SMCH 05

The Accounting Cycle Completed: Adjusting, Closing, and The Post-Closing Trial Balance
ANSWERS TO DISCUSSION QUESTIONS 1. 2. 3. 4. 5. 6.
7. 8. 9. 10.
Only the balances in the original trial balance are found in the general ledger. At this point, no adjustments have been journalized or posted. Adjusting entries must be journalized because the ledger needs to be brought up to date before the beginning of the next accounting cycle. Reject. Closing cleans up the ledger so that only permanent accounts have a balance carried into the next accounting period. All temporary accounts are zero, which will, in the next period, allow accumulation of new data about revenue, expenses, and withdrawals. Temporary accounts have no balances carried forward to the new accounting period. The two major goals of the closing process are to update the Capital account in the ledger and clear all temporary accounts in the ledger to a zero balance. The four steps of closing are as follows: A. Revenue closed to Income Summary. B. Expenses closed to Income Summary. C. Balance in Income Summary transferred to Capital. D. Withdrawals directly closed to Capital. Income Summary summarizes revenue and expenses in the closing process. It is a temporary account located in the general ledger. All closing entries can be prepared from the worksheet. Note: The Income Summary account is not located on the worksheet. Assets, contra assets, liabilities, and the ending figure for capital are listed on a post-closing trial balance. Disagree; closing entries are usually prepared at the end of the fiscal year.
111
SOLUTIONS TO CHAPTER 5 MINI EXERCISES 1.

GENERAL JOURNAL PR 510 115 514 116 512 119 516 210 Dr. 4 P. 3 Cr. 4 3 3 7 7 4 4 514
Dec. 31
Insurance Exp. Prepaid Insurance Supplies Exp. Store Supplies Dep. Exp., Store Equip. Acc. Dep., Store Equip Salaries Exp. Salaries Payable 210
31
31
31
Prepaid Ins. 12
115
Salaries Payable
Supplies Exp. 12/31 GJ3 3
12/31 GJ3 4 Ins. Exp. 12/31 GJ3 4
12/31 GJ3 4 510
Store Supplies 116 15 12/31 GJ3 3
Acc. Dep., Store Equip.119 12 12/31 GJ3 7
Dep. Exp., Store Equip.512 12/31 GJ3 7
Salaries Exp. 7 12/31 GJ3 4
516
2.
Step 1: Revenue is closed to Income Summary. Step 2: Expenses (each individual one) are closed to Income Summary. Step 3: Balance in Income Summary (Net Income) is closed to Capital. Step 4: Withdrawals are closed directly to Capital.
3.
Dec. 31 Taxi Fees Income Summary Income Summary Gas Expense Advertising Expense Dep. Expense, Taxi Income Summary Mel Blanc, Capital Mel Blanc, Capital Mel Blanc, Withdrawals 112 18 18 15 5 4 6 3 3 6 6
31
31
31
4.
Income Summary 15 18 3 314
Temporary balance of $3 (Net Income) is cleared to capital by end of closing process. Income summary is a temporary account.
5.
Mel Blanc, Capital 6 30 3 27 310
113
SOLUTIONS TO EXERCISES 5-1. Account Titles and Description Adjusting Entries Dec. 31 Insurance Expense Prepaid Insurance 31 Office Supplies Expense Office Supplies 31 Depreciation Expense, Equipment Accumulated Depreciation, Equipment 31 Salaries Expense Salaries Payable 5-2.
TEMPORARY 1. 2. 3. 4. 5. 6. 7. Income Summary M. Bryant, Capital Salary Expense M. Bryant, Withdrawals Fees Earned Accounts Payable Cash X X X X X X X X X X PERMANENT WILL BE CLOSED X
Date 200X
PR
Dr. 7 0 0 00
Cr.
7 0 0 00 1 0 0 00 1 0 0 00 4 0 0 00 4 0 0 00 1 0 0 00 1 0 0 00
5-3. Account Titles and Description Closing Entries Dec. 31 Fees Earned Income Summary 31 Income Summary Rent Expense Wage Expense Insurance Expense Depreciation Expense, Office Equipment 31 Income Summary J. King, Capital 31 J. King, Capital J. King, Withdrawals Date 200X PR Dr. 33 0 0 0 00 33 0 0 0 00 14 1 0 0 00 5 0 0 0 7 0 0 0 1 2 0 0 9 0 0 18 9 0 0 00 18 9 0 0 00 4 0 0 0 00 4 0 0 0 00 00 00 00 00 Cr.
114
EXERCISES (CONTINUED) 5-4. Account Titles and Description Closing Entries Dec. 31 Salon Fees Income Summary 31 Income Summary Insurance Expense Wage Expense Rent Expense Depreciation Expense, Equipment 31 Income Summary M. Foster, Capital 31 M. Foster, Capital M. Foster, Withdrawals Date 200X PR Dr. 1 3 0 0 00 1 3 0 0 00 6 0 0 00 5 1 0 2 0 2 5 7 0 0 00 7 0 0 00 1 0 0 00 1 0 0 00 0 0 0 0 00 00 00 00 Cr.
5-5.
WEY CO. POST-CLOSING BALANCE DECEMBER 31, 200X Dr. Cr.
Cash Accounts Receivable Legal Supplies Office Equipment Accounts Payable P. Wey, Capital Totals
22 18 14 59
0 8 2 7
0 7 5 0
0 5 0 0
00 00 00 00 0 0 0 00 8 2 5 00 8 2 5 00
114
45 69 8 2 5 00 114
115
PROBLEM 5A-1
LOUS CONSULTING SERVICE WORKSHEET FOR MONTH ENDED JUNE 30, 200X Trial Balance Debit 20,000 6,500 400 1,500 3,000 1,900 11,000 12,800 300 9,000 1,400 1,000 600 34,700 (A) 300 (B) 800 (C) 100 (D) 200 1,400 1,400 35,000 34,700 300 800 100 200 35,000 4,400 4,600 9,000 9,000 30,600 9,000 30,600 300 800 100 200 26,000 4,600 30,600 600 1,000 (D) 200 1,600 9,000 1,600 1,000 600 300 9,000 12,800 300 11,000 (C) 100 2,000 3,000 (B) 800 700 (A) 300 100 6,500 20,000 Credit Debit Credit Debit Credit Debit Credit Debit 20,000 6,500 100 700 3,000 2,000 11,000 12,800 Adjustments Adjusted Trial Balance Income Statement Balance Sheet Credit
Account Titles
Cash
Accounts Receivable
Prepaid Insurance
Supplies
Equipment
Acc. Dep., Equip.
Accounts Payable
SOLUTIONS TO A PROBLEMS
116
L. Dobbs, Capital
L. Dobbs, Withdrawals
Consulting Fees Earned
Salaries Expense
Telephone Expense
Advertising Expense
Insurance Expense
Supplies Expense
Dep. Exp, Equip.
Salaries Payable
Net Income
PROBLEM 5A-1 (CONCLUDED) (2)

LOUS CONSULTING SERVICE GENERAL JOURNAL PAGE 3
Account Titles and Description Adjusting Entries Jun. 30 Insurance Expense Prepaid Insurance 30 Supplies Expense Supplies 30 Depreciation Expense, Equipment Accumulated Depreciation, Equipment 30 Salaries Expense Salaries Payable Closing Entries 30 Consulting Fees Earned Income Summary 30 Income Summary Salaries Expense Telephone Expense Advertising Expense Insurance Expense Supplies Expense Depreciation Expense, Equipment 30 Income Summary L. Dobbs, Capital 30 L. Dobbs, Capital L. Dobbs, Withdrawals
Date 200X
PR
Dr. 3 0 0 00
Cr.
3 0 0 00 8 0 0 00 8 0 0 00 1 0 0 00 1 0 0 00 2 0 0 00 2 0 0 00
9 0 0 0 00 9 0 0 0 00 4 4 0 0 00 1 6 0 1 0 0 6 0 3 0 8 0 1 0 4 6 0 0 00 4 6 0 0 00 3 0 0 00 3 0 0 00 0 0 0 0 0 0 00 00 00 00 00 00
117
PROBLEM 5A-2 (1)

POTTER CLEANING SERVICE GENERAL JOURNAL PAGE 2
Account Titles and Description Adjusting Entries Mar. 31 Insurance Expense Prepaid Insurance 31 Cleaning Supplies Expense Cleaning Supplies 31 Depreciation Expense, Auto Accumulated Depreciation, Auto 31 Salaries Expense Salaries Payable Closing Entries 31 Cleaning Fees Income Summary 31 Income Summary Salaries Expense Telephone Expense Advertising Expense Gas Expense Insurance Expense Cleaning Supplies Expense Depreciation Expense, Auto 31 Income Summary B. Potter, Capital 31 B. Potter, Capital B. Potter, Withdrawals
Date 200X
PR 517 114 518 115 519 122 513 213
Dr. 1 8 0 00
Cr.
1 8 0 00 1 0 0 00 1 0 0 00 1 5 0 00 1 5 0 00 1 6 0 00 1 6 0 00
412 314 314 513 514 515 516 517 518 519 314 312 312 313
4 6 8 0 00 4 6 8 0 00 2 6 5 0 00 1 6 2 1 1 1 1 1 2 0 3 0 00 2 0 3 0 00 4 6 0 00 4 6 0 00 0 6 9 6 8 0 5 0 4 6 0 0 0 0 00 00 00 00 00 00 00
118
PROBLEM 5A-2 (CONTINUED)

CASH ACCOUNT NO. 112
Balance Date 200X Explanation Mar. 31 Balance Post Ref. Debit Credit Debit 4 0 0 00 Credit
PREPAID INSURANCE
ACCOUNT NO. 114
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting Post Ref. GJ2 Debit Credit 1 8 0 00 Debit 5 2 0 00 3 4 0 00 Credit
CLEANING SUPPLIES
ACCOUNT NO. 115
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting Post Ref. GJ2 Debit Credit 1 0 0 00 Debit 1 4 4 00 4 4 00 Credit
AUTO
ACCOUNT NO. 121
Balance Date 200X Explanation Mar. 31 Balance Post Ref. Debit Credit Debit 2 7 2 0 00 Credit
ACCUMULATED DEPRECIATION, AUTO
ACCOUNT NO. 122
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting Post Ref. GJ2 Debit Credit 1 5 0 00 Debit Credit 8 6 0 00 1 0 1 0 00
119

