CH 4 HW PDF
October 13, 2022 | Author: Anonymous | Category: N/A
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Student: immay sillacay
Assignment: Ch 4 HW
Take Details Assignment score: 100% Total Time spent: 5 hours, 34 minutes, 50 seconds Score for selected take: 100% (4/4) Time spent on selected take:
1. Correct answer:
Olympia Olymp ia Consulting Consulting
Income Incom e Statemen Statementt For the Year Ended April 30, 2014 $ 60000
Fees earned Expenses: $ 32450
Salary expense
Supplies expense
1800
Depreciation expense
750
Miscellaneous expense
1500
Total expenses
36500
$ 23500
Net income
Olympia a Consulting Consulting Olympi Statement of Owner's Equity For the Year Ended April 30, 2014 2014 $ 82200
Raul Hann, capital, May 1, 2013
Net income
Less withdrawals
Increase in owner's equity
Raul Hann, capital, April 30, 2014
$ 23500
2000
21500
$ 103700
Ollympia Consulting O Balance Sheet Ap A pril 30, 2014 Assets Current assets: $ 27500
Cash
Accounts receivable
53500
Supplies
1200
$ 82200
Total current assets Property, plant, and equipment: $ 30500
Office equipment
Less accumulated depreciation
5250
Total property, plant, and equipment
25250
$ 107450
Total assets Liabilities Current liabilities: Accounts payable
Salaries payable
$ 3300
450
$ 3750
Total liabilities Owner's Equity Raul Hann, capital
Total liabilities and owner's equity
103700
$ 107450
Your answer:
eBook
Financial Statements from the End-of-Period Spreadsheet Olympia Consulting is a consulting firm owned and operated by Raul Hann. The following end-of-period spreadsheet was prepared for the year ended April 30, 2014.
Based on the preceding spreadsheet, prepare an income statement for Olympia Consulting.
Olympia Consult Consulting ing Income Statemen Statementt For the Year Ended April 30, 2014 $
Fees earned
60000
Expenses: $
Salary expense
32450
Supplies expense
1800
Depreciation expense
750
Miscellaneous expense
1500
Total expenses
36500 $
Net income
23500
Based on the preceding spreadsheet, prepare a statement of owner's equity for Olympia Consulting.
Olympia Consult Consulting ing Statement of Owner's Equity Equity For the Year Ended April 30, 2014 $
Raul Hann, capital, May 1, 2013
Net income
Less withdrawals
Increase in owner's equity
Raul Hann, capital, April 30, 2014
$
82200
23500
2000 21500 $
103700
Based on the preceding spreadsheet, prepare a balance sheet for Olympia Consulting.
Ollympia Consulting O Balance Sheet Ap A pril 30, 2014 Assets Current assets: $
Cash
27500
Accounts receivable
53500
Supplies
1200
Total current assets
$
82200
Property, plant, and equipment: $
Office equipment
30500
5250
Less accumulated depreciation
Total property, plant, and equipment
25250
Total assets
$
107450
$
3750
Liabilities Current liabilities: $
Accounts payable
3300
450
Salaries payable
Total liabilities Owner's Equity
103700
Raul Hann, capital
$
Total liabilities and owner's equity
2. Correct answer:
Weir W eird d Sport Sports s Statement of Owner's Equity For the Year Ended June 30, 2014 $ 115800
Paige Demar, capital, July 1, 2013
Net loss
Plus withdrawals
Decrease in owner's equity
Paige Demar, capital, June 30, 2014
Your answer:
$ 20900
24000
44900
$ 70900
107450
eBook
Statement of Owner's Equity; Net Loss Selected accounts from the ledger of Weird Sports for the current fiscal year ended June 30, 2014, are as follows:
Prepare a statement of owner's equity for the year.
