Need answers to post trial balance and journal entries, also balance for retained earnings and income summary t-accounts (bellas beauty salon)
Bella's Beauty Salon: GENERAL LEDGER (select accounts after adjustment) ____Prepaid insurance__ _______Shop supplies______ Bal. 1,480 Bal. 990 1,240 AJE A Bal. 240 Rental fees receivable Bal. 0 AJE E 200 Bal. 200 780 AJE B Bal. 210 Accum. Deprec-shop equip _____Accum Deprec-building 770 Bal. 350 AJE C 1,120 Bal. _____Wages payable_____ ____Unearned rent 3,840 Bal. 2,220 AJE D 6,060 Bal 1,600 Bal. AJE F 800 Bal. _____Interest payable______ 200 AJE G 200 Bal. 800 Income taxes payable 1,000 AJE H 1,000 Bal. 1,800 AJE I 1,800 Bal. ___Rental fee revenue_____ expense 2,400 200 800 3,400 ____Wages expense Bal. 3,200 AJE G 200 Bal. 3,400 Bal. AJE E AJE F Bal. __ _____Insurance expense ____ AJE A 1,240 Bal. AJE C Bal. AJE B 1,240 Bal. ___Interest expense______ AJE H 1,000 Bal. 1,000 Depreciation expense: Shop Equipment 350 350 A100 Chapter 7 ____Shop supplies 780 780 ____Income tax expense AJE I 1,800 Bal. 1,800 __ _Depreciation expense: Building AJE D 2,220 Bal. 2,220 1 A100 Chapter 7 - Completion of the Accounting Cycle The Accounting Cycle Steps performed during the accounting period: Step 1 Analyze daily transactions Step 2 Journalize transactions (record in the general journal) Step 3 Post journal entries to the general ledger Steps performed at the end of the accounting period: Step 4 Prepare a trial balance Step 5 Journalize and post adjusting entries Step 6 Prepare an adjusted trial balance - list all general ledger accounts in order with the balance appearing in the appropriate column for debits and credits. Step 7 Prepare the financial statements: Income statement Retained earnings statement Balance sheet Statement of cash flows Step 8 Journalize and post closing entries - close all temporary (revenues, expenses and dividends) accounts and transfer the effect to retained earnings. Step 9 Prepare post-closing trial balance A100 Chapter 7 2 Step 7: Bella's Beauty Salon Income Statement FYE 12/31 Revenue: Total revenue Expenses: Total expenses Net income before tax __________ Net income $_________ Bella's Beauty Salon Statement of Changes in Retained Earnings FYE 12/31 Retained earnings, 1/1 Add: Net income Subtotal Deduct: Dividends $ Retained earnings, 12/31 $_________ A100 Chapter 7 __________ 3 Bella's Beauty Salon Balance Sheet 12/31 Assets Current assets: Total current assets Property, Plant and Equipment Total property, plant and equipment Total assets Liabilities & Stockholders' Equity Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Stockholders' equity: Total stockholders' equity Total Liabilities & Stockholders' Equity A100 Chapter 7 4 A100 Chapter 7 5 Bella's Beauty Salon Adjusted Trial Balance 12/31 Debit Cash $ 4,200 Rental fees receivable 200 Prepaid insurance 240 Shop supplies 210 Shop equipment 3,860 Accumulated depreciation-shop equipment Building 57,500 Accumulated depreciation-building Land 55,000 Unearned rent Wages payable Interest payable Income tax payable Long-term notes payable Common stock Retained earnings Rental fee revenue Service fee revenue Wages expense 3,400 Utilities expense 690 Advertising expense 600 Property tax expense 4,350 Insurance expense 1,240 Shop supplies expense 780 Depreciation exp: shop equip 350 Depreciation exp: building 2,220 Income tax expense 1,800 Interest expense 1,000 Total $137,640 A100 Chapter 7 Credit $ 1,120 6,060 800 200 1,000 1,800 50,000 25,000 24,860 3,400 23,400 $137,640 6 Step 8: Prepare the closing entries for Bella's Beauty Salon. The Adjusted Trial Balance is used to prepare the closing entries. For the closing process you will need to create a new account, Income Summary. Closing is a 4-part process: 1: Close the expense account(s). Date Account Post Ref Debit Credit 2: Close the revenue account(s). 3: Close the Income Summary account to update Retained Earnings. 4: Close the Dividend account. These journal entries are posted to the general ledger and a post-closing trial balance is prepared. A100 Chapter 7 7 Step 9: Prepare the Post-Closing Trial Balance to assure that the general ledger is in balance and that the total of the debit account balances equals the total of the credit account balances. Bella's Beauty Salon Post-Closing Trial Balance 12/31 Account Debit Cash Prepaid insurance Rental fees receivable Shop supplies Shop equipment Accumulated depreciation: shop equipment Building Accumulated depreciation: building Land Unearned rent Income tax payable Interest payable $ 4,200 240 200 210 3,860 $ 1,120 57,500 6,060 55,000 Wages payable Long-term notes payable Common stock Retained earnings Totals A100 Chapter 7 Credit _______ $121,210 800 1,800 1,0 00 200 50,000 25,000 35,230 _______ $121,210 8 A100 Chapter 7 - Closing Entries Hillcrest Campgrounds, Inc. rents out campsites in a wooded park. The adjusted trial balance for Hillcrest Campgrounds on March 31, 20X2 the end of the fiscal year, follows: Hillcrest Campgrounds Adjusted Trial Balance March 31, 20X2 Debit Credit Cash $ 2,040 Accounts Receivable 3,660 Supplies 114 Prepaid Insurance 594 Land 15,000 Building 45,900 Accumulated Depreciation, Building $ 10,500 Accounts Payable 1,725 Income Tax Payable 3,500 Wages Payable 825 Common Stock 30,000 Retained earnings, 4/1/X1 16,535 Dividends 18,000 Campsite Rental Revenue 44,100 Wages Expense 11,925 Income Tax Expense 3,500 Insurance Expense 1,892 Utilities Expense 900 Supplies Expense 660 Depreciation Expense: Buildings 3,000 Totals $107,185 $107,185 Required: Prepare the closing entries for Hillcrest Campgrounds. Account A100 Chapter 7 Debit Credit 9 A100 Chapter 7
