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CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
Current assets: Current liabilities:
Cash $13,100 Accounts payable $4,500
RECESSIVE INTERIORS
Balance Sheet
January 31, 2016
Assets Liabilities
6. Page 27
Post.
Ref. Debit Credit
2016
Jan. 31 Service Revenue 41 155,000
Income Summary 33 155,000
7.
Debit Credit
Balances Balances
Cash
13,100
Supplies
2,850
Prepaid Insurance 4,350
JOURNAL
January 31, 2016
Closing Entries
Date
RECESSIVE INTERIORS
Post-Closing Trial Balance
1. and 2.
Page 1
Post.
Ref. Debit Credit
2016
Apr. 1 Cash 11 20,000
Accounts Receivable 12 14,700
Supplies 14 3,300
4Cash 11 9,400
Unearned Fees 23 9,400
5 Office Equipment 18 8,000
Accounts Payable 21 8,000
6Cash 11 11,700
Date
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Page 2
Post.
Ref. Debit Credit
2016
Apr. 17 Cash 11 6,600
Fees Earned 41 6,600
18 Supplies 14 725
Cash 11 725
Cash 11 540
30 Miscellaneous Expense 59 760
Cash 11 760
30 Cash 11 5,160
Fees Earned 41 5,160
Date
JOURNAL
2., 6., and 9.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 20,000 20,000
1 1 6,000 14,000
2 1 4,200 9,800
18 2725 28,375
24 24,450 32,825
26 226,500 59,325
30 218,000 43,535
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 14,700 14,700
6 1 11,700 3,000
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
2016
Balance
Date
Account:
Accounts Receivable
Balance
Date
Account:
Supplies
Date
Balance
Cash
Account:
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 15
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 18
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 12,000 12,000
5 1 8,000 20,000
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
Balance
Date
Account: Office Equipment
Account: Salaries Payable
Balance
Date
Prepaid Rent
Account:
Account: Prepaid Insurance
Balance
Date
Date
Balance
Balance
Date
Account: Accumulated Depreciation
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 1 1 50,000 50,000
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
Account No. 33
Post.
Item Ref. Debit Credit Debit Credit
2016
Unearned Fees
Account:
Account: Jeff Horton, Capital
Balance
Date
Balance
Date
Date
Balance
Account: Jeff Horton, Drawing
Balance
Date
Account: Income Summary
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 12 121,900 21,900
17 26,600 28,500
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 14 11,650 1,650
Account No. 52
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 53
Post.
Item Ref. Debit Credit Debit Credit
2016
Balance
Date
Account: Fees Earned
Balance
Date
Date
Balance
Salary Expense
Account:
Account: Supplies Expense
Balance
Date
Account: Rent Expense
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (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. 59
Post.
Item Ref. Debit Credit Debit Credit
2016
Apr. 10 1350 350
Balance
Date
Account: Insurance Expense
Balance
Date
Account: Depreciation Expense
Balance
Date
Account: Miscellaneous Expense
3.
Debit Credit
Balances Balances
Cash 43,535
Accounts Receivable 17,790
Supplies 4,025
Unadjusted Trial Balance
April 30, 2016
ROSEBUD CONSULTING
5. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 43,535 43,535 43,535
Accounts Receivable 17,790 17,790 17,790
Accounts Payable 1,600 1,600 1,600
Salaries Payable (d) 275 275 275
Unearned Fees 9,400 (f) 7,050 2,350 2,350
Jeff Horton, Capital 50,000 50,000 50,000
SheetTrial Balance
Debit Credit
Trial Balance
Income
StatementAdjustments
ROSEBUD CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended April 30, 2016
BalanceUnadjusted Adjusted
6. Page 3
Post.
Ref. Debit Credit
2016
Apr. 30 Insurance Expense 55 350
Supplies used ($4,025 – $1,225).
30 Depreciation Expense 54 400
Accumulated Depreciation 19 400
Equipment depreciation.
30 Salary Expense 51 275
Salaries Payable 22 275
Date
Adjusting Entries
JOURNAL
7.
Debit Credit
Balances Balances
Cash 43,535
Accounts Receivable 17,790
Supplies 1,225
Adjusted Trial Balance
April 30, 2016
ROSEBUD CONSULTING
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
8.
Fees earned $64,550
Expenses:
Salary expense $3,575
Supplies expense 2,800
Jeff Horton, capital, April 1, 2016 $ 0
Investment during month $ 50,000
Net income 53,775
ROSEBUD CONSULTING
Income Statement
For the Month Ended April 30, 2016
ROSEBUD CONSULTING
Statement of Owner’s Equity
For the Month Ended April 30, 2016
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5B (Continued)
Current assets: Current liabilities:
Cash $43,535 Accounts payable $1,600
Accounts receivable 17,790 Salaries payable 275
ROSEBUD CONSULTING
Balance Sheet
April 30, 2016
Assets Liabilities
9. Page 4
Post.
Ref. Debit Credit
2016
Apr. 30 Fees Earned 41 64,550
Income Summary 33 64,550
30 Income Summary 33 10,775
10.
Debit Credit
Balances Balances
Cash
43,535
Accounts Receivable 17,790
JOURNAL
April 30, 2016
Closing Entries
Date
ROSEBUD CONSULTING
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
1. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 9,945 9,945 9,945
Accounts Payable 8,350 8,350 8,350
Wages Payable (f) 140 140 140
Unearned Revenue 7,200 (e) 3,600 3,600 3,600
Peyton Smith, Capital 9,000 9,000 9,000
Peyton Smith, Drawing 1,750 1,750 1,750
Fees Earned 16,200 (a) 1,400 21,200 21,200
(e) 3,600
Music Expense 3,610 3,610 3,610
Wages Expense 2,800 (f) 140 2,940 2,940
Adjustments
For the Two Months Ended July 31, 2016
BalanceUnadjusted Adjusted
CONTINUING PROBLEM
SheetTrial Balance
Debit Credit
Trial Balance
Income
Statement
PS MUSIC
End-of-Period Spreadsheet (Work Sheet)
2.
Fees earned $21,200
Expenses:
Music expense $3,610
Wages expense 2,940
Office rent expense 2,550
Advertising expense 1,500
Peyton Smith, capital, June 1, 2016 $ 0
Investment during month $ 9,000
PS MUSIC
Statement of Owner’s Equity
For the Two Months Ended July 31, 2016
PS MUSIC
Income Statement
For the Two Months Ended July 31, 2016
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
Current assets: Current liabilities:
Cash $9,945 Accounts payable $8,350
Accounts receivable 4,150 Wages payable 140
PS MUSIC
Balance Sheet
July 31, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Continuing Problem (Continued)
3. Page 4
Post.
Ref. Debit Credit
2016
July 31 Fees Earned 41 21,200
Income Summary 33 21,200
31 Income Summary 33 16,245
Wages Expense 50 2,940
Office Rent Expense 51 2,550
Closing Entries
Date
JOURNAL
