Withdra wals 00 330 00 4 1 Constru ction Fees Earned 132 100 132 100

Withdra wals 00 330 00 4 1 constru ction fees earned

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Withdra wals 33,0 00 33,0 00 33,0 00 4 0 1 Constru ction Fees Earned 132, 100 132, 100 132, 100 6 1 2 Depreci ation Expense - Equipm ent ( c ) 8,4 00 8,40 0 8,40 0 6 2 3 Wages Expense 46,8 60 ( e ) 1,8 00 48,6 60 48,6 60 6 3 3 Interest Expense 2,75 0 ( h ) 250 3,00 0 3,00 0 6 3 7 Insuranc e Expense ( b ) 3,8 00 3,80 0 3,80 0 6 4 0 Rent Expense 12,0 00 (f ) 500 12,5 00 12,5 00 6 5 2 Supplies Expense ( a ) 6,6 00 6,60 0 6,60 0 6 8 3 Property taxes expense 7,80 0 ( g ) 1,0 00 8,80 0 8,80 0 6 8 4 Repairs Expense 2,91 0 2,91 0 2,91 0 6 Utilities 5,89 ( 650 6,54 6,54
9 0 Expense 0 d ) 0 0 Totals 278, 810 278, 810 23, 000 23, 000 291, 410 291, 410 101, 210 132, 100 190, 200 159, 310 Net Income 30,8 90 30,8 90 Totals 132, 100 132, 100 190, 200 190, 200
Part 2) The adjusting entries and closing entries are prepared as below: Adjusting Entries: Event Account Titles Debit Credit a) Supplies Expense (9,900 - 3,300) $6,600 Supplies $6,600 b) Insurance Expense $3,800 Prepaid Insurance $3,800 c) Depreciation Expense - Equipment $8,400 Accumulated Depreciation - Equipment $8,400 d) Utilities Expense $650 Accounts Payable $650 e) Wages Expense $1,800 Wages Payable $1,800 f) Rent Expense $500 Rent Payable $500 g) Property Taxes Expense $1,000 Property Taxes Payable $1,000 h) Interest Expense (25,000*12%*1/12) $250 Interest Payable $250 _____ Closing Entries: The closing entries are prepared as below: Event Account Titles Debit Credit a) Construction Fees Earned $132,100 Income Summary $132,100 b) Income Summary $101,210 Depreciation Expense - Equipment $8,400 Wages Expense $48,660

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