CH 4 HW PDF

Student: immay sillacay Assignment: Ch 4 HW
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Assignment score: 100%

Total Time spent: 5 hours, 34 minutes, 50 seconds
Score for selected take: 100% (4/4)
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1.
Correct answer:
Olympia Consulting
Income Statement
For the Year Ended April 30, 2014
Fees earned $ 60000
Expenses:
Salary expense $ 32450
Supplies expense 1800
Depreciation expense 750
Miscellaneous expense 1500
Total expenses 36500
Net income $ 23500
Olympia Consulting
Statement of Owner's Equity
Raul Hann, capital, May 1, 2013 $ 82200
Net income $ 23500
Less withdrawals 2000
Increase in owner's equity 21500
Raul Hann, capital, April 30, 2014 $ 103700

Olympia Consulting
Balance Sheet
April 30, 2014
Assets
Current assets:
Cash $ 27500
Accounts receivable 53500
Supplies 1200
Total current assets $ 82200
Property, plant, and equipment:
Office equipment $ 30500
Less accumulated depreciation 5250
Total property, plant, and equipment 25250
Total assets $ 107450
Liabilities
Current liabilities:
Accounts payable $ 3300
Salaries payable 450
Total liabilities $ 3750
Owner's Equity
Raul Hann, capital 103700
Total liabilities and owner's equity $ 107450
Your answer:
eBook
Financial Statements from the End-of-Period Spreadsheet
Olympia Consulting is a consulting firm owned and operated by Raul Hann. The following end-of-period spreadsheet was prepared for the year ended April 30, 2014.
Based on the preceding spreadsheet, prepare an income statement for Olympia Consulting.
Olympia Consulting
Income Statement
Fees earned $ 60000
Expenses:
Salary expense $ 32450
Supplies expense 1800
Total expenses 36500
Net income $ 23500
Based on the preceding spreadsheet, prepare a statement of owner's equity for Olympia Consulting.
Olympia Consulting
Raul Hann, capital, May 1, 2013 $ 82200
Net income $ 23500
Raul Hann, capital, April 30, 2014 $ 103700

Based on the preceding spreadsheet, prepare a balance sheet for Olympia Consulting.
Olympia Consulting
Balance Sheet
April 30, 2014
Assets
Current assets:
Cash $ 27500
Supplies 1200
Office equipment $ 30500
Liabilities
Owner's Equity
Raul Hann, capital 103700
2.
Correct answer:
Weird Sports
For the Year Ended June 30, 2014
Paige Demar, capital, July 1, 2013 $ 115800
Net loss $ 20900
Plus withdrawals 24000
Decrease in owner's equity 44900
Paige Demar, capital, June 30, 2014 $ 70900
Your answer:
eBook
Statement of Owner's Equity; Net Loss
Selected accounts from the ledger of Weird Sports for the current fiscal year ended June 30, 2014, are as follows:
Prepare a statement of owner's equity for the year.
Weird Sports
Paige Demar, capital, July 1, 2013 $ 115800
Net loss $ 20900
Plus withdrawals 24000
Decrease in owner's equity 44900
Paige Demar, capital, June 30, 2014 $ 70900
3.
Correct answer:
Labrador Weight Loss Co.
Balance Sheet
June 30, 2014
Assets
Current assets:
Cash $ 37500
Supplies 5350
Prepaid insurance 19200
Prepaid rent 18000
Land $ 290000
Equipment $ 300000
Less accumulated depreciation 103300 196700
Liabilities
Unearned fees 9000
Owner's Equity
Shi Deng, capital 609000
Your answer:
eBook
Balance Sheet
Labrador Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 2014, the end of the current
fiscal year, the balances of selected accounts from the ledger of Labrador Weight Loss Co. are as follows:
Prepare a classified balance sheet that includes the correct balance for Cash.
Labrador Weight Loss Co.
Balance Sheet
June 30, 2014
Assets
Current assets:
Cash $ 37500
Supplies 5350
Prepaid insurance 19200
Prepaid rent 18000
Land $ 290000
Equipment $ 300000
Liabilities
Unearned fees 9000
Owner's Equity
Shi Deng, capital 609000

