CHAPTER 8 REVIEW EXERCISES (continued) Exercise 7, p. 326 A. Year Ended December 31, 20 8 BALANCE SHEET INCOME STATEMENT ADJUSTMENTS TRIAL BALANCE

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1 Exercise 7, p. 326 A. Oakville Journal Worksheet Year Ended December, 28 TRIAL BALANCE ACCOUNTS ADJUSTMENTS INCOME STATEMENT BALANCE SHEET Bank Accounts Receivable Prepaid Insurance Land Buildings Acc. Dep. Buildings Equipment Acc. Dep. Equipment Automotive Equipment Acc. Dep. Auto. Equip. Accounts Payable HST Payable HST Recoverable Bank Loan Mortgage Payable R. Lucht, Drawings Revenue Advertising Revenue Circulation Bank Int. & Charges Exp. Building Maintenance Expense Car Expense Miscellaneous Expense Mortgage Interest Expense Office Expense Office Salaries Expense Sales Promotions Expense Copyright 23 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 269

2 Oakville Journal Worksheet Year Ended December, 28 TRIAL BALANCE ACCOUNTS ADJUSTMENTS INCOME STATEMENT BALANCE SHEET Telephone Expense Truck Expense Utilities Expense Wages Expense Sup. & Materials Exp. Insurance Expense Unearned Rev Ads Dep. Buildings Dep. Equipment Dep. Auto. Equip. Net Income Accounting Teacher s Key Copyright 23 Pearson Canada Inc.

3 B. OAKVILLE JOURNAL INCOME STATEMENT YEAR ENDED DECEMBER, 28 REVENUE Advertising Circulation Total Revenue $ $ 3 8 EXPENSES Bank Interest and Charges Expense Building Maintenance Expense Car Expense Miscellaneous Expense Mortgage Interest Expense Office Expense Office Salaries Expense Sales Promotions Expense Telephone Expense Truck Expense Utilities Expense Wages Expense Expense Insurance Expense Depreciation Buildings Depreciation Equipment Depreciation Automobile Equipment Total Expenses NET INCOME $ $ Copyright 23 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 27

4 B. (continued) OAKVILLE JOURNAL BALANCE SHEET DECEMBER, 28 ASSETS Current Assets Bank $ 2 Accounts Receivable Prepaid Insurance 3 2 Total Current Assets $ 26 6 Long-Term Assets Land $77 Buildings $ Less: Accumulated Depreciation 6 7 Equipment $ 9 7 Less: Accumulated Depreciation Automotive Equipment $ Less: Accumulated Depreciation Total Long-Term Assets Total Assets $472 4 LIABILITIES Current Liabilities Accounts Payable $ 7 7 HST Payable $ 2 8 Less: HST Recoverable 7 HST Owed 3 Unearned Revenue Advertising Bank Loan Total Current Liabilities $ 2 4 Long-Term Liabilities Mortgage Payable 66 Total Liabilities $ Accounting Teacher s Key Copyright 23 Pearson Canada Inc.

5 B. (continued) OWNER S EQUITY Balance December Net Income Less: Drawings Decrease in Capital Balance December Total Liabilities and Equity $ 2 8 $ ( ) $ C. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 28 Dec. Adjusting Entries 9 6 Car Expense 2 Miscellaneous Expense 3 Truck Expense Accounts Payable Expense Insurance Expense Prepaid Insurance Revenue Advertising Unearned Revenue Advertising Depreciation Buildings Accum. Dep. Buildings Depreciation Equipment 7 7 Accum. Dep. Equipment 7 7 Depreciation Automotive Equipment Accum. Dep. Automotive Equipment Copyright 23 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 273

6 C. (continued) GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 28 Dec. Closing Entries Revenue Advertising Revenue Circulation 9 3 Income Summary 3 8 Income Summary Bank Interest and Charges Expense 2 Building Maintenance Expense Car Expense 6 Miscellaneous Expense Mortgage Interest Expense 36 3 Office Expense 2 4 Office Salaries Expense Sales Promotion Expense 2 7 Telephone Expense Truck Expense Utilities Expense 3 Wages Expense Expense Insurance Expense Depreciation Building Depreciation Equipment 7 7 Depreciation Automotive Equipment Income Summary R. Lucht, Drawings 274 Accounting Teacher s Key Copyright 23 Pearson Canada Inc.

7 D. GENERAL LEDGER Bank Accounts Receivable Supplies & Materials Prepaid Insurance Land Buildings Accum. Dep. Buildings Equipment Accum. Dep. Equipment Accum. Dep. Automotive Equipment Auto. Equip. Unearned Revenue Accounts Payable HST Payable HST Recoverable Bank Loan Mortgage Payable R. Lucht, Drawings Revenue Advertising Revenue Circulation Copyright 23 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 27

8 D. (continued) Building Maintenance Bank Interest & Charges Expense Car Expense Miscellaneous Expense Mortgage Interest Expense Office Salaries Expense Office Expense Sales Promotion Expense Telephone Expense Truck Expense Utilities Expense Wages Expense Depreciation Expense Depreciation Expense Depreciation Expense Buildings Equipment Automotive Equipment Expense Insurance Expense Income Summary Accounting Teacher s Key Copyright 23 Pearson Canada Inc.

9 E. OAKVILLE JOURNAL POST-CLOSING TRIAL BALANCE DECEMBER, 28 Bank Accounts Receivable Prepaid Insurance Land Buildings Acc. Dep. Buildings Equipment Acc. Dep. Equipment Automotive Equipment Acc. Dep. Automotive Equipment Accounts Payable HST Payable HST Recoverable Unearned Revenue Advertising Bank Loan Mortgage Payable Copyright 23 Pearson Canada Inc. Chapter 8 Completing the Accounting Cycle 277

Chapter 4: Completing the Accounting Cycle. Learning Objective 2 Prepare financial statements from adjusted account balances.

1 Chapter 4 Completing the Accounting Cycle Chapter 4: Completing the Accounting Cycle Learning Objective 2 Prepare financial statements from adjusted account balances. From chapter 3 NetSolutions Adjusted