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Accounting Compeleting The Cycle
Accounting Compeleting The Cycle
Assets Liabilities
Current assets: Current liabilities:
Cash $ 6,170 Accounts receivable $ 9,000
Accounts payable 8,500 Accum. depr-building 13,525
Supplies 1,590 Accum. depr-equipment 6,340
Prepaid insurance 345 Net income 12,500
Land 25,000
Total current assets $ 41,605 Total liabilities $ 41,365
Owner's Equity
Property, plant, and Wages payable $ 500
equipment:
Building $45,500 Billy Brown, capital 74,490
Equipment 28,250 Total owner's equity $ 74,990
Total property, plant,
and equipment 73,750
Total liabilities and
Total assets $116,355 owner's equity $116,355
(a) List the errors in the balance sheet above and (b) prepare a corrected balance sheet.
2. The following is the adjusted trial balance for Steely Company.
Steely Company
Adjusted Trial Balance
For the Year ended December 31, 2008
Cash 6,130
Accounts Receivable 2,300
Prepaid Expenses 750
Equipment 13,400
Accumulated Depreciation 1,200
Accounts Payable 1,700
Notes Payable - Due on June 30, 2009 5,000
Bob Steely, Capital 12,000
Bob Steely, Withdrawals 870
Fees Earned 6,600
Wages Expense 1,450
Rent Expense 900
Utilities Expense 475
Depreciation Expense 150
Miscellaneous Expense 75
Totals 26,500 26,500
Prepare an Income Statement, Balance Sheet, and Statement of Owner’s Equity. Assume that the capital
account started with a beginning balance of $10,000.
3. Prepare an income statement and a statement of owner’s equity, for the month ended October 31, 2008,
from the following T-Accounts.
Income Summary
12/31 19,000 12/31 64,000
12/31 45,000
6. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for
the year ended October 31 for Shore Co., journalize the four closing entries.
Cash $ 21,500
Accounts Receivable 45,200
Supplies 5,000
Equipment 169,900
Accumulated Depreciation $ 69,000
Accounts Payable 42,500
Stan Shore, Capital 152,600
Stan Shore, Drawing 30,000
Fees Earned 404,500
Salary Expense 300,500
Rent Expense 60,000
Depreciation Expense 25,000
Supplies Expense 9,500
Miscellaneous Expense 2,000
$668,600 $668,600
7. After all adjustments have been made, but before the accounts have been closed, the following balances
were taken from the ledger:
8. On the basis of the following information taken from the Adjusted Trial Balance columns of the work
sheet for the month ended November 30th, journalize the closing entries.
Cash $12,500.00
Accounts Receivable 4,575.00
Office Supplies 1,850.00
Repair Parts 4,785.00
Machinery 14,750.00
Accumulated Depreciation 2,950.00
Accounts Payable 1,750.00
Notes Payable 7,500.00
FGH, Capital 2,750.00
FGH. Drawing 2,500.00
Service Revenue 32,500.00
Wages Expense 3,840.00
Office Supplies Expense 275.00
Repair Parts Expense 1,925.00
Depreciation Expense 450.00
$47,450.00 $47,450.00
9. The following adjusted trial balance is the result of the adjustments made at the end of the month of May
for Jenni Linn Company. Utilize these adjusted values to perform the closing entries for Jenni Linn
Company.
Cash $14,750.00
Accounts Receivable 3,750.00
Office Supplies 1,525.00
Store Supplies 4,785.00
Machinery 19,750.00
Accumulated Depreciation 3,150.00
Accounts Payable 1,550.00
Notes Payable 5,500.00
Jenni Linn, Capital 29,725.00
Jenni Linn, Drawing 3,250.00
Service Revenue 16,500.00
Wages Expense 4,425.00
Office Supplies Expense 465.00
Store Supplies Expense 3,150.00
Depreciation Expense 575.00 ________
$56,425.00 $56,425.00
10. The following adjusted trial balance is the result of the adjustments made at the end of the month of
March for Jenni Linn Company. Utilize these adjusted values to perform the closing entries for Jenni Linn
Company.
