points 10.00 · - Kids in Prison Program · April 1 Nozomi invested $30,000 cash and computer...
Transcript of points 10.00 · - Kids in Prison Program · April 1 Nozomi invested $30,000 cash and computer...
award:
1 10outof • 10.00 · .......... · points ........................................................................................................................................................................................... ·
From the dropdown box beside each numbered balance sheet Item, select the letter of its balance sheet classification. If the item should not appear on the balance sheet, choose the letter Z from the selection choices.
A. Current assets B. Long-term investments C. Plant assets o. Intangible assets E. Current liabilities F. Long-term liabilities G. Equity
Account Title
1. Long-tem1 investment in stock
2 Depreciation expense-Building
Prepaid rent
Interest receivable
Taxes payable
6. Automobiles
7. Notes payable (due in 3 years)
8. Accounts payable
9. Prepaid insurance
10. OWner, Capital
Classification
B
z A
A
E
c F
E
A
G
.I 11.
.I 12.
.I 13.
.I 14.
.I 15.
.I 16.
.I 17.
.I 18.
.I 19.
.,1120.
Account Title
Unearned seivices revenue
Accumulated depreciation- Trucks
Cash
Buildings
Store supplies
Office equipment
E and (used in operations)
Repairs expense
Office supplies
I Current portion of long-term note payable
Classification
E ./ c ./
.A ./ c ./ A ./ c ./ c ./ z ./ A ./ E ./
···········Ailiii··1;·2513:·11;0·Nozoiiiicieaieii··a·r;;,:.i; ··fravei .. a9enci:·"Actveiifuietiavei·:rhefoiio\;iiiiilfraiisaciioiis···· occurred during the company's first month.
April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company.
2 The company rented furnisl1ed office space by paying $1,800 cash for the first month's (April) rent
3 The company purchased 51 ,000 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage
begins on April 11. 14 The company paid $1,600 cash for two weeks' salaries earned by employees. 24 The company collected S8,000 cash on commissions from airtines on tickets obtained for
customers. 28 The company paid $1,600 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer. 30 The company paid $750 cash for this month's telephone bill. 30 Nozomi withdrew $1,500 cash from the company for personal use.
The company's chart of accounts follows:
101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 301 J.Nozomi, Capital 302 J.Nozomi, Withdrawals
Use the following information:
405 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary
a. Two-thirds (or $133) of one month's insurance coverage has expired. b. At the end of the month, 5600 of office supplies are still available. c. This month's depreciation on the computer equipment is $500. d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 of commissions that are not yet billed at month-end.
2. award: 10 out of 10.00
· · · · · · ··points ·· Required : 1. The general ledger and all the necessar1 accounts are provided in Part 6.2. Post all journal entries,
adjusting entries and closing entries to the general ledger given in Part 6.2
2. Prepare journal entries to record the transactions for Ap<il and post them to the ledger accounts in Part 6.2. The company records prepaid and unearned items in balance sheet accounts.
Date General Journal Debit Credit
April 01 Cash ./ 30.000./
Computer equipment ./ 20,000./
J. Nozomi, Caprtal ./ 50,000./
April 02 Rent expense 1,800./
Cash 1,800./
April 03 Office supplies ./ 1,000./
Gash 1,000./
April 10 Prepaid insurance ./ 2,400./
Cash ./ 2,400./
April 14 Salaries expense 1,600./
Cash 1,600./
April 24 Cash ./ 8,000./
Commissions earned ./ 8,000./
April 28 Salaries expense ./ 1,600./
Cash ./ 1,600./
April 29 Repairs expense ./ 350./
Cash ./ 350./
April 30 Telephone expense ./ 750./
Cash ./ 750./
April 30 J. Nozomi, Withdrawals ./ 1,500./
Cash ./ 1,500,.il
3. award: 10 out of 10.00
3. Using account balances from part 6.2, prepare an unadjuste<l trial balance as of April 30.
Account Title
101: Cash
106: Accounts receivable
124: Office supplies
128: Prepaid insurance
167: Computer equipment
ADVENTURE TRAVEL
Unadjusted Trial Balance
April 30, 2013
$
168: Accumulated depreciation- Computer equipment
209: Salaries payable
301: J. Nozomi, Capital
302: J. Nozomi, Witlldrawals
405: Commissions earned
612: Depreciation expense- Computer equipment
622: Salaries expense
637: Insurance expense
640: Rent expense
650: Office supplies expense
684: Repairs expense
688: Telephone expense
Total
Debit
27,000yl
o.; 1,000.;
2,400.I
20.000.;
1,500.I
o.; 3,200.I
o.; 1,800.I
o.; 350v'
750.I
58,000 ' $ I
Credit
o.; o.;
50,000yl
8,000./
58,000
SV.'3.td:
4 10out of . 10.00
............................ 'P<ll'OIS ..................................................................................................................... ..