Weird Weir d Sport Sports s Statement Stateme nt of Owner's Equity For the Year Ended June 30, 2014 $
Paige Demar, capital, July 1, 2013
Net loss
Plus withdrawals
Decrease in owner's equity
Paige Demar, capital, June 30, 2014
3. Correct answer:
$
115800
20900
24000 44900 $
70900
L La abrador Weight Loss Co. Balance Sheet Ju J une 30, 2014 Assets Current assets: $ 37500
Cash
Accounts receivable
78250
Supplies
5350
Prepaid insurance
19200
Prepaid rent
18000
$ 158300
Total current assets Property, plant, and equipment: $ 290000
Land
Equipment
Less accumulated depreciation
$ 300000
103300
196700
Total property, plant, and equipment
486700
$ 645000
Total assets Liabilities Current liabilities: $ 18500
Accounts payable
Salaries payable
8500
Unearned fees
9000
$ 36000
Total liabilities Owner's Equity Shi Deng, capital
Total liabilities and owner's equity
Your answer:
609000
$ 645000
eBook
Balance Sheet Labrador Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2014, the end of the current fiscal year, the balances of selected accounts from the ledger of Labrador Weight Loss Co. are as follows:
Prepare a classified balance sheet that includes the correct balance for Cash.
La L abrador Weight Loss Co. Balance Sheet Ju J une 30, 2014 Assets Current assets: $
Cash
37500
Accounts receivable
78250
Supplies
5350
Prepaid insurance
19200
Prepaid rent
18000
Total current assets
$
158300
Property, plant, and equipment: $
Land
Equipment
Less accumulated depreciation
$
290000
300000
103300
196700
Total property, plant, and equipment
486700
Total assets
$
645000
$
36000
Liabilities Current liabilities: $
Accounts payable
18500
Salaries payable
8500
Unearned fees
9000
Total liabilities Owner's Equity Shi Deng, capital
Total liabilities and owner's equity
609000 $
645000
4. Correct answer:
1.
Inco Income me Su Summ mmar ary y
12 12265 2650 0
Darcy Lewis, Capital
2.
Darc Darcy y Lewis Lewis,, Cap Capita itall
122650
55000 55000
Darcy Lewis, Drawing
55000
Your answer:
eBook Closing Entries with Net Income
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $490,750 and a credit of $613,400. At the same date, Darcy Lewis, Capital has a credit balance of $833,600, and Darcy Lewis, Drawing has a balance of $55,000.
a. Journalize the entries required to (1) close net income or net loss and (2) close the drawing account.
1.
Income Summary
122650 122650
Darcy Lewis, Capital
2.
Darcy Lewis, Capital
55000
Darcy Lewis, Drawing
b. Determine the amount of Darcy Lewis, Capital at the end of the period.
$ 901250 5. Correct answer:
55000
Close revenues
Fees Earned
337900
Income Summary
Close expenses
Close net income/net loss
Income Summary
337900
362000
0
Wages Expense
0
277500
Rent Expense
0
54000
Supplies Expense
0
14300
Miscellaneous Expense
0
16200
Gail Sabatini, Capital
24100
Income Summary
Close drawing
Gail Sabatini, Capital Gail Sabatini, Drawing
Your answer:
24100
45000 45000
eBook Closing Entries with Net Loss
Grande Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the following balances were taken from the ledger of Grande Services Co.
Journalize the four entries required to close the accounts. For a compound transaction, if an amount box does not require an entry entry,, leave it blank.
