accounting
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Unit3In-ClassActivityPart2-TrialBalanceClosingProcessZhaneMcNair.docACC160: Principles of Accounting I Instructor: Amani U. Davis-Martinez
Unit 3: Chapter 4: Completing the Accounting Cycle
Chapter 8: Cash, Fraud & Internal Controls
In-Class Activity - Trial Balance and Closing Process
Below are the current month’s transactions for the Hamblin Homes Development Company. Input the adjustments appropriately, fill in the worksheet, prepare the subsequent financial statements and complete the closing process.
I. Trial Balance
a. Supplies on hand totaled $850
b. Depreciation for the month is $500
c. Consultation completed in the amount of $1,200
d. The timesheets collected for payroll totaled $1,450
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Hamblin Homes, LLC Worksheet Month ended July 31, 2022
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Account Name |
Unadjusted Trial Balance |
Adjustments |
ADJ Trial Balance |
Income Statement |
Balance Sheet & S.O.E. |
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|
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr |
Dr |
Cr
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Cash |
2,500 |
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|
2,500 |
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2,500 |
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Accts Receivable |
900 |
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|
900 |
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|
900 |
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Building Supplies |
1,100 |
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|
a. 850 |
250 |
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|
250 |
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Equipment |
5,000 |
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|
5,000 |
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|
5,000 |
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Accumulated Depreciation |
|
1,200 |
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b. 500 |
|
1,700 |
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|
1,700 |
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Accounts Payable |
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2,575 |
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|
2,575 |
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|
2,575 |
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Unearned Development Revenue |
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2, 900 |
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c. 1,200 |
|
1,700 |
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|
1,700 |
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R. Hamblin, Capital |
|
1,575 |
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1,575 |
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|
1,575 |
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Development Revenue |
|
5,050 |
|
1,200 |
|
6,250 |
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6,250 |
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Salary Expense |
1,850 |
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d. 1,450 |
|
3,300 |
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3,300 |
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Rent Expense |
1,200 |
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|
1,200 |
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1,200 |
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Supplies Expense |
750 |
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a. 850 |
|
1,600 |
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1,600 |
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Totals |
13,300 |
13,300 |
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Depreciation Expense |
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b. 500 |
|
500 |
|
500 |
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Salary Payable |
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d. 1,450 |
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1,450 |
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|
1,450 |
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Totals |
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|
4,000 |
4,000 |
15,250 |
15,250 |
6,600 |
6,250 |
8,650 |
9,000 |
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Net Income (LOSS) |
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|
|
|
|
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(350) |
350 |
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Totals |
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|
|
|
|
|
6,600 |
6,600 |
9,000 |
9,000 |
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Hamblin Homes, LLC Income Statement For Month Ended July 31, 2022
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Revenues: |
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Expenses: |
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Total Expenses: |
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Net Income: |
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Hamblin Homes, LLC Statement of Owner’s Equity For Month Ended July 31, 2022
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R. Hamblin, Capital, July 1 |
$1,575 |
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Plus: Net Income (Loss) |
350 1,225 |
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Less: Owner W/D |
0 |
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R Hamblin, Capital July 31 |
1,225 |
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Hamblin Homes, LLC Balance Sheet July 31, 2022
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ASSETS |
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Total assets |
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LIABILITIES |
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Total Liabilities |
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EQUITY |
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Total Liabilities and Equity |
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II. Closing Entries
Step 1:
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Development Revenue |
6,250 |
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Income Summary |
|
6,250 |
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Closing revenue account |
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Step 2:
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Income Summary |
6,600 |
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Salary Expense |
|
3,300 |
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Rent Expense |
|
1,200 |
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Supplies Expense |
|
1,600 |
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Depreciation Expense |
|
500 |
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Closing expense accounts |
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Step 3:
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Income |
(350) |
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R. Hamblin, Capital |
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(350) |
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Closing Income Summary |
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III. Post-Closing Trial Balance
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Hamblin Homes, LLC Post-Closing Trial Balance July 31, 2022
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Cash |
$2,500 |
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Accounts Receivable |
900 |
|
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Building Supplies |
250 |
|
|
Equipment |
5,000 |
|
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Accumulated Depreciation – Equipment |
|
$1,700 |
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Accounts Payable |
|
2,575 |
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Salaries Payable |
|
1,450 |
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Unearned Development Revenue |
|
1,700 |
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R. Hamblin, Capital |
|
1,255 |
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Total |
$8,650 |
$8,650 |