4.
Correct answer:
1. Income Summary 122650
Darcy Lewis, Capital 122650
2. Darcy Lewis, Capital 55000
Darcy Lewis, Drawing 55000
Your answer:
eBook
Closing Entries with Net Income
After all revenue and expense accounts have been closed at the end of the fiscal year, Income Summary has a debit of $490,750 and a credit of $613,400. At the same date,
Darcy Lewis, Capital has a credit balance of $833,600, and Darcy Lewis, Drawing has a balance of $55,000.
a. Journalize the entries required to (1) close net income or net loss and (2) close the drawing account.
1. Income Summary 122650
Darcy Lewis, Capital 122650
2. Darcy Lewis, Capital 55000
Darcy Lewis, Drawing 55000
b. Determine the amount of Darcy Lewis, Capital at the end of the period.
$
901250
5.
Correct answer:
Close revenues Fees Earned 337900
Income Summary 337900
Close expenses Income Summary 362000 0
Wages Expense 0 277500
Rent Expense 0 54000
Supplies Expense 0 14300
Miscellaneous Expense 0 16200
Close net income/net loss Gail Sabatini, Capital 24100
Close drawing Gail Sabatini, Capital 45000
Gail Sabatini, Drawing 45000
Your answer:
eBook
Closing Entries with Net Loss
Grande Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at July 31, the end of the fiscal year, the
following balances were taken from the ledger of Grande Services Co.
Journalize the four entries required to close the accounts.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Close revenues Fees Earned 337900
Close expenses Income Summary 362000 blank
Wages Expense blank 277500
Rent Expense blank 54000
Supplies Expense blank 14300
Miscellaneous Expense blank 16200
Close net income/net loss Gail Sabatini, Capital 24100
Close drawing Gail Sabatini, Capital 45000
Gail Sabatini, Drawing 45000
6.
Correct answer:
Alert Security Services Co.
End-of-Period Spreadsheet (Work Sheet)
For the Year Ended October 31, 2014
Account Title Unadjusted Trial Balance Debit Unadjusted Trial Balance Credit Adjustments Debit Adjustments Credit Adjusted Trial Balance Debit Adjusted Trial Balance Credit
Cash 12 blank blank 12 blank
Accounts Receivable 90 13 blank 103 blank
Supplies 8 blank 4 4 blank
Prepaid Insurance 12 blank 10 2 blank
Land 190 blank blank 190 blank
Equipment 50 blank blank 50 blank
Accum. Depr.-Equipment 4 blank 3 blank 7
Accounts Payable 36 blank blank blank 36
Wages Payable 0 blank 1 blank 1
Brenda Schultz, Capital 260 blank blank blank 260
Brenda Schultz, Drawing 8 blank blank 8 blank
Fees Earned 200 blank 13 blank 213
Wages Expense 110 1 blank 111 blank
Rent Expense 12 blank blank 12 blank
Insurance Expense 0 10 blank 10 blank
Utilities Expense 6 blank blank 6 blank
Supplies Expense 0 4 blank 4 blank
Depreciation Expense 0 3 blank 3 blank
Miscellaneous Expense 2 blank blank 2 blank
Totals 500 500 31 31 517 517
Your answer:
Appendix: Adjustment Data on an End-of-Period Spreadsheet (Work Sheet)
Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services Co. has been prepared on the end-of-period spreadsheet (work
sheet) for the year ended October 31, 2014, shown below.
The data for year-end adjustments are as follows:
a. Fees earned, but not yet billed, $13.

b. Supplies on hand, $4.
c. Insurance premiums expired, $10.
d. Depreciation expense, $3.
e. Wages accrued, but not paid, $1.
Enter the adjustment data, and place the balances in the Adjusted Trial Balance columns. If a box does not require an entry, leave it blank.
Account Title Unadjusted Trial Balance Debit Unadjusted Trial Balance Credit Adjustments Debit Adjustments Credit Adjusted Trial Balance Debit Adjusted Trial Balance Credit
Accounts Receivable 90 13 blank 103 blank
Supplies 8 blank 4 4 blank
Prepaid Insurance 12 blank 10 2 blank
Accum. Depr.-Equipment 4 blank 3 blank 7
Wages Payable 0 blank 1 blank 1
Fees Earned 200 blank 13 blank 213
Wages Expense 110 1 blank 111 blank
Rent Expense 12 blank blank 12 blank
Insurance Expense 0 10 blank 10 blank
Utilities Expense 6 blank blank 6 blank
Supplies Expense 0 4 blank 4 blank
Depreciation Expense 0 3 blank 3 blank
Miscellaneous Expense 2 blank blank 2 blank
Totals 500 500 31 31 517 517
7.
Correct answer:
Account Title Adjusted Trial Balance Debit Adjusted Trial Balance Credit Income Statement Debit Income Statement Credit Balance Sheet Debit Balance Sheet Credit
Accounts Receivable 103 blank blank 103 blank
Supplies 4 blank blank 4 blank
Prepaid Insurance 2 blank blank 2 blank
Accum. Depr.-Equipment 7 blank blank blank 7
Wages Payable 1 blank blank blank 1
Fees Earned 213 blank 213 blank blank
Wages Expense 111 111 blank blank blank
Rent Expense 12 12 blank blank blank
Insurance Expense 10 10 blank blank blank
Utilities Expense 6 6 blank blank blank
Supplies Expense 4 4 blank blank blank
Depreciation Expense 3 3 blank blank blank
Miscellaneous Expense 2 2 blank blank blank
Totals 517 517 148 213 369 304
Net income (loss) 65 blank blank 65
213 213 369 369
Your answer:
Appendix: Completing an End-of-Period Spreadsheet (Work Sheet)
Alert Security Services Co. offers security services to business clients.

