会计学原理Chapter 4

Chapter 4
QS4-1
Income Summary balance after closing revenues and expenses

Revenues: $42,000 + $8,000 = $50,000 Cr.
Expenses: $31,000 + $11,000 + $5,000 = - 47,000 Dr.
Credit balance (equal to net income) = $3,000 Cr.

M. Gloriosa, Capital account balance after all closing entries

Beginning balance $35,000
Plus net income 3,000
38,000
Less withdrawals 9,200
Ending balance $28,800
Quick Study 4-3

1. E
2. C
3. E
4. A
5. B
6. F
7. A
8. D
Quick Study 4-6
a. I d. B
b. B e. S
c. I f. B

Quick Study 4-7
a. 1 d. 5
b. 3 e. 4
c. 2
Quick Study 4-8



CLAUDELL COMPANY
Work Sheet
Unadjusted
Trial Balance
Adjustments Adjusted
Trial Balance Income
Statement
Balance Sheet
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Prepaid Rent 4,000 (a) 800 3,200 3,200
Services Revenue 65,000 (b) 950 65,950 65,950
Wages expense 30,000 (c) 750 30,750 30,750
Accounts Receivable (b) 950 950 950
Wages Payable (c) 750 750 750
Rent Expense (a) 800 800 800



Quick Study 4-9
Dec. 31 Services Revenue 26,000
Income Summary 26,000
To close the revenue account.
31 Income Summary 20,000
Wages Expense 16,800
Rent Expense 3,200
To close the expense accounts.

31 Income Summary 6,000
D. Mai, Capital 6,000
To close Income Summary.

31 D.Mai, Capital 1,600
D. Mai, Withdrawals 1,600
To close the withdrawals account.

Quick Study 4-10

The only account from QS 4-9 that would appear in post-closing trial balance is D. Mai, Capital.
Exercise 4-1
Closing entries
(1) Services Revenue 401 114,530
Income Summary 901 114,530
To close the revenue account.
(2) Income Summary 901 63,360
Depreciation Expense 603 17,000
Salaries Expense 622 32,500
Insurance Expense 637 4,420
Rent Expense 640 9,440
To close the expense accounts.
(3) Income Summary 901 51,170
M. Muncel, Capital 301 51,170
To close income summary.
(4) M. Muncel, Capital 301 46,770
M. Muncel, Withdrawals 302 46,770
To close the withdrawals account.
Posted accounts
M. Muncel, Capital No. 301 Salaries Expense No. 622
Date PR Debit Credit Balance Date PR Debit Credit Balance
Mar.31 65,000 Mar.31 32,500
(3) 51,170 116,170 (2) 32,500 0
(4) 46,770 60,400

M. Muncel, Withdrawals No. 302 Insurance Expense No. 637
Date PR Debit Credit Balance Date PR Debit Credit Balance
Mar.31 46,770 Mar.31 4,420
(4) 46770 0 (2) 4,420 0

Services Revenue No. 401 Rent Expense No. 640
Date PR Debit Credit Balance Date PR Debit Credit Balance
Mar.31 114,530 Mar.31 9,440
(1) 114,530 0 (2) 9,440 0

Depreciation Expense No. 603 Income Summary No. 901
Date PR Debit Credit Balance Date PR Debit Credit Balance
Mar.31 17,000 (1) 114,530 114,530
(2) 17,000 0 (2) 63,360 51,170
(3) 51,

170 0


Exercise 4-2

Salonika Marketing Company
Work Sheet
Adjusted
Trial Balance
Closing Entry Information Post-Closing
Trial Balance
No. Account Title Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash 11,900 11,900
106 Accounts receivable 24,000 24,000
153 Equipment 41,000 41,000
154 Accumulated depre-
ciation—Equipment
16,500
16,500
193 Franchise 30,000 30,000
201 Accounts payable 14,000 14,000
209 Salaries payable 3,200 3,200
233 Unearned fees 2,600 2,600
301 E. Salonika, Capital 66,701 (4) 14,400 (3) 18,299 70,600
302 E. Salonika, Withdrawals 14,400 (4) 14,400
401 Marketing fees earned 83,000 (1) 83,000
611 Depreciation expense—
Equipment.
11,000
(2)
11,000
622 Salaries expense 33,034 (2) 33,034
640 Rent expense 12,616 (2) 12,616
677 Miscellaneous expense 8,051 (2) 8,051
901 Income summary (2) 64,701 (1) 83,000
______ ______ (3) 18,299 ______ ______ ______
Totals 186,001 186,001 180,400 180,400 106,900 106,900