Close revenues revenues
Fees Earned
337900 337900
Income Summary
Close expenses expenses
Close net income/net loss
362000
blank
Wages Expense
blank
277500
Rent Expense
blank
54000
Supplies Expense
blank
14300
Miscellaneous Expense
blank
16200
Income Summary
Gail Sabatini, Capital
24100 24100
Income Summary
Close drawing drawing
Gail Sabatini, Capital
Gail Sabatini, Drawing
6. Correct answer:
45000 45000
Security Services Co. Alert Security End-of-Period Spreadsheet (Work Sheet) For the Year Ended October 31, 2014 Account Title
Unadjusted Trial Balance Debit
Unadjusted Trial Balance Credit
Adjustments Debit
Adjustments Credit
Adjusted Trial Balance Debit
Adjusted Trial Balance Credit
12
blank
blank
12
blank
Accounts Receivable
90
13
blank
103
blank
Supplies
8
blank
4
4
blank
Prepaid Insurance
12
blank
10
2
blank
Land
190
blank
blank
190
blank
Equipment
50
blank
blank
50
blank
7
Cash
Accum. Depr.-Equipment
4
blank
3
blank
Accounts Payable
36
blank
blank
blank
Wages Payable
0
blank
1
blank
Brenda Schultz, Capital
260
blank
blank
blank
blank
blank
8
blank
13
blank
110
1
blank
111
blank
Rent Expense
12
blank
blank
12
blank
Insurance Expense
0
10
blank
10
blank
Utilities Expense
6
blank
blank
6
blank
Supplies Expense
0
4
blank
4
blank
Depreciation Expense
0
3
blank
3
blank
Miscellaneous Expense
2
blank
blank
2
blank
Totals
500
31
31
517
517
Brenda Schultz, Draw ing
8
Fees Earned Wages Expense
Your answer:
200
500
36
1
260 blank
213
Appendix: Adjustment Data on an End-of-Period Spreadsheet Spreadsheet (Work Sheet) Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the end-of-period spreadsheet (work sheet) for the year ended October 31, 2014, shown below.
The data for year-end adjustments are as follows: a. Fees earned, but not y yet et billed, $13. b. Supplies on hand, $4. c. Insurance premiums premiums expired, $10. $10. d. Depreciation e expense, xpense, $3. $3. e. Wages accrued, but not paid, paid, $1.
entry,, leave it blank. Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns. If a box does not require an entry
Alert Security Services Services Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended October 31, 2014 Account Title
Unadjusted T Trial rial Balance Debit
Cash
Adjustments Debit
Adjustments Credit
Adjusted T Trial rial Balance Debit
Adjusted T Trial rial Balance Cred
12
blank
blank
12
blank
Acc ounts Rec eivable
90
13
blank
103
blank
Supplies
8
blank
4
4
blank
Prepaid Insuranc e
12
blank
10
2
blank
Land
190
blank
blank
190
blank
Equipment
50
blank
blank
50
blank
blank
3
blank
7
Acc um. Depr Depr.-Equipment .-Equipment
Unadjusted T Trial rial Balance Credit
4
Acc ounts Payable
36
blank
blank
blank
36
Wages Payable
0
blank
1
blank
1
Brenda Schultz, Capital
260
blank
blank
blank
260
blank
blank
8
blank
blank
13
blank
213
Brenda Schultz, Drawing 8
Fees Earned
200
Wages Expense
110
1
blank
111
blank
Rent Expense
12
blank
blank
12
blank
Insurance Expense
0
10
blank
10
blank
Utilities Expense
6
blank
blank
6
blank
Supplies Expense
0
4
blank
4
blank
Deprec iation Expense
0
3
blank
3
blank
Misc ellaneous Expense
2
blank
blank
2
blank
Totals
500
31
31
517
517
7. Correct answer:
500
Alert Security Services Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended October 31, 2014 Account Title Cash
Adjusted Trial Balance Debit
Adjusted Trial Balance Credit
Income Statement Debit
Income Statement Credit
Balance Sheet Debit
Balance Sheet Credit
12
blank
blank
12
blank
Accounts Receivable
103
blank
blank
103
blank
Supplies
4
blank
blank
4
blank
Prepaid Insurance
2
blank
blank
2
blank
Land
190
blank
blank
190
blank
Equipment
50
blank
blank
50
blank
7
Accum. Depr.-Equipment
7
blank
blank
blank
Accounts Payable
36
blank
blank
blank
36
Wages Payable
1
blank
blank
blank
1
Brenda Schultz, Capital
260
blank
blank
blank
260
blank
blank
8
blank
blank
213
blank
blank
111
111
blank
blank
blank
Rent Expense
12
12
blank
blank
blank
Insurance Expense
10
10
blank
blank
blank
Utilities Expense
6
6
blank
blank
blank
Supplies Expense
4
4
blank
blank
blank
Depreciation Expense
3
3
blank
blank
blank
Miscellaneous Expense
2
2
blank
blank
blank
Totals
517
148
213
369
304
65
blank
blank
65
213
213
369
369
Brenda Schultz, Draw ing
8
Fees Earned Wages Expense
Net income (loss)
Your answer:
213
517
Appendix: Completing an End-of-Period Spreadsheet (Work Sheet) Alert Security Services Co. offers security services to business clients.