4. Journalize the adjusting entries for the month and then post to section 6.2.
Transaction General Journal
- a. 'insurance expense
Prepaid insurance
b. Office supplies expense
c.
d .
Office supplies
Depreciation expense-Computer equip.
Accumulated depreciation-Computer equip.
Salaries expense
Salaries payable
Accounts receivable
Comn1issions earned
,/
,/
I ,/
,/
,/ ,/
,/
,/
,/
,/
Debit .. Credit
133,/
133,/
400,/
400,/
500,/
500,/
420,/
420,/
1,750,/
1,750,/
award:
5 10outof • 10.00
..................... pol'nts ............................................................................................... .
5.1 Prepare the income statement for the month of April 30, 2013.
ADVENTURE TRAVEL
Income Statement
For Month Ended April 30, 2013
Revenues: - - - - ~ Commissions earned .I $ -
,Expenses:
Depreciation expense-Computer equip. .I $ 500./
Salaries expense .I 3,620.I
Insurance expense .I 133./
Rent expense .I 1.800./
Office supplies expense .I 400./
Telephone expense .I 750./
Repairs expense .I 350./
0
0
Total expenses
Net income .I $
5.2 Prepare the statement of owner's equi~/ for the month of April 30, 2013.
ADVENTURE TRAVEL
Statement of OWner's Equity
For Month Ended April 30, 2013
J. Nozomi, Capital, April 1, 2013 1$
Add: Net income .I $ 2,197./
Add: Owner investments .I 50,000./
Less: Wrthdrawals .I J.Nozomi, Capttal, April 30, 2013 .I ' $
5.3 Prepare the balance sheet at April 30, 2013.
Assets
Cash
Accounts receivable
Office supplies
Prepaid insurance
Computer equipment
ADVENTURE TRAVEL
Balance Sheet
April 30, 2013
Accumulated depreciation-Computer equip
Total assets
Liabilities ---Salaries payable
Equity
J. Nozomi, Capital
Total liabilities and equity
0
52,197
1.500./1 50,697
I
20,000.I
500./
$
9,750./
7,553
2,197
27,000.I
1.750./
600.I
2,2fi7.I
19,500
51, 117
420.I
50,697./
51,111 I
award:
6 10out of . 10.00
........................... points ... 6.1 Prepare journal entries to close the temporary accounts and t11en post to section 6.2.
Date General Journal Debit credit
Aprif 30
April 30
Commissions earned
Income summary
Income summary
Depreciation expense-Computer equip.
Salaries expense
Insurance expense
Rent expense
Office supplies expense
Repairs expense
Telephone expense
9.750./
April 30 Income summao1 ./ 2,197./
J. Nozomi, Capital -+-- ./
I April 30 J . Nozomi, Capital ./ 1,500./
J. Nozomi. Withdrawals ./
6.2 Post the journal entries to the ledger.
Date
April 1
April2
April 3
April 10
April 14
April24
.April28
April 29
April 30 Tel.
