Question
The balances in the ledger of Good Landscape Services as of January 31 before adjustments are as follows: Cash $ 6,750 Dalton Good, Capital $29,775
The balances in the ledger of Good Landscape Services as of January 31 before adjustments are as follows:
Cash | $ 6,750 | Dalton Good, Capital | $29,775 | ||
Supplies | 3,900 | Dalton Good, Drawing | 3,425 | ||
Prepaid Insurance | 8,400 | Service Revenue | 56,300 | ||
Equipment | 41,750 | Salary Expense | 24,300 | ||
Accumulated Depreciation | 9,950 | Rent Expense | 6,000 | ||
Miscellaneous Expense | 1,500 |
Adjustment data are as follows: supplies on hand, January 31, $900; insurance expired for January, $1,100; depreciation on equipment for January, $1,600; salaries accrued, January 31, $1,650.
a. Prepare a 10-column end-of-period spreadsheet for Good Landscape Services for January. If an amount box does not require an entry, leave it blank.
Good Landscape Services | ||||||||||||||||||||||||
End-of-Period Spreadsheet | ||||||||||||||||||||||||
For the Month Ended January 31 | ||||||||||||||||||||||||
Unadjusted Trial Balance | Adjustments | Adjusted Trial Balance | Income Statement | Balance Sheet | ||||||||||||||||||||
Account Title | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | Dr. | Cr. | ||||||||||||||
Cash | ||||||||||||||||||||||||
Supplies | ||||||||||||||||||||||||
Prepaid Insurance | ||||||||||||||||||||||||
Equipment | ||||||||||||||||||||||||
Accumulated Depreciation | ||||||||||||||||||||||||
Dalton Good, Capital | ||||||||||||||||||||||||
Dalton Good, Drawing | ||||||||||||||||||||||||
Service Revenue | ||||||||||||||||||||||||
Salary Expense | ||||||||||||||||||||||||
Rent Expense | ||||||||||||||||||||||||
Miscellaneous Expense | ||||||||||||||||||||||||
Supplies Expense | ||||||||||||||||||||||||
Insurance Expense | ||||||||||||||||||||||||
Depreciation Expense | ||||||||||||||||||||||||
Salaries Payable | ||||||||||||||||||||||||
Net Income |
b. On the basis of the work sheet in (a), present the following in good order: (1) income statement, (2) statement of owner's equity (assume no additional owner investments were made during the month), and (3) balance sheet.
Good Landscape Services | ||
Income Statement | ||
For the Month Ended January 31 | ||
Service revenue | $ | |
Expenses: | ||
Salary expense | $ | |
Rent expense | ||
Depreciation expense | ||
Supplies expense | ||
Insurance expense | ||
Miscellaneous expense | ||
Total expenses | ||
Net income | $ |
Good Landscape Services | ||
Statement of Owner's Equity | ||
For the Month Ended January 31 | ||
Dalton Good, capital, January 31 | $ | |
Dalton Good, capital, January 31 | $ | |
Dalton Good, capital, January 31 | ||
Increase in owner's equity | ||
Withdrawals | $ |
Good Landscape Services | ||
Balance Sheet | ||
January 31 | ||
Assets | ||
Current assets: | ||
Cash | $ | |
Supplies | ||
Prepaid insurance | ||
Total current assets | $ | |
Property, plant, and equipment: | ||
Equipment | $ | |
Less accumulated depreciation | ||
Total property, plant, and equipment | ||
Total assets | $ | |
Liabilities | ||
Current liabilities: | ||
Salaries payable | $ | |
Owner's Equity | ||
Dalton Good, capital | ||
Total liabilities and owner's equity | $ |
c. On the basis of the work sheet in (a) journalize the closing entries as of January 31. If an amount box does not require an entry, leave it blank.
Jan. 31 | Unearned Revenues | ||
Salary Expense | |||
Rent Expense | |||
Supplies Expense | |||
Depreciation Expense | |||
Insurance Expense | |||
Miscellaneous Expense | |||
Miscellaneous Expense | |||
Jan. 31 | Depreciation Expense | ||
Salary Expense |
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