PROBLEM 4-7A (Continued)
(e) 1.
Nov. 30 Supplies Expense ……………………………………. 1,320
2.
3.
4.
30 Unearned Service Revenue ………………………. 500
Service Revenue ……………………………….. 500
(g) SOHO EQUIPMENT REPAIR
Income Statement
For the Month Ended November 30, 2017
Revenues
Service revenue……………………………………….. ( $5,100)
Expenses
Salaries and wages expense …………………….. $2,080
SOHO EQUIPMENT REPAIR
Retained Earnings Statement
For the Month Ended November 30, 2017
Retained earnings, November 1 ………………………. $3,000
PROBLEM 4-7A (Continued)
SOHO EQUIPMENT REPAIR
Balance Sheet
November 30, 2017
Assets
Current assets
Cash …………………………………………………………… $ 3,840
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ……………………………………….. $ 4,700
Stockholders’ equity
Common stock ……………………………………………. 10,000
Retained earnings …………………………..………….. 3,970
ACCOUNTING CYCLE REVIEW 4-1
(a)
General Journal
Date
Account Titles
Debit
July 1
Cash …………………………………………………………..
Common Stock ……………………………………
12,000
3
Accounts Payable ………………………………..
900
5
Prepaid Insurance ………………………………………
Cash ……………………………………………………
1,800
12
Accounts Receivable ………………………………….
Service Revenue ………………………………….
3,700
18
Accounts Payable ……………………………………….
Cash ……………………………………………………
1,500
20
Salaries and Wages Expense ………………………
Cash ……………………………………………………
2,000
21
Cash …………………………………………………………..
Accounts Receivable …………………………..
1,600
25
Accounts Receivable ………………………………….
Service Revenue ………………………………….
2,500
31
Maintenance and Repairs Expense ……………..
Cash ……………………………………………………
290
31
Dividends …………………………………………………..
Cash ……………………………………………………
600
ACR 4-1 (Continued)
(b), (e) & (h)
Cash
7/1 12,000
7/21 1,600
7/31 600
7/31 Bal. 5,410
7/31 400
7/31 Bal. 400
7/1 2,000
7/5 1,800
7/18 1,500
Accounts Receivable
7/12 3,700
7/25 2,500
7/31 1,700
7/21 1,600
7/31 Bal. 6,300
7/3 900
7/31 580
7/31 Bal. 320
7/31 600
7/31 4,300
7/31 Bal. 3,700
Prepaid Insurance
7/5 1,800
7/31 150
7/31 Bal. 1,650
7/1 8,000
7/31 Bal. 8,000
7/31 Bal. 0
Accumulated Depreciation—
Equipment
7/31 180
7/31 Bal. 180
7/31 1,700
7/31 Bal. 0
Accounts Payable
7/18 1,500
7/1 6,000
7/3 900
7/31 Bal. 5,400
Common Stock
7/1 12,000
7/31 Bal. 12,000
Retained Earnings
Dividends
7/31 600
7/31 600
7/31 Bal. 0
Income Summary
Service Revenue
7/31 7,900
7/12 3,700
ACR 4-1 (Continued)
Maintenance and Repairs
Expense
7/31 290
7/31 290
7/31 Bal. 0
7/31 580
7/31 580
7/31 Bal. 0
7/31 180
7/31 180
7/31 Bal. 0
7/31 Bal. 0
Insurance Expense
7/31 150
7/31 150
7/31 Bal. 0
Salaries and Wages Expense
ACR 4-1 (Continued)
(c) & (f) KLEENE WINDOW WASHING INC.
Trial Balance
July 31, 2017
Before
Adjustment
After
Adjustment
Debit
Credit
Debit
Credit
Cash …………………………………………….
Accounts Receivable …………………….
Accumulated Depreciation—
Equipment ………………………………..
Accounts Payable …………………………
Salaries and Wages Payable …………
$ 5,410
4,600
$ 5,400
$ 5,410
6,300
$ 180
5,400
400
ACR 4-1 (Continued)
(d)
General Journal
Date
Account Titles
Debit
Credit
2.
31
Depreciation Expense ………………………………..
Accumulated Depreciation—Equipment ….
180
180
3.
31
Insurance Expense ($1,800 X 1/12) ……………..
Prepaid Insurance ………………………………..
150
150
4.
31
Supplies Expense ($900 – $320)………………….
Supplies ……………………………………………….
580
580
5.
31
Salaries and Wages Expense ……………………..
Salaries and Wages Payable …………………
400
400
(g) KLEENE WINDOW WASHING INC.
