1•
award:
10 out of
10.00
·· · · · · · ·poTnts...
Use tile May 31 fiscal year-end information from tile following ledger accounts (assume that all
accounts have normal balances).
General Ledger
M. Muncel, Capital
PR
Date
May 31
G2
Debit
Acct. No. 301
Credit Balance
89,000
Salaries Expense
PR
Date
May 31
G2
Debit
Credit
Acct. No. 622
Balance
44,500
M. Muncel, Withdrawals
PR
Date
Debit
May 31
G2
Acct. No. 302
Credit Balance
54,000
Insurance Expense
PR
Date
May 31
G2
Debit
Credit
Acct. No. 637
Balance
5,720
Services Revenue
Acct. No. 401
Credit Balance
156,818
Rent Expense
Date
May 31
Debit
Credit
Acct. No. 640
Balance
12,040
Acct. No. 603
Credit Balance
22,000
Income Summary
PR
Date
Debit
Credit
PR
G2
Date
May 31
Debit
Depreciation Expense
PR
Date
May 31
G2
Debit
PR
G2
Acct. No. 901
Balance
Prepare closing journal entries from the above ledger accounts.
Event
General Journal
./
84,260./
Rent expense
Income summary
./
72.558./
Depreciation expense
Salaries expense
Insurance expense
c
3
c
22,000./
44,500./
5,720./
12,040./
./
M. Munce!, Capital
72.558./
./
./
M. Muncel, Capital
4
156,818./
./
./
./
./
./
Income summar;
2
156.818./
./
Income summary
C
Credit
Debit
Services revenue
M. Muncel, Withdrawals
54,000./
54,000./
Post the above entries to their respective ledger accounts in the order entered under Part 1.
M. Munce!, capital
Date
Debit
Salaries Expense
Credit
Balance
May 31
Date
89,000
3
72,558./
54,000./
4
161,558
107.558
-
J
Debit
Debit
2
44,500
./
Credit
Balance
Date
54.000
./+-
o~
54.000./
-
f-
44,500./
0
-
f-
Insurance Expense
May31
4
Balance
j\,tay 31
M. Muncel, Withdrawals
Date
Credit
-
Debit
Credit
Balance
j\,tay 31
2
5,720
./
5,720./
0
f-
-'
Rent Expense
Sefvices Revenue
Date
Debit
Credit
Balance
May 31
156,818
-
-f-
1
./
Date
156,818./
-f-
~
I
0
Debit
Debit
Credit
May 31
2
12,040
2
L
22,000./
0
12,040./
Income summary
Date
Balance
0
Debit
./I
22,000
./
Balance
May31
Depreciation Expense
Date
Credit
Credit
Balance
156,818./
~
156,818
I-
2
./
84,260./
72,558
3
./
72,558./
0
-
2.
S't\'3.rd:
10outof
10.00
The follov.;ng adjusted trial balance contains the accounts and balances of Cruz Company as of
December 31, 2013, the end of its fiscal year.
No.
101
126
128
167
168
301
302
404
612
622
637
640
652
Account Title
Debit
$ 18.000
10, 100
2,000
23,000
Cash
Supplies
Prepaid insurance
Equipment
Accumulated depreciation- Equipment
T. Cruz, Capital
T. Cruz, Withdrawals
Services revenue
Depreciation expense-Equipment
Salaries expense
Insurance expense
Rent expense
Supplies expense
Credit
$ 6,500
42,720
6,000
43,200
2,000
25,186
1,81 4
2,894
1,426
Totals
$92,420 $92,420
1. Prepare the December 31 , 2013, closing enlries for Cruz Company. Assume the account number for
Income Summary is 901.
