Beruflich Dokumente
Kultur Dokumente
Statements
QS 4-2
Identifying the accounting cycle
List the following steps of the accounting cycle in their proper order:
a. Preparing the post-closing trial balance.
b. Posting the journal entries.
c. Journalizing and posting adjusting entries.
d. Preparing the adjusted trial balance.
e. Journalizing and posting closing entries.
f. Analyzing transactions and events.
g. Preparing the financial statements.
h. Preparing the unadjusted trial balance.
i. Journalizing transactions and events
SOLUTION
1.
2.
3.
4.
5.
6.
7.
8.
9.
(f)
(i)
(b)
(h)
(c)
(d)
(g)
(e)
(a)
Analyzing transactions.
Journalizing transactions.
Posting the journal entries.
Preparing the unadjusted trial balance.
Journalizing and posting adjusting entries.
Preparing the adjusted trial balance.
Preparing the financial statements.
Journalizing and posting closing entries.
Preparing the post-closing trial balance.
Exercise 4-4
Accumulated depreciationTrucks . . . . . . . .
35,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
Accounts payable . . . . . . . . . . . . . . . . . . . . .
11,000
Interest payable . . . . . . . . . . . . . . . . . . . . . .
3,000
Long-term notes payable . . . . . . . . . . . . . . .
52,000
K.Webb, Capital . . . . . . . . . . . . . . . . . . . . .
161,000
K.Webb, Withdrawals . . . . . . . . . . . . . . . . . 19,000
Trucking fees earned . . . . . . . . . . . . . . . . . .
128,000
Depreciation expenseTrucks . . . . . . . . . . . 22,500
Salaries expense . . . . . . . . . . . . . . . . . . . . . 60,000
Office supplies expense . . . . . . . . . . . . . . . . 7,000
Repairs expenseTrucks . . . . . . . . . . . . . . . 11,000
______
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $390,000
$390,000
$170,000
(35,000)
7,000
16,500
2,000
25,500
135,000
75,000
210,000
$235,500
Current liabilities
Accounts payable.........................................................
Interest payable............................................................
Total current liabilities................................................
Long-term notes payable...............................................
Total liabilities................................................................
$ 11,000
3,000
14,000
52,000
66,000
Equity
K. Webb, Capital ..........................................................
Total liabilities and equity.............................................
169,500
$235,500
27,500
Exercise 4-5
Use the information in the adjusted trial balance reported in Exercise 4-4 to
prepare Webb Trucking Companys (1) income statement, and (2) statement
of owners equity. The K. Webb, Capital account balance is $161,000 at
December 31, 2004.
$128,000
100,500
Net income..................................................................................
$ 27,500
$161,000
27,500
188,500
(19,000)
$169,500