CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Continued)
3. Page 26
Post.
Ref. Debit Credit
2016
Mar. 31 Supplies Expense 52 22,500
Supplies 13 22,500
Supplies used ($30,000 – $7,500).
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
Prepaid Insurance 1,800
Equipment 110,000
Adjusted Trial Balance
March 31, 2016
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
LAKOTA FREIGHT CO.
Income Statement
For the Year Ended March 31, 2016
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, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4A (Concluded)
6. Page 27
Post.
Ref. Debit Credit
2016
Mar. 31 Service Revenue 41 160,000
Income Summary 34 160,000
7.
Debit Credit
Balances Balances
Cash 12,000
Supplies 7,500
Prepaid Insurance 1,800
JOURNAL
March 31, 2016
Closing Entries
Date
LAKOTA FREIGHT CO.
Post-Closing Trial Balance
1. and 2.
Page 1
Post.
Ref. Debit Credit
2016
July 1 Cash 11 13,500
2 Prepaid Insurance 16 4,500
Cash 11 4,500
4 Cash 11 5,500
Unearned Fees 23 5,500
Cash 11 5,200
12 Accounts Receivable 12 13,300
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Page 2
Post.
Ref. Debit Credit
2016
July 17 Cash 11 9,450
Fees Earned 41 6,650
24 Cash 11 4,000
Fees Earned 41 4,000
26 Cash 11 12,000
Accounts Receivable 12 12,000
27 Salary Expense 51 1,750
Cash 11 1,750
Fees Earned 41 5,200
31 Accounts Receivable 12 3,000
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
2016
24 2 4,000 30,500
26 2 12,000 42,500
27 2 1,750 40,750
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
2016
July 1 1 20,800 20,800
6 1 15,300 5,500
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
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
2016
July 1 1 7,500 7,500
5 1 6,500 14,000
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
2016
July 5 1 6,500 6,500
12 1 5,200 1,300
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
Balance
Date
Account: Office Equipment
Balance
Date
Account: Accumulated Depreciation
Balance
Date
Account: Accounts Payable
Balance
Date
Account: Salaries Payable
Balance
Date
Date
Balance
Prepaid Rent
Account:
Account: Prepaid Insurance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
2016
July 1 0
31 Closing 4 33,475 33,475
31 Closing 4 12,500 20,975
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
2016
Unearned Fees
Account:
Account: Retained Earnings
Balance
Date
Balance
Balance
Date
Account: Dividends
Account: Common Stock
Balance
Date
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2016
July 12 1 13,300 13,300
17 2 9,450 22,750
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2016
July 14 1 1,750 1,750
27 2 1,750 3,500
31 Adjusting 3 175 3,675
31 Closing 4 3,675 — —
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
Date
Balance
Salary Expense
Account:
Account: Fees Earned
Balance
Date
Account: Rent Expense
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
2016
July 31 Adjusting 3 750 750
31 Closing 4 750 — —
Account No. 55
Post.
Item Ref. Debit Credit Debit Credit
2016
Account: Depreciation 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
Supplies 3,800
Common Stock 45,000
Retained Earnings 0
Dividends 12,500
Fees Earned 41,600
Unadjusted Trial Balance
July 31, 2016
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
Accum. Depreciation (c) 750 750 750
Accounts Payable 1,300 1,300 1,300
Salaries Payable (d) 175 175 175
Unearned Fees 5,500 (f) 2,750 2,750 2,750
Common Stock 45,000 45,000 45,000
Retained Earnings
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
DIAMOND CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 2016
BalanceUnadjusted Adjusted Income
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
6. Page 3
Post.
Ref. Debit Credit
2016
July 31 Insurance Expense 55 375
Prepaid Insurance 16 375
Accumulated Depreciation 19 750
Equipment depreciation.
31 Salary Expense 51 175
Salaries Payable 22 175
Accrued salaries.
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
Accumulated Depreciation 750
Accounts Payable 1,300
Salaries Payable 175
Unearned Fees 2,750
Common Stock 45,000
Retained Earnings 0
Dividends 12,500
Adjusted Trial Balance
July 31, 2016
DIAMOND CONSULTING
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
8.
Fees earned $44,350
Expenses:
Salary expense $3,675
Retained earnings, July 1, 2016 $ 0
DIAMOND CONSULTING
Retained Earnings Statement
For the Month Ended July 31, 2016
DIAMOND CONSULTING
Income Statement
For the Month Ended July 31, 2016
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Total current assets $56,950
Property, plant, and equipment:
Office equipment $14,000 Common stock $45,000
Less accum. depreciation 750 Retained earnings 20,975
DIAMOND CONSULTING
Balance Sheet
July 31, 2016
Assets Liabilities
Stockholders’ Equity
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Concluded)
9. Page 4
Post.
Ref. Debit Credit
2016
July 31 Fees Earned 41 44,350
Income Summary 34 44,350
31 Income Summary 34 33,475
Retained Earnings 32 33,475
10.
Debit Credit
Balances Balances
Accumulated Depreciation 750
Accounts Payable 1,300
Salaries Payable 175
JOURNAL
July 31, 2016
Closing Entries
Date
DIAMOND CONSULTING
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1B
1.
Utilities expense 30,000
Travel expense 18,750
Depreciation expense—equipment 4,550
Depreciation expense—building 3,000
Supplies expense 1,500
2.
Retained earnings, July 1, 2015 $271,300
Net loss for the year $12,025
Add dividends 20,000
LAST CHANCE COMPANY
Retained Earnings Statement
For the Year Ended June 30, 2016
LAST CHANCE COMPANY
Income Statement
For the Year Ended June 30, 2016