ACC 290 Week 5 Practice: Connect Practice Assignment

Complete the Week 5 Practice in Connect.

Note: You have unlimited attempts available to complete practice assignments.

attempt 1

1

Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:

REVENUE AND EXPENSE ACCOUNTS
401	Fees Income	$	200,000	Cr.
511	Depr. Expense—Office Equipment		9,160	Dr.
514	Rent Expense		26,000	Dr.
517	Salaries Expense		99,000	Dr.
520	Supplies Expense		4,680	Dr.
523	Telephone Expense		2,700	Dr.
526	Travel Expense		20,780	Dr.
529	Utilities Expense		2,500	Dr.

DRAWING ACCOUNT
302	Gloria Johnson, Drawing	22,000	Dr.

Required:

Record the adjusting entries in the general journal (transactions 1-3).

Record the closing entries in the general journal (transactions 4-7).

2

A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.

Required:

Complete the worksheet.

Record the adjusting entries in the general journal (transactions 1-3).

Record the closing entries in the general journal (transactions 4-7).

Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.

Prepare a post-closing trial balance.

Analyze:

What total debits were posted to the general ledger to complete all closing entries for the month of December?

3

On December 31, 2019, the ledger of Lopez Company contained the following account balances:


Cash	$	66,000	Maria Lopez, Drawing	$	52,000
Accounts Receivable		5,800	Fees Income		107,500
Supplies		4,200	Depreciation Expense		5,500
Equipment		52,000	Salaries Expense		34,000
Accumulated Depreciation		5,000	Supplies Expense		6,000
Accounts Payable		6,000	Telephone Expense		5,200
Maria Lopez, Capital		121,500	Utilities Expense		9,300

4

The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:

ACCOUNT NO.	ACCOUNT	BALANCE
101	Cash	$	40,000
111	Accounts Receivable		29,910
121	Supplies		5,300
131	Prepaid Insurance		12,500
141	Equipment		59,000
142	Accumulated Depreciation—Equipment		20,660
202	Accounts Payable		7,000
301	Aretha Hinkle, Capital		65,000
302	Aretha Hinkle, Drawing		6,500
401	Fees Income		187,230
510	Depreciation Expense—Equipment		10,580
511	Insurance Expense		5,700
514	Rent Expense		16,500
517	Salaries Expense		83,000
518	Supplies Expense		2,800
519	Telephone Expense		3,400
523	Utilities Expense		4,700

All accounts have normal balances.

Required:

Prepare the closing entries.

Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.

5

The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.

Income Summary			Account No. 399
				Balance
Date	Description	Debit	Credit	Debit	Credit
2019
Dec. 31	Closing		134,000		134,000
31	Closing	71,800			62,200
31	Closing	62,200			0

Linda Carter, Capital			Account No. 301
				Balance
Date	Description	Debit	Credit	Debit	Credit
2019
Dec. 1			240,000		240,000
31	Closing		62,200		302,200
31	Closing	22,000			280,200

On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.

Required:

Record the journal entries necessary to complete closing the accounts.

What is the new balance of Madison Wells, Capital?