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    Lecture 9: Adjusting Entries Class Exercise-I:: Accumulated Depreciation $4,000

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    Zubair Baqai
    The document provides adjusting entries, financial statements, and closing entries for Princess Inc. for the month ending January 31, 2012. The adjusting entries debit supplies expense for supplies used and credit supplies, and debit depreciation expense for furniture depreciation and credit accumulated depreciation. The adjusted trial balance, income statement, retained earnings statement, and balance sheet are presented. Finally, the closing entries credit revenue and debit expense accounts to close them out to income summary, and credit retained earnings and debit dividends for the net income amount.

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    Lecture 9: Adjusting Entries Class Exercise-I:: Accumulated Depreciation $4,000

    Uploaded by

    Zubair Baqai
    6 views3 pages
    The document provides adjusting entries, financial statements, and closing entries for Princess Inc. for the month ending January 31, 2012. The adjusting entries debit supplies expense for supplies used and credit supplies, and debit depreciation expense for furniture depreciation and credit accumulated depreciation. The adjusted trial balance, income statement, retained earnings statement, and balance sheet are presented. Finally, the closing entries credit revenue and debit expense accounts to close them out to income summary, and credit retained earnings and debit dividends for the net income amount.

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    Financial Accounting

    Original Title

    FA-9

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    The document provides adjusting entries, financial statements, and closing entries for Princess Inc. for the month ending January 31, 2012. The adjusting entries debit supplies expense for supplies used and credit supplies, and debit depreciation expense for furniture depreciation and credit accumulated depreciation. The adjusted trial balance, income statement, retained earnings statement, and balance sheet are presented. Finally, the closing entries credit revenue and debit expense accounts to close them out to income summary, and credit retained earnings and debit dividends for the net income amount.

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    © All Rights Reserved
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    6 views3 pages

    Lecture 9: Adjusting Entries Class Exercise-I:: Accumulated Depreciation $4,000

    Uploaded by

    Zubair Baqai
    The document provides adjusting entries, financial statements, and closing entries for Princess Inc. for the month ending January 31, 2012. The adjusting entries debit supplies expense for supplies used and credit supplies, and debit depreciation expense for furniture depreciation and credit accumulated depreciation. The adjusted trial balance, income statement, retained earnings statement, and balance sheet are presented. Finally, the closing entries credit revenue and debit expense accounts to close them out to income summary, and credit retained earnings and debit dividends for the net income amount.

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    of 3

    Lecture 9: ADJUSTING ENTRIES

    Class Exercise-I:
    1)
    Princess Inc.
    Adjusting Entries
    January 31, 2012
    Debit
    Supplies
    $2,000

    Adjusting Entry :
    Supplies Expense
    Supplies
    Depreciation Expense:
    Furniture
    Accumulated Depreciation

    Credit
    $2,000

    Depreciation
    1,000
    1,000

    2)
    Princess Inc.
    Adjusted Trial Balance
    January
    31, 2012
    Dr.
    $8,000
    10,000
    3,000
    2,000
    36,000

    Accounts
    Cash
    Accounts Receivable
    Prepaid Rent
    Supplies Expense
    Furniture
    Accumulated Depreciation
    Accounts Payable
    Common Stock
    Retained Earnings(December 31, 2011)
    Dividends
    Service Revenue
    Salary Expense
    Utilities Expense
    Depreciation Expense: Furniture
    Total

    Cr.

    $4,000
    10,000
    26,000
    13,000
    4,000
    14,000
    2,000
    1,000
    1,000
    $67,000

    $67,000

    3)
    Princess Inc.
    Income Statement
    January 31, 2012
    Revenue:
    Service Revenue
    Expenses:
    Salary Expense

    $14,000
    $2,000
    Arslan Sajjad | arslansajjad49@gmail.com

    Depreciation Expense
    Supplies Expense
    Utilities Expense

    1,000
    2,000
    1,000
    6,000

    Net Income

    $8,000

    Princess Inc.
    Retained Earnings
    January 31, 2012
    Retained Earnings (December 31, 2012)
    Net Income for the Month
    Subtotal
    Less: Dividends
    Total

    $ 13,000
    +8,000
    21,000
    -4,000
    $17,000

    Princess Inc.
    Balance Sheet
    January 31, 2012
    Assets
    Cash
    Accounts Receivables
    Prepaid Rent
    Furniture
    Less: Accumulated Depreciation

    $ 8,000
    10,000
    3,000
    36,000
    -4,000
    32,000

    Total Assets

    $ 53,000

    Liabilities & Stockholders Equity


    Accounts Payable
    Total Liabilities
    Stockholders Equity
    Capital Stock
    Retained Earnings
    Total Stockholders Equity
    Total Liabilities & Stockholders
    Equity

    $10,000
    10,000
    $26,000
    17,000
    43,000
    $53,000

    4)

    Adjusting Entry :
    Service Revenue
    Income Summary

    Princess Inc.
    Closing Entries
    January 31, 2012
    Debit
    Revenue Account
    $14,000

    Credit
    $ 14,000

    Expense Account
    Arslan Sajjad | arslansajjad49@gmail.com

    Income Summary
    Salary
    Utilities
    Supplies
    Depreciation

    6,000
    Expense
    Expense
    Expense
    Expense

    Income Summary
    Retained Earnings

    2,000
    1,000
    2,000
    1,000
    Income Summary
    8,000
    8,000
    Dividends
    4,000

    Dividends
    Retained Earnings

    4,000

    5)
    Princess Inc.
    Post-Closing Trial Balance
    January
    31, 2012
    Accounts
    Dr.
    Cash
    $8,000
    Accounts Receivable
    10,000
    Prepaid Rent
    3,000
    Furniture
    36,000
    Accumulated Depreciation
    Accounts Payable
    Common Stock
    Retained Earnings(December 31, 2011)
    Total
    $57,000

    Cr.

    $4,000
    10,000
    26,000
    17,000
    $57,000

    Arslan Sajjad | arslansajjad49@gmail.com

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