Service revenue 47000

Credit Income summary 47000

Income Summary
Income summary 32000 32,000
Salaries and wages expense 27000 15,000
Supplies expense 5000 Retained Earning
2,000
Income summary 15000
Retained earning 15000

Retained earning 2000

Dividend 2000
Income Summary
47,000

Retained Earning
30,000
15,000 net income
Problem 4-1A
Journalizing the adjustment entries

1) Supplies expense 750

Supplies 750
2) Depreciation expense 680
Accumulated depreciation-Equipment 680
3) Interest expense 300
Interest payable 300
4) Insurance expense 600
Prepaid insurance 600
5) Accounts receivable 1080
Service revenue 1080

Journalizing the closing entries

1) Service revenue 11280

Income summary 11280

2) Income Summary 7300

Travel Expense 1300
Salaries Expense 2240
Rent Expense 1200
Insurance Expense 600
Depreciation Expense 680
Supplies Expense 750
Interest Expense 300
Miscellaneous Expense 230

3) Income Summary 3980

Retained Earnings 3980

4) Retained Earnings 600

Dividends 600
work sheet
WORKSHEET

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

Adjusted TB Income statement Balance Sheet and Stmt Of Owner’s Equity

Debit Credit Debit Credit Debit
7,800 7,800
20,000
7,200
12,000 12,000
560 560
3,300 3,300
14,200 14,200
18,600 18,600
400 400
6,700 6,700
1,200 1,200

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

3) Journalizing and posting the adjustment entries

(a) Account receivable 3300
Service revenue 3300
(b) Depreciation expenses 500
Accumulated depreciation-equipment 500
(c) Insurance exp 300
Prepaid insurance 300
(d) Supplies exp 1540
Supplies 1540
(e) Salaries and wages expense 2200
Salaries and wages payable 2200
4) Journalizing and postingthe closing entries
(i) Service revenue 18600
Income sumary 18600
(ii) Income summary 9440
Gasoline exp 400
 Salaries and wages expense 6700
Depreciation expenses 500
Insurance exp 300
Supplies exp 1540
(iii) Income summary 9160
Retained earning 9160
(iV) Retained earning 1200
Dividends 1200
osting to ledgers
CASH Share capital
20000 20000
4000 .Bal 20000
3600
2900
4500
4400 400 ACC. Payable
1200 2900 8000
24400 16600 2100
Bal. 7800 2900 10100
Bal. 7200
Equipment Account recievable
12000 5900 4400
Bal. 12000 9400
15300 4400
Bal. 10900
Supplies (a) 3300
2100
Bal. 2100 (d) 1540
Service revenue
5900
Prepaid insurance 9400
3600 Bal. 15300
Bal. 3600 (b) 300 (i) 18600 (a) 3300
0

Salaries and wages exp Gasoline exp

4500 400
Bal. 4500 Bal. 400 400
(e) 2200 (ii) 6700 0
0 Dividend
1200
Depreciation exp Bal. 1200 (iv) 1200
(b)500 (ii) 500 0
0
Insurance exp
(c)300 (ii) 300
Accumulated depreciation 0
(b)500
500 Supplies exp
 (d) 1540 (ii) 1540
0
Salaries and wages payable
(e) 2200
2200 Retained earnings
(iv) 1200 9160 (iii)
7960
 Income summary
(ii) 9440 (i) 18600
(iii) 9160
- -