,April 30 WD
General Ledger accounts
Cash ==
Debit
30,000./
Credit Balance
30,000
8,000./
Office Supplies
1,800./t-
1.000./
2,400./
1.600./
1,600./
350./
750./
1,500./
28.200
27,200
24,800
23,200
31,200
29,600
29,250
28,500
27,000
Debit Credit Balance Date
April 3 !"'""-------;-------~
1,000./1
1,000
April 30 Adj. 400./ 600
•Red lCJ<.l im.1 ~~4tl:'> • o 1~:.1JV1+!.~ v.:1> e10.1tl:.tcd in ii i.tll v1 "(1.1rt111.1f..,.b.,!>ct.I tolo. ~iun h. ir1·;.1Y1cc.t ,,-:: S)Uiti!.":o <il:t.l--lE::J
Date
( pril 1
Computer Equipment
Debit Credit ---20.000./
Balance
20.000
I • !kiJ lest i11.Jil..dtb "u 'ei.1.11.11•~c 1.,<iS. CXJJt:tlt:iJ iri ., u:ll ur a (un11uld·b.ucl.I :. .. 1...u:,.1it111 i!> ui-:()- 1.:~.t '''° puir•b d~d:.d1....J
Salaries Payable
Date Debit Credit Balance
[Adj ~ 420./ 420
T •RcCI lcl<.l i11di.c.it..::. r:> se:.fJU•~:r.c w.i~ t:-'-p~:.lcCI i r1 <i Ct:ll ur <1 fu1u1i..l.3 ·1J4:r..:IJ c. .. 1w,4:iu11 if> 1n,.:.o.i1c<.t. tl<l j.1tii11~
<J::J .. "-Lt:tL
Date
April 30 WD ./
J. Nozomi, Withdrawals
Debit
1.500./•
Credit Balance
1.500
April 30 Close ./ 1,500./ 0
•Red teitl im.l ~~tt:'> •tr ;~:.IJVl•!.C v.<1> <:!XIJti:.lt!d iri O Ltdl IJ! ,;, (1.1rr11uf.., .b.,!.tet.I :.olu.: ~jl)I\ h. !r1·;.1Y1ec.t ,,-:: l)Uiti!.">
.u:d~-le:j
Depreciation Expense--Computer Equipment = Date
April 30Adj. ./
( pril 30 Clos_e __ ./'""•
l
Debit Credit
500./
Balance
>--500y ..._
500
0
'Rtea h:,.,l iud.<;<ite :> ce!.1J011:.c 1~:1:. ~XfJe:.lted in o :.t:ll <11 o (1)1 ni.;l:1·1J4:.<:d Caolo,; •a:iuo i!. i•1-.:.:n!<."!. n~ l'Olrt:'!. ~.::J_.de:J.
Insurance Expense
Date Debit Credit ... ~~~~-~~-~~-Apr i I 30 Adj. ./ 133./
April 30 Close ./ 133./
I
Balance
133
0
•R.:U l cxl ind.wto:.:. u 41:!.!Jtm!.c W<1$ :x!Jc:.h::IJ In <1 u:!! u1 o (1.11111ul.:i·IJ0:.c!.I ~dku ,.;1u11 Ii. j,,t;1.>·1~.~ no !Julnb <J~du.tc~
Date
April 30 Adj.
April 30 Close
Office Suppl ies Expense
Debit Credit
400./
400./
Balance
400
0
•Rcd l<=X.I ii u.l...<11'=-'- u ·~:.µUn!.~ l'ld:. :,o;j):::Llted ill a u:ll ur o ft111111iLf·IJd!><!:l.I Loki.; otiuh b lr1u.>U ..:1..! JUU µui t•U. C<:dt.Xh .. '-0
April 30
April 30 Close
./
./
Telephone Expense
Debit Credit Balance
750./
750
0
•R.:U lcxl ind.wto:.:. u 41:!.!Jtm!.c W<1$ :x!Jc:.h::IJ In <1 u:!! u1 o (1.11111ul.:i·IJ0:.c!.I ~dku ,.;1u11 Ii. lr•t;1.>·1~.~ no !Julnb <.l~du.tc~
9.750./
500J
3,620./
133./
1,800./
400./1
350./
750./
2.197./
1.500./
Date
.April 30 Adj. ---~-
1--
Accounts Receivable
Debit Credit Balance
1.750./ 1.750
*Red lc;..l lnU1...,tb i;. 1:::!.jJUll~ l'M~ :.<pt!~lteiJ Ind u:I! ot d (u1m,,.1,.,i ·l.io~etJ :..iilw • .;;111JI\ •~ l"t:t.o!'t<:\. . OU f.IUll O;:d!_.,,.tt::l
Prepaid Insurance
Date Debit Credit II Balance .,----~-..... ~~-~--~
./ April 10
April 30Adj.
_,_ __ ./'
2,400./L I 2,400
133./J 2,267 ---~
_l 'lktJ lt:it! indr~:t.:. u •t!!>µVn:.e w<1 S ~xpc::led lr1 <1 cell ..;1 <1 h.11111ul:1·bihed :. .. lwI..aiuu i:. irtc:111ect oo µcil
oJ-::\.1 .. «lCl:I .
Accumulated Depreciation-Computer equipment
Date Debit Credit Balance
.April 30 Adj. ./ ----!- 5J 500
*ReiJ h:~l lnu1...,tb "1:::!>1JUH~ 1·M~ :.<pt!~lteiJ Ind u:I! ot .i ru1m,,.1,.,i ·l.io:.~tJ :..iilw • .;;!llJI\ ·~ l"t:t.o!'t<:•. nu µuu d.::ll -<.hi:t3 .
