1) The ledger accounts given below, with an identification number for each, are used by Paulson Company.

Indicate the appropriate entries for the month of May by placing the appropriate identification number(s) of the listed accounts in the debit and credit columns provided. Entry 0 is given as an example. Write "none" if entry is not appropriate.

1cash, 2accounts receivable, 3supplies, 4prepaid insurance, 5prepaid advertising, 6equipment, 7salaries payable, 8accounts payable, 9unearned service revenue, 10Notes payable, 11Owner's capital, 12Owner's Drawing, 13Service Revenue, 14equipment expense, 15 advertising expense, 16 Supplies expense, 17rent expense, 18salaries expense,

1May Owner K Paulson invested $40,000 in business Accounts Debited=1 Accounts Credited=11

4May Equipment was purchased at a cost of $7000; a three-month, 10%note payable was signed for this bill

5May Paid supplier $1,500 cash on account

8May Paid $1,800 in cash to Palmero Co. for May rent

10May Purchased supplies for $2,500 cash. The supplies are expected to last through July

14May Paid $300 cash to Daily News for advertisements run this past week

16May Billed customers $8,000 for services rendered

19May Received $5,000 from customers for services rendered during the week

25May Additional supplies were purchased on account at a cost of $800 from Superior Supplies Co. This supplies will be used during June

26May Received $11,000 from customers fro services to be rendered early in June

27May Paid the Weekly News $300 for an advertisement that will run the first week in June

28May Received $4,000 on account

30May Owner K. Paulson withdrew $500 for personal use

30May K. Minor, K Paulson's administrative assistant, was paid $1,800 cash for her salary

2) Closing Entries

Place a D(Debit) or C(Credit) next to the account to indicate where the account would be debited or credited for its balance in the Closing Process. Insert an X if the account is not closed

1.Cash 2.Rent Expense 3.Depreciation Expense 4.Equipment 5.Owner's Drawings

6.Accounts Receivable 7.Accumulated Depreciation 8.Interest Expense

9.Unearned Subscription Revenue 10.Interest Revenue 11.Interest Receivable

12.Subscription Revenue 13.Prepaid Rent 14.Income Summary

3) Adjusting Entries

The ledger accounts given below, with an identification number for each, are used by Screetch Co. Prepare appropriate adjusting entries for the year ended December 31,2012, by replacing the appropriate Identification number(s) in the debit and credit columns provided and the dollar amount in the adjoining column

1.Notes payable 2.Account Receivable 3.Interest Receivable 4.Supplies 5.Prepaid Insurance 6.Equipment 7.Accumulated Depreciation-Equipment 8.Salaries and Wages Payable 9.Interest Payable 10.Unearned Service Revenue 11.Notes Payable 12.Interest Revenue 13.Service Revenue 14.Depreciation Expense-Equipment 15.Salaries and Wages Expense 16.Interest Expense 17.Supplies Expense 18.Insurance Expense

• Example: Interest of $300 is accrued on a note receivable at Dec 31,2012

Account(s) Debited= 3 Account(s) Payable=12 Dollar Amount=$300

• A customer paid Screetch $16,000 on December 1, 2012, for services to be rendered from December 1, through January 31,2013. The receipt was credited to liability account
• Screetch has two employees who earn each $100 per day. At December 31, Four days' salaries have been earned but not paid.
• Screetch Provided services to a customer in 2012 at a fee of $1,000. This fee has not yet been received or billed
• Screeth purchased equipment costing $28,000 on January 1,2011. Monthly Depreciation is $400
• Screetch borrowed $8,000 by signing a three-month, 6% interest, note payable on November 1,2012
• Screetch paid $9,000 fro three year insurance policy on July 1,2012, debiting an asset acount at that time.
• Screetch beginning supplies Inventory on Jan 1,2012 was $3,000 and ending Inventory of $1,000 document supplies used
• Screetch purchased short-term investment on October 1,2012. Interest of $200 per month has been earned but not received prior to December 31