CHAPTER 4
The Accounting Cycle Process
BRIEF EXERCISES
1. The ledger of A Company contains the following baiances:
Common stock$30,000;Dividends$2,000;Service Revenu $50,000;
Salaries Expense$23,000;and Supplies Expense$4,000.Prepare the
closing entries at December 31.
2. The income statement for Mosquera Golf Club for the month ending
july 31 shows green fee Revenue$14,600,Salar Expense$8,200,
Maintenance Expense$2,500,and Net income $3,900.Prepare the
entries to close the revenue and expense accounts.post the entries to
therevenue and expense accounts .
3. The balance sheet debit columu of the work sheet for Kren Company
includes the following accounts :Accounts Receivable $12,500;
Prepaid insurance $3,600;Cash$18,400;Supplies$5,200,and shortTerm Investment$6,700.Prepare the current assets section of the
balance sheet ,listing the accounts in proper sequence.
EXERCISES
4
No.
101
112
157
167
201
208
311
320
Account
LANZA COMPANY
Adjusted Trial Balance
July 31,2006
Titles
Debits
Cash
Accounts Receivable
Equipment
Accumulated Deperciation
Accounts Payable
Unearned Rent Revenue
Common Stock
Retained Earnings
Credits
$14,840
8,780
15,900
$5,400
4,220
1,800
20,000
25,200
332
Dividends
404
429
711
720
732
Commission Revenue
Rent Revenue
Depreciation Expense
Salaries Expense
Utilities Expense
16,000
67,000
6,500
4,000
55,700
14,900
$130,120
$130,120
Instructions
Prepare the closing entries using page J15
5 The adjusted trial balance for Rego Bowling Alley Inc . at December
31,2006 ,contains the following accounts.
.
Debits
Credits
Building
$128,800 Common Stock
$100,000
Account Receivable14,520 Retained Earnings
15,000
Prepaud Insurance 4,680 Accumulated Depreciation-Building45,600
Cash
18,080 Accounts Payable
12,300
Equipment
62,400 Mortgage Payable
94,780
Land
64,000 Accumulated Depreciation-Equipment 18,720
Insurance Expence 780
Interest Payable
2,600
Depreciation Expense7,360 Bowling Revenue
14,180
$303,180
$303,180
Instructions
Prepare a classified balance sheet;assume that $13,600 of the mortgage payable will
be paid in 2007.
6..
B
COMPANY
Work Sheet
For the month Ended March 31,2006
Trial Balance
Account Titles
Dr
Cr
Cash
2,500
Accounts Receivable
1,800
Roofing Supplies
1,100
Equipment
6,000
Accumulated Depreciation-Equipment
1,200
Accounts Payable
Unearned Revenue
1,400
300
Common Stock
Retained Earning
Dividends
Service Revenue
Salaries Expense
Miscellaneous Expense
5,000
2,000
600
3,000
700
200
12,900
12,900
Other data:
(1)A physical count reveals only $140 of roofing supplies on hand.
(2)Depreciation for March is $200.
(3)Unearned revenue amounted to $130 after adjustment on March31.
(4)Accrued salaries are $350.
Instructions
(a)Journalize the adjusting entries from the adjustments columus of the work
sheet.
(b)Journalize thhe closing entries from the financial statement columus of the
work sheet.