Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 4.38BP
Completing the accounting cycle from
On December 1, Curt Walton began an auto repair shop, Walton’s Quality Automotive. The following transactions occurred during December:
| Dec. 1 | Walton contributed $55,000 cash to the business in exchange for shares of common stock. |
| 1 | Purchased $9,000 of equipment paying cash. |
| 1 | Paid $1,500 for a five-month insurance policy starting on December 1. |
| 9 | Paid $16,000 cash to purchase land to be used in operations. |
| 10 | Purchased office supplies on account, $2,000. |
| 19 | Borrowed $ 12,000 from the bank for business use. Walton signed a notes payable to the bank in the name of the corporation. The note is due in five years. |
| 22 | Paid $1,700 for advertising expenses. |
| 26 | Paid $300 on account. |
| 28 | The business received a bill for utilities to be paid in January, $180. |
| 31 | Revenues earned during the month included $14,000 cash and $2,600 on account. |
| 31 | Paid employees’ salaries $3,800 and building rent $1,300. Record as a compound entry. |
| 31 | The business received $1,400 for auto screening services to be performed next month. |
| 31 | Cash dividends of $4,000 was paid to stockholders. |
The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Equipment; Accumulated Depreciation—Equipment; Land; Accounts Payable; Utilities Payable; Interest Payable; Unearned Revenue; Notes Payable; Common Stock;
Adjustment data:
a. Office Supplies used during the month, $1,000.
b. Depreciation for the month, $150.
c. One month insurance has expired.
d. Accrued Interest Expense, $50.
Requirements
1. Prepare the journal entries, and post to the T-accounts.
2. Prepare an unadjusted trial balance.
3. Complete the worksheet for the mo nth ended December 31, 2016. (optional)
4. Prepare the
5. Prepare an adjusted trial balance.
6. Prepare the income statement, the statement of retained earnings, and the classified balance sheet in report form.
7. Prepare the closing entries, and post to the T-accounts.
8. Prepare a post-closing trial balance.
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During September, the following transactions were completed:
Borrowed $10,000 from the bank and signed a two-year, 5% note payable.
2 Paid September rent, $500.
8 Paid employee salaries, $1,050.
12 Received $1,500 cash from customers on account.
15 Received $5,700 cash for services performed in September.
Purchased additional supplies on account, $1,300.
20 Paid creditors $2,300 on account.
Sept. 1
17
Paid September telephone bill, $200.
Paid employee salaries, $1,050.
Performed services on account and billed customers for services provided, $900.
Received $550 from customers for services to be provided in the future.
Paid J. Alou $800 cash for personal use.
21
22
27
29
30
Adjustment data consist of the following:
1. Supplies on hand at September 30 cost $1,000.
2. Accrued salaries payable at September 30 total $630.
3. The equipment has an expected useful life of five years.
4. Unearned revenue of $450 is still not earned at September 30.
5. Interest is payable on the first of each…
Harris Welding Company had the following transactions for June.
June 1 Tyler Harris invested $9550 cash in a small welding business
June 2 Bought used welding equipment on account for $3050
June 5 Hired an employee to start work on July 15. Agreed on a salary of $3390 per month
June 17 Billed P. White $2230 for welding work done.
June 27 Received $1220 cash from P.White for work billed on June 17.
For each transaction, indicate the basic type of account debited/credited, specific account debited/credited on the account and the amount
Harris Welding Company had the following transactions for June.
June 1 Tyler Harris invested $9550 cash in a small welding business
June 2 Bought used welding equipment on account for $3050
June 5 Hired an employee to start work on July 15. Agreed on a salary of $3390 per month
June 17 Billed P. White $2230 for welding work done.
June 27 Received $1220 cash from P.White for work billed on June 17.
Journalize the transactions
Chapter 4 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...
Ch. 4 - What document are financial statements prepared...Ch. 4 - Prob. 2RQCh. 4 - What does the statement of retained earnings show?Ch. 4 - Prob. 4RQCh. 4 - Why are financial statements prepared in a...Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - How could a worksheet help in preparing financial...Ch. 4 - If a business had a net loss for the year, where...Ch. 4 - Prob. 12RQCh. 4 - What are temporary accounts? Are temporary...Ch. 4 - What are permanent accounts? Are permanent...Ch. 4 - How is the Income Summary account used? Is it a...Ch. 4 - What are the steps in the closing process?Ch. 4 - If a business had a net loss for the year, what...Ch. 4 - What types of accounts are listed on the...Ch. 4 - List the steps of the accounting cycle.Ch. 4 - What is the current ratio, and how is it...Ch. 4 - What are reversing entries? Are they required by...Ch. 4 - Preparing an income statement Daylen Hair...Ch. 4 - Preparing a statement of retained earnings Refer...Ch. 4 - Preparing a balance sheet (unclassified, account...Ch. 4 - Preparing a balance sheet (classified, report...Ch. 4 - Classifying balance sheet accounts For each...Ch. 4 - Using the worksheet to prepare financial...Ch. 4 - Determining net income using a worksheet A partial...Ch. 4 - Determining net loss using a worksheet A partial...Ch. 4 - Prob. 4.9SECh. 4 - Posting dosing entries directly to T-accounts The...Ch. 4 - Identifying accounts included on a post-dosing...Ch. 4 - Identifying steps in the accounting cycle Review...Ch. 4 - Calculating the current ratio Heart of Tennessee...Ch. 4 - Journalizing reversing entries Lake View...Ch. 4 - Preparing the financial statements The adjusted...Ch. 4 - Prob. 4.16ECh. 4 - Preparing a classified balance sheet and...Ch. 4 - Preparing a worksheet The unadjusted trial balance...Ch. 4 - Preparing financial statements from the completed...Ch. 4 - Preparing dosing entries from an adjusted trial...Ch. 4 - Preparing closing entries from T-accounts Selected...Ch. 4 - Determining the effects of dosing entries on the...Ch. 4 - Preparing a worksheet and dosing entries Cadence...Ch. 4 - Preparing closing entries from an adjusted trial...Ch. 4 - Preparing a worksheet, dosing entries, and a...Ch. 4 - Journalizing reversing entries Krisp Architects...Ch. 4 - Journalizing reversing entries Ocean View Services...Ch. 4 - Preparing financial statements including a...Ch. 4 - Prob. 4.29APCh. 4 - Preparing a worksheet, financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Preparing financial statements including a...Ch. 4 - Prob. 4.35BPCh. 4 - Preparing a worksheet, financial statements, and...Ch. 4 - Completing the accounting cycle from adjusting...Ch. 4 - Completing the accounting cycle from journal...Ch. 4 - Preparing adjusting entries and reversing entries...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - Completing the accounting cycle from adjusted...Ch. 4 - Comprehensive Problem 1 for Chapters 1-4 Miller...Ch. 4 - Comprehensive Problem 2 for Chapters 1-4 This...Ch. 4 - Prob. 4.1CTEICh. 4 - Prob. 4.1CTFCCh. 4 - Prob. 4.1CTFSCCh. 4 - Kathy Wintz formed a lawn service business as a...
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