A B 3 4 Journal: During July, its 4th month of business, Karry no Key, Inc.: ACCOUNT TITLES AND EXPLANATIONS 5 7/1 6 7 Paid amount owed for prior month's operating expenses 8 During 9 July Collected accounts receivable 11 During 12 July 13 Purchased 600 karaoke machines on account 14 During July 16 17 18 Sold 550 karaoke machines on account using FIFO perpetual E F G H Amounts in US $ General Ledger: Per Unit Total DEBIT CREDIT Assets Cash Beginning Balance 1,484 V X Y J K L M N 0 P Q R S T U Trial Balances (in US $): July 31 Liabilities Accounts Payable Shareholders' Equity Stock Unadjusted Adjusted Account Title Debits Credits Debits Credits Cash Accounts Receivable Allowance for Doubtful Accounts Inventory 70,004 Unadjusted Balance Prepaid Insurance Adjusted Balance $ 108 64,800 148 price Accounts Receivable Accrued Liabilities Retained Earnings Beginning Balance Unadjusted Balance Adjusted Balance 53,000 Allowance for Doubtful Accounts Sales Revenue Beginning Balance Equipment Accumulated Depreciation Accounts Payable Accrued Liabilities Stock Retained Earnings Sales Revenue Cost of Goods Sold Insurance Expense Depreciation Expense Other Operating Expenses Doubtful Accounts Expense Dividends Total 1,060 Unadjusted Balance Adjusted Balance Diagnostic Check: Debits = Credits True True 592 Inventory Cost of Goods Sold 888 Beginning Balance Unadjusted Balance 3,180 Adjusted Balance Prepaid Insurance Insurance Expense 1,696 Beginning Balance Unadjusted Balance Adjusted Balance Diagnostic Debits = Credits True Equipment Depreciation Expense Beginning Balance Unadjusted Balance Adjusted Balance inventory; beginning inventory consisted of 50 karaoke machines at a cost of 106 20 During 21 July 22 Paid accounts payable 23 7/31 24 25 Declared and paid a cash dividend 26 7/31 27 28 Wrote off specific bankrupt customers' accounts 29 7/31 30 31 Adjusted Allowance for Doubtful Accounts to equal 32 7/31 34 Adjusted for insurance used; amount prepaid on May 1 for 6-months' coverage was: 35 7/31 36 37 Adjusted for depreciation of its equipment with a 10-year useful life and $0 salvage value 38 7/31 39 40 Adjusted for all other operating expenses owed that will be paid in the next month 41 42 43 44 45 Chart of Accounts: 46 Accounts Payable Accounts Receivable 48 Accrued Liabilities A B 31 Adjusted Allowance for Doubtful Accounts to equal 7/31 34 Adjusted for insurance used; amount prepaid on May 1 for 6-months' coverage was: 35 7/31 36 37 Adjusted for depreciation of its equipment with a 10-year useful life and $0 salvage value 38 7/31 39 40 Adjusted for all other operating expenses owed that will be paid in the next month 41 42 43 44 45 Chart of Accounts: 46 Accounts Payable 47 48 Accrued Liabilities 49 50 Accounts Receivable Accumulated Depreciation Allowance for Doubtful Accounts 51 Cash 52 Cost of Goods Sold 53 54 Depreciation Expense Dividends 55 Doubtful Accounts Expense 56 Equipment Insurance Expense 58 Inventory 59 Other Operating Expenses 60 Prepaid Insurance Retained Earnings 62 Sales Revenue 63 Stock 64 65 66 67 68 69 71 72 73 74 75 77 Instructions C D E F G H J K L M N P Q R S T U V W Y 888 Unadjusted Balance 3,180 Adjusted Balance Prepaid Insurance Insurance Expense 1,696 Beginning Balance Unadjusted Balance Adjusted Balance Diagnostic Debits = Credits True Equipment Depreciation Expense Beginning Balance Unadjusted Balance Adjusted Balance