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).
31 Insurance Expense 57 1,800
Prepaid Insurance 14 1,800
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
Accumulated Depreciation—Equipment 33,350
Trucks 60,000
Accumulated Depreciation—Trucks 21,200
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
Rent expense 10,600
Kaya Tarango, capital, April 1, 2015 $ 96,000
Net income for the year $51,150
LAKOTA FREIGHT CO.
Income Statement
For the Year Ended March 31, 2016
LAKOTA FREIGHT CO.
Statement of Owner’s Equity
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
Supplies 7,500 Wages payable 600
Prepaid insurance 1,800 Total liabilities $4,600
LAKOTA FREIGHT CO.
Balance Sheet
March 31, 2016
Assets Liabilities
6. Page 27
Post.
Ref. Debit Credit
2016
Mar. 31 Service Revenue 41 160,000
Income Summary 33 160,000
31 Income Summary 33 108,850
Wages Expense 51 45,600
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
Accounts Receivable 12 20,800
2 Prepaid Insurance 16 4,500
Cash 11 4,500
4Cash 11 5,500
Unearned Fees 23 5,500
5 Office Equipment 18 6,500
Accounts Payable 21 6,500
6Cash 11 15,300
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 9,450
26 Cash 11 12,000
Accounts Receivable 12 12,000
27 Salary Expense 51 1,750
Cash 11 1,750
29 Miscellaneous Expense 59 325
Cash 11 325
31 Miscellaneous Expense 59 675
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
July 1 1 13,500 13,500
1 1 4,800 8,700
17 29,450 27,100
18 2600 26,500
24 24,000 30,500
26 212,000 42,500
31 212,500 32,450
Account No. 12
Post.
Item Ref. Debit Credit Debit Credit
Account No. 14
Post.
Item Ref. Debit Credit Debit Credit
2016
Account:
Supplies
Cash
Account:
Account:
Accounts Receivable
Balance
Date
Date
Balance
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 15
Post.
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
Account No. 21
Post.
Item Ref. Debit Credit Debit Credit
2016
Account No. 22
Post.
Item Ref. Debit Credit Debit Credit
Balance
Prepaid Rent
Account:
Balance
Date
Account: Office Equipment
Balance
Date
Account: Accumulated Depreciation
Balance
Date
Account: Accounts Payable
Balance
Date
Account: Salaries Payable
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 23
Post.
Item Ref. Debit Credit Debit Credit
2016
July 4 1 5,500 5,500
Account No. 32
Post.
Item Ref. Debit Credit Debit Credit
2016
July 31 212,500 12,500
31 Closing 4 12,500 — —
Account No. 33
Account: Steffy Lopez, Drawing
Account: Income Summary
Unearned Fees
Account:
Balance
Date
Date
Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (Continued)
Account No. 41
Post.
Item Ref. Debit Credit Debit Credit
2016
July 12 113,300 13,300
17 29,450 22,750
Account No. 51
Post.
Item Ref. Debit Credit Debit Credit
2016
July 14 11,750 1,750
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: Rent Expense
Balance
Date
Account: Supplies Expense
Date
Balance
Salary Expense
Account:
Account: Fees Earned
Balance
Date
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–5A (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
July 10 1400 400
Balance
Date
Account: Miscellaneous Expense
Balance
Date
Account: Depreciation Expense
Balance
Date
Account: Insurance Expense
3.
Debit Credit
Balances Balances
Cash 32,450
Accounts Receivable 16,450
Supplies 3,800
Unadjusted Trial Balance
July 31, 2016
DIAMOND CONSULTING
5. Optional (Appendix)
Account Title Debit Credit Debit Credit Debit Credit Debit Credit
Cash 32,450 32,450 32,450
Accounts Receivable 16,450 16,450 16,450
Supplies 3,800 (b) 2,275 1,525 1,525
Prepaid Rent 4,800 (e) 2,400 2,400 2,400
Prepaid Insurance 4,500 (a) 375 4,125 4,125
Office Equipment 14,000 14,000 14,000
DIAMOND CONSULTING
End-of-Period Spreadsheet (Work Sheet)
For the Month Ended July 31, 2016
BalanceUnadjusted Adjusted Income
SheetTrial Balance
Debit Credit
Trial Balance StatementAdjustments
6. Page 3
Post.
Ref. Debit Credit
2016
July 31 Insurance Expense 55 375
Prepaid Insurance 16 375
Insurance expired.
31 Supplies Expense 53 2,275
Supplies 14 2,275
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
Supplies 1,525
Prepaid Rent 2,400
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
Rent expense 2,400
Supplies expense 2,275
Steffy Lopez, capital, July 1, 2016 $ 0
Investments during month $45,000
Net income 33,475
DIAMOND CONSULTING
Statement of Owner’s Equity
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)
Current assets: Current liabilities:
Cash $32,450 Accounts payable $1,300
Accounts receivable 16,450 Salaries payable 175
Supplies 1,525 Unearned fees 2,750
DIAMOND CONSULTING
Balance Sheet
July 31, 2016
Assets Liabilities
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 33 44,350
31 Income Summary 33 10,875
10.
Debit Credit
Balances Balances
Cash 32,450
Accounts Receivable 16,450
Supplies 1,525
Prepaid Rent 2,400
JOURNAL
July 31, 2016
Closing Entries
Date
DIAMOND CONSULTING
Post-Closing Trial Balance
CHAPTER 4 Completing the Accounting Cycle
Prob. 4–1B
1.
Revenues:
Fees earned $283,750
Rent revenue 3,000
Total revenues $286,750
Expenses:
Salaries and wages expense $147,000
Advertising expense 86,800
2.
Tami Garrigan, capital, July 1, 2015 $361,300
Net loss for the year $12,025
LAST CHANCE COMPANY
Statement of Owner’s Equity
For the Year Ended June 30, 2016
LAST CHANCE COMPANY
Income Statement
For the Year Ended June 30, 2016