Completing the Accounting Cycle 213 > Short Exercises Si Preparing an income statement Daylen Hair Stylists's adius ment for the year ended December 31, 2017 Jan Hair Stylists's adjusted trial balance follows. Prepare Dave's income Learning Objective 1 DAYLEN HAIR STYUSTS Adjusted Trial Balance December 31, 2017 Debit Credit $ 1.600 1.100 2.000 19.800 $ 1800 Account Title Cash Accounts Receivable Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Interest Payable Notes Payable Daylen, Capital Daylen, Withdrawals Service Revenue Rent Expense Supplies Expense Depreciation Expense-Equipment Interest Expense Total 900 3.700 12.700 15.100 CHAPTER 4 5,300 800 1,800 2,100 $ 35.100 535.100 Learning Objective 1 S4-2 Preparing a statement of owner's equity Refer to the data in Short Exercise S4-1. Prepare Daylen's statement of owner's equity for the vear ended December 31, 2017. Assume the owner made no contributions during the year. S4-3 Preparing a balance sheet (unclassified, account form) Refer to the data in Short Exercise S4-1. Prepare Daylen's anlassified balance sheet a December 31, 2017. Use the account form. Learning Objective 1 Learning Objective 1 4-4 Preparing a balance sheet (classified, report form) Refer to the data in Short Exercise S4-1. Prepare Daylens classified balance sheet as December 31, 2017. Assume the Notes Payable is due on December 1, 2020. Use the report form. 4 Learning Objective 1 SA-5 Classifying balance sheet accounts For each account listed, identify the balance sheet ed, Identify the category in which would appear on a dasified 2. Office Supplies CA b. Interest Payablece c. Key, Capital d. Copyrights Jotunjih long e. Land my w f. Accumulated Depreciation Furniture & Land Cheld for long-term investment purposes) LA L a nds h. Unearned Revenue EL 1 Notes Payable (due in six years) LL Learning Objective 2 51-6 Using the worksheet to prepare financial statements Answer the following questions Requirements 1. What type of normal balance does the Owner, Capital account havedebitor credit? 2. Which type of income statement account has the same type of balance as the Owner, Capital account? 3. Which type of income statement account has the opposite type of balance as the Owner, Capital account? 4. What do we call the difference between total debits and total credits on the income statement section of the worksheet? Learning Objective 2 S4-7 Determining net income using a worksheet A partial worksheet for Ramson Law Firm is presented below. Solve for the missing information A K Income Statement Debit Credit $23,475 8.375 (d) $23,475 L Balance Sheet Debit Credit 5217,325 5208,950 32 Total 33 Netbl 34 Total ) ) Learning Objective 2 S4-8 Determining net loss using a worksheet A partial worksheet for Akerman Adjusters is presented below. Solve for the missing information. A 32 Total 33 Net (c) 34 Total Income Statement Debit Credit $ 22,300 (a) 1 4 ,800 le) Balance Sheet Debit Credit (b) $60.600 (d) (g $ 60,600 5469 Journalizing closing entries Brett Tamas Enterprises had the following accounts and normal balances listed on its adjusted trial balance: Service Revenue, $21,800; Salaries Expense, $7,200; Rent Expense, $4,400; Advertising Expense, $2,600; Tamas, Withdrawals, $6,000. Journalize the closing entries for Tamas Enterprises. -10 Posting closing entries directly to T-accounts The following balances appear on the books of Brian Kaufman Enterprises: Kaufman Capital, $30,000; Kaufman, Withdrawals $5,400; Service Revenue, $20,200; Salarie Expense, $6,800; Rent Expense, $3,000; Advertising Expense, $3,200. All accounts have normal balances. Requirements 1. M it adiusted balance as given