Exercise 4-3

WILSON TRUCKING COMPANY
Income Statement
For Year Ended December 31, 2009

Trucking fees earned $121,000
Expenses
Depreciation expense—Trucks $20,727
Salaries expense 56,749
Office supplies expense 6,655
Repairs expense—Trucks 10,406
Total expenses 94,537
Net income $ 26,463



WILSON TRUCKING COMPANY
Statement Owner’s Equity
For Year Ended December 31, 2009

K. Wilson, Capital, December 31, 2008 $161,901
Add: Net income 26,463
188,364
Less: Withdrawals (20,000)
K. Wilson, Capital, December 31, 2009 $168,364


Exercise 4-4

(a) Insurance Expense—Office Equipment 470
Insurance Expense—Store Equipment 507
Prepaid Insurance 979
To record expired insurance.
(b) Office Supplies Expense 1,729
Office Supplies 1,729
To record consumed supplies.
(c) Depreciation Expense—Office Equipment. 3,300
Accumulated Depreciation—Office Equip 3,300
To record depreciation of office equip.
(d) Interest Receivable 636
Interest Revenue 636
To record accrued interest income.
(e) Office Salaries Expense 716
Salaries Payable 716
To record accrued salaries.

Exercise 4-5

Planta Company
Work Sheet

Adjusted
Trial Balance

Income Statement Balance Sheet & Statement of
Owner’s Equity
No. Account Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash 8,200 8,200
106 Accounts receivable 35,834 35,834
153 Trucks 41,500 41,500
154 Accumulated depreciation—
Trucks 16,683 16,683
183 Land 30,000 30,000
201 Accounts payable 19,106 19,106
209 Salaries payable 4,370 4,370
233 Unearned fees 3,770 3,770
301 F. Planta, Capital 69,012 69,012
302 F. Planta, Withdrawals 15,534 15,534
401 Plumbing fees earned 84,000 84,000
611 Depreciation expense—
Trucks 5,561 5,561
622 Salaries expense 39,312 39,312
6

40 Rent expense 12,768 12,768
677 Miscellaneous expense 8,232 ______ 8,232 ______ _______ ______
Totals 196,941 196,941 65,873 84,000 131,068 112,941
Net income 18,127 ______ _______ 18,127
Totals 84,000 84,000 131,068 131,068


Exercise 4-6

1.
Work Sheet
Account Title Debit Credit
Rent earned 90,000
Salaries expense 39,960
Insurance expense 5,670
Office supplies expense 13,230
Bike repair expense 2,790
Depreciation expense—Bikes 17,190
Totals 78,840 90,000
Net income 11,160
Totals 90,000 90,000

2. Closing entries
(1) Rent Earned 90,000
Income Summary 90,000
To close the revenue account.
(2) Income Summary 78,840
Salaries Expense 39,960
Insurance Expense 5,670
Office Supplies Expense 13,230
Bike Repair Expense 2,790
Depreciation Expense—Bikes 17,190
To close the expense accounts.
(3) Income Summary 11,160
H. Brown, Capital 11,160
To close Income Summary.

Exercise 4-7 Part 1

DYLAN DELIVERY COMPANY
Work Sheet
For Year Ended December 31, 2008

Unadjusted
Trial Balance

Adjustments
Adjusted
Trial Balance
Income
Statement Balance Sheet and Statement of Owner’s Equtiy
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 15,000 15,000 15,000
Accounts receivable 33,000 33,000 33,000
Office supplies 4,000 (c) 3,500 500 500
Trucks 340,000 340,000 340,000
Accum. Depreciation—Trucks 112,000 (a) 16,000 128,000 128,000
Land 150,000 150,000 150,000
Accounts payable 23,550 23,550 23,550
Interest payable 6,000 (b) 8,000 14,000 14,000
Long-term notes payable 104,000 104,000 104,000
S. Dylan, Capital 272,770 272,770 272,770
S. Dylan, Withdrawals 38,000 38,000 38,000
Delivery fees earned 274,350 274,350 274,350
Depreciation expense—Trucks 48,000 (a) 16,000 64,000 64,000
Salaries expense 128,670 128,670 128,670
Office supplies expense 14,000 (c) 3,500 17,500 17,500
Interest expense 6,000 (b) 8,000 14,000 14,000
Repairs expense—Trucks 16,000 ______ _____ _____ 16,000 ______ 16,000 ______ ______ ______
Totals 792,670 792,670 27,500 27,500 816,670 816,670 240,170 274,350 576,500 542,320
Net Income 34,180 ______ ______ 34,180
Totals 274,350 274,350 576,500 576,500


Exercise 4-12 (Continued)

2. Closing entries
Delivery Fees Earned 274,350
Income Summary 274,350
To close the revenue account.
Income Summary 240 170
Depreciation Expense—Trucks 64,000
Salaries Expense 128,670
Office Supplies Expense 17,500
Interest Expense 14,000
Repairs Expense—Trucks 16,000
To close the expense accounts.
Income Summary 34,180
S. Dylan, Capital 34,180
To close Income Summary.

