Question
Beneish Corporation has the following account balances at December 31, the end of its fiscal year. Debit Credit Cash $ 4,000 Accounts receivable 6,500 Equipment
Beneish Corporation has the following account balances at December 31, the end of its fiscal year.
Debit | Credit | |
---|---|---|
Cash | $ 4,000 | |
Accounts receivable | 6,500 | |
Equipment | 78,000 | |
Accumulated depreciation | $ 14,000 | |
Notes payable | 10,000 | |
Common stock | 43,000 | |
Retained earnings | 20,600 | |
Dividends | 8,000 | |
Service fees earned | 71,000 | |
Rent expense | 18,000 | |
Salaries expense | 37,100 | |
Depreciation expense | 7,000 | |
Totals | $158,600 | $158,600 |
(a) Prepare Beneish Corporation's income statement and statement of stockholders' equity for year-end December 31, and its balance sheet as of December 31. There were no stock issuances or repurchases during the year. (Do not use negative signs with your answers unless otherwise noted.)
Beneish Corporation Income Statement For Year Ended December 31 | |
---|---|
AnswerCashRetained earningsService fees earnedDividendsNotes Payable | Answer |
Rent expense | |
Salaries expense | |
Depreciation expense | |
Net income |
Note: Use a negative sign for any answer that decreases the balance.
Beneish Corporation Statement of Stockholders' Equity For Year Ended December 31 | |||
---|---|---|---|
Common Stock | Retained Earnings | Total Stockholders' Equity | |
Balance at December 31, Beg | |||
Stock issuance | |||
AnswerCashNotes PayableDividendsRetained earningsService fees earned | |||
Net income | |||
Balance at December 31, End |
Note: Use a negative sign with your accumulated depreciation answer.
Beneish Corporation Balance Sheet December 31 | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Assets | Liabilities | ||||||||||||||||||||||
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(b) Prepare journal entries to close Beneish's temporary accounts.
GENERAL JOURNAL | |||
---|---|---|---|
Ref. | Description | Debit | Credit |
(1) | AnswerRetained EarningsService Fees EarnedStock issuanceCashDividends | ||
AnswerRetained EarningsService Fees EarnedStock issuanceCashDividends | |||
To close revenue account. | |||
(2) | AnswerDividendsService Fees EarnedRent ExpenseRetained EarningsStock issuance | ||
AnswerDividendsService Fees EarnedRent ExpenseRetained EarningsStock issuance | |||
To close rent expense account. | |||
(3) | AnswerRetained EarningsDividendsSalaries ExpenseStock issuanceService Fees Earned | ||
AnswerRetained EarningsDividendsSalaries ExpenseStock issuanceService Fees Earned | |||
To close salaries expense account. | |||
(4) | AnswerStock issuanceRetained EarningsService Fees EarnedDepreciation ExpenseDividends | ||
AnswerStock issuanceRetained EarningsService Fees EarnedDepreciation ExpenseDividends | |||
To close depreciation expense account. | |||
(5) | AnswerService Fees EarnedCashRetained EarningsStock issuanceDividends | ||
AnswerService Fees EarnedCashRetained EarningsStock issuanceDividends | |||
To close dividend account. |
(c) Set up T-accounts for each account and post the closing entries. Note: Only those ledger accounts affected by closing process are shown here.
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Enter beginning balances in the appropriate answer box.
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Enter transactions in the T-accounts in the order they appear, using first available answer box on the appropriate side of the T-account.
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Compute the ending balances.
Retained Earnings | |||
---|---|---|---|
Beg Bal. | |||
End Bal. |
Service Fees Earned | |||
---|---|---|---|
Be g Bal. | |||
End Bal. |
Rent Expense | |||
---|---|---|---|
Beg Bal. | |||
End Bal. |
Depreciation Expense | |||
---|---|---|---|
Beg Bal. | |||
End Bal. |
Salaries Expense | |||
---|---|---|---|
Beg Bal. | |||
End Bal. |
Dividends | |||
---|---|---|---|
Beg Bal. | |||
End Bal. |
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