ACC 290T Wk 5 – Apply: Homework

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ACC 290T Wk 5 - Apply: Homework
ACC 290T Wk 5 – Apply: Homework
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ACC 290T Wk 5 – Apply: Homework

QS 4-6 Preparing closing entries from the ledger LO P2

The ledger of Mai Company includes the following accounts with normal balances as of December 31: D. Mai, Capital $10,800; D. Mai, Withdrawals $1,700; Services Revenue $31,000; Wages Expense $17,400; and Rent Expense $5,200.

Prepare its December 31 closing entries.

Required information

Use the following information for Quick Studies below.

[The following information applies to the questions displayed below.]

The following is the adjusted trial balance of Sierra Company.

Account TitleDebitCredit
Cash$29,000    
Prepaid insurance 1,700    
Notes receivable (due in 5 years) 6,400    
Buildings 80,000    
Accumulated depreciation–Buildings   $24,000 
Accounts payable    8,500 
Notes payable (due in 3 years)    9,000 
H. Sierra, Capital    28,500 
H. Sierra, Withdrawals 7,000    
Consulting revenue    69,500 
Wages expense 4,700    
Depreciation expense–Buildings 8,000    
Insurance expense 2,700    
Totals$139,500 $139,500 

QS 4-10 Preparing financial statements LO C2

Required

(1) Prepare an income statement for the year ended December 31.

(2) Prepare a statement of owner’s equity for the year ended December 31.

Exercise 4-2 Extending accounts in a work sheet LO P1

The Adjusted Trial Balance for Planta Company follows. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by entering the amount of net income for the reporting period.

Exercise 4-6 Completing the income statement columns and preparing closing entries LO P1, P2

These Income Statement columns from a 10-column work sheet are for Brown’s Bike Rental Company.

Account TitleDebit Credit 
Rent earned  102,000 
Salaries expense45,288   
Insurance expense6,426   
Office supplies expense14,994   
Bike repair expense3,162   
Depreciation expense—Bikes19,482   

(1) Determine the amount that should be entered on the net income line of the work sheet.

(2) Prepare the company’s closing entries. The owner, H. Brown, did not make any withdrawals this period.

Exercise 4-7 Preparing a work sheet and recording closing entries LO P1, P2

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31.

  1. Unrecorded depreciation on the trucks at the end of the year is $6,036.
  2. The total amount of accrued interest expense at year-end is $8,000.
  3. The cost of unused office supplies still available at year-end is $1,400.
  4. Use the above information about the company’s adjustments to complete a 10-column work sheet.

    2a. Prepare the year-end closing entries for Dylan Delivery Company as of December 31.

    2b. Determine the capital amount to be reported on the December 31, balance sheet. Note: S. Dylan, Capital was $322,440 on December 31 of the prior year.

 

Exercise 4-9 Preparing closing entries and a post-closing trial balance LO P2, P3

The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31.

No.Account TitleDebitCredit
101Cash$18,000    
126Supplies 14,400    
128Prepaid insurance 2,000    
167Equipment 23,000    
168Accumulated depreciation—Equipment   $6,500 
301A. Cruz, Capital    45,425 
302A. Cruz, Withdrawals 6,000    
404Services revenue    49,000 
612Depreciation expense—Equipment 2,000    
622Salaries expense 28,567    
637Insurance expense 2,058    
640Rent expense 3,283    
652Supplies expense 1,617    
 Totals$100,925 $100,925 

  1. Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.

    2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: A. Cruz, Capital was $45,425 on December 31 of the prior year.

Exercise 4-11 Preparing financial statements LO C3

The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

Account TitleDebit Credit
Cash$9,200    
Accounts receivable 16,500    
Office supplies 2,000    
Trucks 164,000    
Accumulated depreciation—Trucks   $33,784 
Land 75,000    
Accounts payable    13,200 
Interest payable    3,000 
Long-term notes payable    52,000 
K. Wilson, Capital    155,932 
K. Wilson, Withdrawals 19,000    
Trucking fees earned    135,000 
Depreciation expense—Trucks 21,791    
Salaries expense 63,315    
Office supplies expense 10,500    
Repairs expense—Trucks 11,610    
Totals$392,916 $392,916 

The K. Wilson, Capital account balance was $155,932 at December 31 of the prior year.

(1) Prepare the income statement for the year ended December 31.

(2) Prepare the statement of owner’s equity for the year ended December 31.

 

GL0401 – Based on… LO C3, P2, P3

The OnPoint Company began operations on December 1, 2019. The unadjusted trial balance of the OnPoint Company as of December 31, 2019 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the OnPoint Company found in chapter 3.

  1. 1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2019.  Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.
  2. 2) Based on a physical count, supplies on hand total $3,450.  Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.
  3. 3) The equipment is expected to have a 4-year useful life, and be worth about $10,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry, if any.
  4. 4) On December 26, the client paid a $4,200 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.
  5. 5) OnPoint’s sole employee earns $90 per day for a five-day workweek beginning on Monday and ending on Friday.  The employee was last paid on Friday, December 26.  Review the unadjusted balance in Salaries payable, and prepare the necessary adjusting entry, if any.
  6. 6) In the second week of December, OnPoint agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,180. The terms of the initial agreement call for OnPoint to provide services from December 12, 2019, through January 10, 2020, or 30 days of service. The club agrees to pay OnPoint $3,180 on January 10, 2020, when the service period is complete.  Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.

Prepare the required adjusting and closing entries for the OnPoint Company.

GL0404 – Based on Problem 4-6A LO P4

The unadjusted trial balance for Comic Stand as December 31 is provided on the trial balance tab.

Information for adjustments is as follows:

  1. As of December 31, employees had earned $1,500 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1,875 of salaries will be paid.
  2. The cost of supplies still available at December 31 is $1,700.
  3. The notes payable requires an interest payment to be made every three months. The amount of unrecorded accrued interest at December 31 is $1,000. The next interest payment, at an amount of $1,200, is due on January 15.
  4. Analysis of the unearned member fees account shows $1,400 remaining unearned at December 31.
  5. In addition to the member fees included in the revenue account balance, the company has earned another $14,800 in unrecorded fees that will be collected on January 31. The company is also expected to collect $15,000 on that same day for new fees earned in January.
  6. Depreciation expense for the year is $26,000.