Complete the following end-of-period spreadsheet (work sheet) for Alert Security Services Co. If an amount box does not require an entry, leave it blank.
Account Title Adjusted Trial Balance Debit Adjusted Trial Balance Credit Income Statement Debit Income Statement Credit Balance Sheet Debit Balance Sheet Credit
Accounts Receivable 103 blank blank 103 blank
Supplies 4 blank blank 4 blank
Prepaid Insurance 2 blank blank 2 blank
Accum. Depr.-Equipment 7 blank blank blank 7
Wages Payable 1 blank blank blank 1
Fees Earned 213 blank 213 blank blank
Wages Expense 111 111 blank blank blank
Rent Expense 12 12 blank blank blank
Insurance Expense 10 10 blank blank blank
Utilities Expense 6 6 blank blank blank
Supplies Expense 4 4 blank blank blank
Depreciation Expense 3 3 blank blank blank
Miscellaneous Expense 2 2 blank blank blank
Totals 517 517 148 213 369 304
Net income (loss) 65 blank blank 65
213 213 369 369
8.
Correct answer:
Income Statement
Fees earned $ 213
Expenses:
Wages expense $ 111
Rent expense 12
Insurance Expense 10
Utilities expense 6
Supplies expense 4
Total expenses 148
Net income $ 65
Brenda Schultz, capital, November 1, 2013 $ 260
Net income $ 65
Less withdrawals 8
Brenda Schultz, capital, October 31, 2014 $ 317

Balance Sheet
October 31, 2014
Assets
Current assets:
Cash $ 12
Supplies 4
Prepaid insurance 2
Land $ 190
Equipment $ 50
Total assets $ 354
Liabilities
Wages payable 1
Owner's Equity
Brenda Schultz, capital 317
Your answer:
Appendix: Financial Statements From an End-of-Period Spreadsheet (Work Sheet)
Alert Security Services Co. offers security services to business clients.

Prepare an income statement for Alert Security Services Co.
Income Statement
Fees earned $ 213
Expenses:
Wages expense $ 111
Rent expense 12
Insurance Expense 10
Utilities expense 6
Supplies expense 4
Total expenses 148
Net income $ 65
Prepare a statement of owner's equity for Alert Security Services Co.
Brenda Schultz, capital, November 1, 2013 $ 260
Net income $ 65
Less withdrawals 8
Brenda Schultz, capital, October 31, 2014 $ 317

Prepare a balance sheet for Alert Security Services Co.
Balance Sheet
October 31, 2014
Assets
Current assets:
Cash $ 12
Supplies 4
Prepaid insurance 2
Land $ 190
Equipment $ 50
Total assets $ 354
Liabilities
Wages payable 1
Owner's Equity
Brenda Schultz, capital 317
9.
Correct answer:
Laundry Supplies Expense
Laundry Supplies
Insurance Expense
Prepaid Insurance
Depreciation Expense
Accumulated Depreciation
Wages Expense
Wages Payable
June 30 Adj.
June 30 Adj. Bal.
June 30 Adj.
June 30 Adj. Bal.
June 30 Adj.
June 30 Adj. Bal.
June 30 Adj.
June 30 Clos.
June 30 Clos.
June 30 Bal.
June 30 Clos.
June 30 Clos.
June 30 Clos.
June 30 Clos.
June 30 Clos.
June 30 Clos.
June 30 Adj.
June 30 Adj. Bal.
June 30 Clos.
June 30 Clos.
June 30 Adj.
June 30 Clos.
June 30 Adj.
June 30 Clos.
June 30 Adj.
June 30 Clos.
June 30 Clos.
Cash
;
Laundry Supplies
;
Prepaid Insurance
;
Laundry Equipment
;
;
Accounts Payable
;
Wages Payable
;
Sophie Perez, Capital