General Journal
Date
Dec.31
Debit
./
Services revenue
Dec.31
43.200./
./
Income summary
43,200./
Income summary
33,320./
Depreciation expens~quipment
2,000./1
Salaries expense
Dec.31
25.186./
Insurance expense
1,814./
Rent expense
2,894./
Supplies expense
1,426./
Income summary
T. Cruz, Capital
Dec.31
T. Cruz, Capital
T. Cruz, Wrthdrawals
2. Prepare the December 31, 2013,
post~ losing
./
./
9,880./
./
./
6,000./
9,880./
6,000./
trial balance for Cruz Company.
CRUZ COMPANY
Post-Closing Trial Balance
Decenlber31,2013
II
II
Debit
Cash
./ $
18.000./
Supplies
./
10, 100./
Prepaid insurance
./
2.000./
Equipment
./
23,000./
Accumulated depreciation-Equipment
./
T. Cruz. Capital
./
-
$
Credit
6,500./
46.600./
--~~~~~r--~~~~_,
Totals
Credit
1$
53,100
$
53,100
I
3.
award:
10 out of
10.00
The adjusted trial balance for Salonika Marketing Co. follows. Complete the four right-most columns of
the table by first entering information for the closing entries and then completing the post-closing trial
balance.
Salonika Marketing Company Partial Work Sheet
Adjusted Trial Balance
No.
101
106
154
EQuipment
Accumulated depreciation-Equipment
193
Franchise
201
Accounts payable
209
Salaries payable
233
301
Unearned fees
E. Salonika. Capital
302
E. Salonika, Withdrawals
401
Marketing fees earned
153
-
Account Title
Cash
Accounts receivable
-
~reciation
622
expense- Equipment
Salaries expense
640
Rent expense
677
Miscellaneous expense
~come summary
Dr.
$
10 ,100
25,000
Cr.
- ---
-
25,000yl
15,000
4,200
3,600
62,018
'$
I
15,400y/
15,400
1
+
17,SOOyl
31,000yl
15.000./
4,200y/
3,600y/
21, 182y/
67,800y/
--
15,400y/
94,000
,,~
37,412
9,118
+
196,318 1$
94.000yl
12,000yl
37.412.I
-
I-
14,288y/
9,118.I
72,818y/
94,000yl
--
21,182.ll
I
Totals
42,000yl
17,500
I
10, 100y/
I-
"t .-- +
$
Cr.
Dr.
Cr.
I
14,288
- -
Dr.
Post-Closing Trial Balance
$
42.000
-- -
Closing Entty Information
196,318 1$
203,400 1$
I
203,400 1$
108,100 •$
I
108, 100
I
4•
award:
10 out of
10.00
..... ·· ·· ·· ·· ·· 'Ji<iints
The following is the adjusted trial balance of Wilson Trucking Company.
Account Title
Cash
Accounts receivable
Office supplies
Trucks
Accumulated depreciat100-Tructcs
Land
Accounts payable
Interest payable
Long-term no<es payable
K. Wilson, Capital
K. Wilson, Wi#ldrawalS
Trucking fees earned
Oepreciabon expense-Trucks
Salanes expense
Office suppbes expense
Repall'S expense-TruckS
Debit
7,600
16,500
2,000
158,000
Credit
s
s
32,548
75,000
11,600
3.000
52,000
164.050
19,000
111,000
20,993
52.059
13,500
9,546
Totals
$374,198 S37 4, 198
The K. Wilson, Cap11a1, account balance 1s $164,050 a1 December31 , 2012.
1. Prepare the income statement for the year endoo December 31, 2013.
WILSON TRUCKING COMPANY
Income Statement
For Year Ended December 31, 2013
Revenues
Trucking fees earned
$
111,000./
Expenses
Salaries expense
./ $
52,059./
Office supplies expense
./
13,500./
Repa•rs expense-Trucks
./
9.546./
Oeprecianon expense-TruckS
./
20.993./
0
0
TOlal expenses
96.098
s
Net income
14.902
2. Prepare the statement of owner's equity for #le year ended December 31 . 2013.
WILSON TRUCKING COMPANY
s~
or owner's EQUllY
For Y- Ended December 31, 2013
K. Wilson. Caprtal December 31. 2012
./ $
Add: Net income
./
164,050./
14,902./
178,952
Less: WithdrawalS
K. Wilson. Capttal. December 31, 2013
./
19,000./
- - - ' - --"-./ $
159,952
------'
5.
