Accounting Homework

Chapter04.Exercises.xls

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E4-15


Financial Accounting
E4-15	Journalizing adjusting and closing entries
LO 3 [15-25 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Use your answer from E4-13. [E4-13 is repeated here for your convenience.]
	TELEGRAPHIC LINK
	Trial Balance
	November 30, 2019
			Trial Balance
	Account Title		Debit	Credit
	Cash		$ 4,000
	Accounts receivable		3,200
	Prepaid rent		1,900
	Supplies expense		3,000
	Equipment		34,800
	Accumulated depreciation			1,600
	Accounts payable			5,400
	Salary payable
	Thomas, capital			35,700
	Thomas, drawing		2,100
	Service revenue
	Depreciation expense			8,600
	Salary expense		1,700
	Rent expense
	Utilities expense		600
	Supplies expense
	Total		51,300	$ 51,300
Use this information for your adjusting entries:
Additional information at November 30, 2019:
a.	Accrued service revenue, $600.		d.	Prepaid rent expired, $500.
b.	Depreciation, $300.		e.	Supplies used, $100.
c.	Accrued salary expense, $800.
Requirements
1.	Journalize Telegraphic Link’s adjusting and closing entries at November 30, 2019.
Test Your Knowledge
E4-15
Req. 1
Journal
DATE				POST.REF.	DEBIT	CREDIT
	Adjusting Entries
Nov. 30
30
30
30
30

&LGood student&RApril 22, 2011

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E4-18


Financial Accounting
E4-18	Preparing closing entries from a partial worksheet
LO 3 [15-25 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
The adjusted trial balance from the January worksheet of Silver Sign Company follows:
	SILVER SIGN COMPANY
	Partial Worksheet
	Month Ended January 31, 2019
			Adjusted Trial Balance
	Account		Debit	Credit
	Cash		$ 14,300
	Supplies		2,400
	Prepaid rent		1,400
	Equipment		45,000
	Accumulated depreciation			$ 6,100
	Accounts payable			4,500
	Salary payable			300
	Unearned service revenue			4,500
	Note payable, long-term			5,300
	Silver, capital			32,600
	Silver, drawing		800
	Service revenue			16,800
	Salary expense		3,600
	Rent expense		1,400
	Depreciation expense		400
	Supplies expense		200
	Utilities expense		600
	Total		$ 70,100	$ 70,100
Requirements
1.	Journalize Silver’s closing entries at January 31.
2.	How much net income or net loss did Silver earn for January? How can you tell?
Test Your Knowledge
E4-18
Req. 1
Journal
DATE				POST.REF.	DEBIT	CREDIT
	Closing Entries
Jan. 31
31
31
31
Req. 2

