Hello, can someone check this for me please? I have 2 questions:

tab (Ledger 3) - Do I need to put a description on the Income Summary in the General Journal? If yes what? (ie. closing)

tab (Balance Sheet) - is that the correct way to list the equipments and the accum. depreciation?

Both are highlighted in yellow.

Thank you,

Gergana

Problem 5A-3 Name: Gergana Dimitrova Section: Date: November 22, 2015 PETE'S PLOWING GENERAL JOURNAL Page 1 Date 2015 Jan Account Titles and Description PR Debit 3 Cash Snow Equipment Pete Mack, Capital Initial investment of cash and equipment by owner 111 123 311 7,000.00 6,000.00 3 Prepaid Rent Cash Rent paid in advance (? Months) 114 111 2,000.00 5 Office Equipment Accounts Payable Purchase of equipment from Ling Corp. 121 211 7,200.00 6 Snow Supplies Cash Purchase of supplies 115 111 700.00 9 Cash Plowing Fees Cash received for services rendered 111 411 15,000.00 12 Pete Mack, Withdrawals Cash Personal withdrawals of cash 312 111 1,000.00 20 Accounts Receivable Plowing Fees Billed North East Co. for fees earned 112 411 5,000.00 26 Salaries Expense Cash Payment of salaries 511 111 1,800.00 27 Accounts Payable Cash Paid half the amount owed Ling Corp. 211 111 Credit 3,600.00 13,000.00 2,000.00 7,200.00 700.00 15,000.00 1,000.00 5,000.00 1,800.00 3,600.00 Problem 5A-3 Name: Section: Date: PETE'S PLOWING GENERAL JOURNAL Page 2 Date Account Titles and Description 2015 Jan 30 Advertising Expense Accounts Payable Bill received but not paid from Bush Co. PR Debit 512 211 900.00 31 Telephone Expense Cash Paid telephone bill 513 111 210.00 31 Snow Supplies Expense Snow Supplies Snow Supplies used up 515 115 300.00 31 Rent Expense Prepaid Rent Rent expired 514 114 600.00 31 Depreciation Exp., Office Equip. Accum. Depn., Office Equip. Estimated depreciation of asset 516 122 120.00 31 Depreciation Exp., Snow Equip. Accum. Depn., Snow Equip. Estimated depreciation of asset 517 124 100.00 31 Salaries Expense Accrued Salaries Accrued salary to January 31 511 212 190.00 31 Plowing Fees Income Summary To close income account 411 313 20000.00 31 Income Summary Salaries Expense Advertising Expense Telephone Expense Snow Supplies Expense Rent Expense Depreciation Exp., Office Equip. Depreciation Exp., Snow Equip. To close expense accounts 313 511 512 513 515 514 516 517 Credit 4220.00 900.00 210.00 300.00 600.00 120.00 100.00 190.00 20000.00 1,990.00 900.00 210.00 300.00 600.00 120.00 100.00 Problem 5A-3 Name: Section: Date: PETE'S PLOWING GENERAL JOURNAL Page 3 Date Account Titles and Description 2015 Jan 31 Income Summary Pete Mack, Capital Net income closed to capital 31 Pete Mack, Capital Pete Mack, Withdrawals Close withdrawals into Capital PR Debit 313 311 15780.00 311 312 Credit 1,000.00 15,780.00 1,000.00 Problem 5A-3 Name: Section: Date: CASH Date 2015 Jan Explanation 3 3 6 9 12 26 27 31 Post Ref. GJ1 GJ1 GJ1 GJ1 GJ1 GJ1 GJ1 GJ2 Debit Credit 7,000.00 2,000.00 700.00 15,000.00 1,000.00 1,800.00 3,600.00 210.00 ACCOUNTS RECEIVABLE Date Explanation 2015 Jan 20 Post Ref. GJ1 Debit Credit 5,000.00 2015 Jan Explanation 3 