Complete the following end-of-period spreadsheet (work sheet) for Alert Security Services Co. If an amount box does not require an entry entry,, leave it blank.
Alert Security Services Co. End-of-Period Spreadsheet (Work Sheet) For the Year Ended October 31, 2014 Account Title
Income Statement Debit
Income Statement Credit
Balance Sheet Debit
Balance Sheet Credit
12
blank
blank
12
blank
Acc ounts Rec eivable
103
blank
blank
103
blank
Supplies
4
blank
blank
4
blank
Prepaid Insuranc e
2
blank
blank
2
blank
Land
190
blank
blank
190
blank
Equipment
50
blank
blank
50
blank
blank
blank
blank
7
Cash
Adjusted T Trial rial Balance Debit
Acc um. Depr Depr.-Equipment .-Equipment
Adjusted T Trial rial Balance Credit
7
Acc ounts Payable
36
blank
blank
blank
36
Wages Payable
1
blank
blank
blank
1
Brenda Schultz, Capital
260
blank
blank
blank
260
blank
blank
8
blank
blank
213
blank
blank
Brenda Schultz, Drawing 8
Fees Earned
213
Wages Expense
111
111
blank
blank
blank
Rent Expense
12
12
blank
blank
blank
Insurance Expense
10
10
blank
blank
blank
Utilities Expense
6
6
blank
blank
blank
Supplies Expense
4
4
blank
blank
blank
Deprec iation Expense
3
3
blank
blank
blank
Misc ellaneous Expense
2
2
blank
blank
blank
Totals
517
148
213
369
304
65
blank
blank
65
213
213
369
369
Net income (loss)
8. Correct answer:
517
Alert Security Security Services Co. Income Inco me Statemen Statementt For the Year Ended October 31, 2014 $ 213
Fees earned Expenses: Wages expense
$ 111
Rent expense
12
Insurance Expense
10
Utilities expense
6
Supplies expense
4
Depreciation expense
3
Miscellaneous expense
2
148
Total expenses
$ 65
Net income
Alert Security Security Services Co. Statement of Owner's Equity For the Year Ended October 31, 2014 $ 260
Brenda Schultz, capital, November 1, 2013
Net income
Less withdrawals
Increase in owner's equity
Brenda Schultz, capital, October 31, 2014
$ 65
8
57
$ 317
A Allert Security Services Co. Balance Sheet Oc O ctober 31, 2014 Assets Current assets: $ 12
Cash
Accounts receivable
103
Supplies
4
Prepaid insurance
2 $ 121
Total current assets Property, plant, and equipment: Land
Equipment
Less accumulated depreciation
$ 190
$ 50
7
43
Total property, plant, and equipment
233
$ 354
Total assets Liabilities Current liabilities: Accounts payable
Wages payable
$ 36
1
$ 37
Total liabilities Owner's Equity Brenda Schultz, capital
Total liabilities and owner's equity
317
$ 354
Your answer:
Appendix: Financial Statements From an End-of-Period Spreadsheet (Work (Work Sheet) Alert Security Services Co. offers security services to business clients.
Prepare an income statement for Alert Security Services Co.
Alert Security Services Co. Income Statemen Statementt For the Year Ended October 31, 2014 $
Fees earned
213
Expenses: 111
$
Wages expense
Rent expense
12
Insurance Expense
10
Utilities expense
6
Supplies expense
4
Depreciation expense
3
Miscellaneous expense
2
Total expenses
148 $
Net income
65
Prepare a statement of owner's equity for Alert Security Services Co.
Alert Security Services Services Co. Statement of Owner's Equity For the Year Ended October 31, 2014 $
Brenda Schultz, capital, November 1, 2013
Net income
Less withdrawals
Increase in owner's equity
Brenda Schultz, capital, October 31, 2014
$
260
65
8 57 $
317
Prepare a balance sheet for Alert Security Services Co.
