Accounting Cycle Review Problem

Your Name:____Sue Christensen_________________________________

Complete the Comprehensive Problem for Chapters 1-5, on page 253 on the following work papers. You can use
a word processor or do them by hand. I would prefer by hand (legibly written) because I think you will learn
more that way!
Please add two steps to the instructions:
(f)
Prepare closing entries and post them
(g)
Prepare a post closing trial balance
Use proper formatting techniques like underling, double underling, dollars signs.
Include proper headings on all reports (company name, name of report, dating)
Submit the problem on the due date shown on the daily schedule by:
turning it in during class (if you have an onsite class)
emailing it to me: lynnette.yerbury@slcc.edu
dropping it off in the accounting lab and having them put it in my folder
sliding it under my office door, bb330M, Redwood campus
snail mail:
SLCC
4600 South Redwood Road
BB330M
Salt Lake City, UT 84130
Please be sure and put your name on the problem regardless of how you turn it in.
You will not have access to a solution for this problem. Here are some check figures:
Unadjusted Trial Balance
Adjusted Trial Balance
Post Closing Trial Balance
Net Income

$64,300
$65,300
$47,740
$ 740

Good luck!

GENERAL JOURNAL
DATE
2012
Dec. 6

Dec. 8

Dec. 10

Dec. 13

Dec. 15

Dec. 18

Dec. 20

Dec. 23

ACCOUNT TITLES AND EXPLANATION

DEBIT

CREDIT

Record Transactions, Adjusting Entries, Closing Entries in this journal

Salaries and wages expense

Salaries and wages payable
Cash
(paid salaries from November and December)

1,000
600

Cash
Accounts receivable
(received cash from customers)

1,900

Cash
Sales revenue
(sold merchandise for cash)

6,300

Cost of goods sold

Inventory
(to record cost of merchandise sold)

4,100

Inventory
Accounts payable
(purchase merchandise from Gong Co. 2/10, n/30)

9,000

Supplies
Cash
(purchase supplies for cash)

2,000

1,600

1,900

6,300

4,100

9,000

2,000

Accounts receivable
Sales revenue
(sole merchandise on account terms 3/10, n/30)

12,000
12,000

Cost of goods sold

Inventory
(to record cost of merchandise sold)

8,000

Salaries and wage expense

Cash
(paid salaries to date)

1,800

Accounts payable
Inventory
Cash

9,000

8,000

1,800

180
8,820
2

GENERAL JOURNAL
DATE

Dec. 27

ACCOUNT TITLES AND EXPLANATION

(paid in full, les discount for merchandise from Gong Co.)
Cash
Sales Discounts
Accounts payable
(to record collection within 3/10, n/30 discount period)

DEBIT

CREDIT

11,640
360
12,000

Adjusted entries
Dec. 31

Dec. 31

Dec. 31

Salaries and wage expense

Salaries and wage payable
(salaries paid to date)

800

Depreciation expense
Accumulated depreciation equipment
(to record monthly depreciation)

200

800

Supplies expense
Supplies
(adjust to supplies on hand)

200

1,700
1,700

Closing entries
Dec. 31

Dec. 31

Dec. 31

Sales revenue
Income summary
(to close income statement accounts with credit balances)

18,300

Income summary
Sales discounts
Cost of goods sold
Salaries and wage expense
Depreciation expense
Supplies expense
(to close income statement accounts with debit balances)

17,960

Income summary
Owners capital
(to close net income/loss)

