Balance Sheet December 31 Assets Liabilities Cash 5400 Accounts payable 16100

Balance sheet december 31 assets liabilities cash

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Balance Sheet December 31 Assets Liabilities Cash $ 5,400 Accounts payable $16,100 Accounts receivable 18,600 Unearned subscription revenue 10,000 Supplies 4,200 Salaries payable 3,500 Prepaid insurance 930 Total Liabilities 29,600 Office equipment $70,000 Less: Accum. depreciation (13,000) 57,000 Stockholders’ Equity Common Stock $21,000 Retained Earnings 35,530* Total Stockholders’ Equity 56,530 Total Liabilities & Stockholders’ Equity Total Assets $86,130 $86,130 *Retained Earnings balance from adjusted trial balance + $12,310 Net Income. continued next page ©Cambridge Business Publishers, 2017 3-88 Financial Accounting for Undergraduates, 3 rd Edition
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P3-18B. continued b. General Journal Date Description Debit Credit Dec 31 Subscription revenue 188,300 Advertising revenue 49,700 Income summary 238,000 To close the revenue accounts. 31 Income summary 225,690 Salaries expense 120,230 Printing and mailing expense 85,600 Rent expense 4,800 Supplies expense 6,100 Insurance expense 1,860 Depreciation expense 5,500 Income Tax expense 1,600 To close the expense accounts. 31 Income summary 12,310 Retained earnings 12,310 To close income summary P3-19B. Closing Entries (Appendix 3A) (LO7) a. General Journal Date Description Debit Credit Dec 31 Service fees earned 80,500 Income summary 80,500 To close the revenue account. 31 Income summary 62,800 Wages expense 29,800 Rent expense 10,200 Insurance expense 4,900 Supplies expense 5,100 Advertising expense 8,000 Depreciation expense – Trucks 4,000 Depreciation expense – Equipment 800 To close the expense accounts. 31 Income summary 17,700 Retained earnings 17,700 To close income summary 31 Retained earnings 7,500 Dividends 7,500 To close the Dividends account. continued next page ©Cambridge Business Publishers, 2017 Solutions Manual, Chapter 3 3-89
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P3-19B. continued b. The balance of retained earnings after closing entries are posted is $26,250 credit ($16,050 + $17,700 $7,500). c. OKAY MOVING SERVICE Post-Closing Trial Balance December 31 Debit Credit Cash $ 4,800 Accounts receivable 5,250 Supplies 5,300 Prepaid advertising 3,000 Trucks 30,300 Accumulated depreciation—Trucks $10,000 Equipment 7,600 Accumulated depreciation—Equipment 2,100 Accounts payable 1,200 Unearned service fees 6,700 Common stock 10,000 Retained earnings 26,250 Totals $56,250 $56,250 ©Cambridge Business Publishers, 2017 3-90 Financial Accounting for Undergraduates, 3 rd Edition
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P3-20B. Worksheet (Appendix 4B) (LO8) SHARP OUTFITTERS Worksheet For Year Ended July 31 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Description Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 3,750 3,750 3,750 Supplies 8,600 (1) 4,300 4,300 4,300 Prepaid insurance 3,200 (2) 1,600 1,600 1,600 Equipment 97,000 97,000 97,000 Accumulated depreciation 16,500 (3) 9,250 25,750 25,750 Accounts payable 3,500 3,500 3,500 Unearned rental fees 8,850 (4) 4,850 4,000 4,000 Common stock 33,000 33,000 33,000 Retained earnings 9,000 9,000 9,000 Dividends 1,200 1,200 1,200 Rental fees earned 78,150 (4) 4,850 85,500 85,500 (5) 2,500 Wages expense 28,800 (6) 700 29,500 29,500 Rent expense 3,300 3,300 3,300 Advertising expense 2,300 2,300 2,300 Travel expense 850 850 850 Supplies expense (1) 4,300 4,300 4,300 Insurance expense (2) 1,600 1,600 1,600 Depreciation expense (3) 9,250 9,250 9,250 Fees receivable (5) 2,500 2,500 2,500 Wages payable (6) 700 700 700 Totals 149,000 149,000 23,200 23,200 161,450 161,450 51,100 85,500 110,350 75,950 Net income 34,400 34,400 Totals 85,500 85,500 110,350 110,350 ©Cambridge Business Publishers, 2017 Solutions Manual, Chapter 3 3-91
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SERIAL PROBLEM: KATE’S CARDS SP3.
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