Date
April 30 Inc
April 30WD
Date
April 24
April 30Adj.
April 30 Close
Date
April 14
.April 28
April 30 Adj.
April 30 Close
./
./
./
./
J. Nozomi, Capital
Debit Credit
50,000./
1,500.I 2.197./r
Commissions earned
Debit
9,750./
Credit
8,000./
1,750./
Salartes Expense
Debit Credit
1.600./1
1,600./
420./
3.620./ -~~--
Rent Expense
Date Debit Credit
April 2 ./ 1.800./
April 30 Close ./ 1,800./
I
Balance
50,000
52~~ 50.697
Balance
8,000
9,750
0
Balance
1.600
3,200
3.620
0
Balance
1,800
0
• Rt:IJ l~:d 1111.l•W-tl:'!> t·:.>Jl=t>f,IVll:Ot: W<I\> t:Xj.IC:.~~ll 111 <I t.l:ll TJI d (011111Jl..:l•lJo'>l;!tJ ( 1:SiW .::1U11 I!> l lll,;\.O.'.f{!t;! tHJ µVii
d.::cl-dcd.
Repairs Expense
Date Debit Credit
April 29 ./ 350./
.April 30 Close ./
Balance
350./ --+---
__ .. 350
0
•Rtiu l<:xt ln1.!>;Ai.16 u ·~:.f.IO•u.lo! ~ .. s ':!.ltl't't.lt!U in a u.:11 u1., fu11111..tl<1·b•H.ciJ 1.4lt.1.. =!lun b l rX:IJ(1r.: ... : no IJQii d¢J1.K.lc!J.
Date
April 30 Rev .
.April 30 Exp.
April 30 Close
./
./
./
Income Summary
Debit Credit
7,553./
2,197./
9,750./
I 2,197
0
7. award: 10 out of 10.00 .... ... ... ... ... ... "poi'iits .............................................................................. ·· ..................................................................................................................... · ·
7. Prepare a post-closing trial balance. (Please prepare your tr ial balance in chan of accounts order given in the question.)
ADVENTURE TRAVEL
Post-Closing Trial Balance
April 30, 2013
Account TiUe Debit Credit
Cash
Accounts receivable
Office supplies
Prepaid insurance
./ $ 27.000./
./ 1,750./
./ 600./
./ 2,267./
Computer equipment ./
Accumulated depreciation-Computer equipment ./ 500./
Salaries payable ./ 420./
J.Nozomi, Capttal ./ 50,697./ .~~~~~~-'--~~~~~--;
Totals 1$ 51.617 $ 51,617 I ·~~~~~~-'--~~~~~-'
8. award: 10 out of 10.00
........................... ·poi·n1s ··· The adjusted trial balance for Tybalt Construction as of December 31 , 2013, follows.
TYBALT CONSTRUCTION Adjusted Trial Balance
December 31, 2013 No. Account Title Debit Crecfit 101 Cash s 5,000 104 Short-term investments 23,000 125 Supplies 8,100 128 Prepaid insurance 7,000 167 Equipment 40,000 158 Accumulated depreciation- Equipment s 20,000 173 Building 150,000 174 Accumulated depreciation- Building 50.000 183 Land 55,000 201 Accounts payable 15,500 203 Interest payable 2,500 208 Rent payable 3,500 210 Wages payable 2,500 213 Property taxes payable 900 233 unearned professional fees 7,500 251 Long-term notes payable 67,000 301 o . Tybalt, Capital 125,400 302 0. Tybalt, Withdrawals 13,000 401 Professional fees earned 97,000
406 Rent earned 14,000
407 Dividends earned 2,000
409 Interest earned 2.100 605 Depreciation expense-Building 11,000 612 Depreciation expense-Equipment 5,000 623 Wages expense 32,000 633 Interest expense 5,100 637 Insurance expense 10,000 640 Rent expense 13,400 652 Supplies expense 7,400 682 Postage expense 4,200 683 Property taxes expense 5,000 684 Repairs expense 8,900 688 Telephone expense 3,200 690 Utilities expense 4,600
Totals s 411,900 $ 411,900
0 . Tybalt invested $5,000 cash in the business during year 2013 (the December 31, 2012, credit balance of the o . Tybalt, Capital account was S121,400). Tybalt Construction is required to make a $7,000 payment on its long-term notes payable during 2014.
