1.

ht!p://mgmt026.wordpress.oom IC 201 4

-d
10 out of
10.00
points
Use Ille May 31 fiscal year-end information from Ille following ledger accounts (assume that all
accounts have normal balances).
General Ledger

Dell<!

Acct. No. 301

Credit Balance
89,000

Salaries Expense
PR
Date
May 31
G2

Debit

Credn

M. Munce!. W1lhelrawa1s
PR
Date
Debit
G2
May31

Acct No. 302

Credit Balance
54,000

Insurance Expense
PR
Date
May 31
G2

Debit

Credn

Acct No. 637

Balance
5,720

Services Revenue
PR
Date
G2
May31

Debit

Acct No. 401

Credit Balance
156.818

Rent Expense
Date
May 31

Debit

Credn

Acct No. 640

Balance
12,040

Deprecianon Expense
PR
Date
G2
May31

Debit

Acct No. 603

Credit Balance
22,000

Income Summary
?R
Date

Debit

Credit

M. Munce! Cal)ltal
PR
Date
G2
May31

PR
G2

Acct. No. 622

Balance
44,500

Acct No. 901

Balance

Prepare closing journal entries from Ille above ledger accounts.

Evenl

Genenll Journal

Debit

Services revenue
Income summary
Income summary

./
./

156,818./

./

84,260./

./

22,000./

Salaries expense

./
./
./

44,500./

Rent expense
Income summary
M. Muncet. Cap tal
M. Muncel. Capnal

156,818./

Depreclauon expense
Insurance expense

Creelil

M . Muncet. Wi"dldrawals

5,720./
12,040./

./
./

72.558./

./
./

54.000./

72,558./

54.000./

Post Ille abOve entnes to their respecnve ledQer accounts in the order entered under Part 1.

11. llluncel, CIPillll

Dllte

Debit

Creelit

May31

3
4

./
./

72.558./

s.l8rl8s ExpenM
Creellt
Debit

Diiie

89.000

May31

1 61.5~

44.500

./

54000./

Debit

Creellt

May31
4

./

Insurance Expense
Balance
54,000
0

54,000./

Debit

May 31
2

./

Balance

156.818./

--

Creelil

May31
2

22 000./

Balance
12,040

12.040./

./

Income Summaly

a...nce

Debit

Diiie

22000

./

Creellt

May 31

OeprecUtlon Expense

....

5.720./

Debit

Date

156.818

Dllte

Balance
5,720

Rent Expense

Creellt

May 31

Debit

Credit

Debit

Diiie

Services Revenue

Dete

44500./

107.558

11. ialncel, Wlthd-IS

Dete

a...nce

2
3

./
./
./

Creellt
156.818./

a...nce
156.818

84 260./

72.558

72558./

http://mgmt026.WO<dpress.com

award:

2.

e 2014

10 o ut of
10.00

points
The following adjusted trial balance contains the accounts a nd balances of Cruz Company as of
December 31, 2013, the end of its fiscal year.
No.
101
126
128
167
168
301
302
404
612
622
637
640
652

Account Title
Cash
Supplies
Prepaid insura nce
Eq uipment
Accumulated deoreciation- Ea uioment
T. Cruz, Capital
T. Cruz, Wilhdrawals
Services revenue
Depreciation expense-Eq uipment
Salaries expense
Insura nce expense
Rent expense
Supplies ex:iense

Debit
S 18,000
10, 100
2,000
23,000

Totals

5 92,420 5 92,420

Credit

6.500
42,720

6,000
43,200
2,000
25,186
1,814
2,894
1,426

1. Prepare the December 31, 2013, closing entries for Cruz Company. Assume the account number for
Income Summary is 901.

General Journal

Date

Debit

1Services revenue

Dec.31

,/

Salari" expense

./

25, 186./

Insurance expense

,/
,/
,/

1,814,/

Supplies expense

Income summary
T. Cruz, Capital

Dec.31

T. Cruz, Capital

T. Cruz, Withdrawals

33.320,/
2,000,/

2,894,/
1,426,/

,/
,/

9.880,/

,/
,/

6.000,/

9,880,/

6,000,/

2. Prepare the December 31, 2013, post-closing trial balance for Cruz Company.

CRUZ COMPANY
Post.Closing Trial Balance
December 31, 2013
Debit

...

...

_.

Cash

,/ $

18,000,/

Supplies

,/

10, 100,/

Prepaid insurance

,/

2,000,/

Eq uipment

,/

23,000,/

Accumulated

d~prec iation-Eq ui pmen t

T. Cruz, Capital
Totals

43,200,/

Depreciation expense-Equipment

Rent expense

Dec.31

,/
,/

Income summary

Dec.31

43.200,/

,/

Income summary

Credit

,/

Credit

,/

6,500,/

46,600,/
$

53,100

53,100

3.

http://mgmt026.wO<dpress.com C 2014

award:

10 out of
10.00
The adjusted trial balance fer Salonika Marketing Co. follows. Complete the four right-most columns of
the table by first entering in'ormation for the closing entries and then completing the post-closing trial
balance.