ACCOUNTS PAYABLE ACCOUNT NO. 212
Balance Date 200X Explanation Mar. 31 Balance Post Ref. Debit Credit Debit Credit 2 2 4 00
SALARIES PAYABLE
ACCOUNT NO. 213
Balance Date 200X Explanation Mar. 31 Adjusting

B. POTTER, CAPITAL
Post Ref. GJ2
Debit
Credit 1 6 0 00
Debit
Credit 1 6 0 00
ACCOUNT NO. 312
Balance Date 200X Explanation Mar. 31 Balance 31 Closing 31 Closing Post Ref. GJ2 GJ2 Debit Credit 2 0 3 0 00 4 6 0 00
ACCOUNT NO. 313
Debit
Credit 5 4 0 00 2 5 7 0 00 2 1 1 0 00
B. POTTER, WITHDRAWALS
Balance Date 200X Explanation Mar. 31 Balance 31 Closing

INCOME SUMMARY
Post Ref. GJ2
Debit
Credit 4 6 0 00
Debit 4 6 0 00
Credit
ACCOUNT NO. 314
Balance Date 200X Explanation Mar. 31 Closing 31 Closing 31 Closing Post Ref. GJ2 GJ2 GJ2 Debit 2 6 5 0 00 2 0 3 0 00 Credit 4 6 8 0 00 Debit Credit 4 6 8 0 00 2 0 3 0 00
120

CLEANING FEES ACCOUNT NO. 412

SALARIES EXPENSE
Post Ref. GJ2
Debit 4 6 8 0 00
Credit
Debit
Credit 4 6 8 0 00
ACCOUNT NO. 513
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting 31 Closing

TELEPHONE EXPENSE
Post Ref. GJ2 GJ2
Debit 1 6 0 00
Credit
Debit 1 4 4 0 00 1 6 0 0 00
Credit
1 6 0 0 00
ACCOUNT NO. 514

ADVERTISING EXPENSE
Post Ref. GJ2
Debit
Credit 2 6 4 00
Debit 2 6 4 00
Credit
ACCOUNT NO. 515

GAS EXPENSE
Post Ref. GJ2
Debit
Credit 1 9 6 00
Debit 1 9 6 00
Credit
ACCOUNT NO. 516
Balance Date 200X Explanation Mar. 31 Balance 31 Closing Post Ref. GJ2 Debit Credit 1 6 0 00 Debit 1 6 0 00 Credit
121
PROBLEM 5A-2 (CONCLUDED)

INSURANCE EXPENSE ACCOUNT NO. 517
Balance Date 200X Mar. 31 31 Explanation Adjusting Closing Post Ref. GJ2 GJ2 Debit 1 8 0 00 Credit 1 8 0 00 Debit 1 8 0 00 Credit
CLEANING SUPPLIES EXPENSE
ACCOUNT NO. 518
DEPRECIATION EXPENSE, AUTO
ACCOUNT NO. 519
B. POTTER CLEANING SERVICE POST-CLOSING TRIAL BALANCE MARCH 31, 200X Dr. Cr.
Cash Prepaid Insurance Cleaning Supplies Auto Accumulated Depreciation, Auto Accounts Payable Salaries Payable B. Potter, Capital Totals
4 0 0 3 4 0 4 4 7 2 0
00 00 00 00 1 0 2 1 1 5 1 2 6 1 0 0 4 0 0 4 00 00 00 00 00
5 0 4 00
2 3
122
PROBLEM 5A-3
PETES PLOWING GENERAL JOURNAL PAGE 1
Date 200X Account Titles and Description Jan. 1 Cash Snow Equipment Pete Mack, Capital Owner Investment 1 Prepaid Rent Cash Rent Paid in Advance3 mo. 4 Office Equipment Accounts Payable Bought Equipment from Ling Corp. 6 Snow Supplies Cash Cash Purchases of Supplies 8 Cash Plowing Fees Cash Fees Earned 12 Pete Mack, Withdrawals Cash Cash Withdrawal 20 Accounts Receivable Plowing Fees Fees Earned on Account from North East 26 Salaries Expense Cash Paid Salaries
PR 111 123 311
Dr. 7 0 0 0 00 6 0 0 0 00
Cr.
13 0 0 0 00
114 111
2 0 0 0 00 2 0 0 0 00
121 211
7 2 0 0 00 7 2 0 0 00
115 111
7 0 0 00 7 0 0 00
111 15 0 0 0 00 411 15 0 0 0 00
312 111
1 0 0 0 00 1 0 0 0 00
112 411
5 0 0 0 00 5 0 0 0 00
511 111
1 8 0 0 00 1 8 0 0 00
123

Date 200X Account Titles and Description Jan. 28 Accounts Payable Cash Paid Ling 1/2 Amount Owed 29 Advertising Expense Accounts Payable Advertising Bill Received 30 Telephone Expense Cash Paid Telephone Bill Adjusting Entries 31 Snow Supplies Expense Snow Supplies 31 Rent Expense Prepaid Rent 31 Depreciation Expense, Office Equipment Accumulated Depreciation, Office Equip. 31 Depreciation Expense, Snow Equipment Accumulated Depreciation, Snow Equip. 31 Salaries Expense Salaries Payable
PR 211 111
Dr. 3 6 0 0 00
Cr. 3 6 0 0 00
512 211
9 0 0 00 9 0 0 00
513 111
2 1 0 00 2 1 0 00
515 115 514 114 516 122 517 124 511 212
3 0 0 00 3 0 0 00 6 0 0 00 6 0 0 00 1 2 0 00 1 2 0 00 1 0 0 00 1 0 0 00 1 9 0 00 1 9 0 00
Closing Entries 31 Plowing Fees Income Summary 411 20 0 0 0 00 313 20 0 0 0 00
124

Date 200X Account Titles and Description Jan. 31 Income Summary Salaries Expense Advertising Expense Telephone Expense Snow Supplies Expense Rent Expense Depreciation Expense, Office Equipment Depreciation Expense, Snow Equipment
PR 313 511 512 513 515 514 516 517
Dr. 4 2 2 0 00 19 9 2 3 6 1 1
Cr. 9 0 1 0 0 2 0 0 0 0 0 0 0 0 00 00 00 00 00 00 00
31 Income Summary Pete Mack, Capital 31 Pete Mack, Capital Pete Mack, Withdrawals
313 15 7 8 0 00 311 15 7 8 0 00 311 312 1 0 0 0 00 1 0 0 0 00
125

Balance Date 200X Jan. 1 1 6 8 12 26 28 30 Explanation Post Ref. Debit Credit GJ1 7 0 0 0 00 7 GJ1 2 0 0 0 00 5 GJ1 7 0 0 00 4 GJ1 15 0 0 0 00 19 GJ1 1 0 0 0 00 18 GJ1 1 8 0 0 00 16 GJ2 3 6 0 0 00 12 GJ2 2 1 0 00 12 Debit 0 00 0 00 3 00 3 00 3 00 5 00 9 00 6 90 Credit 00 00 00 00 00 00 00 00
ACCOUNTS RECEIVABLE
ACCOUNT NO. 112
Balance Date 200X Jan. 20 Explanation Post Ref. GJ1 Debit 5 0 0 0 00 Credit Debit 5 0 0 0 00 Credit
PREPAID RENT
ACCOUNT NO. 114
Balance Date 200X Explanation Jan. 1 31 Adjusting Post Ref. GJ1 GJ2 Debit 2 0 0 0 00 Credit Debit 2 0 0 0 00 6 0 0 00 1 4 0 0 00 Credit
SNOW SUPPLIES
ACCOUNT NO. 115
Balance Date 200X Explanation Jan. 6 31 Adjusting Post Ref. GJ1 GJ2 Debit 7 0 0 00 Credit 3 0 0 00 Debit 7 0 0 00 4 0 0 00 Credit
126

OFFICE EQUIPMENT ACCOUNT NO. 121
ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT
ACCOUNT NO. 122
Balance Date 200X Explanation Jan. 31 Adjusting Post Ref. GJ2 Debit Credit 1 2 0 00 Debit Credit 1 2 0 00
SNOW EQUIPMENT
ACCOUNT NO. 123
ACCUMULATED DEPRECIATION, SNOW EQUIPMENT
ACCOUNT NO. 124
Balance Date 200X Jan. 31 Explanation Adjusting Post Ref. GJ2 Debit Credit 1 0 0 00 Debit Credit 1 0 0 00
ACCOUNTS PAYABLE
ACCOUNT NO. 211
Balance Date 200X Jan. 4 28 29 Explanation Post Ref. GJ1 GJ2 GJ2 Debit 3 6 0 0 00 9 0 0 00 Credit 7 2 0 0 00 Debit Credit 7 2 0 0 00 3 6 0 0 00 4 5 0 0 00
127

SALARIES PAYABLE ACCOUNT NO. 212
PETE MACK, CAPITAL
ACCOUNT NO. 311
Balance Date 200X Explanation Jan. 1 31 Closing 31 Closing Post Ref. GJ1 GJ3 GJ3 Debit Credit 13 0 0 0 00 15 7 8 0 00 Debit Credit 13 0 0 0 00 28 7 8 0 00 27 7 8 0 00
1 0 0 0 00
PETE MACK, WITHDRAWALS
ACCOUNT NO. 312
Balance Date 200X Explanation Jan. 12 31 Closing Post Ref. GJ1 GJ3 Debit 1 0 0 0 00 Credit 1 0 0 0 00 Debit 1 0 0 0 00 Credit
INCOME SUMMARY
ACCOUNT NO. 313
Balance Date 200X Explanation Jan. 31 Closing 31 Closing 31 Closing Post Ref. Debit Credit GJ2 20 0 0 0 00 GJ3 4 2 2 0 00 GJ3 15 7 8 0 00 Debit Credit 20 0 0 0 00 15 7 8 0 00
PLOWING FEES
ACCOUNT NO. 411
Balance Date 200X Explanation Jan. 8 20 31 Closing Post Ref. Debit Credit GJ1 15 0 0 0 00 GJ1 5 0 0 0 00 GJ2 20 0 0 0 00 Debit Credit 15 0 0 0 00 20 0 0 0 00
128

