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    4 Completing The Accounting Cycle Part

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    Talion
    This document provides the trial balance for Anya's Cleaning Service before and after adjusting entries. It includes transactions throughout July such as purchasing equipment, supplies, and paying expenses. The instructions are to prepare a worksheet with the adjusting entries for unbilled revenue and depreciation expense, and an adjusted trial balance.

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    4 Completing The Accounting Cycle Part

    Uploaded by

    Talion
    164 views1 page
    This document provides the trial balance for Anya's Cleaning Service before and after adjusting entries. It includes transactions throughout July such as purchasing equipment, supplies, and paying expenses. The instructions are to prepare a worksheet with the adjusting entries for unbilled revenue and depreciation expense, and an adjusted trial balance.

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    4 Completing the Accounting Cycle Part (50)

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    This document provides the trial balance for Anya's Cleaning Service before and after adjusting entries. It includes transactions throughout July such as purchasing equipment, supplies, and paying expenses. The instructions are to prepare a worksheet with the adjusting entries for unbilled revenue and depreciation expense, and an adjusted trial balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    164 views1 page

    4 Completing The Accounting Cycle Part

    Uploaded by

    Talion
    This document provides the trial balance for Anya's Cleaning Service before and after adjusting entries. It includes transactions throughout July such as purchasing equipment, supplies, and paying expenses. The instructions are to prepare a worksheet with the adjusting entries for unbilled revenue and depreciation expense, and an adjusted trial balance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    4-50 CH A PT E R 4 Completing the Accounting Cycle

    Adjusted
    Trial Balance Trial Balance
    Account Titles Dr. Cr. Dr. Cr.
    Equipment 59,000 59,000
    Accounts Payable 12,500 12,500
    Unearned Rent Revenue 6,000 1,000
    Mortgage Payable 120,000 120,000
    Owner’s Capital 144,000 144,000
    Owner’s Drawings 22,000 22,000
    Service Revenue 90,700 90,700
    Rent Revenue 29,000 34,000
    Salaries and Wages Expense 42,000 42,000
    Advertising Expense 20,500 20,500
    Utilities Expense 19,000 19,000
    Totals 402,200 402,200
    Insurance Expense 1,500
    Depreciation Expense 6,600
    Accumulated Depreciation—Buildings 3,000
    Accumulated Depreciation—Equipment 3,600
    Interest Expense 10,000
    Interest Payable 10,000
    Totals 418,800 418,800

    Instructions
    a. Net income $25,100 a. Prepare a complete worksheet.
    b. Total current assets $44,200 b. Prepare a classified balance sheet. (Note: $45,000 of the mortgage note payable is due for payment
    next year.)
    c. Journalize the adjusting entries.
    d. Journalize the closing entries.
    e. Post-closing trial balance e. Prepare a post-closing trial balance.
    $297,200
    Complete all steps in accounting cycle. P4.5A (LO 1, 2, 4) Anya Clark opened Anya’s Cleaning Service on July 1, 2020. During July, the fol-
    lowing transactions were completed.
    GLS
    July 1 Anya invested $20,000 cash in the business.
    1 Purchased used truck for $12,000, paying $4,000 cash and the balance on account.
    3 Purchased cleaning supplies for $2,100 on account.
    5 Paid $1,800 cash on a 1-year insurance policy effective July 1.
    12 Billed customers $4,500 for cleaning services.
    18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies.
    20 Paid $2,800 cash for employee salaries.
    21 Collected $3,400 cash from customers billed on July 12.
    25 Billed customers $6,000 for cleaning services.
    31 Paid $350 for the monthly gasoline bill for the truck.
    31 Withdraw $5,600 cash for personal use.
    The chart of accounts for Anya’s Cleaning Service contains the following accounts: No. 101 Cash,
    No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158
    Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Paya-
    ble, No. 301 Owner’s Capital, No. 306 Owner’s Drawings, No. 350 Income Summary, No. 400 Service
    Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722
    Insurance Expense, and No. 726 Salaries and Wages Expense.

    Instructions
    a. Journalize and post the July transactions. Use page J1 for the journal and the three-column form of
    account.
    b. Trial balance $37,700 b. Prepare a trial balance at July 31 on a worksheet.
    c. Adjusted trial balance c. Enter the following adjustments on the worksheet and complete the worksheet.
    $41,900 1. Unbilled and uncollected revenue for services performed at July 31 were $2,700.
    2. Depreciation on equipment for the month was $500.

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