ACR 4-3 (Continued)
(b) General Journal
Date
Account Titles
Debit
Credit
Aug. 1
Prepaid Advertising …………………………………..
Cash ………………………………………………….
400
400
Cash ………………………………………………….
12
Cash …………………………………………………………
Service Revenue ………………………………..
2,800
2,800
15
Equipment ………………………………………………..
Accounts Payable ………………………………
2,000
2,000
20
Accounts Payable ……………………………………..
Cash ………………………………………………….
2,000
2,000
22
Supplies ……………………………………………………
Accounts Payable ………………………………
800
800
25
Salaries and Wages Expense …………………….
Cash ………………………………………………….
2,900
2,900
27
Accounts Receivable …………………………………
Service Revenue ………………………………..
29
Cash …………………………………………………………
Unearned Service Revenue …………………
780
780
ACR 4-3 (Continued)
(d) & (f) B & B REPAIR SERVICES
Trial Balances
August 31, 2017
Before
Adjustment
After
Adjustment
Dr.
Cr.
Dr.
Cr.
Cash ……………………………………..
Accounts Receivable ……………..
Accumulated Depr.—
Equipment …………………………..
Accounts Payable ………………….
Unearned Service Revenue …….
Salaries and Wages Payable …..
$ 2,020
5,470
$ 600
3,100
2,040
$ 2,020
5,470
$ 920
3,100
1,240
1,540
ACR 4-3 (Continued)
2.
3.
4.
5.
6.
ACR 4-3 (Continued)
(g) B & B REPAIR SERVICES
Income Statement
For the Month Ended August 31, 2017
Revenues
Service revenue ……………………………………….. ($7,360
Interest revenue ……………………………………….. 20
Total expenses ………………………………….. $7,380)
Expenses
B & B REPAIR SERVICES
Retained Earnings Statement
For the Month Ended August 31, 2017
Retained earnings, August 1 ……………………………. $6,400
ACR 4-3 (Continued)
B & B REPAIR SERVICES
Balance Sheet
August 31, 2017
Assets
Current assets
Cash ………………………………………………………. $ 2,020
Accounts receivable ……………………………….. 5,470
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ……………………………………….. $ 3,100
Unearned service revenue …………………………... 1,240
ACR 4-3 (Continued)
(h)
General Journal
Date
Account Titles and Explanation
Debit
Credit
Aug. 31
Service Revenue …………………………………………
Interest Revenue …………………………………………
Income Summary …………………………………
7,360
20
7,380
(i) B & B REPAIR SERVICES
Post-Closing Trial Balance
March 31, 2017
Debit
Credit
Cash …………………………..……………………………….
Accounts Receivable ……………………………………
$ 2,020
5,470
LO 2-4 BT: AP Difficulty: Hard TOT: 90 min. AACSB: Analytic AICPA FC: Reporting
ACCOUNTING CYCLE REVIEW 4-4
(b)
Date
Account Titles
Debit
Credit
July 1 Equipment ………………………………………………………. 24,000
Cash ……………………………………………………….. 4,000
Notes Payable …………………………………………. 20,000
9 No entry required (consulting agreement)
10 Cash ………………………………………………………………. 1,200
Accounts Receivable ………………………………. 1,200
16 Cash ………………………………………………………………. 12,000
Unearned Service Revenue ……………………… 12,000
18 Salaries and Wages Expense …………………………... 11,000
Cash ……………………………………………………….. 11,000
ACR 4-4 (Continued)
(b) (Continued)
Date
Account Titles
Debit
Credit
July 20 Advertising Expense ………………………………………. 2,200
Adjusting Entries
31 Insurance Expense …………………………………………. 300
Prepaid Insurance …………………………………… 300
($3,600 × 1/12)
31 Interest Expense …………………………………………….. 100
Interest Payable ……………………………………… 100
($20,000 × 6% × 1/12)
ACR 4-4 (Continued)
(a), (c), (e), and (h)
