Unique ID 2183
1.Prepare closing journal entries to "close out"allrequired accounts.(Part 1 & 2 entries are not required and should not be turned in)
2.Post the journal entries into T-accounts (make sure you have a total amount for each account).Remember t-accounts do not go away.Any T-account from Part 1 & 2 whether it was affected or not needs to be included.
3.Complete the Income Statement for June 20xx.
4.create a final Balance Sheet as of June 30, 20xx.This includes subtotals and totals for all categories we discussed in class.
5.create a post-closing trial balance.
Solution: 3 Below is trail balance: Trail balance 2 Particulars Debit Credit 3 Cash $9,33,704 4 Common stock $10,91,500 5 Notes payable $2,09,150 6 Land $26,196 7 Building $3,27,450 8 Equipment $3,27,450 9 Accounts payable $3,37,450 10 Insurance expenses $24,000 11 Inventory $10,000 12 Revenue $30,500 13 Accounts receivables $10,000 14 Advertising expenses $1.500 15 Utility expenses $2,000 ! 16 Repair expenses $1,800 17 Wages expenses $4,000 18 Dividend $500 19 20 $16,68,600 $16,68,600 Part 2 Solution 1 Below are adjusting entries: C D 1 Date Particulars Dr./Cr. Amount 2 Jun-30 Interest expenses Dr. $1,743 Interest payable Cr. $1,743 5 Jun-30 Depreciation expenses Dr. $43,660 Building Cr. $10,915 Equipment Cr. $32,745 Jun-30 Prepaid insurance Dr. $22,000 10 Insurance expenses Cr. $22,000 11 12 Jun-30 Cost of goods sold Dr. 1500 13 Inventory Cr. 1500 14 15 Jun-30 Wages expenses Dr. 400 16 Wages payable Cr. 400 Formulas used are as under: 4 1 Date Particulars Dr./Cr. Amount 11110 Interest expenses Dr. =(((2183*50)+100000)*10%)/12 A W Interest payable Cr. =(((2183*50)+100000) *10%)/12 11110 Depreciation expenses Dr. =D6+D7 Building Cr. =(2183*150)/30 Equipment Cr. =(2183*150)/10 11110 Prepaid insurance Dr. =(24000/12)*11 10 Insurance expenses Cr. =(24000/12)*11 11 12 11110 Cost of goods sold Dr. =10000-8500 13 Inventory Cr. =10000-8500 14 15 11110 Wages expenses Dr. =200*2Part-1 Solution 1: Below are journal entries: A C H 1 Date Particulars Dr./Cr. Amount Date Particulars Dr./Cr. Amount Jun-01 Cash Dr. $10,91,500 Jun-10 Advertising expenses Dr. $1,50 Common stock Cr. $10,91,500 Cash Cr $1,500 5 Jun-02 Cash Dr. $2,09,150 Jun-15 Utility expenses Dr. $2,000 Note payable Cr. $2,09,150 Cash Cr. $2.00 8 Jun-02 Land Dr. $26,196 Jun-18 Cash Dr. $500 9 Cash Cr $26,196 Revenue Cr $500 10 11 Jun-02 Building Dr. $3,27,450 Jun-22 Repair expenses Dr. $1,800 12 Cash $3,27,450 Cash Cr. $1,800 13 14 Jun-03 Equipment Or. $3,27,450 Jun-28 Wages expenses Dr $4,00 15 $4,000 16 Accounts payable $3,27,450 Cash 17 Jun-04 Insurance expenses Dr $24,000 Jun-30 Dividend Dr. $500 18 Cash Cr $24,000 Cash $500 19 20 Jun-05 Inventory Dr $10,000 21 Accounts payable Cr $10,000 22 23 Dr. $20,00 24 Revenue Cr $20,000 25 26 Jun-06 Accounts receivable Dr. $10,000 27 Revenue Cr. $10,000 Formulas used are as below: A E G H 1 Date Particulars Dr./Cr. Amount Date Particulars Or./Cr. Amount 2 37043 Cash Dr. Dr. 1500 w =500*2183 40330 Advertising expenses Common stock Cr =500*2183 Cash Cr. 1500 37408 Cash Dr. =(2183*50)+100000 42156 Utility expenses or. 2000 Note payable Cr. =(2183*50)+100000 Cash Cr. 2000 8 37408 Land Dr. =2183*12 43252 Cash Or. 1500 Cash =2183*12 Revenue 500 10 11 37408 Building Or. =2183*150 44713 Repair expenses Or. 1800 ash =2183*150 Cash C. 1800 13 14 37773 Equipment Or. =2183*150 46905 Wages expenses or. 4000 15 Accounts payable =2183*150 Cash Cr. 4000 16 17 38139 Insurance expenses Dr. 2400 11110 Dividend Dr. 500 18 Cash Cr. 24000 Cash Cr. 500 19 Or. 10000 