SALARIES EXPENSE ACCOUNT NO. 511
Balance Date 200X Explanation Jan. 26 31 Adjusting 31 Closing Post Ref. GJ1 GJ2 GJ3 Debit 1 8 0 0 00 1 9 0 00 Credit Debit 1 8 0 0 00 1 9 9 0 00 Credit
1 9 9 0 00
ADVERTISING EXPENSE
ACCOUNT NO. 512
Balance Date 200X Explanation Jan. 29 31 Closing Post Ref. GJ2 GJ3 Debit 9 0 0 00 Credit 9 0 0 00 Debit 9 0 0 00 Credit
TELEPHONE EXPENSE
ACCOUNT NO. 513
Balance Date 200X Explanation Jan. 30 31 Closing Post Ref. GJ2 GJ3 Debit 2 1 0 00 Credit 2 1 0 00 Debit 2 1 0 00 Credit
RENT EXPENSE
ACCOUNT NO. 514
Balance Date 200X Explanation Jan. 31 Adjusting 31 Closing Post Ref. GJ2 GJ3 Debit 6 0 0 00 Credit 6 0 0 00 Debit 6 0 0 00 Credit
SNOW SUPPLIES EXPENSE
ACCOUNT NO. 515
129

DEPRECIATION EXPENSE, OFFICE EQUIPMENT ACCOUNT NO. 516
DEPRECIATION EXPENSE, SNOW EQUIPMENT
ACCOUNT NO. 517
130
PETES PLOWING WORKSHEET FOR MONTH ENDED JANUARY 31, 200X Trial Balance Debit 12,690 5,000 2,000 700 7,200 6,000 4,500 13,000 1,000 20,000 1,800 900 210 37,500 (A) 300 (B) 600 (C) 120 (C) 120 (D) 100 (D) 100 (E) 190 1,310 1,310 37,910 100 100 190 37,910 4,220 15,780 20,000 20,000 33,690 20,000 33,690 37,500 300 600 120 120 100 100 190 17,910 15,780 33,690 300 600 120 120 210 900 (E) 190 1,990 1,000 20,000 1,990 900 210 20,000 13,000 1,000 4,500 6,000 7,200 (A) 300 400 (B) 600 1,400 5,000 12,690 Credit Debit Credit Debit Credit Debit Credit Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit 12,690 5,000 1,400 400 7,200 6,000 4,500 13,000 Credit
PROBLEM 5A-3
Account Titles
Cash
Accounts Receivable
Prepaid Rent
Snow Supplies
Office Equipment
Snow Equipment
Accounts Payable
Pete Mack, Capital
Pete Mack, Withdrawals
131
Plowing Fees
Salaries Expense
Advertising Expense
Telephone Expense
Snow Supplies Expense
Rent Expense
Dep. Exp., Office Equip.
Acc. Dep., Office Equip.
Dep. Exp., Snow Equip.
Acc. Dep., Snow Equip.
Salaries Payable
Net Income

PETES PLOWING INCOME STATEMENT FOR MONTH ENDED JANUARY 31, 200X
Revenue: Plowing Fees Operating Expenses: Salaries Expense Advertising Expense Telephone Expense Snow Supplies Expense Rent Expense Depreciation Expense, Office Equipment Depreciation Expense, Snow Equipment Total Operating Expenses Net Income
$20 0 0 0 00
$1 9 9 2 3 6 1 1
9 0 1 0 0 2 0
0 0 0 0 0 0 0
00 00 00 00 00 00 00 4 2 2 0 00 $15 7 8 0 00
PETES PLOWING STATEMENT OF OWNERS EQUITY FOR MONTH ENDED JANUARY 31, 200X
Pete Mack, Capital, January 1, 200X Net Income for January Less: Withdrawals for January Increase in Capital Pete Mack, Capital, January 31, 200X
$13 0 0 0 00 $15 7 8 0 00 (1 0 0 0 00) 14 7 8 0 00 $27 7 8 0 00
132
PETES PLOWING BALANCE SHEET JANUARY 31, 200X LIABILITIES AND OWNERS EQUITY $12 6 9 0 00 5 0 0 0 00 1 4 0 0 00 4 0 0 00 7 0 8 0 00 5 9 0 0 00 Accounts Payable Salaries Payable Total Liabilities Owners Equity Pete Mack, Capital Liabilities $4 5 0 0 00 1 9 0 00 $4 6 9 0 00
PPROBLEM 5A-3 (CONTINUED)
ASSETS
Cash
133 $32 4 7 0 00
Accounts Receivable Prepaid Rent Snow Supplies Office Equipment Less: Acc. Dep. Snow Equipment Less: Acc. Dep. $7 2 (1 $6 0 (1 0 2 0 0 0 0 0 0 00 00) 00 00)
27 7 8 0 00
Total Assets
Total Liabilities and Owners Equity
$32 4 7 0 00
PROBLEM 5A-3 (CONCLUDED)

PETES PLOWING POST-CLOSING TRIAL BALANCE JANUARY 31, 200X Dr. Cr.
Cash Accounts Receivable Prepaid Rent Snow Supplies Office Equipment Accumulated Depreciation, Office Equipment Snow Equipment Accumulated Depreciation, Snow Equipment Accounts Payable Salaries Payable Pete Mack, Capital Totals
12 5 1 7 6
6 0 4 4 2
9 0 0 0 0
0 0 0 0 0
00 00 00 00 00 1 2 0 00
0 0 0 00 4 27 32 1 5 1 7 6 0 0 9 8 9 0 0 0 0 0 00 00 00 00 00
32
6 9 0 00
134
PROBLEM 5B-1
LOUS CONSULTING SERVICE WORKSHEET FOR MONTH ENDED JUNE 30, 200X Trial Balance Debit 10,150 5,000 700 300 12,950 4,000 5,750 15,150 400 5,200 450 70 80 30,100 (A) 100 (B) 280 (C) 200 (D) 490 1,070 1,070 30,790 30,100 100 280 200 490 30,790 1,670 3,530 5,200 5,200 29,120 5,200 29,120 100 280 200 (D) 490 940 70 80 400 5,200 940 70 80 5,200 5,750 15,150 400 (C) 200 4,200 12,950 (B) 280 20 (A) 100 600 5,000 10,150 Credit Debit Credit Debit Credit Debit Credit Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit 10,150 5,000 600 20 12,950
Account Titles
Credit
Cash
Accounts Receivable
Prepaid Insurance
Supplies
Equipment
Acc. Dep., Equip.
4,200 5,750 15,150
SOLUTIONS TO B PROBLEMS
135
Accounts Payable
L. Dobbs, Capital
L. Dobbs, Withdrawals
Consulting Fees Earned
Salaries Expense
Telephone Expense
Advertising Expense
Insurance Expense
Supplies Expense
Dep. Exp, Equip.
Salaries Payable
490 25,590 3,530 29,120
Net Income
PROBLEM 5B-1 (CONTINUED) (2)

LOUS CONSULTING SERVICE GENERAL JOURNAL PAGE 3
Date 200X Jun. 30
Account Titles and Description Adjusting Entries Insurance Expense Prepaid Insurance Supplies Expense Supplies Depreciation Expense, Equipment Accumulated Depreciation, Equipment Salaries Expense Salaries Payable Closing Entries Consulting Fees Earned Income Summary Income Summary Salaries Expense Telephone Expense Advertising Expense Insurance Expense Cleaning Supplies Expense Depreciation Expense, Auto Income Summary L. Dobbs, Capital L. Dobbs, Capital L. Dobbs, Withdrawals
PR
Dr. 1 0 0 00
Cr.
1 0 0 00 2 8 0 00 2 8 0 00 2 0 0 00 2 0 0 00 4 9 0 00 4 9 0 00
30
30
30
30
5 2 0 0 00 5 2 0 0 00 1 6 7 0 00 9 4 7 8 1 0 2 8 2 0 3 5 3 0 00 3 5 3 0 00 4 0 0 00 4 0 0 00 0 0 0 0 0 0 00 00 00 00 00 00
30
30
30
136
PROBLEM 5B-2 (1)

POTTER CLEANING SERVICE GENERAL JOURNAL PAGE 2
Account Titles and Description Adjusting Entries Mar. 31 Insurance Expense Prepaid Insurance 31 Cleaning Supplies Expense Cleaning Supplies 31 Depreciation Expense, Auto Accumulated Depreciation, Auto 31 Salaries Expense Salaries Payable Closing Entries 31 Cleaning Fees Income Summary 31 Income Summary Salaries Expense Telephone Expense Advertising Expense Gas Expense Insurance Expense Cleaning Supplies Expense Depreciation Expense, Auto 31 B. Potter, Capital Income Summary 31 B. Potter, Capital B. Potter, Withdrawals
Date 200X
PR 517 114 518 115 519 122 513 213
Dr. 2 0 0 00
Cr.
2 0 0 00 6 0 0 00 6 0 0 00 1 5 0 00 1 5 0 00 1 7 5 00 1 7 5 00
412 314 314 513 514 515 516 517 518 519 312 314 312 313
3 7 0 0 00 3 7 0 0 00 3 9 4 5 00 2 1 2 2 2 2 6 1 2 4 5 00 2 4 5 00 6 0 0 00 6 0 0 00 7 8 7 6 0 0 5 5 4 6 0 0 0 0 00 00 00 00 00 00 00
137
PROBLEM 5B-2 (CONTINUED)

Balance Date 200X Explanation Mar. 31 Balance

PREPAID INSURANCE
Post Ref.
Debit
Credit
Debit 1 7 2 4 00
Credit
ACCOUNT NO. 114
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting

CLEANING SUPPLIES
Post Ref. GJ2
Debit
Credit 2 0 0 00
Debit 3 5 0 00 1 5 0 00
Credit
ACCOUNT NO. 115
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting

