Main contentPrevious PageNext PageChapter Contents Chapter Review 4-8f Problems: Series A PR 4-1A Financial statements and closing entries Obj. 1, 2, 3 Excel General Ledger Show Me How Beacon Signals Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacon Signals Company prepared the following end-of-period spreadsheet at December 31, 2019, the end of the fiscal year: Problems: Series A Instructions Prepare an income statement for the year ended December 31. Prepare a statement of owner's equity for the year ended December 31. No additional investments were made during the year. Prepare a balance sheet as of December 31. Answer Check Figure: Total assets: $418,950 Based upon the end-of-period spreadsheet, journalize the closing entries. Prepare a post-closing trial balance. PR 4-2A Financial statements and closing entries Obj. 2, 3 Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2019, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows: Problems: Series A Instructions Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet. Answer Check Figure: Stacy Tanner, capital, June 30: $483,300 Journalize the entries that were required to close the accounts at June 30. If Stacy Tanner, Capital has instead decreased $30,000 after the closing entries were posted, and the withdrawals remained the same, what would have been the amount of net income or net loss? PR 4-3A T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet Obj. 2, 3 Excel General Ledger The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows: Problems: Series A Enlarge Image The data needed to determine year-end adjustments are as follows: Laundry supplies on hand at June 30 are $3,600. Insurance premiums expired during the year are $5,700. Depreciation of laundry equipment during the year is $6,500. Wages accrued but not paid at June 30 are $1,100. Instructions For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as June 30 Bal. In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, and Insurance Expense. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed. Journalize and post the adjusting entries. Identify the adjustments as Adj. and the new balances as Adj. Bal. Prepare an adjusted trial balance. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet. Answer Check Figure: Net income: $10,700 Journalize and post the closing entries. Identify the closing entries as Clos. Prepare a post-closing trial balance. PR 4-4A Ledger accounts, adjusting entries, financial statements, and closing entries; optional spreadsheet Obj. 2, 3 Excel The unadjusted trial balance of Lakota Freight Co. at March 31, 2019, the end of the year, follows: Problems: Series A Enlarge Image The data needed to determine year-end adjustments are as follows: Supplies on hand at March 31 are $7,500. Insurance premiums expired during the year are $1,800. Depreciation of equipment during the year is $8,350. Depreciation of trucks during the year is $6,200. Wages accrued but not paid at March 31 are $600. Instructions For each account listed in the trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. Journalize and post the adjusting entries, inserting balances in the accounts affected. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Lakota Freight Co.'s chart of accounts should be used: Wages Payable, 22; Supplies Expense, 52; Depreciation ExpenseEquipment, 55; Depreciation ExpenseTrucks, 56; Insurance Expense, 57. Prepare an adjusted trial balance. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet. Answer Check Figure: Net income: $51,150 Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Prepare a post-closing trial balance. PR 4-5A Complete accounting cycle Obj. 4, 5 Excel For the past several years, Jolene Upton has operated a part-time consulting business from her home. As of July 1, 2019, Jolene decided to move to rented quarters and to operate the business, which was to be known as Gourmet Consulting, on a full-time basis. Gourmet Consulting entered into the following transactions during July: July 1. The following assets were received from Jolene Upton: cash, $19,000; accounts receivable, $22,300; supplies, $3,800; and office equipment, $8,900. There were no liabilities received. 1. Paid three months' rent on a lease rental contract, $6,000. 2. Paid the premiums on property and casualty insurance policies, $4,500. 4. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $8,000. 5. Purchased additional office equipment on account from Office Necessities Co., $5,100. 6. Received cash from clients on account, $12,750. 10. Paid cash for a newspaper advertisement, $500. 12. Paid Office Necessities Co. for part of the debt incurred on July 5, $3,000. 12. Provided services on account for the period July 112, $14,200. 14. Paid receptionist for two weeks' salary, $1,500. Record the following transactions on Page 2 of the journal: 17. Received cash from cash clients for fees earned during the period July 117, $10,400. 18. Paid cash for supplies, $1,000. 20. Provided services on account for the period July 1320, $9,000. 24. Received cash from cash clients for fees earned for the period July 1724, $8,500. 26. Received cash from clients on account, $12,000. 27. Paid receptionist for two weeks' salary, $1,500. 29. Paid telephone bill for July, $325. 31. Paid electricity bill for July, $675. 31. Received cash from cash clients for fees earned for the period July 2531, $7,100. 31. Provided services on account for the remainder of July, $5,500. 31. Jolene withdrew $20,000 for personal use. Instructions Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) 11 Cash 31 Jolene Upton, Capital 12 Accounts Receivable 32 Jolene Upton, Drawing 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense 16 Prepaid Insurance 52 Rent Expense 18 Office Equipment 53 Supplies Expense 19 Accumulated DepreciationOffice Equipment 54 Depreciation Expense 21 Accounts Payable 55 Insurance Expense 22 Salaries Payable 59 Miscellaneous Expense 23 Unearned Fees Post the journal to a ledger of four-column accounts. Prepare an unadjusted trial balance. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). Insurance expired during July is $375. Supplies on hand on July 31 are $2,850. Depreciation of office equipment for July is $400. Accrued receptionist salary on July 31 is $140. Rent expired during July is $2,000. Unearned fees on July 31 are $3,000. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal. Prepare an adjusted trial balance. Prepare an income statement, a statement of owner's equity, and a balance sheet. Answer Check Figure: Net income: $50,335 Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Prepare a post-closing trial balance. 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