3.
Current assets: Current liabilities:
Cash $ 5,100 Accounts payable $ 9,750
Land $ 80,000
Building $340,000
Less accum. depreciation 193,000 147,000 Common stock $ 90,000
LAST CHANCE COMPANY
Balance Sheet
June 30, 2016
Assets Liabilities
Stockholders’ Equity
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1B (Concluded)
4. 2016
June 30 Fees Earned 283,750
Rent Revenue 3,000
Income Summary 286,750
30 Income Summary 298,775
30 Retained Earnings 12,025
Income Summary 12,025
5.
Debit Credit
Balances Balances
Accumulated Depreciation—Building 193,000
Equipment 140,000
Accumulated Depreciation—Equipment 59,000
Accounts Payable 9,750
LAST CHANCE COMPANY
Post-Closing Trial Balance
June 30, 2016
1.
Revenues:
Service fees $468,000
Utilities expense 8,500
Depreciation expense—buildings 6,600
Retained earnings, November 1, 2015 $195,000
THE GORMAN GROUP
Retained Earnings Statement
For the Year Ended October 31, 2016
THE GORMAN GROUP
Income Statement
For the Year Ended October 31, 2016
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2B (Continued)
Current assets: Current liabilities:
Cash $ 11,000 Accounts payable $33,300
Accounts receivable 28,150 Salaries payable 3,300
THE GORMAN GROUP
Balance Sheet
October 31, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–2B (Concluded)
2. 2016
Oct. 31 Service Fees 468,000
Rent Revenue 5,000
Income Summary 473,000
31 Income Summary 360,000
Salaries Expense 291,000
Depreciation Expense—Equipment 17,500
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B
1., 3., and 6.
Aug. 31 Bal. 3,800
Aug. 31 Bal. 9,000 Aug. 31 Adj. 7,000
31 Adj. Bal. 2,000
Aug. 31 Bal. 180,800
Aug. 31 Bal. 49,200
31 Adj. 8,150
31
A
dj. Bal. 57,350
Aug. 31 Bal. 15,000
Aug. 31 Clos. 2,400 Aug. 31 Bal. 80,000
31 Clos. 27,350
31 Bal. 104,950
Cash
Laundry Supplies
Laundry Equipment
Accumulated Depreciation
Retained Earnings
Common Stock
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
Aug. 31 Clos. 220,650 Aug. 31 Clos. 248,000
Clos. 27,350
Aug. 31 Bal. 43,200 Aug. 31 Clos. 43,200
Aug. 31 Bal. 16,000 Aug. 31 Clos. 16,000
Income Summary
Rent Expense
Utilities Expense
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 3,800 3,800 3,800
Laundry Supplies 9,000 (c) 7,000 2,000 2,000
Prepaid Insurance 6,000 (d) 5,300 700 700
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
LA MESA LAUNDRY
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended August 31, 2016
BalanceUnadjusted Adjusted Income
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
3.
2016
Aug. 31 Wages Expense 2,200
Wages Payable 2,200
Accrued wages.
4.
Debit Credit
Balances Balances
Cash 3,800
Laundry Supplies 2,000
Laundry Revenue 248,000
Wages Expense 138,000
Rent Expense 43,200
Utilities Expense 16,000
LA MESA LAUNDRY
Adjusted Trial Balance
August 31, 2016
Adjusting Entries
5.
Laundry revenue $248,000
Retained earnings, September 1, 2015 $ 80,000
Net income for the year $27,350
Retained Earnings Statement
For the Year Ended August 31, 2016
LA MESA LAUNDRY
Income Statement
For the Year Ended August 31, 2016
LA MESA LAUNDRY
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Continued)
Current assets: Current liabilities:
LA MESA LAUNDRY
Balance Sheet
August 31, 2016
Assets Liabilities
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–3B (Concluded)
6.
2016
Aug. 31 Laundry Revenue 248,000
Income Summary 248,000
31 Income Summary 220,650
Wages Expense 138,000
Rent Expense 43,200
7.
Debit Credit
Balances Balances
Cash 3,800
LA MESA LAUNDRY
Post-Closing Trial Balance
August 31, 2016
Closing Entries
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B
1., 3., and 6.
Account No. 11
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Balance 13,100
Account No. 13
Post.
Item Ref. Debit Credit Debit Credit
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Balance 7,500
31 Adjusting 26 3,150 4,350
Account No. 16
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Balance 113,000
Account: Prepaid Insurance
Balance
Date
Account: Equipment
Balance
Date
Balance
Date
Date
Balance
Cash
Account:
Account: Supplies
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
Account No. 19
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Balance 27,100
31 Adjusting 26 4,000 31,100
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Adjusting 26 900 900
Account No. 31
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Balance 30,000
Date
Balance
Accumulated Depreciation—Trucks
Account:
Account: Wages Payable
Balance
Date
Account:
Common Stock
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
Account No. 34
Post.
Item Ref. Debit Credit Debit Credit
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Balance 155,000
31 Closing 27 155,000 — —
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Balance 72,000
31 Adjusting 26 900 72,900
31 Closing 27 72,900 — —
Income Summary
Account:
Account: Service Revenue
Balance
Date
Date
Balance
Balance
Date
Account: Wages Expense
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
Account No. 54
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Adjusting 26 5,250 5,250
31 Closing 27 5,250 — —
Account No. 56
Post.
Item Ref. Debit Credit Debit Credit
2016
Jan. 31 Adjusting 26 4,000 4,000
31 Closing 27 4,000 — —
Account: Depreciation Expense—Equipment
Balance
Date
Balance
Date
Account: Depreciation Expense—Trucks
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
2. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Trucks 90,000 90,000 90,000
Accum. Depr.—Trucks 27,100 (d) 4,000 31,100 31,100
Accounts Payable 4,500 4,500 4,500
Wages Payable (e) 900 900 900
Common Stock 30,000 30,000 30,000
Retained Earnings 96,400 96,400 96,400
Dividends 3,000 3,000 3,000
Service Revenue 155,000 155,000 155,000
Wages Expense 72,000 (e) 900 72,900 72,900
Rent Expense 7,600 7,600 7,600
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
RECESSIVE INTERIORS
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended January 31, 2016
BalanceUnadjusted Adjusted Income
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
3. Page 26
Post.
Ref. Debit Credit
2016
Jan. 31 Supplies Expense 55 5,150
Supplies 13 5,150
Date
Adjusting Entries
JOURNAL
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
4.
Debit Credit
Balances Balances
Cash 13,100
Supplies 2,850
Prepaid Insurance 4,350
Adjusted Trial Balance
January 31, 2016
RECESSIVE INTERIORS
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–4B (Continued)
5.
Service revenue $155,000
Expenses:
Wages expense $72,900
Rent expense 7,600
RECESSIVE INTERIORS
Income Statement
For the Year Ended January 31, 2016