&LGood student&RApril 22

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P4-28A


Financial Accounting
P4-28A	Journalizing adjusting and closing entries
LO 3 [45-60 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
The unadjusted trial balance and adjustment data of Elias Real Estate Appraisal
Company at June 30, 2019, follow:
	ELIAS REAL ESTATE APPRAISAL COMPANY
	Unadjusted Trial Balance
	June 30, 2019
			Trial Balance
	Account Title		Debit	Credit
	Cash		$ 4,900
	Accounts receivable		4,000
	Supplies		3,000
	Prepaid insurance		2,200
	Building		74,400
	Accumulated depreciation			$ 18,800
	Land		13,600
	Accounts payable			19,500
	Interest payable			8,800
	Salary payable			1,300
	Elias, capital			30,800
	Elias, drawing		27,900
	Service revenue			97,900
	Salary expense		32,400
	Depreciation expense		- 0
	Insurance expense		4,200
	Utilities expense		4,000
	Supplies expense		6,500
	Total		$ 177,100	$ 177,100
Adjustment data at June 30, 2019:
a.	Prepaid insurance expired, $300.
b.	Accrued service revenue, $1,300.
c.	Accrued salary expense, $900.
d.	Depreciation for the year, $8,500.
e.	Supplies used during the year, $600.
Requirements
1.	Open T-accounts for Elias, capital and all the accounts that follow on the
	trial balance. Insert their unadjusted balances. Also open a T-account for Income
	summary, which has a zero balance.
2.	Journalize the adjusting entries and post to the accounts that you opened. Show
	the balance of each revenue account and each expense account.
3.	Journalize the closing entries and post to the accounts that you opened. Draw
	double underlines under each account balance that you close to zero.
4.	Compute the ending balance of Elias, capital.
Test Your Knowledge
P4-28A
Req. 1	Open T-accounts shown below adjusting entries
Req 2
Journal
DATE	ACCOUNTS AND EXPLANATIONS			POST.REF.	DEBIT	CREDIT
June	Adjusting Entries
a. 30
b. 30
c. 30
d. 30
e. 30
Req. 1 and 2
	Accounts receivable
	Bal.
	Supplies
	Bal.
	Prepaid insurance
	Bal.
	Accumulated depreciation
			Bal.
	Salary payable
			Bal.
	Elias, capital
			Bal.
	Elias, drawing
	Bal.
	Service revenue
			Bal.
	Salary expense
	Bal.
	Depreciation expense
	Bal.
	Insurance expense
	Bal.
	Utilities expense
	Bal.
	Supplies expense
	Bal.
Req. 3
Journal
DATE	ACCOUNTS AND EXPLANATIONS			POST.REF.	DEBIT	CREDIT
June	Closing Entries
30
30
30
30
30
Req. 3	Closing entries
	Elias, capital
			Bal.
	Elias, drawing
	Income summary
	Clo.		Clo.
	Clo.		Bal.
	Service revenue
	Clo.		Bal.
	Salary expense
	Bal.		Clo.
	Depreciation expense
	Bal.		Clo.
	Insurance expense
	Bal.		Clo.
	Utilities expense
	Bal.		Clo.
	Supplies expense
	Bal.		Clo.
Req. 4

&LGood Student&RApril 22

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P4-29A


Financial Accounting
P4-29A	Preparing a classified balance sheet in report form, and using the current and debt ratios to evaluate a company
LO 5, 6 [30-40 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
	Selected accounts of Blume Irrigation System at December 31, 2019, follow:
	Insurance expense	$ 900	Accounts payable		$ 24,700
	Note payable, long-term	2,800	Accounts receivable		43,100
	Other assets	2,200	Accumulated depreciation—building		24,000
	Building	55,800	Blume, capital, December 31, 2018		52,000
	Prepaid insurance	4,000	Accumulated depreciation—equipment		7,900
	Salary expense	16,300	Cash		11,000
	Salary payable	3,900	Interest payable		400
	Service revenue	74,800	Blume, drawing		2,000
	Supplies	3,300	Equipment		23,000
	Unearned service revenue	1,600	Depreciation expense		30,500
Requirements
1.	Prepare the company’s classified balance sheet in report form at December 31, 2019.
2.	Compute the company’s current ratio and debt ratio at December 31, 2019. At
	December 31, 2018, the current ratio was 1.81 and the debt ratio was 0.34.
	Did the company’s ability to pay debts improve or deteriorate, or did it remain
	the same during 2019?
Test Your Knowledge
P4-29A
	Req. 1
	Blume Irrigation Systems
	Balance Sheet
	December 31, 2019
	ASSETS
	Current assets:
	Cash
	Total current assets			$ - 0
	Plant assets:
	Equipment
				- 0
	Building
				- 0
	Total assets			$ - 0
	LIABILITIES
	Current liabilities:
	Accounts payable
	Total current liabilities			- 0
	Total liabilities			- 0
	OWNER'S EQUITY
	Total owner's equity			- 0
	Total liabilities and owner's equity			$ - 0
	Req. 2
	Current Ratio Analysis				2019	2018
	Current Ratio =	Total current assets
		Total current liabilities
	Analysis:
	During 2019, Blume Irrigation System's ability to pay current liabilities improved.
	Debt Ratio Analysis				2019	2018
	Debt Ratio =	Total liabilities
		Total assets
	Analysis:

&LGood student&RApril 23

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