Income Statement
For the Month Ended July 31, 2017
Revenues
Service revenue…………………………………………. $7,900
Expenses
Salaries and wages expense ………………………. $2,400
Supplies expense ………………………………………. 580
ACR 4-1 (Continued)
(g) KLEENE WINDOW WASHING INC.
Retained Earnings Statement
For the Month Ended July 31, 2017
Retained earnings, July 1 ………………………………… $ 0
Add: Net income …………………………………………… 4,300
KLEENE WINDOW WASHING INC.
Balance Sheet
July 31, 2017
Assets
Current assets
Cash ………………………………………………………… $ 5,410
Accounts receivable …………………………………. 6,300
Supplies …………………………………………………… 320
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable …………………………………….. $ 5,400
Salaries and wages payable ……………………… 400
Total current liabilities ……………………….. $ 5,800
Stockholders’ equity
ACR 4-1 (Continued)
(h)
General Journal
Date
Account Titles and Explanation
Debit
July 31
Service Revenue ……………………………………….
Income Summary ……………………………….
7,900
Insurance Expense …………………………….
31
Income Summary ………………………………………
Retained Earnings ……………………………..
4,300
31
Retained Earnings …………………………………….
Dividends …………………………………………..
600
(i) KLEENE WINDOW WASHING INC.
Post-Closing Trial Balance
July 31, 2017
Debit
Credit
Cash ……………………………………………………………
Accounts Receivable ……………………………………
Supplies ………………………………………………………
$ 5,410
6,300
320
ACCOUNTING CYCLE REVIEW 4-2
(a)
General Journal
Date
Account Titles
Debit
Credit
Mar. 1
Cash …………………………………………………………..
Common Stock …………………………………….
15,000
15,000
1
Cash …………………………………………………………..
Notes Payable …………………………..………….
6,000
6,000
1
Equipment ………………………………………………….
Cash ……………………………………………………
8,000
8,000
2
Prepaid Rent ……………………………………………….
Cash ……………………………………………………
3
Prepaid Insurance ……………………………………….
Cash ……………………………………………………
2,400
2,400
6
Supplies ……………………………………………………..
Accounts Payable ………………………………..
2,000
2,000
14
Accounts Receivable …………………………………..
Service Revenue ………………………………….
3,700
3,700
18
Accounts Payable …………………………..…………..
Cash ……………………………………………………
500
500
20
Salaries and Wages Expense ………………………
Cash ……………………………………………………
1,750
1,750
21
Cash …………………………………………………………..
Accounts Receivable …………………………..
1,600
1,600
28
Accounts Receivable …………………………………..
Service Revenue ………………………………….
4,200
4,200
31
Maintenance and Repairs Expense ………………
Cash ……………………………………………………
Cash ……………………………………………………
ACR 4-2 (Continued)
(b), (e) & (h)
Cash
3/1 15,000
3/1 6,000
3/21 1,600
3/31 Bal. 7,200
3/1 6,000
3/31 Bal. 6,000
3/1 8,000
3/2 1,500
3/3 2,400
Accounts Receivable
3/31 Bal. 6,500
3/6 2,000
3/31 1,720
3/31 Bal. 280
3/31 1,080
3/31 Bal. 1,080
3/31 30
3/14 3,700
3/28 4,200
3/21 1,600
Prepaid Rent
3/2 1,500
3/31 500
3/31 Bal. 1,000
Prepaid Insurance
3/3 2,400
3/31 400
3/31 Bal. 2,000
3/31 Bal. 15,000
3/31 900
3/31 2,020
3/31 Bal. 1,120
Equipment
3/1 8,000
3/31 Bal. 8,000
3/31 900
3/31 900
3/31 Bal. 0
Accumulated Depreciation—
Equipment
3/31 250
3/31 Bal. 250
Accounts Payable
3/18 500
3/6 2,000
3/31 Bal. 1,500
3/31 Bal. 30
Common Stock
3/1 15,000
Dividends
ACR 4-2 (Continued)
Income Summary
3/31 6,080
3/31 2,020
3/31 8,100
3/31 Bal. 0
3/31 400
3/31 Bal. 0
3/31 200
3/31 Bal. 0
Maintenance and Repairs
Expense
3/31 350
3/31 350
3/31 Bal. 0
3/31 1,720
3/31 1,720
3/31 Bal. 0
3/31 500
3/31 500
3/31 Bal. 0
3/31 30
3/31 30
3/31 Bal. 0
Depreciation Expense
3/31 250
3/31 250
3/31 Bal. 0
Salaries and Wages Expense
3/20 1,750
3/31 1,080
3/31 2,830
3/31 Bal. 0
ACR 4-2 (Continued)
(c) & (f) LARS CLEANERS
Trial Balance
March 31, 2017
Before
Adjustment
After
Adjustment
Debit
Credit
Debit
Credit
Cash ……………………………………………….
