DO IT!

Exercises 4-41

BE4.8 (LO 3) The steps in the accounting cycle are listed in random order below. List the steps in proper List the required steps in the
sequence, assuming no worksheet is prepared, by placing numbers 1–9 in the blank spaces. accounting cycle in sequence.
a. ________ Prepare a trial balance.
b. ________ Journalize the transactions.
c. ________ Journalize and post closing entries.
d. ________ Prepare financial statements.
e. ________ Journalize and post adjusting entries.
f. ________ Post to ledger accounts.
g. ________ Prepare a post-closing trial balance.
h. ________ Prepare an adjusted trial balance.
i. ________ Analyze business transactions.
BE4.9 (LO 3) At Raymond Company, the following errors were discovered after the transactions had Prepare correcting entries.
been journalized and posted. Prepare the correcting entries.
1. A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit
to Service Revenue $870.
2. The purchase of store supplies on account for $1,510 was recorded as a debit to Supplies $1,150 and
a credit to Accounts Payable $1,150.

BE4.10 (LO 4) Financial Statement The balance sheet debit column of the worksheet for Jolie Prepare the current assets section
Company includes the following accounts: Accounts Receivable $12,500, Prepaid Insurance $4,500, of a balance sheet.
Cash $4,100, Supplies $5,200, and Debt Investments (short-term) $7,600. Prepare the current assets
section of the balance sheet, listing the accounts in proper sequence.
BE4.11 (LO 4) The following are the major balance sheet classifications: Classify accounts on balance sheet.
Current assets (CA) Current liabilities (CL)
Long-term investments (LTI) Long-term liabilities (LTL)
Property, plant, and equipment (PPE) Owner’s equity (OE)
Intangible assets (IA)
Match each of the following accounts to its proper balance sheet classification.
________ Accounts payable ________ Income taxes payable
________ Accounts receivable ________ Debt investments (long-term)
________ Accumulated depreciation—buildings ________ Land
________ Buildings ________ Inventory
________ Cash ________ Patents
________ Copyrights ________ Supplies

*BE4.12 (LO 5) At October 31, Miras Company made an accrued expense adjusting entry of $3,300 for Prepare reversing entries.
salaries. Prepare the reversing entry on November 1, and indicate the balances in Salaries and Wages
Payable and Salaries and Wages Expense after posting the reversing entry.

DO IT! Exercises

DO IT! 4.1 (LO 1) Jordan Carr is preparing a worksheet. Explain to Jordan how he should extend the Prepare a worksheet.
following adjusted trial balance accounts to the financial statement columns of the worksheet.
Service Revenue Accounts Receivable
Notes Payable Accumulated Depreciation
Owner’s Capital Utilities Expense

DO IT! 4.2 (LO2) Paloma Company shows the following balances in selected accounts of its adjusted Prepare closing entries.
trial balance.
Supplies $32,000 Service Revenue $108,000
Supplies Expense 6,000 Salaries and Wages Expense 40,000
Accounts Receivable 12,000 Utilities Expense 8,000
Owner’s Drawings 22,000 Rent Expense 18,000
Owner’s Capital 70,000
Prepare the closing entries at December 31.