SV.'3.rd:
9.60 out of
10.00
Account Title
Cash
Accounts receivable
Office supplies
Trucks
Accumulated depreciation- Trucks
Land
Accounts payable
Interest payable
Long-term notes payable
K. Wilson, Capital
K. Wilson, Withdrawals
Trucking iees earned
Depreciation expense-Trucks
Salaries expense
Office supplies expense
Repairs expense-Trucks
$
Oebrt
5,500
24,500
6,325
174,000
Credit
s 35.844
41,000
9,500
16,000
35,000
139,925
19,000
123,000
23, 119
5 3,935
2,000
9,890
Totals
$359,269 $359,269
Use the above adjusted trial balance to prepare Wilson Trucking Company's classified balance sheet as
of December 31, 20 13.
WILSON TRUCKING COMPANY
Balance Sheet
December 31, 2013
Assets
-
I--
./
Current asset s
Cash
$
Accounts receivable
5,500./
24,500./
Office supplies
6,325./
0
-
0
Total current assets
I
36,325
x
Trucks
./ $
Accumulated depreciation-Trucks
./
138,156
l and
41,000./
Total plant assets
119,156
,s
!Total assets
21s.4S1
I
I
Liabilities
Current liabilities
'$
Accounts payable
Interest payable
9,500./
16,000./
0
-Total current liabilities
0
J
25,500
Long-term liabilities
./
~71
l ong-term notes payable
Total liabilities
60,500
Equity
K. Wilson, capital
154,981./
0
0
Total liabilities and equity
~
'Rci:I
~xl
<J~J -(.ll;.':J.
il,d,ca:i:-..
011!::.1Jvn!;e
··· ~ S.
!$
I
215,481
t:iq.recl ei:I i 1 .. t.tlll ur o rv1n 1<Jl,,,· Uo:.t:d 1..ilw .:ti'>n i:. itK"1 rt:I..( no
µ-Ob'!~
award:
10outof
6
•
10.00
· ............ points · ........................................................... .
Use the information in the following adjuste<l trial balance for the Wilson Trucking Company.
Account Title
Cash
Accounts receivable
Office supplies
Trucks
Accumulated depreciation- Trucks
Land
Accounts payable
Interest payable
Long-term notes payable
K. Wilson, Capital
K. Wilson, Withdrawals
Trucking fees earne<l
Depreciation expense-Trucks
Salaries expense
Office supplies expense
Repairs expense-Trucks
$
Debit
9,000
16,500
2,0C>O
160,0C>O
Credit
$ 32,960
75,000
13,000
3,000
52.000
151,879
19,0C>O
128,000
21,259
60,032
7,04.0
11,008
Totals
$380,839
$380,839
1. Calculate the current ratio.
------
Current ratio
Choose Numerator:
Current assets
.I
27,500./
Choose Denominator:
Current ratio
---~--.......~-----'I
...... Current liabilities
$
.I
=
16,000./
=
Current ratio
--<--
1.72
2. Compare Wilson's current ratio v-1th the industry average. (Assume that the industry average for the
current ratio is 1.5.)
® Wilson's current ratio is above the industry average.
0 Wilson's current ratio is below the industry average.
award:
10 out of
7.
10.00
· ............. points
...................................................... · ..
1. Compute the current ratio in each of the separate cases. (Round your answers to 2 decimal
places.)
$
Current
Current
Current
Assets
Liabilities
Ratio
75,000
$
39,267
191.I
Case2
99,750
94,611
105.I
Case3
42,300
60,676
070.I
Case4
81,225
101,981
080.I
Case5
57,675
124,778
04 6.I
2. Identify the company case with the strongest liquidity position. (These cases represent competing
companies in the same industry.)