Salonika Marketing Company Partial Work Sheet

Adjusted Trial Balance
No.

.....

......

Account TiUe

Dr.

Closing Entry Information

Cr.

Dr.

Post-Closing Trial Balance

Dr.

Cr.

Cr.

101

Cash

106

Accounts receivable

153

EQuipment

154

Accumulated depre<:iation-EQuipment

193

Franchise

201

Accounts payable

15,000

15,000./

209

Salaries payable

4,200

4,200./

233
301

Unearned fees

3,600
62,018

3,600./

302
401

E. Salonika, Withdrawals

611

Depreciation experse- EQuipment

12,000

12,000./

622

Salaries expense

37,412

37,412./

640
677

Rent expense

14,288

14,283./

9,118

9, 11S./

901

Income summary

10, 100

25,000
42,000

25,000./
42,000./
$

17,500./
31,000./

E. Salonika, Capital

15,400./

15,400
94,000

196,318

67,800./

94,000./

72,818./
$

21,182./
15,400./

Marketing fees earned

Totals

17,500

31,000

Miscellaneous expense

10, 100./

196,318

21,182./
203,400 $

94,000./
203,400

108,100

108,100

4.

http://mgmt026.wordpress.com C 2014

award:

10 out of
10.00

The following is the adjusted trial balance of Wilson Trucking Company.

Account Title
Cash
Accounts receivable
Office supplies
Trucks
Accumulated depreciation- Trucks
Land
Accounts payable
Interest payable
Long-term notes payable
K. Wilson, Capital
K. Wilson, Wltlldrawals
Trucking fees earned
Depreciation expense-Trucks
Salaries expense
Office supplies expense
Repairs expense-Trucks

Debit
7,600
16,500
2,000
158,000

Credit

32,548

75,000
11,600
3,000
52,000
164,050
19,000
111,000
20,993
52,059
13,500
9,546

Totals

5374,198 5374,198

The K. Wilson, Capital, account balance is $164,050 at December 31, 2012.

1. Prepare the income statement for the year ended December 31, 2013.
WILSON TRUCKING COMPANY
Income Statement
For Year Ended December 31, 2013

Salaries expense

./ $

52,059./

Office supplies expense

./
./
./

13,500./

Revenues
Trucking fees earned

./

111,000./

Expenses

Repairs expense-Trucks
Depreciation expense-Trucks

9,546./
20,993./
0

ol

J$

Total expenses

Net income

96,0981
14,902

2. Prepare the statement of owner's equity for the year ended December 31, 2013.
WILSON TRUCKING COMPANY
Statement of OWnef's Equity
For Year Ended December 31, 2013
K. Wilson, Capital, December 31, 2012

./ $

Add: Net income

./

164,050./
14,902./
178,952

Less: Withdrawals

./

K. Wilson, Capital, December 31, 2013

./ $

19,000./
159,952

5.

http://mgml026.wordpress.com 0 2014

sward:

9.60 out o f
10.00
poTrils
Account Trtle
Cash
Accounts receivable
Office supplies
Trucks
Accumulated depreciation-Trucks
Land
Accounts payao1e
Interest payable
Long-term notes payable
K. Wilson, Capital
K. 1M lson, Withdrawals
Trucking tees eame<I
Depreciation expense-Trucks
Salaries expense
Office supplies expense
Repairs expense-Trucks

Debit

5,500
24,500
6,325
174,000

Creclit

35,844

41,000
9,500
16,000
35,000
139,925
19,000
123,000
23, 119
53,935
2,000
9,890
S359,269 S359.269

Totals

Use the above adjusted trial balance to prepare Wilson Trucking Company's classified balance sheet as
of December 31, 2013.

WILSON TRUCKING COMPANY

Balance Sheet
December 31, 2013
Assets

./

Current assets

./
./
./

cash
Accounts receivable
Office supplies

5.500./
24.500./
6.325./

Total current assets

36,325

x
Trucks

./ S

Accumulated depreciation-Trucks

./

Lan<I

./

174.000./
138,156

35.844./

41.000./
179,156

Total plant assets

Total assets

215.48 1

liabi lities

./

Current liabilities

./
./

Accounts payable
Interest payable

9.500./
16.000./

0
0
25,500

Total current liabilities

./

Long-term liabilit ies

Long-term notes payable

35.000./

0
0
60,500

Total liabil ities

Equ ity

./

K. Wilson. capital

154.981./

0
0

.....

__ Total liabil ities and equity

Red lf!l(.l indiwte:. :> tbJOS.~
ck:d-.<.tt'd

Wd~

cio:;pel!d ind (.di 0-

215,481

(Onnc..W b.J.s.ed <..ik~.J.,CJOl' 1 i!. irx_tirrcd; no pOirb

6.

