Chapter 4, ACT101, Textbook problems

Required:
 Chapter 4, ACT101, Textbook problems

Answer for P4-2

PROBLEM 4.2

(c)
General Journal
Date Account Titles and Explanation Ref. Debit Credit
Dec. 31 Service Revenue.................................. 400 61,000
Income Summary........................ 350 61,000

31 Income Summary................................. 350 50,700

Advertising Expense.................. 610 9,000
Supplies Expense....................... 631 4,000
Depreciation Expense................ 711 5,600
Insurance Expense..................... 722 3,500
Salaries and Wages Expense.... 726 28,000
Interest Expense......................... 905 600

31 Income Summary................................ 350 10,300

Owner’s Capital........................... 301 10,300

31 Owner’s Capital.................................... 301 7,600

Owner’s Drawings...................... 306 7,600

(d)

Owner’s Capital No. 301

Date Explanation Ref. Debit Credit Balance
Jan. 1 Balance  13,000 13,000
Dec. 31 Closing entry J14 10,300 23,300
31 Closing entry J14 7,600 15,700

Owner’s Drawings No. 306

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  7,600 7,600
31 Closing entry J14 7,600 0
 Chapter 4, ACT101, Textbook problems

PROBLEM 4.2 (Continued)

Income Summary No. 350

Date Explanation Ref. Debit Credit Balance
Dec. 31 Closing entry J14 61,000 61,000
31 Closing entry J14 50,700 10,300
31 Closing entry J14 10,300 0

Service Revenue No. 400

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  61,000 61,000
31 Closing entry J14 61,000 0

Advertising Expense No. 610

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  9,000 9,000
31 Closing entry J14 9,000 0

Supplies Expense No. 631

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  4,000 4,000
31 Closing entry J14 4,000 0

Depreciation Expense No. 711

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  5,600 5,600
31 Closing entry J14 5,600 0

Insurance Expense No. 722

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  3,500 3,500
31 Closing entry J14 3,500 0
 Chapter 4, ACT101, Textbook problems

PROBLEM 4.2 (Continued)

Salaries and Wages Expense No. 726

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  28,000 28,000
31 Closing entry J14 28,000 0

Interest Expense No. 905

Date Explanation Ref. Debit Credit Balance
Dec. 31 Balance  600 600
31 Closing entry J14 600 0

(e) NGUYEN COMPANY

Post-Closing Trial Balance
December 31, 2022

Debit Credit
Cash...................................................................... $ 5,300
Accounts Receivable.......................................... 10,800
Supplies................................................................ 1,500
Prepaid Insurance............................................... 2,000
Equipment............................................................ 27,000
Accumulated Depreciation—
Equipment........................................................ $ 5,600
Notes Payable...................................................... 15,000
Accounts Payable................................................ 6,100
Salaries and Wages Payable.............................. 3,600
Interest Payable...................................................
Owner’s Capital................................................... 15,700
Totals............................................................ $46,600 $46,600
Chapter 4, ACT101, Textbook problems