21 20 38504 Inventory Accounts payable Cr. 1000 22 23 Or. 20000 24 Revenue 20000 25 26 38869 Accounts receivable Dr. 10000 27 Revenue Cr. 10000 Solution:2 Below are T accounts: M Q R T U W 1 Cash Insurance expenses 2 Jun-01 Common stock $10,91,500 Jun-02 Land $26,196 Jun-04 Cash $24,000 3 Jun-02 Note payable $2,09,150 Jun-02 Building 3,27,450 Inventory Jun-05 Revenue $20,000 Jun-04 Insurance expenses $24,000 Jun-05 Accounts payable $10,000 5 Jun-18 Revenue $500 Jun-10 Advertising $1.500 6 Jun-15 Utility $2,000 Revenue 7 Jun-22 Repair $1.800 Balance c/d $30,500 Jun-05 Cash $20,000 8 Jun-30 Dividend $500 Jun-06 Accounts receivables $10,000 9 Jun-28 Wages $4,000 Jun-18 Cash $500 10 Balance c/d $9,33,704 $30,500 $30,500 11 $13,21,150 $13,21,150 12 13 Common stock Accounts receivables Jun-01 Cash $10,91,500 un-06 Rev $10,000Part 1 The following is a list of transactions that have occurred during the month of June. Date Transaction June 1 Invested cash into the company for stock (ID x 500) June 2 Borrowed (ID x 50) + $100,000 in the form of a note payable. June 2 Purchased land with cash for (ID x 12). June 2 Purchased building with cash for (ID x 150) June 3 Purchased equipment on account for (ID x 50) June 4 Purchased a 12-month insurance policy for $24,000. June 5 Purchased $10,000 of Inventory on account. June 5 Generated $20,000 in revenues. This was paid in cash. June 6 Generated $10,000 in revenues on account. June 10 Paid $1,500 in cash for advertising. June 15 Paid a utility bill of $2,000 in cash. June 18 Received a $500 cash deposit for a future services. June 22 Paid $1,800 in cash to repair an elevator. June 28 Paid $4,000 in wages in cash June 30 $500 in dividends were paid in cash.Formulas used are as under: 1 Date Particulars Dr./Cr. Amount 2 11110 Interest expenses Dr. =(((2183*50)+100000)*10%)/12 Interest payable Cr. =(((2183*50)+100000)*10%)/12 5 11110 Depreciation expenses Dr. =D6+D7 Building Cr. =(2183*150)/30 Equipment Cr. =(2183*150)/10 11110 Prepaid insurance Dr. =(24000/12)*11 10 Insurance expenses Cr. =(24000/12)*11 11 12 11110 Cost of goods sold Dr. =10000-8500 13 Inventory Cr. =10000-8500 14 15 11110 Wages expenses Dr. =200*2 16 Wages payable Cr. =200*2 Solution 2: Below are T Accounts A G K M N 2 Jun-01 Common stock -02 Note payable $10.91,500 Jun-02 Land Jun-04 Cash $24,000| Jun-30 Prepaid insurance $2,09,150 Jun-02 Building $26,196 Balance cid $22,000 Jun-30 Interest payable $1.743 $2.000 -05 Revenue Jun-18 Revenue $20,000 Jun-04 Insurance expenses 3,27.450 $500 Jun-10 Advertising $24,000 $24,000 24,000 Jun-15 Utility $2.000 $1.500 Interest Payable $1.800 Jun-05 Accounts payable To win-30 Cost of goods sold Balance aid $1,743 8500 Jun-30 Interest expenses Jun-30 Divider $500 Depreciation expenses Balance old Balance old $30,500 Jun-05 Cash 0 Jun-30 Building Balance aid $43,660 $10,000 $13.21,150 $13.21.150 Jun-06 Accounts receivables Jun-18 Cash Jun-30 Equipment 30.500 $43.660 $43.660 $30.500 Common of Cash $10,91,500 Jun-06 Revenue Howis receivables Jun-30 Insurane expenses Prepaid insurance Jun-10 Cash dvertising expenses Note payable $2,09,150 Jun-15 Cash kility expenses Jun-30 Inventory Cost of goods sold Jun-02 Cash Land $26,196 Jun-22 Cash Repair expenses Wages payable Jun-30 Wages expenses 1400 Jun-02 Cash 43,27.450 Jun-30 Depreciation Balance oid $10,915 $3,16.535 $4.400 $3,27.450 $3,27.450 Jury-28 Cash wages expenbalance old Jun-30 Wages payable $4.400 $4.400 Jun-03 Accounts payable $3,27.450 Jun-30 Depreciation Balance old $32.745 Jun-30 Cash Dividend $3,27.450 $3,27.450 Balance cid Jun-05 Inventory $3,27.450 $3,37,450 $10,000 3,37,450 Formulas used are as under: NO 37043 Common stock .500-2183 3 27408 Note payable los Building . 