31 Post Ref. GJ1 GJ2 Debit Credit 2,000.00 600.00 SNOW SUPPLIES Date 2015 Jan Explanation 6 31 Post Ref. GJ1 GJ2 Debit Credit 700.00 300.00 OFFICE EQUIPMENT Date 2015 Jan Explanation 5 Post Ref. GJ1 Debit 7,200.00 Debit Credit 7,000.00 5,000.00 4,300.00 19,300.00 18,300.00 16,500.00 12,900.00 12,690.00 ACCOUNT NO. 112 Balance Debit Credit 5,000.00 PREPAID RENT Date ACCOUNT NO. 111 Balance Credit ACCOUNT NO. 114 Balance Debit Credit 2,000.00 1,400.00 ACCOUNT NO. 115 Balance Debit Credit 700.00 400.00 ACCOUNT NO. 121 Balance Debit Credit 7,200.00 Problem 5A-3 Name: Section: Date: ACCUMULATED DEPRECIATION, OFFICE EQUIPMENT Date Explanation 2015 Jan 31 Post Ref. Debit GJ2 Credit Date 2015 Jan Explanation 3 GJ1 Debit Credit 6,000.00 Explanation 2015 Jan 31 Post Ref. Debit GJ2 Credit 100.00 ACCOUNTS PAYABLE Date 2015 Jan Explanation 5 27 30 Post Ref. GJ1 GJ1 GJ2 Debit Credit 7,200.00 3,600.00 900.00 ACCRUED SALARIES Date Explanation 2015 Jan 31 Post Ref. Debit GJ2 Credit 190.00 PETE MACK, CAPITAL Date 2015 Jan 3 31 Closing 31 Closing Explanation Post Ref. GJ1 GJ3 GJ3 Debit Credit 13,000.00 15,780.00 1,000.00 Credit 120.00 ACCOUNT NO. 123 Balance Debit Credit 6,000.00 ACCUMULATED DEPRECIATION, SNOW EQUIPMENT Date Debit 120.00 SNOW EQUIPMENT Post Ref. ACCOUNT NO. 122 Balance ACCOUNT NO. 124 Balance Debit Credit 100.00 ACCOUNT NO. 211 Balance Debit Credit 7,200.00 3,600.00 4,500.00 ACCOUNT NO. 212 Balance Debit Credit 190.00 ACCOUNT NO. 311 Balance Debit Credit 13,000.00 28,780.00 27,780.00 Problem 5A-3 Name: Section: Date: PETE MACK, WITHDRAWALS Date Explanation 2015 Jan 12 31 Closing Post Ref. GJ1 GJ3 Debit Credit 1,000.00 1,000.00 INCOME SUMMARY Date Explanation 2015 Jan 31 31 31 Post Ref. GJ2 GJ2 GJ3 Debit Credit 2015 Jan Explanation 9 20 31 Closing Post Ref. GJ1 GJ1 GJ2 Debit Credit Date Explanation 2015 Jan 26 31 Adjusting 31 Closing GJ1 GJ2 GJ2 2015 Jan 30 31 Closing Explanation Post Ref. GJ2 GJ2 20,000.00 15,780.00 0.00 ACCOUNT NO. 411 Balance Debit Credit 15,000.00 20,000.00 0.00 20,000.00 Credit 1,800.00 190.00 1,990.00 ADVERTISING EXPENSE Date ACCOUNT NO. 313 Balance Debit Credit 15,000.00 5,000.00 Debit Debit Credit 900.00 900.00 Credit 1,000.00 0.00 20,000.00 SALARIES EXPENSE Post Ref. Debit 4,220.00 15,780.00 PLOWING FEES Date ACCOUNT NO. 312 Balance ACCOUNT NO. 511 Balance Debit Credit 1,800.00 1,990.00 0.00 ACCOUNT NO. 512 Balance Debit Credit 900.00 0.00 Problem 5A-3 Name: Section: Date: TELEPHONE EXPENSE Date Explanation 2015 Jan 31 31 Closing Post Ref. GJ2 GJ2 Debit Credit 210.00 210.00 RENT EXPENSE Date Explanation 2015 Jan 31 Adjusting 31 Closing Post Ref. GJ2 GJ2 Debit Credit 600.00 600.00 SNOW SUPPLIES EXPENSE Date Explanation 2015 Jan 31 Adjusting 31 Closing Post Ref. GJ2 GJ2 Debit Credit 300.00 300.00 DEPRECIATION EXPENSE, OFFICE EQUIPMENT Date Explanation 2015 Jan 31 Adjusting 31 Closing Post Ref. GJ2 GJ2 Debit Credit 120.00 120.00 DEPRECIATION EXPENSE, SNOW EQUIPMENT Date 2015 Jan 31 Adjusting 31 Closing Explanation Post Ref. GJ2 GJ2 Debit Credit 100.00 100.00 ACCOUNT NO. 513 Balance Debit Credit 210.00 0.00 ACCOUNT NO. 514 