Professional Documents
Culture Documents
Retained Earning
30,000
15,000 net income
Problem 4-1A
Journalizing the adjustment entries
Unadjusted TB Adjustments Adjusted TB Income statement Balance Sheet and Stmt Of Owner’s Equity Closing entries Post-closing TB
Account titles Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Cash 11,410 11,410 11,410 11,410
Account recievable 5,920 1,080 7,000 7,000 7,000
Supplies 1,250 750 500 500 500
Prepaid insurance 2,400 600 1,800 1,800 1,800
Equipment 15,000 15,000 15,000 15,000
Notes payable 10,000 10,000 10,000 10,000
Account payable 7,350 7,350 7,350 7,350
Share capital 14,000 14,000 14,000 14,000
Dividends 600 600 600 600 0
Services revenue 10,200 1,080 11,280 11,280 11,280 0
Salaries and wages expenses 2,240 2,240 2,240 2,240 0
Travel expense 1,300 1,300 1,300 1,300 0
Rent expense 1,200 1,200 1,200 1,200 0
Misceleneous expense 230 230 230 230 0
41,550 41,550
Supplies expenses 750 750 750 750 0
Depreciation expenses 680 680 680 680 0
Accumulated depreciation-equipment 680 680 680 680
Interest expenses 300 300 300 300 0
Interest payable 300 300 300 300
Insurance expense 600 600 600 600 0
3,410 3,410 43,610 43,610 7,300 11,280
Net income 3,980 3,980
11,280 11,280 36,310 36,310
Income summary 11280 11280 - -
Retained earnings 600 3,980 3,380
23,160 23,160 35,710 35,710
work sheet
Unadjusted TB Adjustments
Account titles Debit Credit Debit Credit
Cash 7,800
Share capital 20,000
Account payable 7,200
Equipment 12,000
Supplies 2,100 1,540
Prepaid insurance 3,600 300
Account receivable 10,900 3,300
Service revenue 15,300 3,300
Gasoline exp 400
Salaries and wages exp 4,500 2,200
Dividend 1,200
Total 42,500 42,500
Depreciation expenses 500
Accumulated depreciation-equipment 500
Insurance exp 300
Supplies exp 1540
Salaries and wages payable 2200
7,840 7,840
Net income
Income summary
Retained earnings
WORKSHEET
500 500
500
300 300
1540 1540
2200
48,500 48,500 9,440 18,600 39,060
9,160
18,600 18,600 39,060
t and Stmt Of Owner’s Equity Closing entries Post-closing TB
Credit Debit Credit Debit Credit
7,800
20,000 20,000
7,200 7,200
12,000
560
3,300
14,200
18,600
400
6,700
1,200
500
500 500
300
1540
2200 2200
29,900
9,160
39,060
18600 18600
1200 9160 7960
38,400 38,400 37,860 37,860
1) Journalizing the transactions 2) Posting to ledgers
July 1. Cash 20000
Share capital-ordinary 20000
July 1. Equipment 12000
Cash 4000
Account payable 8000
July 3. Supplies 2100
Account payable 2100
July 5. Prepaid insurance 3600
Cash 3600
July 12. Account recievable 5900
Service revenue 5900
July 18. Account payable 2900
Cash 2900
July 20. Salaries and wages expense 4500
Cash 4500
July 21. Cash 4400
Account recievable 4400
July 25. Account receivable 9400
Service revenue 9400
JUly 31. Gasoline expense 400
Cash 400
July 31. Dividend 1200
Cash 1200