Chapter 4: Homework
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1. The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should flow to (A) the income statement, (B) the statement of owner’s equity, or (C) the balance sheet.
2. Indicate whether each of the following would be reported in the section of financial statements identified as (A) Current Asset, (B) Property, Plant, and Equipment (LT Asset), (C) Current Liability, (D) Revenue, or (E) Expense:
3. Identify which of the following accounts should be closed with a debit or a credit at the end of the fiscal year. If it is not closed, the mark as n/a. 1. _________ Depreciation Expense—Equipment 2. _________ Accounts Receivable 3. _________ Supplies 4. _________ Supplies Expense 5. _________ Prepaid Insurance 6. _________ Insurance Expense 7. _________ Equipment 8. _________ Rent Revenue 9. _________ Unearned Rent Revenue 10. _________ Salary Payable 4. Which of the following accounts will usually appear in the post-closing trial balance. (hint: only real/permanent accounts will appear)
a. __________ Supplies b. __________ Supplies Expense c. __________ Equipment d. __________ Unearned Rent Revenue e. __________ Wage Payable f. __________ Wage Expense g. __________ Sales Revenue h. __________ Insurance Expense
5. Which of the following accounts will usually appear in the post-closing trial balance. (hint: only real/permanent accounts will appear)
a. __________ Sales Revenue b. __________ Note Payable c. __________ Land d. __________ Unearned Sales Revenue e. __________ Prepaid Insurance f. __________ Insurance Expense g. __________ Wage Expanse h. __________ Wage Payable
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- After the accounts have been adjusted at January 31, the end of the year, the following balances are taken from the ledger of Harrison’s Dog Walking Service Company:
| Harrison Taylor, Capital | $349,000 |
| Harrison Taylor, Drawing | 6,000 |
| Fees Earned | 124,600 |
| Wages Expense | 29,000 |
| Rent Expense | 43,000 |
| Supplies Expense | 7,300 |
| Miscellaneous Expense | 5,700 |
Journalize the two entries required to close the accounts.
- On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Banes Domino’s Company, journalize the two closing entries.
| Cash | 30,000 | |
| Accounts Receivable | 45,200 | |
| Supplies | 5,000 | |
| Equipment | 169,900 | |
| Accumulated Depreciation | 32,000 | |
| Accounts Payable | 12,500 | |
| Jack Banes, Capital | 71,600 | |
| Jack Banes, Drawing | 47,000 | |
| Fees Earned | 510,000 | |
| Salary Expense | 244,500 | |
| Rent Expense | 48,000 | |
| Depreciation Expense | 25,000 | |
| Supplies Expense | 9,500 | |
| Miscellaneous Expense | 2,000 | |
| 626,100 | 626,100 |
- The following adjusted trial balance is the result of the adjustments made at the end of the month of July for Ladonna Douglas Company. Utilize these adjusted values to perform the two closing entries for Ladonna Douglas Company.
| Cash | 34,750 | |
| Accounts Receivable | 9,750 | |
| Office Supplies | 2,525 | |
| Store Supplies | 4,785 | |
| Machinery | 10,750 | |
| Accumulated Depreciation | 2,150 | |
| Accounts Payable | 14,300 | |
| Notes Payable | 11,500 | |
| Ladonna Douglas, Capital | 53,725 | |
| Ladonna Douglas, Drawing | 13,250 | |
| Service Revenue | 41,500 | |
| Wages Expense | 37,425 | |
| Rent Expense | 3,000 | |
| Advertising Expense | 2,750 | |
| Office Supplies Expense | 1,465 | |
| Store Supplies Expense | 2,150 | |
| Depreciation Expense | 575 | |
| 123,175 | 123,175 |
- The following adjusted trial balance is the result of the adjustments made at the end of the month of March for Erik Martin Company. Use these adjusted values to journalize the two closing entries for Erik Martin Company.
| Cash | 24,750 | |
| Accounts Receivable | 5,750 | |
| Office Supplies | 3,525 | |
| Store Supplies | 4,785 | |
| Machinery | 9,750 | |
| Accumulated Depreciation | 2,150 | |
| Accounts Payable | 3,550 | |
| Notes Payable | 7,500 | |
| Erik Martin, Capital | 19,725 | |
| Erik Martin, Drawing | 6,250 | |
| Service Revenue | 36,500 | |
| Wages Expense | 6,425 | |
| Office Supplies Expense | 1,465 | |
| Store Supplies Expense | 5,150 | |
| Depreciation Expense | 1,575 | |
| 69,425 | 69,425 |