Allert Security Services Co. A Balance Sheet Oc O ctober 31, 2014 Assets Current assets: $
Cash
12
Accounts receivable
103
Supplies
4
Prepaid insurance
2
Total current assets
$
121
Property, plant, and equipment: Land
Equipment
Less accumulated depreciation
$
$
190
50
7
43
Total property, property, plant, and equipment
233
Total assets
$
354
$
37
Liabilities Current liabilities: $
Accounts payable
36
1
Wages payable
Total liabilities Owner's Equity Brenda Schultz, capital
Total liabilities and owner's equity
9. Correct answer: Laundry Supplies Expense Laundry Supplies Insurance Expense Prepaid Insurance Depreciation Expense Accumulated Depreciation Wages Expense Wages Payable June 30 Adj. June 30 Adj. Bal. June 30 Adj. June 30 Adj. Bal. June 30 Adj. June 30 Adj. Bal. June 30 Adj. June 30 Clos. June 30 Clos. June 30 Bal. June 30 Clos. June 30 Clos. June 30 Clos.
317 $
354
; Wages Expense ; Rent Expense ; Utilities Expense ; Laundry Supplies Expense ; Depreciation Expense ; Insurance Expense ; Miscellaneous Expense ; Income Summary Sophie Perez, Capital Sophie Perez, Capital Sophie Perez, Drawing Cash ; Laundry Supplies ; Prepaid Insurance ; Laundry Equipment ; Accumulated Depreciation ; Accounts Payable ; Wages Payable ; Sophie Perez, Capital ;
Your answer:
Problem-Solving Stra St rate tegy gy Pro Probl blem em-So -Solv lvin ing g
eBook
Stra St rate tegy gy
Probl Pro blem em-So -Solv lvin ing g
Stra St rate tegy gy
Probl Pro blem em-So -Solv lvin ing g
Stra St rate tegy gy
Probl Pro blem em-So -Solv lvin ing g
Stra St rate tegy gy
Probl Pro blem em-So -Solv lvin ing g
Stra St rate tegy gy
Probl Pro blem em-So -Solv lvin ing g
Strategy
Statements, s, and Closing Entries T Accounts, Adjusting Entries, Financial Statement The unadjusted trial balance of Epicenter Laundry at June 30, 2014, the end of the current fiscal year, is shown below.
The data needed to determine year-end adjustments are as follows: a. Laundry supplies on hand at June 30 are $ $3,600. 3,600. b. Insurance premiums ex expired pired during the year are $ $5,700. 5,700. c. Depreciation of laundry equipment equipment during the yea yearr is $6,500. d. Wages accrue accrued d but not paid at June 30 are $1 $1,100. ,100. Required: 1. The beginning account balances from the unadjusted trial balance, as of June 30th, have been entered in the T accounts in part 3 below. The T accounts will be used in parts 3 and 2. (Optional.) On your own paper paper,, enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet. 3.
Journalize the adjusting entries. Then, post the entries in the T accounts below. Adjustments are identified by "Adj.", the new balances as "Adj. Bal." and closing entries as "Clos."
Date
Account
Debit
Cr Credit
a.
Laundry Supplies Expense
17900
Laundry Supplies
17900
b.
Insurance Expense
5700
Prepaid Insurance
5700
c.
Depreciation Expense
6500
Accumulated Depreciation
6500
d.
Wages Expense
1100
Wages Payable
1100
The T accounts below are used to complete the posting requirements for part 3 and 6. Cash
11,00 11,000 0
Laundry Supplies
21,500 June 30 Adj. June 30 Adj. Bal.
17900
3600
Prepaid Insurance
9,600 June 30 Adj. June 30 Adj. Bal.
5700
3900
Laundry Equipment
232 232,600 ,600
Accumulated Depreciation
125,400
June 30 Adj.
June 30 Adj. Bal.
6500 131900
Accounts Payable
11,800
Wages Payable
June 30 Adj.
1100
Sophie Perez, Capital
June 30 Clos.
10000
105,600
June 30 Clos.
June 30 Bal.
10700 106300
Sophie Perez, Drawing
10,000 June 30 Clos.
10000
Income Summary
June 30 Clos. June 30 Clos.