S. Dylan, Capital 38,000
S. Dyl

an, Withdrawals 38,000
To close the withdrawals account.

S. Dylan, Capital on the balance sheet
Beginning balance $272,770
Add: Net income 34,180
306,950
Less: Withdrawals (38,000)
Ending balance $268,950





PROBLEM SET A


Problem 4-1A

1. C 6. C 11. B 16. C
2. A 7. Z 12. Z 17. F
3. C 8. A 13. A 18. E
4. A 9. E 14. A 19. A
5. C 10. E 15. E 20. G

Problem 4-2A
Part 1-omitted!
Part 2 — Transactions for April
April 1Cash 101 32,000
Computer Equipment 167 26,000
J. Nozomi, Capital 301 58,000
Owner invested in the business.
2Rent Expense 640 1,300
Cash 101 1,300
Paid one month’s rent.
3 Office Supplies 124 2,500
Cash 101 2,500
Acquired office supplies.
10 Prepaid Insurance 128 2,502
Cash 101 2,502
Paid 12 months’ premium in advance.
14 Salaries Expense 622 2,300
Cash 101 2,300
Paid two weeks’ salaries.
24Cash 101 16,000
Commissions Earned 405 16,000
Collected commissions from airlines.
28Salaries Expense 622 2,400
Cash 101 2,400
Paid two weeks’ salaries.
29Repairs Expense 684 750
Cash 101 750
Repaired the computer.
30Telephone Expense 688 550
Cash 101 550
Paid the telephone bill.
30J. Nozomi, Withdrawals 302 1,200
Cash 101 1,200
Owner withdrew cash.

Problem 4-2A (Continued)

Part 3

ADVENTURE TRAVEL
Unadjusted Trial Balance
April 30, 2008
No. Account Title Debit Credit
101 Cash $34,498
106 Accounts receivable 0
124 Office supplies 2,500
128 Prepaid insurance 2,502
167 Computer equipment 26,000
168 Accumulated depreciation—
Computer equipment $ 0
209 Salaries payable 0
301 J. Nozomi, Capital 58,000
302 J. Nozomi, Withdrawals 1,200
405 Commissions earned 16,000
612 Depreciation expense—
Computer equipment 0
622 Salaries expense 4,700
637 Insurance expense 0
640 Rent expense 1,300
650 Office supplies expense 0
684 Repairs expense 750
688 Telephone expense 550
Totals $74,000 $74,000

Problem 4-2A (Continued)
Part 4
Adjusting entries
(a) Apr 30 Insurance Expense 637 139
Prepaid Insurance 128 139
To record expired insurance ($2,502/12 x2/3).
(b) 30Office Supplies Expense 650 1,800
Office Supplies 124 1,800
To record cost of supplies used ($2,500 - $700).
(c) 30 Depreciation Exp—Computer Equipment 612 500
Accumulated Depreciation—
Computer Equipment 168 500
To record depreciation.
(d) 30Salaries Expense 622 720
Salaries Payable 209 720
To record accrued salaries.
(e) 30Accounts Receivable 106 3,050
Commissions Earned 405 3,050
To record accrued commissions.

Part 5
ADVENTURE TRAVEL
Income Statement
For Month Ended April 30, 2009
Commissions earned $19,050
Expenses
Depreciation expense—Computer equipment $

500
Salaries expense 5,420
Insurance expense 139
Rent expense 1,300
Office supplies expense 1,800
Repairs expense 750
Telephone expense 550
Total expenses 10,459
Net income $8,591


Problem 4-2A (Continued)
Part 5—continued

ADVENTURE TRAVEL
Statement of Owner’s Equity
For Month Ended April 30, 2008

J. Nozomi, Capital, April 1, 2009 $ 0
Add: Owner investments $58,000
Net Income 8,591
66,591
Less: Withdrawals (1,200)
J. Nozomi, Capital, April 30, 2009 $65,391



ADVENTURE TRAVEL
Balance Sheet
April 30, 2009

Assets
Cash $34,498
Accounts receivable 3,050
Office supplies 700
Prepaid insurance 2,363
Computer equipment $26,000
Accumulated depreciation–Computer equipment (500) 25,500
Total assets $66,111

Liabilities
Salaries payable $ 720
Equity
J. Nozomi, Capital 65,391
Total liabilities and equity $66,111

Problem 4-2A (Continued)
Part 6
Closing entries
April 30 Commissions Earned 405 19,050
Income Summary 901 19,050
To close the revenue account.
30 Income Summary 901 10,459
Depreciation Exp–Computer Equip 612 500
Salaries Expense 622 5,420
Insurance Expense 637 139
Rent Expense 640 1,300
Office Supplies Expense 650 1,800
Repairs Expense 684 750
Telephone Expense 688 550
To close the expense accounts.
30 Income Summary 901 8,591
J. Nozomi, Capital 301 8,591
To close the Income Summary account.
30 J. Nozomi, Capital 301 1,200
J. Nozomi, Withdrawals 302 1,200
To close the withdrawals account.