Balance Debit Credit 600.00 0.00 ACCOUNT NO. 515 Balance Debit Credit 300.00 0.00 ACCOUNT NO. 516 Balance Debit Credit 120.00 0.00 ACCOUNT NO. 517 Balance Debit Credit 100.00 0.00 Problem 5A-3 Name: Section: Date: PETE'S PLOWING WORKSHEET Account Titles Cash Accounts Receivable Prepaid Rent Snow Supplies Office Equipment Snow Equipment Accounts Payable Pete Mack, Capital Pete Mack, Withdrawals Plowing Fees Salaries Expense Advertising Expense Telephone Expense Snow Supplies Expense Rent Expense Depreciation Exp., Office Equip. Accum. Depn., Office Equip. Depreciation Exp., Snow Equip. Accum. Depn., Snow Equip. Accrued Salaries Net Income Trial Balance Adjustments Adjusted Trial Balance Dr. Cr. Dr. Cr. Dr. Cr. 12,690.00 12,690.00 5,000.00 5,000.00 2,000.00 (B) 600.00 1,400.00 700.00 (A) 300.00 400.00 7,200.00 7,200.00 6,000.00 6,000.00 4,500.00 4,500.00 13,000.00 13,000.00 1,000.00 1,000.00 20,000.00 20,000.00 1,800.00 E) 190.00 1,990.00 900.00 900.00 210 210 37,500.00 37,500.00 (A) 300.00 (B) 600.00 C) 120.00 300.00 600.00 120.00 C) 120.00 (D) 100.00 Income Statement Dr. Cr. Balance Sheet Dr. Cr. 12,690.00 5,000.00 1,400.00 400.00 7,200.00 6,000.00 4,500.00 13,000.00 1,000.00 20,000.00 1,990.00 900.00 210.00 300.00 600.00 120.00 120.00 100.00 (D) 100.00 100.00 E) 190.00 190.00 1,310.00 1,310.00 37,910.00 37,910.00 120.00 100.00 100.00 190.00 4,220.00 20,000.00 33,690.00 17,910.00 15,780.00 15,780.00 20,000.00 20,000.00 33,690.00 33,690.00 Problem 5A-3 Name: Section: Date: PETE'S PLOWING INCOME STATEMENT Revenue: Plowing Fees $20,000.00 Operating Expenses: Salaries Expences Advertising Expences Telephone Expences Snow Supplies Expense Rent Expense Depreciation Exp., Office Equip. Depreciation Exp., Snow Equip. Total Operating Expences Net Income $1,990.00 900.00 210.00 300.00 600.00 120.00 100.00 4,220.00 $15,780.00 PETE'S PLOWING STATEMENT OF OWNER'S EQUITY Pete Mack, Capital, Jan. 1, 2015 Net Income for January Less: Withdrawals for January Increase in Capital Pete Mack, Capital, Jan. 31, 2015 $13,000.00 $15,780.00 1,000.00 14,780.00 $27,780.00 Problem 5A-3 Name: Section: Date: PETE'S PLOWING BALANCE SHEET ASSETS Cash Accounts Receivable Prepaid Rent Snow Supplies Office Equipment Less: Accumulated Depreciation, Office Equipment Snow Equipment Less: Accumulated Depreciation, Snow Equipment Total Assets LIABILITIES AND OWNER'S EQUITY $12,690.00 Liabilities 5,000.00 Accounts Payable $4,500.00 1,400.00 Salaries Payable 190.00 400.00 Total Liabilities $4,690.00 $7,200.00 120.00 6,000.00 7,080.00 100.00 Owner's Equity Pete Mack, Capital 5,900.00 $32,470.00 Total Liabilities and Owner's Equity 33690 32470 1220 27,780.00 32,470.00 Problem 5A-3 Name: Section: Date: PETE'S PLOWING POST-CLOSING TRIAL BALANCE Cash Accounts Receivable Prepaid Rent Snow Supplies Office Equipment Snow Equipment Accounts Payable Pete Mack, Capital Pete Mack, Withdrawals Plowing Fees Salaries Expense Advertising Expense Telephone Expense Dr. 12,690.00 5,000.00 2,000.00 700.00 7,200.00 6,000.00 Cr. 4,500.00 13,000.00 1,000.00 20,000.00 1,800.00 900.00 210 37,500.00 37,500.00