ADJUSTMENT JOURNAL

Date Account Titles Ref Debit Credit

1 Account Receivable 1,420
Service Revenue 1,420
(To record revenue for service performed)

2 Supplies Expense 300

Supplies 300
(To record supplies used)

3 Utility Expense 225

Utility Payable 225

4 Unearned Service Revenue 260

Service Revenue 260
(To record revenue for services performed)

5 Salaries and Wages Expense 800

Salaries and Wages Payable 800
(To record Salaries unpaid)

6 Insurance Expense 380

Prepaid Insurance 380
(To record insurance expired)
 Trial Balance Adjustments Adj. Trial Balance
Account Tittle
Dr. Cr. Dr. Cr. Dr. Cr.
Cash
Account Receivale
Supplies
Account Payable
Unearned Service Revenue
Share Capital - Ordinary
Service Revenue
Salaries and Wages Expense
Miscellaneous Expense
Supplies Expense
Salaries and Wages Payable
Total
Net Income
Total
 IS SoFP
Dr. Cr. Dr. Cr.
 ALBANESE COMPANY, SPA
Income Statement
For the Month Ended April 30, 2017

Revenue
Service Revenue
Expenses
Salaries and Wages Expense
Rent Expense
Depreciation Expense
Interest Expense
Total Expenses -
Net Income -

ALBANESE COMPANY, SPA

Retained Earning Statement
For the Month Ended April 30, 2017

Retained Earning, Apr 1 -

Add : Net Income -
-
Less: Dividend -
Retained Earning, Apr 30 -

ALBANESE COMPANY, SPA

Statement of Financial Position
April 30, 2017

Asset
Property, plant, and equipment
Equipment
Less: Accumulated depreciation—equipment -
Current assets
Prepaid rent
Accounts receivable
Cash -
Total Asset -

Equity and Liabilities

Equity
Share Capital ordinary
Retained Earning
Total Equity -

Liabilities
Current Liabilities
Notes Payable
Account Payable
Interest Payable
Total Liabilities -
Total Equity and Liabilities -

Exercise 4-4

CLOSING JOURNAL

Date
Account Titles and General Journal
Ref Debit Credit
Apr. 30

Apr. 30

Apr. 30

Apr. 30
 CLOSING JOURNAL

Date Account Titles and General Journal Ref Debit Credit

Servive Revenue 4,300
Income Summary 4,300

Income Summary 2,724

Supplies Expense 1,200
Salaries and Wages Expense 1,344
Miscellaneous Expense 180

Income Summary 1,576

Retained Earning 1,576

Retained Earning 300

Dividends 300

LANZA COMPANY, SA
Post-Closing Trial Balance
June 30, 2017

Adj. Trial Balance

Account Tittle
Dr. Cr.
Cash 3,712
Account Receivable 2,904
Supplies 480
Account Payable 1,056
Salaries and Wages Payable 244
Unearned Service Revenue 160
Share Capital - Ordinary 3,000
Retained Earnings 2,636
7,096 7,096

Retained Earning $ 1,360.00

Net Income $ 1,576.00
$ 2,936.00
Dividends $ 300.00
Retained Earning. June 30 $ 2,636.00
 WINDSOR COMPANY, LTD
Income Statement
For the Year Ended July 31, 2017

Revenue
Service Revenue 64,000
Rent Revenue 6,500
70,500
Expenses
Salaries and Wages Expense 55,700
Utilities Expense 14,900
Depreciation Expense 3,700
Total Expenses 74,300
Net Loss - 3,800

WINDSOR COMPANY, LTD

Retained Earning Statement
For the Year Ended July 31, 2017

Retained Earnings, August 1, 2016 20,260

Less: Net Loss - 3,800
Dividend 12,000
- 15,800
Retained Earnings, July 31, 2017 4,460

WINDSOR COMPANY, LTD

Statement of Financial Position
July 31, 2017

Asset
Property, plant, and equipment
Equipment 15,900
Less: Accumulated depreciation—equipment 5,400
10,500
Current assets
Accounts receivable 8,140
Cash 9,840
17,980
Total Asset 28,480

Equity and Liabilities

Equity
Share Capital ordinary 18,000
 Retained Earning 4,460
Total Equity 22,460

Liabilities
Current Liabilities
Account Payable 2,220
Unearned Service Revenue 3,800
Total Liabilities 6,020
Total Equity and Liabilities 28,480
 CLOSING JOURNAL

Date Account Titles and General Journal Ref Debit Credit

June. 30 Service Revenue 18,100
Income Summary 18,100

June. 30 Income Summary 13,000

Salaries and Wages Expense 8,800
Supplies Expense 1,200
Rent Expense 3,000

June. 30 Income Summary 5,100

Retained Earnings 5,100

June. 30 Retained Earnings 2,200

Dividends 2,200

Income Summary
June. 30 13,000 18,100
June. 30 5,100
18,100 18,100
 PATEL BOWLING ALLEY, LTD.
Statement of Financial Position
December 31, 2017

Equity and Liabilities

Equity
Share Capital - Ordinary 80,000
Retained Earning (28.000+8.440) 36,440
Total Equity 116,440

Liabilities
Non Current Liabilities
Note Payable 80,000
Current Liabilities
Current portion of note payable 15,000
Account Payable 12,300
Interest Payable 2,600
Total Liabilities 109,900
Total Equity and Liabilities 226,340

*Net income = £19,180 – £780 – £7,360 – £2,600 = £8,440

(b) Current assets exceed current liabilities by only £360 (£30,260 - £29,900). However,
approximately 60% of current assets are in the form of cash. The company's liquidity appears
to be reasonably good, but some caution is needed.