2183-12 38139 Cash ze expenses 11110 Interest payable (1(2183'50)-1000007 129 expenses 3 43252 Revert 40930 Advertising 24000 .J2 Balance cla (24000/12713 . MS. MZ 14713 RADAR 38504 Accounts payable 10000 "will Cost of goods sold .10000-8500 Balance ofd Interest interest expenses .(((2183.50)-100000]"10%/12 Balance cid Revenue 38869 Accounts 20000 1110 Building 17110 Equipment .(2183*150 730 Depreciation 's ,jance eid -SUM(C2.C10] .CHI-SUMIF2F3 SUM(F2:F10 43262 Cash -SUM(M9:M11] -Q10-09 .TS Common Start 500'2103 Accounts receivables Advertising expenses 17110 Insur ane expenses .(24000/12)'71 Prepaid insurance Note forlogscash 40330 Cash 19110 Inventors -10000.8500 Cost of goods sold 37408 Cash Land 42156 Cash Utility expenses Repair expenses 1800 Vases Pillo Wages expenses 0200'2 2 37408 Cash -2183'750 Bulk Depreciation Balance old . (21 3-150 730 44713 Cash .C24-F22 .F23-F22 Vages espe Balance ofd 4000 .J24-J23Dividend -M23 17 37773 Accounts payable -2183 750 .C29-F27 1710 Cash 500 .C27 Balance old F 33 Accounts PassEquipme 38504 Inventory .2183'150 -SUM(F 31.F32) Solution 3 Below is adjusted trail balance :Solution:2 Below are T accounts: M P R T U W 1 Cash Insurance expenses 2 Jun-01 Common stock $10,91,500 Jun-02 Land $26,196 Jun-04 Cash $24,000 3 Jun-02 Note payable $2,09,150 Jun-02 Building $3,27,450 Inventory 4 Jun-05 Revenue $20,000 Jun-04 Insurance expenses $24,000 Jun-05 Accounts payable $10,000 5 Jun-18 Revenue $500 Jun-10 Advertising $1,500 6 Jun-15 Utility $2,000 Revenue 7 Jun-22 Repair $1,800 Balance c/d $30,500 Jun-05 Cash $20,000 8 Jun-30 Dividend $500 Jun-06 Accounts receivables $10,00 9 Jun-28 Wages $4,000 Jun-18 Cash $500 10 Balance c/d $9,33,704 $30,500 $30,500 11 $13,21,150 $13,21,150 12 Common stock Accounts receivables 13 Jun-01 Cash $10,91,500 Jun-06 Revenue $10,000 14 Advertising expenses 15 Note payable Jun-10 Cash $1,500 16 Jun-02 Cash $2,09,150 Utility expenses 17 Land Jun-15 Cash $2,000 18 Jun-02 Cash $26,196 Repair expenses 19 20 Jun-02 Cash Building Jun-22 Cash $1,800 $3,27,450 Wages expenses $4,000 22 Jun-28 Cash Equipment Dividend 23 Jun-03 Accounts payable $3,27,450 Jun-30 Cash $500 24 25 Accounts payable 26 27 Balance c/d $3,37,450 Jun-03 Equipment $3,27,450 $10,000 28 $3,37,450 Jun-05 Inventory $3,37,450 Formulas used are as under: T U 1 Cash Insurance expenses 2 37043 Common stock =500-2183 37408 Land =2183-12 38139 Cash 24000 3 37408 Note payable =(2183*50)+100000 37408 Building =2183-150 38504 Accounts payable 10000 Inventory 4 38504 Revenue 20000 38139 Insurance expenses 24000 5 43252 Revenue 500 40330 Advertising 1500 42156 Utility Revenue 44713 Repair 1800 Balance c/d 38504 Cash 2000 11110 Dividend 38869 Accounts receivables 10000 46905 Wages 4000 43252 Cash 500 10 Balance c/d -M11-SUM(P2:P9) =17 -SUM(W7:W9) -SUM(M2:M10) -SUM(P2:P10) Common stock Accounts receivables 37043 Cash -500-2183 38869 Revenue 10000 Advertising expenses lote payable 40330 Cash 1500 16 37408 Cash =(2183.50)+100000 utility expenses 17 Land 42156 Cash 2000 18 3 -2183*12 19 1800 20 3 Building 44713 Cash pair expenses -2183-150 46905 Cash 4000 Wages expenses Equipment Dividend 23 37773 Accounts payable =2183*150 11110 Cash 500 Accounts payable Balance c/d -P28 37773 Equipment -2183.150 10000 -M26 38504 Inventory -SUM(P26:P27) Solution: 3 Below is trail balance: A Trail balance 2 Particulars Debit Credit 3 Cash $9,33,704 4 