P4-25 A

Chapter4 : Accounting cycle

Class Activity
Fugazy Investment Advisers
Worksheet
Year Ended December 31, 2012
ADJUSTED TRIAL
ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS BALANCE
DEBIT CREDIT DEBIT CREDIT DEBIT
Cash $32,000 $32,000
Accounts receivable 46,000 4000 50,000
Supplies 3,000 2000 1,000
Equipment 25,000 25,000
Accumulated depreciation $11,000 6000
Accounts payable 15,000
Salary payable 1000
Unearned service revenue 2,000 500
Note payable, long-term 39,000
Fugazy, capital 38,000
Fugazy, drawing 50,000 50,000
Service revenue 97,000 500
4000
Salary expense 32,000 1000 33,000
Supplies expense 2000 2,000
Depreciation expense 6000 6,000
Interest expense 3,000 3,000
Rent expense 9,000 9,000
Insurance expense 2,000               2,000
$202,000 $202,000
Net income
$13,500 $13,500 $213,000
ounting cycle

t Advisers
eet
ber 31, 2012
ADJUSTED TRIAL
INCOME STATEMENT
BALANCE BALANCE SHEET Adjusting Entries
CREDIT DEBIT CREDIT DEBIT CREDIT
$32,000 a
50,000
1,000
25,000 b
$17,000 $17,000
15,000 15,000
1,000 1,000 c
1,500 1,500
39,000 39,000
38,000 38,000 d
50,000
101,500 $101,500
e
33,000
2,000
6,000
3,000
9,000
2,000

46,500 46,500
$213,000 $101,500 $101,500 $158,000 $158,000
 Adjusting Entries 97000

Unearned service revenue 500

service revenue 500 ser rev 500

Supplies expense 2000

supplies 2000

Depreciation expense 6000

Accumulated depreciation 6000

Salray expense 1000

salary payable 1000

A/receivable 4000
service revenue 4000 ser rev 4000

101500
 Fugazy Investment Advisers
Income Statement
Year Ended December 31, 2012
Revenue:
SERVICE REVENUE $101,500
Expenses:
Salary expense 33,000
Supplies expense 2,000
Depreciation expense 6,000
Interest expense 3,000
Rent expense 9,000
Insurance expense 2,000
55,000
Net income $46,500

Fugazy Investment Advisers

Statement of Owner’s Equity
Year Ended December 31, 2012
Fugazy capital Jna 1 2012 $38,000
Net income 46,500
84,500
less: drawing 50,000
Fugazy capital dec 31 2012 $34,500

Fugazy Investment Advisers

Balance Sheet
31-Dec-12
ASSETS

Current assets:

Cash 32,000
Accounts receivable 50,000
Supplies 1,000
Total current assets 83,000

Plant assets:
Equipment $25,000
less:Acc. depr. -17,000
$8,000
_______
Total assets $91,000
y Investment Advisers
Balance Sheet
31-Dec-12
LIABILITIES

Current liabilities:

Accounts payable $15,000

Salary payable 1,000
Unearned service revenue 1,500
Total current liabilities 17,500
Long-term liabilities:
Note payable 39,000
Total liabilities 56,500

OWNER’S EQUITY
Fugazy, capital 34,500
Total liabilities and
owner’s equity $91,000
 Journal
POST.
DATE ACCOUNTS AND EXPLANATIONS DEBIT
REF.
Closing Entries
Dec 31 Service revenue 101,500
Income summary

31 Income summary 55,000

Depreciation expense
Salary expense
Rent expense
Insurance expense
Supplies expense
Interest expense

31 Income summary 46,500

Fugazy Capital

31 Fugazy ,Capital 50,000

Fugazy, drawing
CREDIT

101,500

6,000
33,000
9,000
2,000
2,000
3,000

46,500

50,000