
Description
Prepaid rent
Prepaid insurance
Office equipment
Steffy Lopez, capital
Unearned fees
Total expenses
Net income for the month
For the Month Ended July 31, 2014
Additional investments during the month
Increase in owner’s equity
Steffy Lopez, capital, July 1, 2014
Supplies expense
Depreciation expense
DIAMOND CONSULTING
Insurance expense
Miscellaneous expense
Salaries payable
Accumulated depreciation
Accounts payable
Accounts receivable