Common stock $10,91,500 5 Notes payable $2,09,150 6 Land $26,196 7 Building $3,27,450 8 Equipment $3,27,450 9 Accounts payable $3,37,450 10 Insurance expenses $24,000 11 Inventory $10,000 12 Revenue $30,500 13 Accounts receivables $10,000 14 Advertising expenses $1,500 15 Utility expenses $2,000 16 Repair expenses $1,800C G H MNO terest expenses Jun-01 Common stock $10,91,500 Jun-02 Land 26,196 Jun-04 Cash insurance expenses epaid insurance $22,000 Jun-30 Interest payable Jun-05 Belarus $2.09.150 Jun-02 Building 13.27 170 $2.000 $24,000 Balance cid $24,000 Jun-18 Revenue Jun-04 Insurance expenses 0 Advertising $1 500 Jun- 15 Utility Inventory $1,500 Interest Payable Jun-22 Repair $1.800 Jun-05 Accounts payable $10.000 Jun-30 Cost of goods sold Balance aid 8500 Jun-30 Interest expenses $1,743 Jun-30 Dividend Jun-28 Wages $500 Balance old $4,000 $43,660 $9.33.704 Balance cid Revenue $30,500 Jun-05 Cash Jun-30 Building Depreciation exPen Balance aid 13.21.150 Jun-06 Accounts receivables 20,000 10,000 Jun-30 Equipment $32.745 $13.21,150 Jun-18 Cash 30.500 $43.660 $43.660 $30,500 Common stock $10,91.500 Jun-06 Revenue Accounts receivables Prepaid insurance Jun-01 Cash Jun-30 Insurane expenses $22,000 Note payable Jun-10 Cash Advertising expenses Cost of goods sold Jun-02 Cash $2,09,150 Utility expenses Jun-30 Inventory Jun-02 Cash Repair expenses Wages Pain-30 Wages expenses $400 Jun-02 Cash $3,27.450 Jun-30 Depreciation Balance old $10 915 Jun-22 Cash Jur-28 Cash balance old $4.400 $3,27.450 $3,16,535 Wages expenses $3,27.450 Jun-30 Wages payable 4.400 Dividend $4,400 7 Jun-03 Accounts payable Equipment 0 Depreciation $3,27.450 Balance aid Jun-30 Cash $3.27.450 Balance cid 3.37,450 Jun-03 Equipment $3,27.450 $3,37,450 Jun-05 Inventory $10,000 $3,37.450 Formulas used are as under: M Common stock 600-2185 38139 Cash Prepaid Insurance (24000/12171 1 38504 Revenue =(2183'50)-100000 OSI.CBIZ Balance old 1310 Interest payable (1(2183'50)-1000001 10271-Penses - M3. MR $ 43 49252 Revere .12 38604 Accounts payable 10000 Invent cost of goods sold Interest interest expenses .([[2183'50)-100000]"10%/12 Balance old Dividen 905 Whorice aid 4000 Balance eid 504 Cash 69 Accounts receivables 10000 (2183-1501/30 ciation "since eid -SUM(C2:C10] SUM(F2:F10) 43252 Cash .T 19 -SUM(M9:M11] Q10-09 Common US CAST Revenue Accounts receivables 19110 Insane expenses (240602T's Prepaid insurance . 500 2183 Advertising expenses Note Partial 46030 Cash .10900.8500 0 37408 Cash Land 42156 Cash Utility expenses 19110 Inventory Cost of goods sold 2000 Building 44713 Cash Vages Polio Wages expenses .2002 2 37408 Cash Prince old .C24-F22 F23-F22 6306 Cash Vages espnstance and 1910 Wages payable 4000 C22 -J24-123 27 37773 Accounts payable -2183'530 10 Depreciation (2183-150 710 18110 Cash 500 Balance old .C27 F28.F27 Balance of Accounts PassEquipmer 38504 inventory -C31 SUM(F 31:F32) Solution 3 Below is adjusted trail balance : B 22 Trail balance 23 Particulars Debit Credit 24 Cash 59,33,704 25 Common stock $10,91,500 26 Notes payable $2,09,150 27 Land $26,196 28 Building $3,16,535 29 Equipment $2,94,705 30 Accounts payable $3,37,450 31 Insurance expenses $2,000 32 Inventory $8,500 33 Revenue $30,500 34 Accounts receivables $10,000 35 Advertising expenses $1,500 36 Utility expenses $2,000 37 Repair expenses $1,800 38 Wages expenses $4,400 39 Dividend $500 40 Interest expenses $1,743 41 Interest payable $1,743 42 Depreciation expenses $43,660 43 Prepaid insurance $22,000 44 Cost of goods sold $1,500 45 Wages payable $400 46 $16,70,743 $16,70,743