Accounts Receivable ………………………
Accumulated Depreciation—
Equipment ……………………………………
Notes Payable …………………………………
Accounts Payable …………………………..
Salaries and Wages Payable ……………
Interest Payable ………………………………
Common Stock ……………………………….
$ 7,200
6,300
$ 6,000
1,500
15,000
$ 7,200
6,500
$ 250
6,000
1,500
1,080
30
15,000
ACR 4-2 (Continued)
(d)
General Journal
Date
Account Titles
Debit
Credit
1.
March 31
Accounts Receivable …………………………
Service Revenue ………………………..
200
200
2.
31
250
Depreciation Expense ……………………….
250
3.
31
Insurance Expense …………………………..
400
4.
31
Supplies Expense ……………………………..
Supplies ($2,000 – $280) ……………..
1,720
1,720
5.
31
Salaries and Wages Expense …………….
Salaries and Wages Payable ……….
1,080
1,080
7.
31
Interest Expense …………………………..…..
30
ACR 4-2 (Continued)
(g) LARS CLEANERS
Income Statement
For the Month Ended March 31, 2017
Revenues
Service revenue…………………………………………. $8,100
Expenses
Salaries and wages expense ………………………. $2,830
Supplies expense ………………………………………. 1,720
LARS CLEANERS
Retained Earnings Statement
For the Month Ended March 31, 2017
Retained earnings, March 1 …………………………….. $ 0
Add: Net income …………………………………………… 2,020
ACR 4-2 (Continued)
LARS CLEANERS
Balance Sheet
March 31, 2017
Assets
Current assets
Cash ………………………………………………………… $7,200
Accounts receivable …………………………………. 6,500
Property, plant, and equipment
Equipment ……………………………………………….. 8,000
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable ………………………………………….. $ 6,000
Accounts payable …………………………………….. 1,500
Stockholders’ equity
Common stock …………………………………………. 15,000
ACR 4-2 (Continued)
(h)
General Journal
Date
Account Titles and Explanation
Debit
Mar. 31
Service Revenue …………………………………………
Income Summary …………………………………
8,100
ACR 4-2 (Continued)
(i) LARS CLEANERS
Post-Closing Trial Balance
March 31, 2017
Debit
Credit
Cash ……………………………………………………………
Accounts Receivable ……………………………………
Supplies ………………………………………………………
Prepaid Rent ………………………………………………..
$ 7,200
6,500
280
1,000
ACCOUNTING CYCLE REVIEW 4-3
(a), (c) & (e)
Cash
8/29 780
8/20 2,000
8/25 2,900
8/31 Bal. 2,020
8/31 Bal. 12,000
8/1 Bal. 6,040
8/5 1,200
8/1 400
8/3 380
Accounts Receivable
8/1 Bal. 2,910
8/27 3,760
8/5 1,200
8/31 Bal. 5,470
8/1 Bal. 4,000
8/31 Bal. 4,000
8/31 Bal. 20
8/31 Bal. 3,100
8/31 800
8/1 Bal. 1,260
Supplies
8/1 Bal. 1,030
8/22 800
8/31 870
8/31 Bal. 960
8/31 200
8/31 Bal. 200
8/10 1,420
8/1 Bal. 1,420
8/31 1,540
8/31 Bal. 1,540
8/31 Bal. 12,000
Equipment
8/1 Bal. 10,000
8/15 2,000
Equipment
8/1 Bal. 600
8/31 320
8/31 Bal. 920
Accounts Payable
8/20 2,000
8/1 Bal. 2,300
8/31 Bal. 1,240
Salaries and Wages Payable
ACR 4-3 (Continued)
Retained Earnings
8/31 530
8/1 Bal. 6,400
8/31 Bal. 5,870
Income Summary
8/31 7,910
8/31 7,380
8/31 530
8/31 Bal. 0
8/31 Bal. 0
8/31 20
8/31 20
8/31 Bal. 0
8/31 Bal. 0
8/31 380
8/31 Bal. 0
8/31 200
8/31 Bal. 0
Depreciation Expense
8/31 320
8/31 320
8/31 Bal. 0
Supplies Expense
8/31 870
8/31 870
8/31 Bal. 0