CHAPTER 4 Completing the Accounting Cycle
Ex. 4–26 (Concluded)
Current assets: Current liabilities:
Cash $ 12 Accounts payable $36
Accounts receivable 103 Wages payable 1
Supplies 4 Total liabilities $ 37
Prepaid insurance 2
ALERT SECURITY SERVICES CO.
Balance Sheet
October 31, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Ex. 4–27
2016
Oct. 31 Accounts Receivable 13
Fees Earned 13
Accrued fees.
31 Insurance Expense 10
Prepaid Insurance 10
Ex. 4–28
2016
Oct. 31 Fees Earned 213
Income Summary 213
31 Income Summary 148
Wages Expense 111
Rent Expense 12
Adjusting Entries
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1A
1.
Fees earned $375,000
Rent revenue 1,300
Total revenues $376,300
Expenses:
Salaries and wages expense $168,000
Advertising expense 21,700
2.
Ted Hickman, capital, January 1, 2016 $203,100
PROBLEMS
LAMP LIGHT COMPANY
Statement of Owner’s Equity
For the Year Ended December 31, 2016
LAMP LIGHT COMPANY
Income Statement
For the Year Ended December 31, 2016
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1A (Continued)
3.
Current assets: Current liabilities:
Cash $10,800 Accounts payable $15,700
Accounts receivable 50,200
Salaries and wages payable
4,900
Prepaid insurance 1,200 Unearned rent 800
Supplies 480 Total liabilities $21,400
LAMP LIGHT COMPANY
Balance Sheet
December 31, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1A (Concluded)
4. 2016
Dec. 31 Fees Earned 375,000
Rent Revenue 1,300
Income Summary 376,300
31 Income Summary 236,300
Salaries and Wages Expense 168,000
Advertising Expense 21,700
Utilities Expense 11,400
5.
Debit Credit
Balances Balances
Cash 10,800
Accounts Receivable 50,200
Prepaid Insurance 1,200
Supplies 480
LAMP LIGHT COMPANY
Post-Closing Trial Balance
December 31, 2016
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2A
1.
Revenues:
Service fees $718,000
Rent revenue 12,000
Total revenues $730,000
Expenses:
Salaries expense $522,100
Rent expense 48,000
Stacy Tanner, capital, July 1, 2015 $373,800
Net income for the year $121,500
FINDERS INVESTIGATIVE SERVICES
Statement of Owner’s Equity
For the Year Ended June 30, 2016
FINDERS INVESTIGATIVE SERVICES
Income Statement
For the Year Ended June 30, 2016
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2A (Continued)
Current assets: Current liabilities:
Cash $28,000 Accounts payable $11,700
FINDERS INVESTIGATIVE SERVICES
Balance Sheet
June 30, 2016
Assets Liabilities
2. 2016
June 30 Service Fees 718,000
Rent Revenue 12,000
Income Summary 730,000
30 Income Summary 608,500
Salaries Expense 522,100
Rent Expense 48,000
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A
1., 3., and 6.
June 30 Bal. 11,000
June 30 Bal. 21,500 June 30 Adj. 17,900
30 Adj. Bal. 3,600
30 Adj. Bal. 3,900
June 30 Bal. 125,400
30 Adj. 6,500
30 Adj. Bal. 131,900
June 30 Bal. 11,800
30 Bal. 106,300
Cash
Laundry Supplies
Accumulated Depreciation
Accounts Payable
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
June 30 Clos. 221,500 June 30 Clos. 232,200
Clos. 10,700
June 30 Bal. 40,000 June 30 Clos. 40,000
June 30 Bal. 19,700 June 30 Clos. 19,700
June 30 Adj. 17,900 June 30 Clos. 17,900
Laundry Supplies Expense
Rent Expense
Utilities Expense
Income Summary
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 11,000 11,000 11,000
Laundry Supplies 21,500 (a) 17,900 3,600 3,600
Prepaid Insurance 9,600 (b) 5,700 3,900 3,900
SheetTrial Balance
Debit Credit
Trial Balance
Income
StatementAdjustments
EPICENTER LAUNDRY
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended June 30, 2016
BalanceUnadjusted Adjusted
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
3.
2016
June 30 Laundry Supplies Expense 17,900
Laundry Supplies 17,900
Supplies used ($21,500 – $3,600).
4.
Debit Credit
Balances Balances
Cash
11,000
Laundry Supplies 3,600
Prepaid Insurance 3,900
Sophie Perez, Drawing 10,000
Laundry Revenue 232,200
Wages Expense 126,300
Rent Expense 40,000
Utilities Expense 19,700
EPICENTER LAUNDRY
Adjusted Trial Balance
June 30, 2016
Adjusting Entries
5.
Laundry revenue $232,200
Expenses:
Wages expense $126,300
Rent expense 40,000
Sophie Perez, capital, July 1, 2015 $105,600
Net income for the year $10,700
Statement of Owner’s Equity
For the Year Ended June 30, 2016
EPICENTER LAUNDRY
Income Statement
For the Year Ended June 30, 2016
EPICENTER LAUNDRY
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Continued)
Current assets: Current liabilities:
Cash $11,000 Accounts payable $11,800
Laundry supplies 3,600 Wages payable 1,100
EPICENTER LAUNDRY
Balance Sheet
June 30, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3A (Concluded)
6.
2016
June 30 Laundry Revenue 232,200
Income Summary 232,200
30 Income Summary 221,500
Wages Expense 126,300
30 Income Summary 10,700
Sophie Perez, Capital 10,700
7.
Debit Credit
Balances Balances
Cash
11,000
Laundry Supplies 3,600
Prepaid Insurance 3,900
EPICENTER LAUNDRY
Post-Closing Trial Balance
June 30, 2016
Closing Entries
1., 3., and 6.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 13
Post.
Item Ref. Debit Credit Debit Credit
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
Account No. 17
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
Balance
Date
Account: Prepaid Insurance
Account: Accumulated Depreciation—Equipment
Balance
Date
Account: Trucks
Balance
Date
Cash
Account:
Account: Supplies
Balance
Date
Date
Balance
Balance
Date
Account: Equipment
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
2016
Mar. 31 Adjusting 26 600 600
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
Account:
Wages Payable
Balance
Date
Account:
Kaya Tarango, Capital
Balance
Date
Account: Kaya Tarango, Drawing
Accumulated Depreciation—Trucks
Account:
Account: Accounts Payable
Balance
Date
Date
Balance
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2016
Mar. 31 Balance 45,000
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 53
Post.
Item Ref. Debit Credit Debit Credit
Date
Balance
Income Summary
Account:
Balance
Date
Account: Service Revenue
Balance
Date
Balance
Date
Account:
Rent Expense
Account: Wages Expense
Balance
Date
Account:
Supplies Expense
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 55
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 56
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 57
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 59
Post.
Item Ref. Debit Credit Debit Credit
Account: Insurance Expense
Date
Balance
Balance
Balance
Date
Truck Expense
Account:
Account: Depreciation Expense—Trucks
Account: Depreciation Expense—Equipment
Date
Balance
Date
Account: Miscellaneous Expense
Balance
Date
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 12,000 12,000 12,000
Wages Payable (e) 600 600 600
Kaya Tarango, Capital 96,000 96,000 96,000
Kaya Tarango, Drawing 15,000 15,000 15,000
Service Revenue 160,000 160,000 160,000
Wages Expense 45,000 (e) 600 45,600 45,600
SheetTrial Balance
Debit Credit
Trial Balance
Income
StatementAdjustments
LAKOTA FREIGHT CO.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended March 31, 2016
BalanceUnadjusted Adjusted