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Unformatted text preview: osing 196,425
0 closing 0 RETAINED EARNINGS
closing 45,000 157,500 45,000 353,925 196,425 closing 308,925
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21 Problem 3: Solution Accounting Cycle Exercises IV Solution 3 (c)
Post-Closing Trial Balance
As of December 31, 20X7
Debits Credits Cash $ 80,100 Accounts receivable $ 53,325 - Supplies $ 16,875 - Equipment $ 732,825 - Accumulated depreciation - 90,000 Accounts payable - 78,300 Loan payable - 225,000 Capital stock - 180,000 Retained earnings - 308,925 Please click the advert 883,125 $ - 883,125 You’re full of energy
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22 Problem 4: Worksheet Accounting Cycle Exercises IV Problem 4
Elements is an upscale university housing complex providing all the amenities of private townhouse
living, and a full service 24-hour cafeteria for busy students. Prior to recording any adjusting entries for
20X8, Elements has incurred and recorded total salary expense of $2,625,000 and total rental revenue of
As of December 31, 20X8, the company owes $45,000 of additional salaries to employees, and accrued rent
due from residents amounts to $300,000.
On January 10, 20X9, Traditions paid salaries of $120,000 covering the amount due as of December 31, as
well as additional amounts relating to 20X9.
On January 15, 20X9, Traditions received rental payments for $750,0000 covering the rents due as due of
December 31, 20X8, and additional amounts relating to the first half of January, 20X9.
f) Prepare the necessary year-end adjusting entries for salaries and rent.
Determine the total salaries expense and total rent revenue for 20X4.
Assuming the company uses reversing entries, prepare necessary reversals for early 20X5.
Assuming the company used reversing entries, prepare entries for January 10 and 15, 20X5.
Assuming the company does not use reversing entries, prepare entries for January 10 and 15, 20X5.
Show how 20X5 salaries expense and rent revenue will be the same, whether reversing entries are
used or not. Worksheet 4
a) Accounts Debit Credit Dec. 31 Dec. 31 Download free eBooks at bookboon.com
23 Problem 4: Worksheet Accounting Cycle Exercises IV b) c) Jan. 1 Jan. 1 d) Jan. 10 Jan. 15 e) Jan. 10 Jan. 15 f) Download free eBooks at bookboon.com
24 Problem 4: Solution Accounting Cycle Exercises IV Solution 4
a) Dec. 31 Accounts
Salaries Expense Debit Credit 45,000 Salaries Payable 45,000 To record accrued salaries
Dec. 31 Rent Receiv...
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This document was uploaded on 09/24/2013.
- Summer '13