Required : 1.1 Prepare the income statement for the calendar year 2013.
Revenues
TYBALT CONSTRUCTION
Income Statement
For Year Ended December 31, 2013
Professional fees earned ./ $ 97,00o./
14.000./
2,000./
Rent earned ./ Dividends earned ./ Interest earned ./
$
$
Total revenues $ 115.100
Expenses
Depreciation expense-buildi~g
Depreciation expense-equipment
Wages expense
Interest expense
Insurance expense
Rent expense
Supplies expense
Postage expense
Property taxes expense
Repairs expense
Telephone expense
Utilrties expense
Total expenses
Net income
./
./
./
./
./
./
./
./
./
./
./
./
r 11.00o./
6.000./
32,000./
4.200./
5,000./
8.900./
3,200./
4.60~./1
$
1.2 Prepare the statement of owner's equity for the calendar year 2013.
TYBALT CONSTRUCTION
Statement of OWner's Equity
For Year Ended December 31, 2013
O. TYbalt, Capital, Dec. 31, 2012
Add: Investments by owner
Add: Net income
Less: Withdrawals by owner
o. Tybalt, Capital, Dec. 31, 2013
./ :$ 5,000./
4,300./
110,800
4,300./
121,400.,.I
1.3 Prepare the classified balance sheet at December 31 , 2013 ..
2.
TYBALT CONSTRUCTION
Balance Sheet
Decernber31,2013
Assets
Current assets ./ Cash ./ $
Short-term investments ./ Supplies ./ Prepaid insurance ./
Total current assets ./ Plant assets ./
Equipment ./ Accumulated depreciabo~qu1pment ./ Building ./ Accumulated depreciafion-building ./ Land ./
Total plant assets ./ Total assets ./
Liabilities
Current liabilities ./ Accounts payable ./ Interest payable ./ Rent payable ./ Wages payable ./ Property taxes payable ./ Unearned professional fees ./ Current portion o! long-term note payable ./
Total current liabilities ./ Long-term liabilities .JI
Long-term notes payable ./ Total liabilities ./
Equity
o. Tybalt, Capital ./
• • Prepare the necessary closing entries at December 31, 2013.
Closing entries (all dated December 31. 201 3):
Date General Journal
Dec 31 Professional fees earned
Rent earned Dividends earned
Interest earned
Income summary
Dec 31 Income summary
Depreciation expense-building
Depreciation expense-equipment
Wages expense
Interest expense
Insurance expense
Rent expense
Supplies expense
Postage expense
Property taxes expense
Repairs expense
Telephone expense
Utilities expense
Dec 31 Income summar~
o. Tybalt, Capital
Dec 31 o. Tybalt, Capital
o. Tybalt, Wrthdrawals
5,000./
23,000./
8,100./
1.000.11
$ 43,100
40.000./
20.000.11 20.000
150.ooo,/l
50,000./ 100,000
55,000./
175.000 __ , 1$ 218,100
./
16.500./
2,500./
3,500./
2,500./
900./
7,500./
7,000./
f 40,400
60,000./
100.400
./ 117,700./ •
~
Debit Credit
./ 97.000./
./ 14.000./
./ 2,000./
./ 2.100./
./ 115.100./
./ 110,800./
./ 11.000./
./ 6 ,000./
./ 32.000./
./ 5,100./
./ 10,000./
./ 13,400./
./ 7,400./
./ 4,200./
./ 5.000./1
./ 8,900./
./ 3,200./
./ 4,600./
./ 4.300./
./ 4,300./1
./ 13,000./
./ 13.000./
3. Use the information in the financial statements to compute Ille following ratios:
1aJ Return on assets (total assets at December 31, 2012. was $200,000)
Numerator: I Denominator.
