Questions -
Q1. Green Earth Co. is a consulting firm specializing in pollution control. The entries in the Adjustments columns of the work sheet for Green Earth Co. are as follows.
|
Adjustments
|
|
Dr.
|
Cr.
|
|
Accounts Receivable
|
4,100
|
|
|
Supplies
|
|
1,300
|
|
Prepaid Insurance
|
|
2,000
|
|
Accumulated Depreciation-Equipment
|
|
2,800
|
|
Wages Payable
|
|
1,000
|
|
Unearned Rent
|
2,500
|
|
|
Fees Earned
|
|
4,100
|
|
Wages Expense
|
1,000
|
|
|
Supplies Expense
|
1,300
|
|
|
Rent Revenue
|
|
2,500
|
|
Insurance Expense
|
2,000
|
|
|
Depreciation Expense
|
2,800
|
|
Prepare the adjusting journal entries.
Q2. From the following list, identify the accounts that should be closed to Income Sum-
From the following list, identify the accounts that should be closed to Income Summary at the end of the fiscal year:
a. Accounts Payable g. Fees Earned
b. Accumulated Depreciation- Equipment h. Land
c. Depreciation Expense-Equipment i. Salaries Expense
d. Doyle Bradford, Capital j. Salaries Payable
e. Doyle Bradford, Drawing k. Supplies
f. Equipment l. Supplies Expense
Q3. Which of the following accounts will usually appear in the post-closing trial balance:
a. Accounts Receivable
b. Accumulated Depreciation
c. Cash
d. Depreciation Expense
e. Equipment
f. Estella Hall, Capital
g. Estella Hall, Drawing
h. Fees Earned
i. Supplies
j. Wages Expense
k. Wages Payable
Q4. The trial balance of Dynamite Laundry at July 31, 2006, the end of the current fiscal year, and the data needed to determine year-end adjustments are as follows:
|
Dynamite Laundry Trial Balance July 31, 2006
|
|
Cash
|
2,900
|
|
|
Laundry Supplies
|
7,500
|
|
|
Prepaid Insurance
|
4,800
|
|
|
Laundry Equipment
|
109,050
|
|
|
Accumulated Depreciation
|
|
41,100
|
|
Accounts Payable
|
|
6,100
|
|
David Duffy, Capital
|
|
37,800
|
|
David Duffy, Drawing
|
2,000
|
|
|
Laundry Revenue
|
|
165,000
|
|
Wages Expense
|
71,400
|
|
|
Rent Expense
|
36,000
|
|
|
Utilities Expense
|
13,650
|
|
|
Miscellaneous Expense
|
2,700
|
|
|
|
250,000
|
250,000
|
a. Wages accrued but not paid at July 31 are $1,200.
b. Depreciation of equipment during the year is $6,800.
c. Laundry supplies on hand at July 31 are $1,750.
d. Insurance premiums expired during the year are $2,400.
Instructions -
1. Enter the trial balance on a ten-column work sheet and complete the work sheet. Add accounts as needed.
2. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet.
3. On the basis of the adjustment data in the work sheet, journalize the adjusting entries.
4. On the basis of the data in the work sheet, journalize the closing entries.