18,300

360
12,100
3,600
200
1,700

340
340

General Ledger
Cash
Dec. 1
7,200
Dec. 8
1,900
Dec. 10
6,300
Dec. 27
11,640

Dec. 6 1,
600
Dec. 15
2,000
Dec. 20
1,800
Dec. 23
8,820

Accounts Receivable
Dec. 1
4,600
Dec. 18
12,000

Dec. 8
1,900

Inventories
Dec 1.
12,000
Dec. 13
9,000

Dec. 10 4,100
Dec. 18 8,000
Dec. 23

14,700

180

8,720

12,820
Supplies
Dec. 1
1,200
Dec. 15
2,000

Dec. 31 Adj.
1, 700

Equipment
Dec. 1
22,000

Dec. 1 2,200
Dec. 31 Adj.
200

3,200

22,000

Accounts Payable
Dec. 1
4,500
Dec. 23
Dec. 13
9,000
9,000

Salaries & Wages

Payable
Dec. 1
Dec. 6 600 1,000
Dec. 31
Adj. 800

16,500
Withdrawls

Accumulated
Depreciation

2,200
Dec. 31 Adj.
2,400

400
Dec. 31
Adj 1,200
Income Summary

Owners Capital
Dec. 1 39,300
Dec. 31 Adj.
340

39,300 Dec.
31 Adj. 39,
640
Sales Revenue

Dec. 31
17,960
Dec. 31
340

Dec. 31
18,300

Dec. 31
adj. 18,300

Dec. 10 6,
300
Dec. 8 12,000

18,300

Sales Discount
Dec. 27
360

Dec. 31
Adj. 360

Cost of Goods Sold

Dec. 10
4,100
Dec. 10
8,000

Depreciation Expense
Dec. 31
200
Dec. 31
adj. 200

Dec. 31
Adj.
12,100

360

Salaries & Wage

Expense
Dec. 6
1,000
Dec. 20
1,800
Dec. 31
Dec. 31
adj. 800
adj. 3,600

12,100

Supplies Expense
Dec. 31
adj. 1,700

3,600

1,700

200

SHIRAS DISTRIBUTING COMPANY

Unadjusted Trial Balance
For the month ended December 31, 2012
Debits
12,820
14,700
8,720
3,200
22,000

Cash
Accounts receivable
Inventory
Supplies
Equipment
Accumulated Depreciation Equipment
Accounts payable
Salaries and wages payable
Owners capital
Sales revenue
Sales discount
Cost of goods sold
Salaries and wages expense

Credits

2,200
16,500
400
39,300
18,300
360
12,100
2,800
76,700

76,700

SHIRAS DISTRIBUTING COMPANY

Adjusted Trial Balance
For the month ended December 31, 2012
Debits
12,820
14,700
8,720
1,500
22,000

Cash
Accounts receivable
Inventory
Supplies
Equipment
Accumulated depreciation equipment
Accounts payable
Salaries and wages payable
Owners capital
Sales revenue
Sales discount
Cost of goods sold
Depreciation expense
Salaries and wages expense
Supplies expense

Credits

2,400
16,500
1,200
39,300
18,300
360
12,100
200
3,600
1,700
77,700

77,700

SHIRAS DISTRIBUTING COMPANY

Post Closing Trial Balance
December 31, 2012
Debits
12,820
14,700
8,720
1,500
22,000

Cash
Accounts receivable
Inventory
Supplies
Equipment
Accumulated depreciation equipment
Accounts payable
Salaries and wages payable
Owners capital

Credits

2,400
16,500
1,200
39,640
59,740

59,740

SHIRAS DISTRIBUTING COMPANY

Income Statement
For the Month ended December 31, 2012
Sales revenue
Less: Sales discounts
Net sales

18,300
360
17,940

Cost of goods sold

Gross profit

12,100
5,840

Operating expenses
Salaries and wages expense
Depreciation expense
Supplies expense
Total operating expense

3,600
200
1,700
5,500

Net income

340

SHIRAS DISTRIBUTING COMPANY

Statement of Changes in Owners Equity
For the Month ended December 31, 2012
Owners Capital, Dec. 1
Net income

39,300
340

Total Owners equity

39,640

SHIRAS DISTRIBUTING COMPANY

10

Balance Sheet
December 31, 2012
Assets
Cash
Accounts receivable
Inventory
Supplies
Equipment
Less: Accumulated depreciation equipment
Total Assets

12,820
14,700
8,720
1,500
22,000
2,400

19,600
$57,340

Liabilities
Accounts payable
Salaries and wages payable
Total Liabilities

16,500
1,200
17,700

Owners equity
Owners capital
Total liabilities and owners equity

39,640
$57,340

11