AUTO
Post Ref. GJ2
Debit
Credit 6 0 0 00
Debit 8 0 0 00 2 0 0 00
Credit
ACCOUNT NO. 121
Balance Date 200X Explanation Mar. 31 Balance Post Ref. Debit Credit Debit 1 2 2 0 00 Credit
ACCUMULATED DEPRECIATION, AUTO
ACCOUNT NO. 122
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting Post Ref. GJ2 Debit Credit 1 5 0 00 Debit Credit 6 6 0 00 8 1 0 00
138

ACCOUNTS PAYABLE ACCOUNT NO. 212
Balance Date 200X Explanation Mar. 31 Balance Post Ref. Debit Credit Debit Credit 6 7 4 00
SALARIES PAYABLE
ACCOUNT NO. 213
Balance Date 200X Explanation Mar. 31 Adjusting

B. POTTER, CAPITAL
Post Ref. GJ2
Debit
Credit 1 7 5 00
Debit
Credit 1 7 5 00
ACCOUNT NO. 312
Balance Date 200X Explanation Mar. 31 Balance 31 Closing 31 Closing Post Ref. GJ2 GJ2 Debit 2 4 5 00 6 0 0 00
ACCOUNT NO. 313
Credit
Debit
Credit 2 4 8 0 00 2 2 3 5 00 1 6 3 5 00
B. POTTER, WITHDRAWALS

INCOME SUMMARY
Post Ref. GJ2
Debit
Credit 6 0 0 00
Debit 6 0 0 00
Credit
ACCOUNT NO. 314
Balance Date 200X Explanation Mar. 31 Closing 31 Closing 31 Closing Post Ref. GJ2 GJ2 GJ2 Debit 3 9 4 5 00 2 4 5 00 Credit 3 7 0 0 00 Debit 2 4 5 00 Credit 3 7 0 0 00
139

CLEANING FEES ACCOUNT NO. 412
Balance Date 200X Explanation Mar. 31 Balance 31 Closing Post Ref. GJ2 Debit 3 7 0 0 00
ACCOUNT NO. 513
Credit
Debit
Credit 3 7 0 0 00
SALARIES EXPENSE
Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting 31 Closing Post Ref. GJ2 GJ2 Debit 1 7 5 00 2 1 7 5 00 Credit Debit 2 0 0 0 00 2 1 7 5 00 Credit
TELEPHONE EXPENSE
ACCOUNT NO. 514
ADVERTISING EXPENSE
ACCOUNT NO. 515

GAS EXPENSE
Post Ref. GJ2
Debit
Credit 2 7 6 00
Debit 2 7 6 00
Credit
ACCOUNT NO. 516
140
PROBLEM 5B-2 (CONCLUDED)

INSURANCE EXPENSE ACCOUNT NO. 517
Balance Date 200X Explanation Mar. 31 Adjusting 31 Closing Post Ref. GJ2 GJ2 Debit 2 0 0 00 Credit 2 0 0 00
ACCOUNT NO. 518
Debit 2 0 0 00
Credit
CLEANING SUPPLIES EXPENSE
Balance Date 200X Explanation Mar. 31 Adjusting 31 Closing Post Ref. GJ2 GJ2 Debit 6 0 0 00 Credit 6 0 0 00
ACCOUNT NO. 519
Debit 6 0 0 00
Credit
DEPRECIATION EXPENSE, AUTO
Balance Date 200X Explanation Mar. 31 Adjusting 31 Closing Post Ref. GJ2 GJ2 Debit 1 5 0 00 Credit 1 5 0 00 Debit 1 5 0 00 Credit
POTTER CLEANING SERVICE POST-CLOSING TRIAL BALANCE MARCH 31, 200X Dr. Cr.
Cash Prepaid Insurance Cleaning Supplies Auto Accumulated Depreciation, Auto Accounts Payable Salaries Payable B. Potter, Capital Totals
7 1 2 2
2 5 0 2
4 0 0 0
00 00 00 00 8 6 1 6 2 1 7 7 3 9 0 4 5 5 4 00 00 00 00 00
2 9 4 00
1 3
141
PROBLEM 5B-3
Date 200X Account Titles and Description Jan. 1 Cash Snow Equipment Pete Mack, Capital Owner Investment 1 Prepaid Rent Cash Rent Paid in Advance5 mo. 4 Office Equipment Accounts Payable Bought Equipment from Russell Co. 6 Snow Supplies Cash Snow Supplies for Cash 8 Cash Plowing Fees Cash Fees Earned 12 Pete Mack, Withdrawals Cash Cash Withdrawal for Personal Use 20 Accounts Receivable Plowing Fees Fees on Account from Eastern Freight 26 Advertising Expense Accounts Payable Advertising Bill Incurred from Jones Co.
PR 111 123 311
Dr. 8 0 0 0 00 9 6 0 0 00
Cr.
17 6 0 0 00
114 111
3 0 0 0 00 3 0 0 0 00
121 211
6 0 0 0 00 6 0 0 0 00
115 111
3 5 0 00 3 5 0 00
111 411
7 0 0 0 00 7 0 0 0 00
312 111
7 0 00 7 0 00
112 411
6 5 0 0 00 6 5 0 0 00
512 211
3 5 0 00 3 5 0 00
142

Date 200X Account Titles and Description Jan. 28 Salaries Expense Cash Paid Salaries 28 Accounts Payable Cash Paid Russell 1/2 Amount Owed 29 Telephone Expense Cash Paid Telephone Bill Adjusting Entries 31 Snow Supplies Expense Snow Supplies 31 Rent Expense Prepaid Rent 31 Depreciation Expense, Office Equipment Accumulated Depreciation, Office Equip. 31 Depreciation Expense, Snow Equipment Accumulated Depreciation, Snow Equip. 31 Salaries Expense Salaries Payable
PR 511 111
Dr. 1 8 0 0 00
Cr. 1 8 0 0 00
211 111
3 0 0 0 00 3 0 0 0 00
513 111
1 6 5 00 1 6 5 00
515 115 514 114 516 122 517 124 511 212
1 5 0 00 1 5 0 00 6 0 0 00 6 0 0 00 1 2 5 00 1 2 5 00 4 0 0 00 4 0 0 00 3 0 0 00 3 0 0 00
Closing Entries 31 Plowing Fees Income Summary 411 13 5 0 0 00 313 13 5 0 0 00
143

Date 200X Account Titles and Description Jan. 31 Income Summary Salaries Expense Advertising Expense Telephone Expense Snow Supplies Expense Rent Expense Depreciation Expense, Office Equipment Depreciation Expense, Snow Equipment
PR 313 511 512 513 515 514 516 517
Dr. 3 8 9 0 00 2 1 3 1 1 6 1 4
Cr. 0 5 6 5 0 2 0 0 0 5 0 0 5 0 00 00 00 00 00 00 00
31 Income Summary Pete Mack, Capital 31 Pete Mack, Capital Pete Mack, Withdrawals
313 311 311 312
9 6 1 0 00 9 6 1 0 00 7 0 00 7 0 00
144

Balance Date 200X Jan. 1 1 6 8 12 26 28 29 Explanation Post Ref. GJ1 GJ1 GJ1 GJ1 GJ1 GJ2 GJ2 GJ2 Debit 8 0 0 0 00 Credit 3 0 0 0 00 3 5 0 00 7 0 0 0 00 7 1 80 3 00 16 0 0 0 5 00 00 00 00 8 5 4 11 11 9 6 6 Debit 0 00 0 00 6 50 6 50 5 80 7 80 7 80 6 15 Credit 00 00 00 00 00 00 00 00
ACCOUNTS RECEIVABLE
ACCOUNT NO. 112
PREPAID RENT
ACCOUNT NO. 114
Balance Date 200X Explanation Jan. 1 31 Adjusting Post Ref. GJ1 GJ2 Debit 3 0 0 0 00 Debit 3 0 0 0 00 6 0 0 00 2 4 0 0 00 Credit Credit
SNOW SUPPLIES
ACCOUNT NO. 115
Balance Date 200X Explanation Jan. 6 31 Adjusting Post Ref. GJ1 GJ2 Debit 3 5 0 00 Credit 1 5 0 00 Debit 3 5 0 00 2 0 0 00 Credit
145

OFFICE EQUIPMENT ACCOUNT NO. 121
ACCOUNT NO. 122
SNOW EQUIPMENT
ACCOUNT NO. 123
ACCUMULATED DEPRECIATION, SNOW EQUIPMENT
ACCOUNT NO. 124
ACCOUNTS PAYABLE
ACCOUNT NO. 211
Balance Date 200X Jan. 4 24 28 Explanation Post Ref. GJ1 GJ2 GJ2 Debit Credit 6 0 0 0 00 3 5 0 00 Debit Credit 6 0 0 0 00 6 3 5 0 00 3 3 5 0 00
3 0 0 0 00
146

SALARIES PAYABLE ACCOUNT NO. 212
Balance Date 200X Explanation Jan. 31 Adjusting

PETE MACK, CAPITAL
Post Ref. GJ2
Debit
Credit 3 0 0 00
Debit
Credit 3 0 0 00
ACCOUNT NO. 311
Balance Date 200X Explanation Jan. 1 31 Closing 31 Closing Post Ref. GJ1 GJ3 GJ3 Debit Credit 17 6 0 0 00 9 6 1 0 00 Debit Credit 17 6 0 0 00 27 2 1 0 00 27 1 4 0 00
7 0 00
PETE MACK, WITHDRAWALS
ACCOUNT NO. 312
Balance Date 200X Explanation Jan. 12 31 Closing Post Ref. GJ1 GJ3 Debit 7 0 00 Credit 7 0 00 Debit 7 0 00 Credit
INCOME SUMMARY
ACCOUNT NO. 313
Balance Date 200X Explanation Jan. 31 Closing 31 Closing 31 Closing Post Ref. GJ2 GJ3 GJ3 Debit 3 8 9 0 00 9 6 1 0 00 Credit 13 5 0 0 00 Debit Credit 13 5 0 0 00 9 6 1 0 00
PLOWING FEES
ACCOUNT NO. 411
Balance Date 200X Explanation Jan. 8 20 31 Closing Post Ref. Debit Credit GJ1 7 0 0 0 00 GJ1 6 5 0 0 00 GJ2 13 5 0 0 00 Debit Credit 7 0 0 0 00 13 5 0 0 00
147

