Accounting Cycle Review Problem Michelle Clark Accounting 1110 Section 401 Fall 2014
General Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Record Transactions, Adjusting Entries, Closing Entries in this journal 1-Dec Cash $60,000 Dosler Captial $60,000 Contribution in exchange for capital 1-Dec Equipment 12,000 Cash 12,000 Purchase of equipment for business 1-Dec Prepaid Insurance 2,000 Cash 2,000 Purchase of 4 months insurance 9-Dec Land 22,000 Cash 22,000 Purchase of land for business 10-Dec Office Supplies 3,300 Accounts Payable 3,300 Purchase supplies on account 19-Dec Cash 25,000 Notes Payable - Dosler 25,000 Borrowed from bank. Note signed by Dosler 22-Dec Advertising Expense 800 Cash 800 Paid for advertising 26-Dec Accounts Payable 1,000 Cash 1,000 payment on accounts payable 28-Dec Utilities Payable 320 Utilities Expense 320 Utilities bill due January 31-Dec Cash 10,000 Accounts Receivable 1,200 Service Revenue 11,200 Revenue earned in December 31-Dec Salaries Expense 2,100 Rent Expense 950 Cash 3050 Paid $2100 salaries and $950 rent 31-Dec Cash 4,200 Unearned Revenue 4,200 January screening service payment 31-Dec Withdrawal 7,000 Cash 7,000 Dosler withdrawal of cash
General Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 31-Dec (a) Supplies Expense $1,000 Office Supplies $1,000 Supplies used in December (b) Depreciation Expense - Equipment 400 Accumulated Depreciation - Equipment 400 Depreciation for December ( c ) Insurance Expense 500 Prepaid Insurance 500 One month insurance has expired (d) Interest Expense 100 Interest Payable 100 Accrued Interest Expense ( e ) Service Revenue 11200 Income Summary 11200 To close revenue accounts (f) Income Summary 6170 Salaries Expense 2100 Rent Expense 950 Advertising Expense 800 Utilities Expense 320 Supplies Expense 1000 Insurance Expense 500 Interest Expense 100 Depreciation Expense - Equipment 400 To close expense accounts (g) Income Summary 7000 Withdrawal 7000 Close Withdrawal account (h) Dosler Capital 1970 Income Summary 1970 Close Income Summary Account
General Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT
General Ledger Cash Accts. Rec Office Supplies Prepaid Insurance $60,000 $12,000 $1,200 $3,300 $1,000 (a) $2,000 $500 (c) 25,000 2,000 10,000 22,000 2,400 800 1,000 3,050 7,000 $49,550 $1,200 $2,300 $1,500 Equipment Accum. Deprec. - Equip Land Accounts Payable $12,000 $400 (b) $22,000 $1,000 $3,300 $12,000 $400 $22,000 $2,300 Utilities Payable Interest Payable Unearned Revenue Notes Payable-Dosler $320 $100 (d) $2,400 $25,000 $320 $100 $2,400 $25,000 Capital-Dosler Withdrawals Service Revenue Salaries Expense (h) $1,970 $60,000 $7,000 $7,000 (g) ( e) $11,200 $11,200 $2,100 $2,100 (f) $58,030 $0 $0 $0
General Ledger Rent Expense Utilities Expense Advertising Expense Supplies Expense $950 $950 (f) $320 $320 (f) $800 $800 (f) (a) $1,000 $1,000 (f) $0 $0 $0 $0 Insurance Expense Interest Expense Depreciation Exp. Equip. Income Summary (c) $500 $500 (f) (d) $100 $100 (f) (b) $400 $400 (f) (f) $6,170 $11,200 ( e) (g) $7,000 $1,970 (h) $0 $0 $0 $0
Unadjusted Trial Balance December 31, 2013 DEBITS CREDITS Cash $49,550 Accounts Reveiveable 1,200 Office Supplies 3,300 Prepaid Insurance 2,000 Equipment 12,000 Land 22,000 Accounts Payable $2,300 Utilities Payable 320 Unearned Revenue 2,400 Notes Payable 25,000 Capital - Dosler 60,000 Withdrawals 7,000 Service Revenue 11,200 Salaries Expense 2,100 Rent Expense 950 Advertising Expense 800 Utilities Expense 320 $101,220 $101,220
Adjusted Trial Balance December 31, 2013 DEBITS CREDITS Cash $49,550 Accounts Receiveable 1,200 Office Supplies 2,300 Prepaid Insurance 1,500 Equipment 12,000 Accumulated Depreciation - Equipment $400 Land 22,000 Accounts Payable 2,300 Utilities Payable 320 Interest Payable 100 Unearned Revenue 2,400 Notes Payable 25,000 Capital - Dosler 60,000 Withdrawals 7,000 Service Revenue 11,200 Salaries Expense 2,100 Rent Expense 950 Advertising Expense 800 Utilities Expense 320 Supplies Expense 1000 Insurance Expense 500 Interest Expense 100 Depreciation Expense - Equipment 400 $101,720 $101,720
Income Statement Month Ended December 31, 2103 Revenue Service Revenue $11,200 Expenses Salaries Expense $2,100 Rent Expense 950 Advertising Expense 800 Utilities Expense 320 Supplies Expense 1,000 Insurance Expense 500 Interest Expense 100 400 Net Income $5,030 Statement of Changes in Owner's Equity Month Ended December 31, 2103 Dosler's Capital December 1 $60,000 Net Income December 2013 5,030 Subtotal 65,030 Less Withdrawals 7,000 Dosler Capital December 31, 2013 $58,030
Balance Sheet December 31, 2013 DEBITS Assets Cash $49,550 Accounts Receiveable 1,200 Office Supplies 2,300 Prepaid Insurance 1,500 Equipment 12,000 Accumulated Depreciation - Equipment Land 22,000 Total Assets $88,550 Liabilities Accounts Payable Utilities Payable Interest Payable Notes Payable Unearned Revenue Dosler Capital Total Liabilities and Owner's Equity
CREDITS $400 2,300 320 100 25,000 2,400 58,030 $88,550
Post-Closing Trial Balance December 31, 2013 DEBITS Cash $49,550 Accounts Receivable 1,200 Office Supplies 2,300 Prepaid Insurance 1,500 Equipment 12,000 Accumulated Depreciation - Equipment Land 22,000 Accounts Payable Utilities Payable Interest Payable Notes Payable Unearned Revenue Capital - Dosler $88,550
CREDITS $400 2,300 320 100 2,400 25,000 58,030 $88,550