Cash $14,750.00
Accounts Receivable 3,750.00
Office Supplies 1,525.00
Store Supplies 4,785.00
Machinery 19,750.00
Accumulated Depreciation 5,150.00
Accounts Payable 4,300.00
Notes Payable 9,500.00
Jenni Linn, Capital 29,725.00
Jenni Linn, Drawing 3,250.00
Service Revenue 11,500.00
Wages Expense 4,425.00
Rent Expense 2,000.00
Advertising Expense 1,750.00
Office Supplies Expense 465.00
Store Supplies Expense 3,150.00
Depreciation Expense 575.00
$60,175.00 $60,175.00
11. Based on the following worksheet, prepare and income statement, statement of owner’s capital, and
balance sheet for Mantle Enterprises.
Mantle Enterprises
Worksheet
For the Year Ended December 31, 2008
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 16,000 16,000
Accounts Receivable 6,000 6,000
Supplies 2,000 2,000
Equipment 19,000 19,000
Accumulated Depr-Equip 6,000 6,000
Accounts Payable 10,000 10,000
Wages Payable 2,000 2,000
Mantle, Capital 7,000 7,000
Owner’s Equity 4,000 4,000
Mantle, Drawing 1,000 1,000
Fees Earned 47,000 47,000
Wages Expense 21,000 21,000
Rent Expense 6,000 6,000
Depreciation Expense 5,000 5,000
Totals 76,000 76,000 32,000 47,000 44,000 29,000
Net Income (Loss) 15,000 15,000
47,000 47,000 44,000 44,000
12. Prepare closing entries from the following work sheet.
Mantle Enterprises
Worksheet
For the Year Ended December 31, 2008
Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit
Cash 16,000 16,000
Accounts Receivable 6,000 6,000
Supplies 2,000 2,000
Equipment 19,000 19,000
Accumulated Depr-Equip 6,000 6,000
Accounts Payable 10,000 10,000
Wages Payable 2,000 2,000
Mantle, Capital 7,000 7,000
Owner’s Equity 4,000 4,000
Drawings 1,000 1,000
Fees Earned 47,000 47,000
Wages Expense 21,000 21,000
Rent Expense 6,000 6,000
Depreciation Expense 5,000 5,000
Totals 76,000 76,000 32,000 47,000 44,000 29,000
Net Income (Loss) 15,000 15,000
47,000 47,000 44,000 44,000
13. The following is the adjusted trial balance for Steely Company.
Steely Company
Adjusted Trial Balance
For the Year ended December 31, 2008
Cash 6,130
Accounts Receivable 2,300
Prepaid Expenses 750
Equipment 13,400
Accumulated Depreciation 1,200
Accounts Payable 1,700
Notes Payable - Due on June 30, 2009 5,000
Bob Steely, Capital 12,000
Bob Steely, Withdrawals 870
Fees Earned 6,600
Wages Expense 1,450
Rent Expense 900
Utilities Expense 475
Depreciation Expense 150
Miscellaneous Expense 75
Totals 26,500 26,500
15. Reconstruct adjusting and closing entries for the month ended November 30, 2008 from the T-accounts
below.
17. The balances in the ledger of Landscape Services as of December 31, 2007 before adjustments, are as
follows:
Adjustment data are as follows: supplies on hand, December 31, $1,000; insurance expired for
December, $900; depreciation on equipment for December, $1,500; salaries accrued, December 31,
$1,000.
(a) Prepare a ten-column work sheet for Landscape Services for December, 2007.
(b) On the basis of the work sheet in (a), present the following in good order: (1) income
statement, (2) statement of owner's equity (no additional investments were made during
the month), and (3) balance sheet.
(c) On the basis of the work sheet in (a), journalize the closing entries as of December 31,
2007.