Chapter Four Exercise #$1$: Closing Entries.

Okabe Company ended its fiscal year on July $31,2024.$ The company$$s adjusted trial

balance as of the end of its fiscal year is shown below.

OKABE COMPANY

Adjusted Trial Balance

July $31,2024$

No$.$ Account Titles

$101$ Cash $ $9,840($Dr$.)$

$112$ Accounts Receivable $8,780($Dr$.)$

$157$ Equipment $15,900($Dr$.)$

$158$ Accumulated Depreciation$$Equip$.$ $ $7,400($Cr$.)$

$201$ Accounts Payable $4,220($Cr$.)$

$208$ Unearned Rent Revenue $1,800($Cr$.)$

$301$ Owner$$s Capital $45,200($Cr$.)$

$306$ Owner$$s Drawings $16,000($Dr$.)$

$400$ Service Revenue $64,000($Cr$.)$

$429$ Rent Revenue $6,500($Cr$.)$

$711$ Depreciation Expense $8,000($Dr$.)$

$726$ Salaries and Wages Expense $55,700($Dr$.)$

$732$ Utilities Expense $14,900($Dr$.)$

Instructions: Prepare the closing entries.

Chapter Four Exercise #$2$: Create Financial Statements from Adjusted Trial Balance

THAO COMPANY

Worksheet For the Year Ended December $31,2024$

Adjusted Account Trial Balance

No$.$ Account Titles

$101$ Cash $5,300($Dr$.)$

$112$ Accounts Receivable $10,800($Dr$.)$

$126$ Supplies $1,500($Dr$.)$

$130$ Prepaid Insurance $2,000($Dr$.)$

$157$ Equipment $27,000($Dr$.)$

$158$ Accumulated Depreciation$$Equipment $5,600($Cr$.)$

$200$ Notes Payable $15,000($Cr$.)$

$201$ Accounts Payable $6,100($Cr$.)$

$212$ Salaries and Wages Payable $2,400($Cr$.)$

$230$ Interest Payable $600($Cr$.)$

$301$ Owner$$s Capital $13,000($Cr$.)$

$306$ Owner$$s Drawings $7,000($Dr$.)$

$400$ Service Revenue $61,000($Cr$.)$

$610$ Advertising Expense $8,400($Dr$.)$

$631$ Supplies Expense $4,000($Dr$.)$

$711$ Depreciation Expense $5,600($Dr$.)$

$722$ Insurance Expense $3,500($Dr$.)$

$726$ Salaries and Wages Expense $28,000($Dr$.)$

$905$ Interest Expense $600($Dr$.)$

Totals $103,700($Dr$.)103,700($Cr$.)$

Instructions

$($a$)$ Prepare an income statement, owner$$s equity statement, and a classified balance sheet.

$($Note: $$5,000$ of the notes payable become due in $2025)$ D$.$ Thao did not make any additional investments in the business during the year.

$($b$)$ Prepare the closing entries.

Exercise #$3$ List all major steps in completing an accounting cycle.