Accumulated Depreciation Other Operating Expenses Beginning Balance Unadjusted Balance Journal, Ledger and TB Statements Adjusted Balance Beginning Balance Unadjusted Balance Adjusted Balance Beginning Balance Unadjusted Balance Adjusted Balance Doubtful Accounts Expense Dividends A 2 Adjusted Trial Balance (in US $): Accounts Receivable 3 4 Cash 5 6 7 Inventory Account Title Allowance for Doubtful Accounts 8 Prepaid Insurance 9 10 Equipment Accumulated Depreciation Accounts Payable Accrued Liabilities Stock 12 13 Retained Earnings 15 Sales Revenue 16 Cost of Goods Sold 17 Insurance Expense 18 Depreciation Expense 19 Other Operating Expenses 20 Doubtful Accounts Expense 21 Dividends 22 Total 23 24 25 26 27 Sales Revenue 28 Karry no Key, Inc. 30 Other Operating Expenses 31 32 Depreciation Expense 33 Insurance Expense 34 35 36 37 Karry no Key, Inc. 38 39 40 Beginning Stock 41 Stock Issued 42 Ending Stock 43 44 Beginning Retained Earnings 45 46 Dividends 47 Ending Retained Earnings 48 B C D E F G H J K L M N 0 R S T V W Y Z AA AB AC AD AE AF July 31 Debits Credits Cell Links/Formulas: n/a n/a n/a n/a n/a n/a n/a n/a 222 2222 Instructions Journal, Ledger and TB Statements (+) D E F G H 2222 2 22222 22222 A B C 44 Beginning Retained Earnings 46 Dividends 47 Ending Retained Earnings Total Shareholders' Equity Karry no Key, Inc. Cash from Operating Activities: 56 Cash Collected from Customers 57 Cash Paid for Inventory 58 Cash Paid for Other Operating Expenses 59 Total Cash from Operating Activities Cash from Investing Activities 63 Cash from Financing Activities Cash Paid for Dividends 65 Net Cash from Financing Activities 32 : 2 % * * * * 1 32 83 82 28 3 2 2 8 8 9 8 8 2 8 32266466** 85 Stock 68 Ending Cash Balance Karry no Key, Inc. 74 Cash 75 Accounts Receivable, Net of Allowance for Doubtful Accounts 77 Prepaid Insurance 79 Equipment, Net of Accumulated Depreciation 82 Accounts Payable 2222222 222222 K M N P Q R S U V Y Z AA AB AC AD AE AF Continuation of Journal and Ledner Prepare the closing entries below and nost to the Retained Earnings T-account using links from your closing entries Instructions Journal, Ledger and TB Statements (+) A B C D E F G H J K L M N P Q R S T V Y Z AA AB AC AD AE AF Continuation of Journal and Ledger: Prepare the closing entries below and post to the Retained Earnings T-account using links from your closing entries ACCOUNT TITLES AND EXPLANATIONS CREDIT DEBIT 89 90 91 92 93 94 95 96 97 98 99 To close Net Income 100 101 102 To close dividends 103 104 105 106 107 108 n/a n/a n/a n/a n/a n/a n/a n/a 2222222 22 n/a n/a n/a n/a n/a Retained Earnings Adjusted Balance n/a n/a n/a n/a 222 n/a n/a Post-Closing Balance 109 Prepare the Post-Closing Trial Balance (leave cell blank if $0) 110 Post-Closing Trial Balance (in US $): 111 112 Cash 113 Accounts Receivable Account Title 114 Allowance for Doubtful Accounts 115 Inventory 116 Prepaid Insurance 117 Equipment 118 Accumulated Depreciation 119 Accounts Payable 120 Accrued Liabilities 121 Stock 122 Retained Earnings 123 Sales Revenue 124 Cost of Goods Sold 125 Insurance Expense 126 Depreciation Expense 127 Doubtful Accounts Expense 128 Other Operating Expenses 129 Interest Expense 130 131 132 133 134 135 Dividends Total July 31 Debits Credits n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Instructions 22222222222 2 2 2 2 2 2 2 2 2 Journal, Ledger and TB Statements +