Homework 4 (1) (1) - $ 440 Interest Expense $ 60 Income Tax...

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Emir Pasovic Acc 5100 Weimer 9/27/10 Homework 4 – The Accounting Cycle (Financial statements and closing entries) Refer to GCI Consultants problem from homework 3. 1.What amount does GCI report as total assets on its December 31 balance sheet? Show your work. Cash $2,260 Accounts Receivable $1,300 Prepaid Insurance $ 700 Equipment $6,600 Less: Accumulated Depreciation $ 880 $5,720 Supplies $1,300 Total Assets $11,280 2. What amount does GCI report as net income on its income statement for the period ending December 31? Show your work. Revenues Service Revenue $8,160 Expenses Wages Expense $4,300 Fuel Expense $ 410 Insurance Expense $1,250 Depreciation Expense
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Unformatted text preview: $ 440 Interest Expense $ 60 Income Tax Expense $ 273 Total Expense $6,733 Net Income $1,427 3. Prepare GCIs closing journal entries. Dec. 31 Service Revenue $8,160 Income Summary $8,160 (To close revenue account) Dec. 31 Income Summary $6,733 Wages Expense $4,300 Fuel Expense $ 410 Insurance Expense $1,250 Depreciation Expense $ 440 Interest Expense $ 60 Income Tax Expense $ 273 (To close expense accounts) Dec. 31 Income Summary $1,427 Retained Earnings $1,427 (To close net income to retained earnings) Dec. 31 Retained Earnings $ 800 Dividends $ 800 (To close dividends to retained earnings)...
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This note was uploaded on 10/03/2010 for the course ACCOUNTING Finance 23 taught by Professor Bob during the Spring '10 term at Wayne State University.

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Homework 4 (1) (1) - $ 440 Interest Expense $ 60 Income Tax...

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