Net income ./ Average total assets ./ =
$ 4,300./ $ 209.050./ = ~~ ... ~~ ..... ~-
b) Debi ratio
Return on total assets
Return on total assets
2.06 %
Numerator: Denominator. Debt ratio
Tota!liabilities ./ Total assets ./ = + Debt ratio
$ 100.400./ $ 21 8,100./ = d4t>; j ~,......~~ ...... ~ ~...i.~~~ ..... iiiiiiii--~.-;;--..... iiiiiiiiiiiiiiiiiiiiiiii.....m/
c) Profit margin ratio (use total revenues as the denominator)
Numerator: Denominator: Profit margin
Net income ./ Total revenues ./ ~t margin $ 4,300./ $ 115,100./ = '.H G %
d) Current ratio
Numerator: Denominator: Current ratio
Current assets ./ Current liabilities ./ = Current ratio
$ 43.100./ $ 40,400./ = { 07 : 1
award:
9 9.76 out of • 10.00
···························points··· Refer to the following Hawkeye Ranges.
a. As of December 31 , 2013. employees had earned $1,200 of unpaid and unrecorded salaries. The next payday is January 4, at which time $1 ,500 of salaries will be paid.
b. The cost of supplies still available at December 31 , 2013. is $3,000. c. The notes payable requires an interest payment to be made every three months. The amount of
unrecorded accrued interest at December 31, 2013, is $1,875. The next interest payment. at an amount of $2,250, is due on January 15, 2014.
d. Analysis of the unearned member lees account shows $5,800 remaining unearned at December 31 , 2013.
e. tn addition to the member fees Included in the revenue account balance, the company has earned another S9,300 in unrecorded fees that will be collected on January 31, 2014. The company is also expected to collect $10,000 on that same day for new fees earned in January 2014.
f. Depreciation expense for the year is S 15.000.
Required : 1. Complete the six-column table by entering adjustments that reftect the above information. (Enter
member fees earned amount in the same order as they appear above.)
HAWKEYE RANGES
WOf1< Sheet
December 31, 2013
Unadjusted
T~Balance Adjustments
Account TiUe Dr. Cr. Dr.
·Cash 1$ 14,000
I Accounts receivable x Supplies 6,500
Equipment 135,000
Accumulated depreciation-Equipment $ 30,000
Interest payable
I Salaries payable Unearned member fees 15,000 9,200.,I
t Notes payable 75.000
P. Hawkeye, Capital 50,250
, P. Hawkeye, Withdrawals 21,125
I Member iees earned 42.000
I Depreciation expense-Equipment 15,000.,/
1
Salaries expense 30,000 1.200.,/
t expense 5.625 1,875./ 1- --Supplies expense 3,500.,/'
1 Totals 1$ 212,250 1$ 212,250 ,$ . 30.775
2. Prepare journal entries for the adjustments entered in the six-column table for part 1.
Date General Journal
dee. 31, 2013 Salaries expense
salaries payaf)le
dee. 31, 2013 Supplies expense
Supplies
dee. 31, 2013 Interest expense
Interest payable
dee. 31, 2013 Unearned member fees
Member fees earned
dee. 31. 2013 Accounts receivable
Member fees earned
dee. 31, 2013 Depreciation expense-Equipment
Accumulated depreciation-Equipment ---~
Debit Credit
.I 1.200.,/
.I 1,200.,I
.I 3.500.,I +---=--!
.I 3,500./
.I 1,875./
.I 1,875.,I
9.200.,I
9,200.,/
9,300.,I
9,300.,I
15,000.,I
15,000.,/
3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals. {If no reversing entry is required, select "No reversing entry required.")
Date
jan. 1. 2014
jan. 1, 2014
jan. 1. 2014
General Journal
Salaries payable
Salaries expense
No reversing entry required
Interest payable
!merest expense
jan. 1. 2014 Member fees earned
Accounts receivable
jan. 1, 2014 No reversing ento; required
jan. 1, 2014 'No reversing entry required
Debit Credit
.I 1.200.,I
./ 1,200.,/1
1,875.,I
9,300.,/
+ _j
1,875.,I
9 ,300.,I
4. Prepare journal entries to record the cash payments and cash collections described for January. (Assume reversing entries were prepared.)
Date
jan. 4, 2014 Salaries expense
Cash
jan. 15, 2014 Interest expense
Cash
jan. 31, 2014 .Cash
General Journal
Member fees earned
Debit Credit
.I 1.500.,I
.I l ,500.,I
.I
.I' 2.250.,/
19,300.,I
----
2 ,250.,I
19,300.,/
$
Adjusted
Trial Balance
Cr. Dr. Cr.
$ 14,00o.,.I
x 3,500.,I 3,000.,I
135,000.,I
15.000.,I 45,000.,/
1,875.,I 1,875.,I
1,200.,I 1,200.,I
5,800.,I
75,000.,/
50,250.,I
21,125.,I
9.200.,/ 60,500.,/
9 ,300.,I
15,000.,I
31,20o.,.I
7,500./
3.500.,/
40.075 s 230.325 $ 239,625