Part 7
ADVENTURE TRAVEL
Post-Closing Trial Balance
April 30, 2008
Debit Credit
Cash $34,498
Accounts receivable 3,050
Office supplies 700
Prepaid insurance 2,363
Computer equipment 26,000
Accumulated depreciation–
Computer equipment $ 500
Salaries payable 720
J. Nozomi, Capital ???_______ 65,391
Totals $66,611 $66,611


Problem 4-3A
Part 1

SANTO COMPANY
Income Statement
For Year Ended December 31, 2009

Repair fees earned $98,600
Expenses
Depreciation expense—Equipment $ 5,000
Wages expense 39,000
Insurance expense 800
Rent expense 13,000
Office supplies expense 3,100
Utilities expense 2,900
Total expenses 63,800
Net income $34,800



SANTO COMPANY
Statement of Owner’s Equity
For Year Ended December 31, 2009

L. Charn, Capital, December 31, 2008 $33,000
Add: Net income 34,800
67,800
Less: Withdrawals (16,000)
P. Holt, Capital, December 31, 2008 $51,800


Problem 4-3A
Part 1
SANTO COMPANY
Balance Sheet
December 31, 2008
Assets
Current assets
Cash $16,100
Office supplies 1,300
Prepaid insurance 2,800
Total current assets $20,200
Plant assets
Equipment 50,000
Accumulated depreciation—Equipment (5,000)

45,000
Total assets $65,200

Liabilities
Current liabilities
Accounts payable $ 12,000
Wages payable 1,400
Total current liabilities 13,400
Equity
L.Chorn, Capital 51,800
Total liabilities and equity $65,200

Problem 4-3A (Continued)
Parts 2 and 3

SANTO COMPANY
Work Sheet
For Year Ended December 31, 2008
Adjusted
Trial Balance
Closing Entries Post-Closing
Trial Balance
No. Account Title Dr. Cr. Dr. Cr. Dr. Cr.
101 Cash 16,100 16,100
125 Office supplies 1,300 1,300
128 Prepaid insurance 2,800 2,800
167 Equipment 50,000 50,000
168 Accumulated deprecia-
tion—Equipment 5,000 5,000
201 Accounts payable 12,000 12,000
210 Wages payable 1,400 1,400
301 L,Chorn, Capital 33,000 (4) 16,000 (3) 34,800 51,800
302 L,Chorn, Withdrawals 16,000 (4) 16,000
401 Repair fees earned 98,600 (1) 98,600
612 Depreciation expense—
Equipment 5,000 (2) 5,000
623 Wages expense 39,000 (2) 39,000
637 Insurance expense 800 (2) 800
640 Rent expense 13,000 (2) 13,000
651 Office supplies expense 3,100 (2) 3,100
690 Utilities expense 2,900 (2) 2,900
901 Income summary (2) 63,800 (1) 98,600
______ ______ (3) 34,800 ______ _____ _____
Totals 150,000 150,000 213,,200 213,,200 70,200 70,200

Problem 4-3A
Part 3
Closing entries (all dated December 31, 2009)
Instructor note: Entries are shown without an account reference column because no posting is required.
(1) Repair Fees Earned 98,600
Income Summary 98,600
To close the revenue account.
(2) Income Summary 63,800
Depreciation Expense, Equipment 5,000
Wages Expense 39,000
Insurance Expense 800
Rent Expense 13,000
Store Supplies Expense 3,100
Utilities Expense 2,900
To close the expense accounts.
(3) Income Summary 34,800
L.Chorn, Capital 34,800
To close the Income Summary account.
(4) L,Chorn, Capital 16,000
L.Chorn , Withdrawals 16,000
To close the withdrawals account.

Part 4
(a) If none of the $800 insurance expense had expired, the income statement would not report any insurance expense and net income would be increased by $800.
(b) If there were no earned and unpaid wages (meaning Wages Payable equals zero), wages expense would be $1,400 less.

Financial Statement Changes

The income statement would reflect the following:
? Net income would be increased by $800 + $1,400 = $2,200. (a) & (b)

The balance sheet would reflect the following:
? Prepaid insurance and total assets would be increased by $800. (a)
? There would not be any wages payable. (b)
? Total liabilities would be decreased by $1,400. (b)
? Total equity would be increased by $2,200. (a) & (b)