SALARIES EXPENSE ACCOUNT NO. 511
Balance Date 200X Explanation Jan. 26 31 Adjusting 31 Closing

ADVERTISING EXPENSE
Post Ref. GJ1 GJ2 GJ3
Debit 1 8 0 0 00 3 0 0 00
Credit
Debit 1 8 0 0 00 2 1 0 0 00
Credit
2 1 0 0 00
ACCOUNT NO. 512
Balance Date 200X Explanation Jan. 24 31 Closing

TELEPHONE EXPENSE
Post Ref. GJ2 GJ3
Debit 3 5 0 00
Credit 3 5 0 00
Debit 3 5 0 00
Credit
ACCOUNT NO. 513
Balance Date 200X Explanation Jan. 29 31 Closing

RENT EXPENSE
Post Ref. GJ2 GJ3
Debit 1 6 5 00
Credit 1 6 5 00
Debit 1 6 5 00
Credit
ACCOUNT NO. 514
SNOW SUPPLIES EXPENSE
ACCOUNT NO. 515
148

DEPRECIATION EXPENSE, OFFICE EQUIPMENT ACCOUNT NO. 516
DEPRECIATION EXPENSE, SNOW EQUIPMENT
ACCOUNT NO. 517
149
PETES PLOWING WORKSHEET FOR THE MONTH ENDED JANUARY 31, 200X Trial Balance Debit 6,615 6,500 3,000 350 6,000 9,600 3,350 17,600 70 13,500 1,800 350 165 34,450 (A) 150 (B) 600 (C) 125 (C) 125 (D) 400 (D) 400 (E) 300 1,575 1,575 35,275 400 400 300 35,275 3,890 9,610 13,500 13,500 31,385 13,500 31,385 150 600 125 125 400 400 300 21,775 9,610 31,385 34,450 150 600 125 125 165 350 (E) 300 2,100 13,500 2,100 350 165 70 13,500 17,600 70 3,350 9,600 6,000 (A) 150 200 (B) 600 2,400 6,500 6,615 Credit Debit Credit Debit Credit Debit Credit Debit 6,615 6,500 2,400 200 6,000 9,600 3,350 17,600 Adjustments Adjusted Trial Balance Income Statement Balance Sheet Credit
Account Titles
Cash
Accounts Receivable
Prepaid Rent
Snow Supplies
Office Equipment
Snow Equipment
Accounts Payable
Pete Mack, Capital
Pete Mack, Withdrawals
150
Plowing Fees
Salaries Expense
Advertising Expense
Telephone Expense
Snow Supplies Expense
Rent Expense
Dep. Exp., Snow Equip.
Acc. Dep., Snow Equip.
Salaries Payable
Net Income

PETES PLOWING INCOME STATEMENT FOR MONTH ENDED JANUARY 31, 200X
Revenue: Plowing Fees Operating Expenses: Salaries Expense Advertising Expense Telephone Expense Snow Supplies Expense Rent Expense Depreciation Expense, Office Equipment Depreciation Expense, Snow Equipment Total Operating Expenses Net Income
$13 5 0 0 00
$2 1 3 1 1 6 1 4
0 5 6 5 0 2 0
0 0 5 0 0 5 0
00 00 00 00 00 00 00 3 8 9 0 00 $9 6 1 0 00
PETES PLOWING STATEMENT OF OWNERS EQUITY FOR MONTH ENDED JANUARY 31, 200X
Pete Mack, Capital, January 1, 200X Net Income for January Less: Withdrawals for January Increase in Capital Pete Mack, Capital, January 31, 200X
$17 6 0 0 00 $9 6 1 0 00 (7 0 00) 9 5 4 0 00 $27 1 4 0 00
151
PETES PLOWING BALANCE SHEET JANUARY 31, 200X LIABILITIES AND OWNERS EQUITY
ASSETS
152 5 8 7 5 00 9 2 0 0 00 $6 0 (1 $9 6 (4 0 2 0 0 0 5 0 0 00 00) 00 00) $30 7 9 0 00
$6 6 1 5 6 5 0 0 2 4 0 0 2 0 0
00 00 00 00
Liabilities Accounts Payable Salaries Payable Total Liabilities Owners Equity Pete Mack, Capital
$3 3 5 0 00 3 0 0 00 $3 6 5 0 00
Cash Accounts Receivable Prepaid Rent Snow Supplies Office Equipment Less: Acc. Dep. Snow Equipment Less: Acc. Dep.
27 1 4 0 00
Total Assets
$30 7 9 0 00

PETES PLOWING POST-CLOSING TRIAL BALANCE JANUARY 31, 200X Dr. Cr.
Cash Accounts Receivable Prepaid Rent Snow Supplies Office Equipment Accumulated Depreciation, Office Equipment Snow Equipment Accumulated Depreciation, Snow Equipment Accounts Payable Salaries Payable Pete Mack, Capital Totals
6 6 2 6 9
6 5 4 2 0
1 0 0 0 0
5 0 0 0 0
00 00 00 00 00 1 2 5 00
6 0 0 00 3 27 31 4 3 3 1 3 0 5 0 4 1 0 0 0 0 5 00 00 00 00 00
31
3 1 5 00
153
SOLUTIONS TO REAL WORLD APPLICATION #1 1. 2. 3. 4. Requestto see current as well as past financial reports. Unadjusted trial balance not adequate. Need up-to-date information. In proportion to fees, salaries appear very high and cash is low. Would like to know why no withdrawal account. Would like to see a projected set of figures for future financial statement. SOLUTION TO REAL WORLD APPLICATION #2 + Beg. Capital Net Income $34,400 $ 19,300 - 14,360 8,000 $31,340 4,940 39,340
Withdrawals Ending Capital
SOLUTIONS TO REAL WORLD APPLICATION #3 The question in the case is whether Todd should purchase 75% of his orders from Gem Corporation. Although Todd is offered a luxurious vacation, he should not let this affect his decision to purchase products from Gem. Also, Todd should not be influenced by the fact that hes upset with his management. Thus, I feel that Todd should not purchase the supplies solely because he is offered a free vacation. This is a conflict of interest.
154
SOLUTION TO CONTINUING PROBLEM

ELDORADO COMPUTER CENTER GENERAL JOURNAL PAGE 2
Date Sept. 30
Account Titles and Description Adjusting Entries
PR
Dr.
Cr.
30 Supplies Exp. Supplies 30 Depr. Exp. C.S. Equipment Accum. Depr. C.S. Equip. 30 Depr. Exp. Office Equip. Accum. Depr. Office Equip. 30 Rent Exp. Prepaid Rent Closing Entries 30 Service Revenue Income Summary 30 Income Summary Advertising Expense Rent Expense Utilities Expense Phone Expense Insurance Expense Postage Expense Supplies Expense Depr. Exp. C.S. Equip. Depr. Exp. Office Equip. 30 Income Summary T. Freedman, Capital 30 Freedman, Capital T. Freedman, W/D
5050 1030 5080 1081 5090 1091 5020 1025
3 6 0 00 3 6 0 00 9 9 00 9 9 00 2 0 00 2 0 00 8 0 0 00 8 0 0 00
4000 3020 3020 5010 5020 5030 5040 5060 5070 5050 5080 5090 3020 3000 3000 3010
6 6 8 5 00 6 6 8 5 00 3 6 7 9 00 1 4 0 1 2 0 1 8 2 2 1 5 5 3 6 9 2 3 0 0 6 00 3 0 0 6 00 1 0 0 00 1 0 0 00 0 0 0 0 0 0 0 9 0 00 00 00 00 00 00 00 00 00
155
CASH
ACCOUNT NO. 1000
Balance Date 200X Explanation 9/30 0X Balance forward

