E3 7B Closing Entries Appendix 3A LO5 General Journal Date Description Debit

E3 7b closing entries appendix 3a lo5 general journal

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E3-7B. Closing Entries (Appendix 3A) (LO5) General Journal Date Description Debit Credit Dec. 31 Income summary 28,600 Retained earnings 28,600 To close the Income Summary account. 31 Retained earnings 29,000 Dividends 29,000 To close the Dividends account. E3-8B. Closing Entries (LO4) General Journal Date Description Debit Credit Dec. 31 Retained earnings 29,000 Dividends 29,000 To close the Dividends account. ©Cambridge Business Publishers, 2014 20 Financial Accounting for Undergraduates, 2 nd Edition
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The balance in Retained Earnings after closing entries are posted is $116,600 credit ($117,000 + $347,400 $318,800 $29,000). E3-9B. Worksheet (Appendix 3B) (LO6) The columns are sets of debit and credit columns for Unadjusted Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet. a. Accounts Receivable: balance sheet, debit b. Accumulated Depreciation: balance sheet, credit c. Dividends: balance sheet, debit d. Salaries Payable: balance sheet, credit e. Wages Expense: income statement, debit f. Interest Receivable: balance sheet, debit g. Prepaid Rent: balance sheet, debit h. Service Fees Earned: income statement, credit i. Common Stock: balance sheet, credit j. Retained Earnings: balance sheet, credit E3-10B. Analysis of Adjusted Data (LO2) a. Balance, January 1 = $1,960 + $800 $620 = $2,140 b. Amount of premium = $182 12 = $2,184 Therefore, seven months' premium ($2,184 $910 = $1274) has expired by January 31. The policy term began on July 1 of the previous year. c. Wages paid in January = $3,200 $500 = $2,700 d. Monthly depreciation expense = $8,700/60 months = $145 Parris has owned the truck for 18 months ($2,610/$145 = 18) E3-11B. Analysis of the Impact of Adjustments on Financial Statements (LO2) Assets Liabilities Stockholders’' Equity Net Income Reported amounts $80,000 $30,000 $50,000 $11,000 Depreciation (3,000) (3,000) (3,000) Unbilled revenue 1,500 1,500 1,500 Accrued wages 250 (250) (250) Corrected amounts $78,500 $30 ,250 $48,250 $9,250 ©Cambridge Business Publishers, 2014 Solutions Manual, Chapter 3 21
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E3-12B. Closing Entries (LO4) General Journal Date Description Debit Credit Dec. 31 Service fees earned 97,500 Interest income 5,200 Retained earnings 102,700 To close the revenue accounts. 31 Retained earnings 72,700 Salaries expense 49,800 Advertising expense 4,300 Depreciation expense 8,700 Income tax expense 9,900 To close the expense accounts. 31 Retained earnings 15,000 Dividends 15,000 To close the Dividends account. The balance of the Retained Earnings account after closing entries are posted is $72,700 credit ($57,700 + $102,700 - $72,700 $15,000). E3-13B. Closing Entries (Appendix 3A) (LO5) General Journal Date Description Debit Credit Dec. 31 Service fees earned 97,500 Interest income 5,200 Income summary 102,700 To close the revenue accounts. 31 Income summary 72,700 Salaries expense 49,800 Advertising expense 4,300 Depreciation expense 8,700 Income tax expense 9,900 To close the expense accounts. 31 Income summary 30,000 Retained earnings 30,000 To close income summary 31 Retained earnings 15,000 Dividends 15,000 To close the Dividends account. ©Cambridge Business Publishers, 2014 22 Financial Accounting for Undergraduates, 2 nd Edition
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The balance of the Retained Earnings account after closing entries are posted is $72,700 credit ($57,700 + $30,000 $15,000).
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