;
Sophie Perez, Drawing
;
Laundry Revenue
;
Wages Expense
;
Rent Expense
;
Utilities Expense
;
;
;
Insurance Expense
;
Miscellaneous expense
Laundry revenue
Wages expense
;
Rent expense
;
Utilities expense
;
Laundry supplies expense
;
Depreciation expense
;
Insurance expense
;
Miscellaneous expense
;
;
Sophie Perez, capital, July 1, 2013
Net income for the year
Less withdrawals
;
Increase in owner's equity
Sophie Perez, capital, June 30, 2014
Cash
Accounts payable
Laundry supplies
Wages payable
Prepaid insurance
Laundry equipment
Sophie Perez, capital
Less accumulated depreciation

;
Laundry Revenue
Income Summary
Income Summary
;
Wages Expense
;
Rent Expense
;
Utilities Expense
;

;
;
Insurance Expense
;
Miscellaneous Expense
;
Income Summary
Cash
;
Laundry Supplies
;
Prepaid Insurance
;
Laundry Equipment
;
;
Accounts Payable
;
Wages Payable
;

;
Your answer:
Problem-Solving
Strategy Problem-Solving
eBook Strategy
T Accounts, Adjusting Entries, Financial Statements, and Closing Entries
The unadjusted trial balance of Epicenter Laundry at June 30, 2014, the end of the current fiscal year, is shown below.
The data needed to determine year-end adjustments are as follows:
a. Laundry supplies on hand at June 30 are $3,600.

b. Insurance premiums expired during the year are $5,700.
c. Depreciation of laundry equipment during the year is $6,500.
d. Wages accrued but not paid at June 30 are $1,100.
Required:
1. The beginning account balances from the unadjusted trial balance, as of June 30th, have been entered in the T accounts in part 3 below. The T accounts will be used in parts 3 and 6.
2. (Optional.) On your own paper, enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
3. Journalize the adjusting entries. Then, post the entries in the T accounts below. Adjustments are identified by "Adj.", the new balances as "Adj. Bal." and closing entries as "Clos."
Date Account Debit Credit
a. Laundry Supplies Expense 17900
Laundry Supplies 17900
b. Insurance Expense 5700
Prepaid Insurance 5700
c. Depreciation Expense 6500
Accumulated Depreciation 6500
d. Wages Expense 1100
Wages Payable 1100
The T accounts below are used to complete the posting requirements for part 3 and 6.
Cash
11,000
Laundry Supplies
21,500 June 30 Adj. 17900
June 30 Adj. Bal. 3600
Prepaid Insurance
9,600 June 30 Adj. 5700
Laundry Equipment
232,600
125,400
June 30 Adj. 6500
Accounts Payable
11,800
Wages Payable
June 30 Adj. 1100
June 30 Clos. 10000 105,600

June 30 Clos. 10700
June 30 Bal. 106300
10,000 June 30 Clos. 10000
Income Summary
June 30 Clos. 221500 June 30 Clos. 232200
June 30 Clos. 10700

Laundry Revenue
June 30 Clos. 232200 232,200
Wages Expense
125,200 June 30 Clos. 126300

June 30 Adj. 1100
Rent Expense
40,000 June 30 Clos. 40000
Utilities Expense
19,700 June 30 Clos. 19700
June 30 Adj. 17900 June 30 Clos. 17900
Insurance Expense
Miscellaneous Expense
5,400 June 30 Clos. 5400

4. Prepare an adjusted trial balance. If a box does not require an entry, leave it blank.
Epicenter Laundry
Adjusted Trial Balance
June 30, 2014
Debit Balances Credit Balances
Cash 11000 blank
Laundry Supplies 3600 blank
Prepaid Insurance 3900 blank
Laundry Equipment 232600 blank
Accumulated Depreciation blank 131900
Accounts Payable blank 11800
Wages Payable blank 1100
Sophie Perez, Capital blank 105600
Sophie Perez, Drawing 10000 blank
Laundry Revenue blank 232200
Wages Expense 126300 blank
Rent Expense 40000 blank
Utilities Expense 19700 blank
Laundry Supplies Expense 17900 blank
Depreciation Expense 6500 blank
Insurance Expense 5700 blank
Miscellaneous Expense 5400 blank
482600 482600
5. Prepare an income statement.