® case 1
0 Case 2
O case 3
0 Case 4
© case 5
8.
S't\'3.rd:
10 out of
10.00
Use the following information from the Adjustments columns of a 10-column work sheet.
No.
109
124
128
164
209
409
612
620
636
637
650
Account Title
Interest receivable
Office supplies
Prepaid insurance
Accumulated depreciation-Office equipment
Salaries payable
Interest revenue
Depreciation expense-Office equipment
Office salaries expense
Insurance expense-Of!ice equipment
Insurance expense-Store equipment
Office supplies expense
Adjustments
Cr.
Dr.
(d)$ 751
(b) $1 ,906
(a) 1,156
(c) 3,300
(e)
831
(d)
751
(c) 3,300
(e)
831
(a)
555
(a)
601
(b) 1,906
Totals
$7,944
$7,944
Prepare the necessary adjusting journal entJies (a) through (e).
Event
(a)
Genenil Journal
Insurance expense-Office equipment
Insurance expense-store equipment
Prepaid insurance
(b)
Office supplies expense
Office supplies
(C)
Depreciation expen~ce equipment
Accumulated depreciation-Office equipment
(d)
Interest receivable
Interest revenue
(e)
Office salaries expense
Salaries payable
Debit
./
./
./
555./
./
./
1,906./
./
./
3,300./
./
./
751./
./
./
831./
Credit
601./
1,156./
1,906./
3,300.I
751./
831./
9.
av.ard:
10 out of
10.00
The Adjusted Trial Balance for Planta Company follows. Complete the work sheet by extending the
account balances into the appropriate financial statement columns and by entering the amount of net
income for the reporting period.
Planta Company Work Sheet
Adjusted Trial Balance
No.
Dr.
Account Title
Cash
101
Cr.
-!-
Accounts receivable
Trucks
106
153
154
1e3
--
------
Accumulated depreciation- Trucks
Land
Accounts payable
201
209
Salaries payable
Unearned fees
F. Planta, Capital
302
F. Planta, Withdrawals
39,330
40,000
+
--
30,000
Depreciation expense-Trucks
622
Salaries expense
-
4,797
10,632
----
Rent expense
--
Miscellaneous expense
Totals
Net income
Totals
63,000
+
5,~
0
29,484
70,512.I
10,632..I
9,576.I
6,174
6, 174.1
+
4,797..I
63.000.I
29,484.I
179,556
30,000v'
4, 197..I
9 ,576
$
16,080..I
--
5,360.I
---
179,556
40,000..I
20,970..I
-
-I-
611
39,330..I
--
70,512
Plumbing fees earned
677
20,970
-1-
-f-
-
16,080
__,__
9.ooo.,,iL
---
-1------f
Cr.
Dr.
--
-1---
401
640
--
Cr.
4,197
301
233
Dr.
9,000
$
Balance Sheet & Statement of
OWnef's Equity
Income Statement
T+63,000
50,594
116,556
128,962
12,406..I
$
63,000
1$
12,406.I
63,000
1$
128,962
1$
12s,962
I
10.
award:
10 out of
10.00
These partially completed Income Statement columns from a 10-<:olumn work sheet are for Brown's Bike
Rental Company. The owner, H. Brown, did not make any withdrawals this period.
Account Title
Rent earned
Salaries expense
Insurance expense
Office supplies expense
Bike repair expense
Depreciation expense-Bikes
Debit
Credit
140,000
62,160
8,820
20,580
4,340
26,740
1. Using the above information, determine the net income.
Net income
17.360vl
2. Prepare Brown's Bike Rental Company's. closing entries.
Event
Rent earned
Income summary
2
Income summar;
Salaries expense
Insurance expense
Office supplies expense
Bike repair expense
Depreciation expense-Bikes
3
Debit
General Journal
Income summar;
H. Brown, Capital
vi
vi
140.000vl
vi
vi
vi
vi
vi
vi
122,640vl
vi
vi
17,360vl
Credit
140.000vl
62.160vl
8,820vl
20.580vl
4.340vl
26.740vl
17,360vl
11.
award:
10outof
10.00
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company
as of December 31, 2013. There were no investments by the owner in the current year.
a. Unrecorded depreciation on the trucks at the end of the year is S7,682.
b. The total amount oi accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at the year-end is $1,500.