221500 June 30 Clos. 10700
232200
Laundry Revenue
June 30 Clos.
232200
232,200
Wages Expense
125,200 June 30 Clos. June 30 Adj.
126300
1100
June 30 Adj. Bal.
126300
Rent Expense
40,000 June 30 Clos.
40000
Utilities Expense
19,700 June 30 Clos.
19700
Laundry Supplies Expense
June 30 Adj.
17900 June 30 Clos.
17900
Depreciation Expense
June 30 Adj.
6500 June 30 Clos.
6500
Insurance Expense
June 30 Adj.
5700 June 30 Clos.
5700
Miscellaneous Expense
5,400 June 30 Clos.
5400
4. Prepare an adjusted trial balance. If a box does not require an entry entry,, leave it blank.
Epicenter Laundry Adjusted Trial Balance June 30, 2014
Deb Debit it Balanc Balances es Credit Credit Bal Balanc ances es
Cash
11000
blank
3600
blank
3900 232600
blank blank
Accumulated D De epreciation
blank
131900
Accounts Payable
blank
11800
Wages Payable
blank
1100
Sophie Perez, Capital
blank
105600
Sophie Perez, Drawing
10000
blank
Laundry Revenue
blank
232200
126300
blank
Rent Expense
40000
blank
Utilities Expense
19700
blank
Laundry Supplies Expense
17900
blank
Depreciation Expense
6500
blank
Insurance Expense Miscellaneous Expense
5700 5400
blank blank
4 82600 48
482600
Laundry Supplies Prepaid Insurance Laundry Equipment
Wages Expense
5. Prepare an income statement.
Epicenter Laundry Income Statement For the Year Ended June 30, 2014
Laundry revenue
232200
Expenses: Wages expense
126300
Rent expense
40000
Utilities expense
19700
Laundry supplies expense
17900
Depreciation expense
6500
Insurance expense
5700
Miscellaneous expense
5400
Total Expenses
221500
Net income
10700
Prepare a statement of owner's equity (no additional i nvestment nvestments s were made during the year). Epicenter Laundry Statement of Owner's Equity For the Year Ended June 30, 2014
So ph ph iie e Per ez ez, c a ap p iitta l, l, J u ull y 1 , 201 3
105600
Net income for the year
10700
Less withdrawals
10000
Increase in owner's equity
700
So Soph phie ie Perez erez,, ca capi pita tal, l, June June 3 0 0,, 2 0 01 14
10 06 63 30 00
Prepare a balance sheet. Epicenter Laundry Balance Sheet June 30, 2014
Assets
Liabilities
Current assets:
Current liabilities:
Cash
11000
Laundry supplies
3600
Prepaid insurance
3900
Total current assets
Accounts payable Wages payable
11800 1100
Total liabilities 18500
Property, plant, and equipment:
Owner's Equity
Laundry equipment
232600
Less accumulated depreciation
131900
Sophie Perez, capital
Total property, plant, and equipment
100700
Total assets
119200
Total liabilities and owner's equity
6. Journalize the closing entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Then post the entries to the T accounts in part 3 above.
Date
Close revenues
Account
Laundry Revenue
Debit
Credit
232200
Income Summary
232200
Close expenses
Income Summary
221500
blank
Wages Expense
blank
126300
Rent Expense Utilities Expense
blank blank
40000 19700
Laundry Supplies Expense
blank
17900
Depreciation Expense
blank
6500
Insurance Expense
blank
5700
Miscellaneous Expense
blank
5400
Close income/loss Income Summary
10700
Sophie Perez, Capital
10700
Close drawing
Sophie Perez, Capital
10000
Sophie Perez, Drawing
10000
7. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank.
Epicenter Laundry Post-Closing Trial Balance June 30, 2014
Cash
Deb Debit it Balanc Balances es Credit Credit Bal Balanc ances es
11000
blank
Laundry Supplies
3600
blank
Prepaid Insurance
3900
blank
232600
blank
Accumulated D De epreciation
blank
131900
Accounts Payable
blank
11800
Wages Payable
blank
1100
Sophie Perez, Capital
blank
106300
2 51100 25
251100
Laundry Equipment
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