ACCOUNTS RECEIVABLE
Post Ref.
Debit
Credit
Debit 1 6 4 5 00
Credit
ACCOUNT NO. 1020
Balance Date 200X Explanation 9/30 0X Balance forward Post Ref. Debit Credit Debit 2 6 0 0 00 Credit
PREPAID RENT
ACCOUNT NO. 1025
Balance Date 200X Explanation 9/30 0X Balance forward 30 Adjusting Post Ref. J2 Debit Debit 1 2 0 0 00 8 0 0 00 4 0 0 00 Credit Credit
SUPPLIES
ACCOUNT NO. 1030
Balance Date 200X Explanation 9/30 0X Balance forward 30 Adjusting Post Ref. J2 Debit Credit 3 6 0 00 Debit 4 5 0 00 9 0 00 Credit
COMPUTER SHOP EQUIPMENT
ACCOUNT NO. 1080
Balance Date 200X Explanation 9/30 0X Balance forward Post Ref. Debit Credit Debit 2 4 0 0 00 Credit
156
ACCUMULATED DEPRECIATION, COMPUTER SHOP EQUIPMENT
ACCOUNT NO. 1081
Balance Date 200X Explanation 9/30 0X Adjusting Post Ref. J2 Debit Credit 9 9 00 Debit Credit 9 9 00
OFFICE EQUIPMENT
ACCOUNT NO. 1090
Balance Date 200X Explanation 9/30 0X Balance forward Post Ref. Debit Credit Debit 6 0 0 00 Credit
ACCOUNT NO. 1091
Balance Date 200X Explanation 9/30 0X Adjusting Post Ref. J2 Debit Credit 2 0 00 Debit Credit 2 0 00
ACCOUNTS PAYABLE
ACCOUNT NO. 2000
Balance Date 200X Explanation 9/30 0X Balance forward Post Ref. Debit Credit Debit Credit 2 1 0 00
157
T. FREEDMAN, CAPITAL
ACCOUNT NO. 3000
Balance Date 200X Explanation 9/30 0X Balance forward 30 Closing 30 Closing Post Ref. J2 J2 Debit Credit 3 0 0 6 00 1 0 0 00 Debit Credit 4 5 0 0 00 7 5 0 6 00 7 4 0 6 00
T. FREEDMAN, WITHDRAWALS
ACCOUNT NO. 3010
Balance Date 200X Explanation 9/30 0X Balance forward 30 Closing Post Ref. J2 Debit Credit 1 0 0 00 Debit 1 0 0 00 0 Credit
INCOME SUMMARY
ACCOUNT NO. 3020
Balance Date 200X Explanation 9/30 0X Closing (Revenue) 30 Closing (Exp) 30 Closing (Income) Post Ref. J2 J2 J2 Debit 3 6 7 9 00 3 0 0 6 00 Credit 6 6 8 5 00 Debit Credit 6 6 8 5 00 3 0 0 6 00 0
158
SERVICE REVENUE
ACCOUNT NO. 4000
Balance Date 200X Explanation 9/30 0X Balance forward 30 Closing Post Ref. J2 Debit 6 6 8 5 00 Credit Debit Credit 6 6 8 5 00 0
ADVERTISING EXPENSE
ACCOUNT NO. 5010
Balance Date 200X Explanation 9/30 0X Balance forward 30 Closing Post Ref. J2 Debit Debit 1 4 0 0 00 1 4 0 0 00 0 Credit Credit
RENT EXPENSE
ACCOUNT NO. 5020
Balance Date 200X Explanation 9/30 0X Balance forward 30 Adjusting 30 Closing Post Ref. J2 J2 Debit Debit 4 0 0 00 8 0 0 00 1 2 0 0 00 1 2 0 0 00 - 0 Credit Credit
159
POSTAGE EXPENSE
ACCOUNT NO. 5070
Balance Date 200X Explanation 9/30 0X Balance forward 30 Closing Post Ref. J2 Debit Credit 5 0 00 Debit 5 0 00 0 Credit
DEPRECIATION EXPENSE C.S. EQUIPMENT
ACCOUNT NO. 5080
Balance Date 200X Explanation 9/30 0X Adjusting 30 Closing Post Ref. J2 J2 Debit 9 9 00 Credit 9 9 00 Debit 9 9 00 0 Credit
DEPRECIATION EXPENSE OFFICE EQUIPMENT
ACCOUNT NO. 5090
Balance Date 200X Explanation 9/30 0X Adjusting 30 Closing Post Ref. J2 J2 Debit 2 0 00 Credit 2 0 00 Debit 2 0 00 0 Credit
UTILITIES EXPENSE
ACCOUNT NO. 5030
160
PHONE EXPENSE
ACCOUNT NO. 5040
SUPPLIES EXPENSE
ACCOUNT NO. 5050
Balance Date 200X Explanation 9/30 0X Adjusting 30 Closing Post Ref. J2 J2 Debit 3 6 0 00 Credit 3 6 0 00 Debit 3 6 0 00 0 Credit
INSURANCE EXPENSE
ACCOUNT NO. 5060
161
ELDORADO COMPUTER CENTER POST-CLOSING TRIAL BALANCE SEPTEMBER 30, 200X Dr. Cr.
Cash Accounts Receivable Prepaid Rent Supplies Computer Shop Equipment Accum. Depr. C.S. Equip. Office Equipment Accum. Depr. Office Equip. Accounts Payable T. Freedman, Capital Totals
1 2
6 4 5 00 6 0 0 00 4 0 0 00 9 0 00 4 0 0 00 9 9 00 6 0 0 00 2 0 00 2 1 0 00 4 0 6 00 7 3 5 00
7 7 7 3 5 00 7
162
MINI PRACTICE SET VALDEZ REALTY

VALDEZ REALTY GENERAL JOURNAL PAGE 1
Date 200X Account Titles and Description Jun. 1 Cash Office Equipment Juan Valdez, Capital Owner Investment 1 Prepaid Rent Cash Rent Paid in Advance3 mo. 1 Automobile Accounts Payable Auto Purchased on Account 4 Office Supplies Cash Supplies Purchased for Cash 5 Office Supplies Accounts Payable Supplies Purchased on Account 6 Cash Commissions Earned Cash Fees 8 Gas Expense Cash Paid Gas Bill 15 Salaries Expense Cash Paid Salaries
PR 111 121 311
Dr. 7 0 0 0 00 3 0 0 0 00
Cr.
10 0 0 0 00
114 111
2 1 0 0 00 2 1 0 0 00
123 12 0 0 0 00 211 12 0 0 0 00
115 111
3 0 0 00 3 0 0 00
115 211
1 5 0 00 1 5 0 00
111 411
6 0 0 0 00 6 0 0 0 00
513 111
2 2 00 2 2 00
512 111
3 5 0 00 3 5 0 00
163

Date 200X Account Titles and Description Jun. 17 Accounts Receivable Commissions Earned Charge Fees 20 Juan Valdez, Withdrawals Cash Cash Withdrawals for Personal Use 21 Cash Commissions Earned Cash Fee 22 Gas Expense Cash Paid Gas Bill 24 Repairs Expense Cash Cash Repairs 30 Salaries Expense Cash Paid Salaries 30 Telephone Expense Cash Paid Telephone Bill 30 Advertising Expense Accounts Payable Advertising Bill Incurred
PR 112 411
Dr. 6 5 0 0 00
Cr. 6 5 0 0 00
312 111
1 0 0 0 00 1 0 0 0 00
111 411
3 5 0 0 00 3 5 0 0 00
513 111
2 5 00 2 5 00
514 111
6 0 0 00 6 0 0 00
512 111
3 5 0 00 3 5 0 00
515 111
5 1 0 00 5 1 0 00
516 211
1 2 0 0 00 1 2 0 0 00
164

Account Titles and Description Adjusting Entries Jun. 30 Rent Expense Prepaid Rent 30 Office Supplies Expense Office Supplies 30 Depreciation Expense, Office Equip. Accumulated Depreciation, Office Equip. 30 Depreciation Expense, Auto Accumulated Depreciation, Auto Closing Entries 30 Commissions Earned Income Summary 30 Income Summary Salaries Expense Gas Expense Repairs Expense Telephone Expense Advertising Expense Rent Expense Office Supplies expense Depreciation Expense, Office Equipment Depreciation Expense, Auto 30 Income Summary Juan Valdez, Capital 30 Juan Valdez, Capital Juan Valdez, Withdrawals
Date 200X
PR 511 114 517 115 518 122 519 124
Dr. 7 0 0 00
Cr.
7 0 0 00 4 0 0 00 4 0 0 00 1 0 0 00 1 0 0 00 2 0 0 00 2 0 0 00
411 16 0 0 0 00 313 16 0 0 0 00 313 512 513 514 515 516 511 517 518 519 4 4 5 7 00 7 0 4 6 0 5 1 1 2 0 7 0 4 0 1 0 2 0 0 7 0 0 0 0 0 0 0 00 00 00 00 00 00 00 00 00
313 11 5 4 3 00 311 11 5 4 3 00 311 312 1 0 0 0 00 1 0 0 0 00
165

Date 200X Account Titles and Description Jul. 1 Office Supplies Accounts Payable Supplies Purchased on Account 2 Accounts Payable Cash Paid Advertising Bill from June 3 Cash Commissions Earned Cash Fees 6 Gas Expense Cash Paid Gas Bill
PR 115 211
Dr. 7 0 0 00
Cr. 7 0 0 00
211 111
1 2 0 0 00 1 2 0 0 00
111 411
6 6 0 0 00 6 6 0 0 00
513 111
2 9 00 2 9 00
8 Cash 111 Accounts Receivable 112 Collected Cash from 6/17 Commission 12 Miscellaneous Expense Cash Realtors Workshop 15 Salaries Expense Cash Paid Salaries 17 Accounts Receivable Commissions Earned Fees on Account 18 Cash Commissions Earned Cash Fees 524 111
6 5 0 0 00 6 5 0 0 00
3 0 0 00 3 0 0 00
512 111
3 5 0 00 3 5 0 00
112 411
2 4 0 0 00 2 4 0 0 00
111 411
7 0 0 0 00 7 0 0 0 00
166

Date 200X Account Titles and Description Jul. 22 Miscellaneous Expense Cash Sponsor Local Road Race 24 Repairs Expense Cash Paid for Auto Repairs 28 Juan Valdez, Withdrawals Cash Personal Withdrawals 30 Salaries Expense Cash Paid Salaries 30 Telephone Expense Cash Paid Telephone Bill 30 Advertising Expense Accounts Payable Advertising Bill Received
PR 524 111
Dr. 4 0 00
Cr. 4 0 00
514 111
5 9 0 00 5 9 0 00
312 111
1 8 0 0 00 1 8 0 0 00
512 111
3 5 0 00 3 5 0 00
515 111
5 9 0 00 5 9 0 00
516 211
1 4 0 0 00 1 4 0 0 00
167

Account Titles and Description Adjusting Entries Jul. 31 Rent Expense Prepaid Rent 31 Office Supplies Expense Office Supplies 31 Depreciation Expense, Office Equip. Accumulated Depreciation, Office Equip. 31 Depreciation Expense, Auto Accumulated Depreciation, Auto Closing Entries 31 Commissions Earned Income Summary 31 Income Summary Salaries Expense Gas Expense Repairs Expense Telephone Expense Advertising Expense Miscellaneous Expense Rent Expense Office Supplies Expense Depreciation Expense, Office Equipment Depreciation Expense, Auto 31 Income Summary Juan Valdez, Capital 31 Juan Valdez, Capital Juan Valdez, Withdrawals
Date 200X
PR 511 114 517 115 518 122 519 124
Dr. 7 0 0 00
Cr.
7 0 0 00 6 6 0 00 6 6 0 00 1 0 0 00 1 0 0 00 2 0 0 00 2 0 0 00
411 16 0 0 0 00 313 16 0 0 0 00 313 512 513 514 515 516 524 511 517 518 519 5 3 0 9 00 7 0 2 5 9 5 9 1 4 0 3 4 7 0 6 6 1 0 2 0 0 9 0 0 0 0 0 0 0 0 00 00 00 00 00 00 00 00 00 00
313 10 6 9 1 00 311 10 6 9 1 00 311 312 1 8 0 0 00 1 8 0 0 00
168