1. Use the above information about the company's adjustments to complete a 10-column wor!< sheet.
DYLAN DELIVERY COMPANY
WOlll Sheet
For Year Ended December 31, 2013
Unadjusted Trial Balance
II
Dr
Account Title
Cash
Cr
Dr
Adjusted Trial Balance
II
Cr
14,000
$
--
Adjusbnents
$
Dr
Balance Sheet and Statement of
OWner's Equity
Income Statement
Cr
Cr
Dr
II
Dr
!$
14,000_,I
Cr
14,000vl
f--
Accounts receivable
22,000
-
Office supplies
2,500
-
Trucks
Accum. Depreciation-Trucks
' Land
r--,.,. .
fAccounts payable
250,000
$
-
-1-
-
Dylan, Withdrawals
40,000
-
+
Delivery fees earned
Office supplies expense
~erest expense
70,000
21,980
70,000
-
--
--
250.000_,I
7.682_,I
,$
7,000_,I
-~
7.682_,I
1.000_,I
-
7,000_,I
'
\$
Income summary
December 31, 2013
-
../
../
t
15,682 1$
Repairs expense-Trucks
Salaries expense
../
Office supplies expense
Income summary
s . Dylan, Capital
../
../
s . Dylan, Capital
S. Dylan, Withdrawals
256,06ov"'
256.060../
57.682../
8,000_,I
17.0 00 ../
7,0 00_,I
107,5 45_,I
58,833../
58.833../
40,000_,I
""'
../
2-2 Determine the capital amount to be reported on the December 31 , 2013 balance sheet.
. Dylan Capital
$
249,838_,I
Credit
197,227../
""'
../
../
../
../
Interest expense
December 31, 2013
Debit
Income summary
Depreciation expense-Trucks
December 31, 2013
T
231,005_,I
-
22,000_,I
1,500_,I
250.000_,I
J_
--
-·-
--
-
$
77.682_,I
140,000vl
21,980_,I
8.000_,I
70,000v/
f-
40,000../
40.000v/
-
$
-
57,682_,I
107,545_,I
107,545_,I
231.005_,I
-
1$
57,682_,I
--
15,682 1$
General Journal
Delivery fees earned
-
256.060_,I
2-1 Prepare the year-end closing entries for Dylan Delivery Company as of December 31, 2013.
December 31, 2013
-
8,000vl
40,000_,I
+ + + +
Date
-
21.980_,I
--
-"
650,045
ITotals
~
77,682_,I
140,000_,I
-
-
7.000
-
70,000vl
-
107,545
16,000
-
-
1--
-1-
- - - f-
~- f~:;·!~come
1.500_,I
-·
1---
231,005
$
Repairs expense-Trucks
1,00IDv/
--
50,000
1.000
22,000_,I
~
256,060
~Depree iation expense-Trucks ~Salaries expense
-
1,000
- I-
Dylan, Capital
-$
-
140,000
--
Interest payable
-·
-·
17.000_,I
8.000vl
8,000yl
7.000yl
7.000yl
664.727 1$
664,727
-
-
191,221 I
58.833yl'
-
-
-
f-
17,000_,I
256,060_,I
+
256,060
-
- I467,500
4os.661 I
58,833_,I
~~
, $~_2_56_,~06_0__,.[_
$ ~_2_56~,06
~o_,_!$~~-4-67~,50
~o_,_~~-4-6~1,_50_o_,I