Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 4, Problem 4.22E
Closing Entries. Diane s Dairy Sales & Delivery finished its first year of operations on December 31, 2018 After
| Diane's Dairy Sales & Delivery Adjusted Trial Balance At December 31 | ||||
| Account | Debit | Credit | ||
| Cash | $ 833,000 | |||
| 179,000 | ||||
| Supplies | 83,000 | |||
| Prepaid Insurance | 13,000 | |||
| Prepaid Rent | 30,000 | |||
| Equipment | 350,000 | |||
| Accumulated Depreciation—Equipment | $ 30,000 | |||
| Accounts Payable | 150,500 | |||
| Wages Payable | 24,000 | |||
| Unearned Revenue | 12,000 | |||
| Notes Payable, due 2019 | 80,000 | |||
| Common Stock | 1,000,000 | |||
| 0 | ||||
| Dividends | 12,000 | |||
| Sales Revenue | 1,000,500 | |||
| Wage Expense | 320,000 | |||
| Utility Expense | 32,000 | |||
| Selling Expense | 122,500 | |||
| Administrative Expense | 192,500 | |||
| Insurance Expense | 14,000 | |||
| Supplies Expense | 85,000 | |||
| Depreciation Expense—Equipment | 31,000 | |||
| Totals | $2,297000 | $2.297000 | ||
Using this trial balance, prepare Diane’s necessary entries to close out temporary accounts at year-end Omit explanations.
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Closing Entries. Okabe Company ended its fiscal year on July 31, 2021. The company’s adjusted trialbalance as of the end of its fiscal year is shown below.OKABE COMPANYAdjusted Trial BalanceJuly 31, 2021No. Account Titles101 Cash $ 9,840 (Dr.)112 Accounts Receivable 8,780 (Dr.)157 Equipment 15,900 (Dr.)158 Accumulated Depreciation—Equip. $ 7,400 (Cr.)201 Accounts Payable 4,220 (Cr.)208 Unearned Rent Revenue 1,800 (Cr.)301 Owner’s Capital 45,200 (Cr.)306 Owner’s Drawings 16,000 (Dr.)400 Service Revenue 64,000 (Cr.)429 Rent Revenue 6,500 (Cr.)711 Depreciation Expense 8,000 (Dr.)726 Salaries and Wages Expense 55,700 (Dr.)732 Utilities Expense 14,900 (Dr.)Instructions: Prepare the closing entries.
The trial balance of Mabilis Repair Shop appears below the end of its calendar year:
MABILIS REPAIR SHOP
Trial Balance
December 31, 2020
Debit
Credit
Cash on Hand
P
10,000
25,000
Accounts Receivable
Estimated Uncollectible Accounts
750
Notes Receivable
7,000
30,000
Shop Equipment
Accumulated Depreciation - Shop Equipment
Furniture and Fixture
2,000
8,000
Accumulated Depreciation - Furniture and Fixture
Accounts Payable
Notes Payable
Leynes, Capital
Leynes, Drawing
Service Income
Salaries Expense
Rent Expense
Supplies Expense
Taxes and Licenses
5,00
11,000
12,000
44,750
1,000
30,000
8,000
8,000
4,000
1,500
3,000
P 105,500
Light and Water Expense
Total
P
105,500
Additional Information:
1. Unpaid taxes, P600.
2. Accrued salaries, P3,000
3.
Accrued interest on notes payable, P200.
4. Unpaid light and water, P500.
5. Supplies on hand, P1,000.
Bad debts expense is estimated to be 5% of Accounts Receivable.
6.
Required:
7. Prepare a 10-column worksheet. Arrange the accounts according to…
Current Attempt in Progress Waterway has year-end account balances of Sales Revenue $811,419, Interest Revenue $
12,690, Cost of Goods Sold $575, 593, Administrative Expenses $189,840, Income Tax Expense $31,877, and Dividends
$18,984. Prepare the year-end closing entries. (Credit account titles are automatically indented when amount is
entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the
amounts.)
Chapter 4 Solutions
Intermediate Accounting
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