Balance Date 200X Jun. 1 1 4 6 8 15 20 21 22 24 30 30 Jul. 2 3 6 8 12 15 18 22 24 28 30 31 Explanation Post Ref. GJ1 GJ1 GJ1 GJ1 GJ1 GJ1 GJ2 GJ2 GJ2 GJ2 GJ2 GJ2 GJ4 GJ4 GJ4 GJ4 GJ4 GJ4 GJ4 GJ5 GJ5 GJ5 GJ5 GJ5 Debit 7 0 0 0 00 Credit 2 1 0 0 00 3 0 0 00 6 0 0 0 00 2 2 00 3 5 0 00 1 0 0 0 00 3 5 0 0 00 6 3 5 1 2 6 6 0 0 00 2 9 00 6 5 0 0 00 3 0 0 00 3 5 0 00 7 0 0 0 00 5 1 8 3 5 4 9 0 5 9 0 0 0 0 0 00 00 00 00 00 2 0 5 1 0 5 0 0 0 0 00 00 00 00 00 7 4 4 10 10 10 9 12 12 12 11 11 10 16 16 23 22 22 29 29 28 27 26 26 Debit 0 00 9 00 6 00 6 00 5 78 2 28 2 28 7 28 7 03 1 03 7 53 2 43 0 43 6 43 6 14 1 14 8 14 4 64 4 64 4 24 8 34 0 34 6 84 0 94 Credit 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00
169

ACCOUNTS RECEIVABLE ACCOUNT NO. 112
Balance Date 200X Jun. 17 Jul. 8 17 Explanation Post Ref. GJ2 GJ4 GJ4 Debit 6 5 0 0 00 2 4 0 0 00 Credit 6 5 0 0 00 2 4 0 0 00 Debit 6 5 0 0 00 Credit
PREPAID RENT
ACCOUNT NO. 114
Balance Date 200X Explanation Jun. 1 30 Adjusting Jul. 31 Adjusting Post Ref. GJ1 GJ3 GJ6 Debit 2 1 0 0 00 Debit 2 1 0 0 00 7 0 0 00 1 4 0 0 00 7 0 0 00 7 0 0 00 Credit Credit
OFFICE SUPPLIES
ACCOUNT NO. 115
Balance Date 200X Explanation Jun. 4 5 30 Adjusting Jul. 1 31 Adjusting Post Ref. GJ1 GJ1 GJ3 GJ4 GJ6 Debit 3 0 0 00 1 5 0 00 7 0 0 00 6 6 0 00 Credit Debit 3 00 4 50 50 7 50 90 Credit 00 00 00 00 00
4 0 0 00
OFFICE EQUIPMENT
ACCOUNT NO. 121
Balance Date 200X Jun. 1 Explanation Post Ref. GJ1 Debit 3 0 0 0 00 Credit Debit 3 0 0 0 00 Credit
170
MINI PRACTICE SET: VALDEZ REALTY

ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT ACCOUNT NO. 122
Balance Date 200X Explanation Jun. 30 Adjusting Jul. 31 Adjusting Post Ref. GJ3 GJ6 Debit Credit 1 0 0 00 1 0 0 00 Debit Credit 1 0 0 00 2 0 0 00
AUTOMOBILE
ACCOUNT NO. 123
Balance Date 200X Jun. 1 Explanation Post Ref. Debit GJ1 12 0 0 0 00 Credit Debit 12 0 0 0 00 Credit
ACCUMULATED DEPRECIATION, AUTOMOBILE
ACCOUNT NO. 124
Balance Date 200X Explanation Jun. 30 Adjusting Jul. 31 Adjusting Post Ref. GJ3 GJ6 Debit Credit 2 0 0 00 2 0 0 00 Debit Credit 2 0 0 00 4 0 0 00
ACCOUNTS PAYABLE
ACCOUNT NO. 211
Balance Date 200X Jun. 1 5 30 Jul. 1 2 30 Explanation Post Ref. GJ1 GJ1 GJ2 GJ4 GJ4 GJ5 Debit Credit 12 0 0 0 00 1 5 0 00 1 2 0 0 00 7 0 0 00 1 4 0 0 00 Debit 12 12 13 14 12 14 Credit 0 0 0 1 5 0 3 5 0 0 5 0 8 5 0 2 5 0
1 2 0 0 00
00 00 00 00 00 00
SALARIES PAYABLE
ACCOUNT NO. 212
Balance Date 200X Explanation Post Ref. Debit Credit Debit Credit
171

JUAN VALDEZ, CAPITAL ACCOUNT NO. 311
Balance Date 200X Jun. 1 30 30 Jul. 31 31 Explanation Closing Closing Closing Closing Post Ref. GJ1 GJ3 GJ3 GJ6 GJ6 Debit Credit 10 0 0 0 00 11 5 4 3 00 10 6 9 1 00 1 8 0 0 00 Debit Credit 10 0 0 0 21 5 4 3 20 5 4 3 31 2 3 4 29 4 3 4
1 0 0 0 00
00 00 00 00 00
JUAN VALDEZ, WITHDRAWALS
ACCOUNT NO. 312
Balance Date 200X Explanation Jun. 20 30 Closing Jul. 28 31 Closing Post Ref. GJ2 GJ3 GJ5 GJ6 Debit 1 0 0 0 00 1 8 0 0 00 1 8 0 0 00 Credit 1 0 0 0 00 1 8 0 0 00 Debit 1 0 0 0 00 Credit
INCOME SUMMARY
ACCOUNT NO. 313
Balance Date 200X Jun. 30 30 30 Jul. 31 31 31 Explanation Closing Closing Closing Closing Closing Closing Post Ref. Debit GJ3 GJ3 4 4 5 7 GJ3 11 5 4 3 GJ6 GJ6 5 3 0 9 GJ6 10 6 9 1 Credit 16 0 0 0 00 00 00 16 0 0 0 00 00 00 Debit Credit 16 0 0 0 00 11 5 4 3 00 16 0 0 0 00 10 6 9 1 00
172

COMMISSIONS EARNED ACCOUNT NO. 411
Balance Date 200X Explanation Jun. 6 17 21 30 Closing Jul. 3 17 18 31 Closing Post Ref. Debit Credit GJ1 6 0 0 0 00 GJ2 6 5 0 0 00 GJ2 3 5 0 0 00 GJ3 16 0 0 0 00 GJ4 6 6 0 0 00 GJ4 2 4 0 0 00 GJ4 7 0 0 0 00 GJ6 16 0 0 0 00 Debit Credit 6 0 0 0 00 12 5 0 0 00 16 0 0 0 00 6 6 0 0 00 9 0 0 0 00 16 0 0 0 00
RENT EXPENSE
ACCOUNT NO. 511
Balance Date 200X Jun. 30 30 Jul. 31 31 Explanation Adjusting Closing Adjusting Closing Post Ref. GJ3 GJ3 GJ6 GJ6 Debit 7 0 0 00 7 0 0 00 7 0 0 00 Credit 7 0 0 00 7 0 0 00 Debit 7 0 0 00 Credit
SALARIES EXPENSE
ACCOUNT NO. 512
Balance Date 200X Explanation Jun. 15 30 30 Closing Jul. 15 30 31 Closing Post Ref. GJ1 GJ2 GJ3 GJ4 GJ5 GJ6 Debit 3 5 0 00 3 5 0 00 3 5 0 00 3 5 0 00 7 0 0 00 Credit Debit 3 5 0 00 7 0 0 00 3 5 0 00 7 0 0 00 Credit
7 0 0 00
173

GAS EXPENSE ACCOUNT NO. 513
Balance Date 200X Explanation Jun. 8 22 30 Closing Jul. 6 31 Closing Post Ref. GJ1 GJ2 GJ3 GJ4 GJ6 Debit 2 2 00 2 5 00 2 9 00 2 9 00 Credit Debit 2 2 00 4 7 00 2 9 00 Credit
4 7 00
REPAIRS EXPENSE
ACCOUNT NO. 514
Balance Date 200X Explanation Jun. 24 30 Closing Jul. 24 31 Closing Post Ref. GJ2 GJ3 GJ5 GJ6 Debit 6 0 0 00 5 9 0 00 5 9 0 00 Credit 6 0 0 00 5 9 0 00 Debit 6 0 0 00 Credit
TELEPHONE EXPENSE
ACCOUNT NO. 515
Balance Date 200X Explanation Jun. 30 30 Closing Jul. 30 31 Closing Post Ref. GJ2 GJ3 GJ5 GJ6 Debit 5 1 0 00 5 9 0 00 5 9 0 00 Credit 5 1 0 00 5 9 0 00 Debit 5 1 0 00 Credit
ADVERTISING EXPENSE
ACCOUNT NO. 516
Balance Date 200X Explanation Jun. 30 30 Closing Jul. 30 31 Closing Post Ref. GJ2 GJ3 GJ5 GJ6 Debit 1 2 0 0 00 1 4 0 0 00 1 4 0 0 00 Credit 1 2 0 0 00 1 4 0 0 00 Debit 1 2 0 0 00 Credit
174