Epicenter Laundry
Income Statement
Laundry revenue 232200
Expenses:
Wages expense 126300
Rent expense 40000
Utilities expense 19700
Laundry supplies expense 17900
Insurance expense 5700
Total Expenses 221500
Net income 10700
Prepare a statement of owner's equity (no additional investments were made during the year).
Epicenter Laundry
Sophie Perez, capital, July 1, 2013 105600
Net income for the year 10700
Sophie Perez, capital, June 30, 2014 106300
Prepare a balance sheet.
Epicenter Laundry
Balance Sheet
June 30, 2014
Assets Liabilities
Current assets: Current liabilities:
Cash 11000 Accounts payable 11800
Laundry supplies 3600 Wages payable 1100
Prepaid insurance 3900 Total liabilities
Total current assets 18500
Property, plant, and equipment: Owner's Equity
Laundry equipment 232600 Sophie Perez, capital
Total assets 119200 Total liabilities and owner's equity
6. Journalize the closing entries. For a compound transaction, if an amount box does not require an entry, leave it blank. Then post the entries to the T accounts in part 3 above.
Date Account Debit Credit
Close revenues Laundry Revenue 232200
Close expenses Income Summary 221500 blank
Wages Expense blank 126300
Rent Expense blank 40000
Utilities Expense blank 19700
Laundry Supplies Expense blank 17900
Depreciation Expense blank 6500

Insurance Expense blank 5700
Miscellaneous Expense blank 5400
Close income/loss Income Summary 10700
Sophie Perez, Capital 10700
Close drawing Sophie Perez, Capital 10000
Sophie Perez, Drawing 10000
7. Prepare a post-closing trial balance. If a box does not require an entry, leave it blank.
Epicenter Laundry
Post-Closing Trial Balance
June 30, 2014
Debit Balances Credit Balances
Cash 11000 blank
Laundry Supplies 3600 blank
Prepaid Insurance 3900 blank
Laundry Equipment 232600 blank
Accumulated Depreciation blank 131900
Accounts Payable blank 11800
Wages Payable blank 1100
Sophie Perez, Capital blank 106300
251100 251100

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Student: immay sillacay Assignment: Ch 4 HW

Assignment score: 100%

For the Year Ended April 30, 2014

Fees earned $ 60000

Salary expense $ 32450

Supplies expense 1800

Depreciation expense 750

Miscellaneous expense 1500

Total expenses 36500

Net income $ 23500

Statement of Owner's Equity

For the Year Ended April 30, 2014

Raul Hann, capital, May 1, 2013 $ 82200

Net income $ 23500

Less withdrawals 2000

Increase in owner's equity 21500

Raul Hann, capital, April 30, 2014 $ 103700

April 30, 2014

Accounts receivable 53500

Total current assets $ 82200

Property, plant, and equipment:

Office equipment $ 30500

Less accumulated depreciation 5250

Total property, plant, and equipment 25250

Total assets $ 107450

Accounts payable $ 3300

Salaries payable 450

Total liabilities $ 3750

Raul Hann, capital 103700

Total liabilities and owner's equity $ 107450

Financial Statements from the End-of-Period Spreadsheet

For the Year Ended April 30, 2014

Fees earned $ 60000

Salary expense $ 32450

Supplies expense 1800

Depreciation expense 750

Miscellaneous expense 1500

Total expenses 36500

Net income $ 23500

Statement of Owner's Equity

For the Year Ended April 30, 2014

Raul Hann, capital, May 1, 2013 $ 82200

Net income $ 23500

Less withdrawals 2000

Increase in owner's equity 21500

Raul Hann, capital, April 30, 2014 $ 103700

April 30, 2014

Accounts receivable 53500

Total current assets $ 82200

Property, plant, and equipment:

Office equipment $ 30500

Less accumulated depreciation 5250

Total property, plant, and equipment 25250

Total assets $ 107450

Accounts payable $ 3300

Salaries payable 450

Total liabilities $ 3750

Raul Hann, capital 103700

Total liabilities and owner's equity $ 107450