Unformatted text preview: post—closing trial balance—see the headings below. Insert an Income Summary account as the lastrow in the trial balance. Adiusted Closing Entries Post-Closing
Trial Balance Information Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. 3. Enter closing entry information in the six—column table and prepare journal entries for them. Anubis Comm: 4. Assume for this partonly that:
21. None of the $1,000 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period's insurance protection.
I). There are no earned and unpaid wages at the end of the year. (Hint: Reverse the $1,300 wage: payable accrual.) Dmcribe the ﬁnancial statement changﬁ that would result from thme two assumptions. Problem 3-43
Applying the accounting cycle C3 1’4 1’5 1 On July 1, 2009, Lauren Plume created a new self—storage business, Safe Storage. The following transactions occurred during the company's ﬁrst month. July 1 Plume invested $28,000 cash and buildings worth $20,000 in the business in exchange for its
2 Rented equipment by paying $1,700 cash for the ﬁrst month’s (July) rent.
5 Purchased $2,500 of ofﬁce supplies for cash.
10 Paid $3,000 cash for the premium on a 12-month insurance policy. Coverage begins on July 11. 14 Paid an employee $1,700 cash for two weeks’ salary earned. 24 Collected $11,000 cash for storage fees from customers. 28 Paid another $1,700 cash for two weeks’ salary earned by an employee.
29 Paid $700 cash for minor repairs to a leaking roof. 30 Paid $600 cash for this month’s telephone bill. 31 Paid $900 cash for dividends. J49 The company's chart of accounts follows: IOI Cash 40| Storage Fees Earned I06 Accounts Receivable 606 Depreciation Expense—Buildings
I24 Ofﬁce Supplies 622 Salaries Expense I28 Prepaid Insurance 637 Insurance Expense I73 Buildings 640 Rent Expense I74 Accumulated Depreciation—Buildings 650 Oﬁice Supplies Expense 209 Salaries Payable 684 Repairs Expense 307 Common Stock 688 Telephone Expense 3 I8 Retained Earnings 90| Income Summary 3 I9 Dividends Required
1. Use the balance column format to set up a ledger account for each account listed in its chart of accounts. Prepare journal entries to record the July transactions and post them to the ledger accounts. Record prepaid and unearned items in balance sheet accounts. 5" l" Prepare an unadjusted trial balance as ofluly 31. 4. Use the following information to journalize and post adjusting entria for the month. ...
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- Spring '09