ACU 5 - UNIT 5 COMPLETING THE ACCOUNTING CYCLE I....

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UNIT 5 COMPLETING THE ACCOUNTING CYCLE I. ACCOUNTING STATEMENTS Quick Clean Laundry Service Balance Sheet September 30, 1991 ASSETS Current Assets: Cash Accounts Receivable Prepaid Advertising Laundry Supplies Plant and Equipment: Laundry Equipment Less Accumulated Depreciation Total Assets $117 35 40 5 Now that Financial Statements have been made, amounts temporarily stored in expense, revenue, and the withdrawals accounts may be moved to the equity account. A new account entitled Income Summary will be used to calculate income which will then be moved to Owner's Equity. $48 ---1. -fl $244 LIABILITIES Current Liabilities: Accounts Payable $ 30 Salaries Payable 10 Unearned Laundry Revenue ---1. .Q. Total Current Liabilities $ 50 Quick Clean Laundry Service Income Statement For the Month Ended Sept. 30, 1991 ~ $244 Revenue: Laundry Revenue Operating Expenses: Washer/Dryer Expense $75 Telephone Expense 10 Advertising Expense 10 Laundry Supply Expense 20 Depreciation Expense 1 SalariesExpense 1.Q. Total Operating Expenses Net Income $190 OWNER'S EQUITY Capital Sept.1 Income $64 Withdrawals -2.Q. ~ Capital Sept. 30 Total Liabilities + Owner's Equity $150 ~ $ 64 II. CLOSING PROCESS LOGIC III. CLOSING JOURNAL ENTRIES
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ACU 5 - UNIT 5 COMPLETING THE ACCOUNTING CYCLE I....

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