Cash
July
1 Bal.
5,230
July
1
4,000
2
50,000
3
3,600
10
1,200
3
8,000
16
12,000
6
3,800
27
15,000
11,000
July
31 Bal.
52,630
Accounts Receivable
July
1 Bal.
1,200
July
10
1,200
20
28,000
27
15,000
July
31 Bal.
13,000
Prepaid Insurance
July
3
3,600
July
31
300
July
31 Bal.
3,300
Supplies
July
1 Bal.
July
31
6
3,800
July
31 Bal.
3,240
July
3
8,000
July
31
4,000
July
31 Bal.
4,000
ACR 4-4 (Continued)
(a), (c), (e), and (h) (Continued)
Equipment
July
1
24,000
July
31 Bal.
Accumulated Depreciation—Equipment
July 31
500
July 31 Bal
500
Accounts Payable
July
14
400
July
1 Bal.
400
20
July
Interest Payable
July
31
100
July
31 Bal.
100
Salaries and Wages Payable
July
31
July
31 Bal.
ACR 4-4 (Continued)
(a), (c), (e), and (h) (Continued)
Unearned Service Revenue
July 13
1,120
July
1 Bal.
1,120
23
10,000
16
12,000
31 Bal.
2,000
Common Stock
July
1 Bal.
3,600
2
50,000
July
31 Bal.
53,600
Retained Earnings
July
1 Bal.
2,000
July 31 39,120
ACR 4-4 (Continued)
(a), (c), (e), and (h) (Continued)
Salaries and Wages Expense
July
18
11,000
July
31
July 31
July
31 Bal.
July
4,000
July 31
4,000
July
31 Bal.
Advertising Expense
July
20
2,200
July 31
2,200
July
31 Bal.
0
July
July 31
1,250
July
31 Bal.
0
ACR 4-4 (Continued)
(a), (c), (e), and (h) (Continued)
Utilities Expense
July
31
800
July 31
800
July
31 Bal.
0
July
July 31
500
July
31 Bal.
0
July
July 31
300
July
31 Bal.
0
Interest Expense
July
31
100
July 31
100
July
31 Bal.
0
July
July 31
July
31 Bal.
July
6,770
July 31
July 31 B al.
ACR 4-4 (Continued)
(d) and (f) (Continued)
GREEN RIVER COMPUTER CONSULTANTS
Trial Balances
July 31, 2017
Before Adjustment
After Adjustment
Debit
Credit
Debit
Credit
Cash ……………………………………………………..
$ 52,630
$ 52,630
Accounts receivable ………………………………
13,000
13,000
Prepaid insurance ………………………………….
3,300
Supplies ………………………………………………..
3,240
Prepaid rent ……………………………………………
4,000
Equipment ……………………………………………..
24,000
24,000
Accumulated depreciation—equipment ……
$ 500
Accounts payable …………………………………..
$ 2,200
3,000
Interest payable ……………………………………..
100
Salaries and wages payable ……………………
11,000
Income taxes payable …………………………….
1,200
Unearned service revenue ………………………
2,000
2,000
Notes payable …………………………………………
20,000
20,000
Common stock ………………………………………
53,600
Retained earnings ………………………………….
2,000
2,000
Service revenue ……………………………………..
39,120
39,120
Salaries and wages expense …………………..
22,000
Rent expense …………………………………………
4,000
Advertising expense ………………………………
2,200
Supplies expense …………………………………..
1,250
Utilities expense …………………………………….
800
Depreciation expense …………………………….
500
Insurance expense …………………………………
300
Interest expense …………………………………….
100
Income tax expense ……………………………….
1,200
$132,520
$132,520
ACR 4-4 (Continued)
(g)
(1)
GREEN RIVER COMPUTER CONSULTANTS
Income Statement
For the Month Ended July 31, 2017
Revenues
Service revenue …………………………………….. $39,120
Expenses
Salaries and wages expense …………………… $22,000
Rent expense …………………………………………. 4,000
(2)
GREEN RIVER COMPUTER CONSULTANTS
Retained Earnings Statement
For the Month Ended July 31, 2017
ACR 4-4 (Continued)
(g) (Continued)
(3)
GREEN RIVER COMPUTER CONSULTANTS
Balance Sheet
July 31, 2017
Assets
Current assets
Cash ………………………………………………….. $52,630
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ………………………………. $ 3,000
Salaries and wages payable ……………….. 11,000
Interest payable …………………………………. 100
Income tax payable ……………………………. 1,200