OFFICE SUPPLIES EXPENSE ACCOUNT NO. 517
DEPRECIATION EXPENSE, OFFICE EQUIPMENT
ACCOUNT NO. 518
DEPRECIATION EXPENSE, AUTOMOBILE
ACCOUNT NO. 519
MISCELLANEOUS EXPENSE
ACCOUNT NO. 524
Balance Date 200X Explanation Jul. 12 22 31 Closing Post Ref. GJ4 GJ5 GJ6 Debit 3 0 0 00 4 0 00 Credit Debit 3 0 0 00 3 4 0 00 Credit
3 4 0 00
175
VALDEZ REALTY WORKSHEET FOR THE MONTH ENDED JUNE 30, 200X Trial Balance Debit 11,243 6,500 2,100 450 3,000 12,000 13,350 10,000 1,000 16,000 700 47 600 510 1,200 39,350 (A) 700 (B) 400 (C) 100 (C) 100 (D) 200 (D) 200 1,400 1,400 39,650 200 200 39,650 4,457 11,543 16,000 16,000 35,193 16,000 35,193 39,350 700 400 100 100 200 200 23,650 11,543 35,193 700 400 100 100 1,200 510 600 47 700 16,000 700 47 600 510 1,200 1,000 16,000 10,000 1,000 13,350 12,000 3,000 (B) 400 50 (A) 700 1,400 6,500 11,243 11,243 6,500 1,400 50 3,000 12,000 13,350 10,000 Credit Debit Credit Debit Credit Debit Credit Debit Adjustments Adjusted Trial Balance Income Statement Balance Sheet Credit
VALDEZ REALTY
Account Titles
Cash
Accounts Receivable
Prepaid Rent
Office Supplies
Office Equipment
Automobile
Accounts Payable
Juan Valdez, Capital
Juan Valdez, Withdr.
Commissions Earned
176
Salaries Expense
Gas Expense
Repairs Expense
Telephone Expense
Advertising Expense
Rent Expense
Office Supplies Expense
Dep. Exp., Automobile
Acc. Dep., Automobile
Net Income
VALDEZ REALTY
VALDEZ REALTY INCOME STATEMENT FOR MONTH ENDED JUNE 30, 200X
Revenue: Commissions Earned Operating Expenses: Salaries Expense Gas Expense Repairs Expense Telephone Expense Advertising Expense Rent Expense Office Supplies Expense Depreciation Expense, Office Equipment Depreciation Expense, Automobile Total Operating Expenses Net Income
$16 0 0 0 00
7 0 4 6 0 5 1 2 0 7 0 4 0 1 0 2 0
0 7 0 0 0 0 0 0 0
00 00 00 00 00 00 00 00 00 4 4 5 7 00 $11 5 4 3 00
VALDEZ REALTY STATEMENT OF OWNERS EQUITY FOR MONTH ENDED JUNE 30, 200X
Juan Valdez, Capital, June 1, 200x Net Income for June Less: Withdrawals for June Increase in Capital Juan Valdez, Capital, June 30, 200x
$10 0 0 0 00 $11 (1 5 4 3 00 0 0 0 00) 10 5 4 3 00 $20 5 4 3 00
177
VALDEZ REALTY
VALDEZ REALTY BALANCE SHEET JUNE 30, 200X
ASSETS $11 2 4 3 6 5 0 0 1 4 0 0 5 0 2 9 0 0 00 11 8 0 0 00 Owners Equity Juan Valdez, Capital 00 00 00 00 Liabilities Accounts Payable
LIABILITIES AND OWNERS EQUITY $13 3 5 0 00
178 $33 8 9 3 00
Cash Accounts Receivable Prepaid Rent Office Supplies Office Equipment Less: Acc. Dep. Automobile Less: Acc. Dep. $3 0 (1 $12 0 (2 0 0 0 0 0 0 0 0 00 00) 00 00)
20 5 4 3 00
Total Assets
$33 8 9 3 00
VALDEZ REALTY
VALDEZ REALTY POST-CLOSING TRIAL BALANCE JUNE 30, 200X Dr. Cr.
Cash Accounts Receivable Prepaid Rent Office Supplies Office Equipment Acc. Dep., Office Equip. Automobile Acc. Dep., Automobile Accounts Payable Juan Valdez, Capital Totals
11 6 1 3 12
2 4 3 00 5 0 0 00 4 0 0 00 5 0 00 0 0 0 00 1 0 0 00 0 0 0 00 13 20 34 2 3 5 1 0 5 4 9 0 0 3 3 00 00 00 00
34
1 9 3 00
179
VALDEZ REALTY WORKSHEET FOR THE MONTH ENDED JULY 31, 200X Trial Balance Debit 26,094 2,400 1,400 750 3,000 100 12,000 200 14,250 20,543 1,800 16,000 700 29 590 590 1,400 340 51,093 (A) 700 (B) 660 (C) 100 (D) 200 1,660 1,660 51,093 700 660 100 200 51,393 51,393 700 660 100 200 5,309 10,691 16,000 16,000 46,084 16,000 46,084 35,393 10,691 46,084 1,400 340 590 590 29 700 16,000 700 29 590 590 1,400 340 1,800 16,000 20,543 1,800 14,250 (D) 200 400 12,000 (C) 100 200 12,000 400 14,250 20,543 3,000 (B) 660 90 (A) 700 700 2,400 2,400 700 90 3,000 200 26,094 26,094 Credit Debit Credit Debit Credit Debit Credit Debit Adjustments Adjusted Trial Balance Income Statement Balance Sheet Credit
VALDEZ REALTY
Account Titles
Cash
Accounts Receivable
Prepaid Rent
Office Supplies
Office Equipment
Acc. Dep. Office Equip.
Automobile
Acc. Dep., Automobile
Accounts Payable
Juan Valdez, Capital
180
Juan Valdez, Withdr.
Commissions Earned
Salaries Expense
Gas Expense
Repairs Expense
Telephone Expense
Advertising Expense
Misc. Expense
Rent Expense
Office Supplies Expense
Dep. Exp., Automobile
Net Income

VALDEZ REALTY INCOME STATEMENT FOR MONTH ENDED JULY 31, 200X
Revenue: Commissions Earned Operating Expenses: Salaries Expense Gas Expense Repairs Expense Telephone Expense Advertising Expense Miscelleneous Expense Rent Expense Office Supplies Expense Depreciation Expense, Office Equipment Depreciation Expense, Automobile Total Operating Expenses Net Income
$16 0 0 0 00
7 0 2 5 9 5 9 4 0 3 4 7 0 6 6 1 0 2 0
0 9 0 0 0 0 0 0 0 0
00 00 00 00 00 00 00 00 00 00 5 3 0 9 00 $10 6 9 1 00
VALDEZ REALTY STATEMENT OF OWNERS EQUITY FOR MONTH ENDED JULY 31, 200X
Juan Valdez, Capital, July 1, 200x Net Income for July Less: Withdrawals for July Increase in Capital Juan Valdez, Capital, July 31, 200x
$20 5 4 3 00 $10 6 9 1 00 (1 8 0 0 00) 8 8 9 1 00 $29 4 3 4 00
181
VALDEZ REALTY
VALDEZ REALTY BALANCE SHEET JULY 31, 200X
ASSETS $26 0 9 2 4 0 7 0 9 2 8 0 0 00 11 6 0 0 00 Owners Equity Juan Valdez, Capital 4 0 0 0 00 00 00 00 Liabilities Accounts Payable
LIABILITIES AND OWNERS EQUITY $14 2 5 0 00
182 $3 0 (2 $12 0 (4 0 0 0 0 0 0 0 0 00 00) 00 00) $43 6 8 4 00
Cash Accounts Receivable Prepaid Rent Office Supplies Office Equipment Less: Acc. Dep. Automobile Less: Acc. Dep.
29 4 3 4 00
Total Assets
$43 6 8 4 00
VALDEZ REALTY
VALDEZ REALTY POST-CLOSING TRIAL BALANCE JULY 31, 200X Dr. Cr.
Cash Accounts Receivable Prepaid Rent Office Supplies Office Equipment Acc. Dep., Office Equip. Automobile Acc. Dep., Automobile Accounts Payable Juan Valdez, Capital Totals
26 2
3 12
0 9 4 00 4 0 0 00 7 0 0 00 9 0 00 0 0 0 00 2 0 0 00 0 0 0 00 14 29 44 4 2 4 2 0 5 3 8 0 0 4 4 00 00 00 00
44
2 8 4 00
183

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The Accounting Cycle Completed: Adjusting, Closing, and The Post-Closing Trial Balance

ANSWERS TO DISCUSSION QUESTIONS 1. 2. 3. 4. 5. 6.

SOLUTIONS TO CHAPTER 5 MINI EXERCISES 1.

Supplies Exp. 12/31 GJ3 3

12/31 GJ3 4 Ins. Exp. 12/31 GJ3 4

12/31 GJ3 4 510

Store Supplies 116 15 12/31 GJ3 3

Acc. Dep., Store Equip.119 12 12/31 GJ3 7

Dep. Exp., Store Equip.512 12/31 GJ3 7

Salaries Exp. 7 12/31 GJ3 4

Acc. Dep., Equip.

Consulting Fees Earned

Dep. Exp, Equip.

PROBLEM 5A-1 (CONCLUDED) (2)

PROBLEM 5A-2 (1)

PR 517 114 518 115 519 122 513 213

PROBLEM 5A-2 (CONTINUED)

ACCOUNT NO. 114

ACCOUNT NO. 115

ACCOUNT NO. 121

ACCUMULATED DEPRECIATION, AUTO

ACCOUNT NO. 122

PROBLEM 5A-2 (CONTINUED)

ACCOUNT NO. 213

Balance Date 200X Explanation Mar. 31 Adjusting

Post Ref. GJ2

ACCOUNT NO. 312

Balance Date 200X Explanation Mar. 31 Balance 31 Closing

Post Ref. GJ2

ACCOUNT NO. 314

PROBLEM 5A-2 (CONTINUED)

Balance Date 200X Explanation Mar. 31 Balance 31 Closing

Post Ref. GJ2

ACCOUNT NO. 513

Balance Date 200X Explanation Mar. 31 Balance 31 Adjusting 31 Closing

Post Ref. GJ2 GJ2

Balance Date 200X Explanation Mar. 31 Balance 31 Closing

Post Ref. GJ2

ACCOUNT NO. 515

Balance Date 200X Explanation Mar. 31 Balance 31 Closing

Post Ref. GJ2

ACCOUNT NO. 516

PROBLEM 5A-2 (CONCLUDED)

CLEANING SUPPLIES EXPENSE

ACCOUNT NO. 518

DEPRECIATION EXPENSE, AUTO

ACCOUNT NO. 519

PR 111 123 311

PROBLEM 5A-3 (CONTINUED)

Closing Entries 31 Plowing Fees Income Summary 411 20 0 0 0 00 313 20 0 0 0 00

PROBLEM 5A-3 (CONTINUED)

PR 313 511 512 513 515 514 516 517

313 15 7 8 0 00 311 15 7 8 0 00 311 312 1 0 0 0 00 1 0 0 0 00

PROBLEM 5A-3 (CONTINUED)

ACCOUNT NO. 112

ACCOUNT NO. 114

ACCOUNT NO. 115

PROBLEM 5A-3 (CONTINUED)

ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT

ACCOUNT NO. 122

ACCOUNT NO. 123

ACCUMULATED DEPRECIATION, SNOW EQUIPMENT