'Iii

hftp://mgmt026.won1press.io om O 2014

rd:

10 out of
10.00

points
Use lhe in~ormation Acco

e =o11 - g adjusted trial balance "'o r e 1 1Jso

De -

t TrUe- - - - - - - - -

Cash

Office suppties
rucks
Accum ated depreciation- rucks
Land
co ts payab!e
Interest pay able
Long-term notes payable
K ~ts.on. CafXtal

~ts.on,

Cre

9.000
6.500
2Jl00
160Jl00

ts receivable

Acco

rucJQng Company_

32960
75Jl00
3.000
3.000

52.000
151.879

dmYals

9.000

rucking ees earned

D eprecia on expense- T rucks
Salaries expense
O ce suppties ex pense
Repairs expense- rucks

128.000
21.259
60.032
7.040
1JXl8

orals

380,839

380.839

1_ Calcula e the current ra o_

Current ratio

Choose Numerator:

.............

~~

C rren assets

Choose Denominator:

Cunent ratio

=
=

CUrren ra o

~~~..,...........

Curren liabir es

2. Compare ' I son's eurren ratio '

curre I ratio is 1_5_)

- e i dus.tr; average_ I Assume th~n

son's cl.117ent ra o is above e maustry average.

1Jsons curren t ra o is belo the i dus!J)f av erage_

1.n

e i tlusuy av erage for

7~

'> ..

lnt1p:/l.mgmti026.wordpri s.com 201

rd

110 out of
10,00
1. Compute

e current ratio in each of he separate cases. (Ro1J1nd your n .rers to 2 declm I

places.)

Case 1
Case 2

fc se 3

se 4
cases

Current
Assets
75 000
99,750

Current
Llabillties
$
39.267
94.6 1

1.05./

42,300

60.676

0.70.J

s.22s

0 .981

57,675

,24.ns

0.80./
0.46./

2. Identify he company case vlth the 'Stronge-st ILQUidiey

cornpanles in rne sarne lrndUJ43try.)
1.o.i

case
Case 2

Case 3
Case 4
Case 5

Current
Ratio
1.91.J

pos~

on. (These cases represent competirng

http://msmt026.wordpress.oom C 201 4

award:

8.

10 out of
10.00

points

Use the following information from the Adjustments columns of a 10-column work sheet.
Adjusl ments
No.
109
124
128
164
209
409
612
620
636
637
650

Account Title
Interest receivable
Office sJpplies
Prepaid insurance
Accumclated depreciation-Office equipment
Sa l a ri e ~ payable
Interest revenue
Depreciation expense-Office equipment
Office salaries expense
Insurance expense-Office equipment
Insurance expense-Store equipment
Office SJpplies expense

Or.

Cr.

(d)S 75 1

(b) S1,906
(a) 1, 156
(C) 3,300
(e)
83 1
(d)
75 1

(C) 3,300
(e)
83 1
(a)
555
(a)
601
(b) 1,906

Tol als

$7,944

$7,944

Prepare l he necessary adjusting journal enl ries (a) lhrough (e).

Event
(a)

General Journal
Insurance expense-Office equipment
Insurance expense-81ore equipment
Prepaid insurance

(b)

Office supplies expense

Office supplies

(C)

Depreciation expense-Office equipment

Accumulated depreciation-Office equipment

(d)

Interest receivable
lnleresl revenue

(e)

Office salaries expense

Salaries payable

Debit

.I
.I
.I

555./

.I
.I

1,906./

.I
.I

3,300./

.I
.I

751./

.I
.I

831./

Credit

601./
1,156./

1,906./

3,300./

751./

831./

9.

http ://momt026 .wordpr~~.com

o.ward:

2014

10out of
10.00
The Adjusted Trial Balance for Planta Company follows. Complete the work sheet by extending the
account balances into the appropriate financial statement columns an,j by entering the amount of net
inwme for the reporting period.
Planta Company Work Sheet
Adjusted Trial Balance

.....

_,.,,

Account Title

Dr.

Income Statement
Dr.

Cr.

Dr.

No.
101

Cash

106

Accounts receivable

39,330

39,330./

153

Trucks

40,000

40,000./

154

Accumulated depreciation- Trucks

183

Land

201

Accounts payable

20,970

20,970./

209

Salaries payable

4,797

4,797./

233

Unearned fees

4,197

4,197./

301

F. Planta, Capital

70,512

70,512./

302

F. Planta, Withdrawals

401

Plumbing fees earned

611

Depreciation expense-Tru:ks

622

Salaries expense

640
677

Cr.

Balance Sheet & Statement of

OWner's Equity

Cr.

9,000

16,080

16,080./

30,000

30,000./

10,632

10,632./
63,000

63,000./

5,360

5,360./

29,484

29,484./

Rent expense

9,576

9,576./

Miscellaneous expense

6,174

6,174./

Totals

179,556

179,556

50,594

Net income
Totals

9,000./

128,962

63,000

116,556

12,406./
$

63,000

12,406./
$

63,000

128,962

128,962

10.

a'll\'S.fd

h11p11mgmt026.wordpress.c:cJnil @ :201

101out of
101.00
points
.................

he.se pa ially comp eted Income statement colunms from a 10-col mn work sheet are or Brown's Bi e
en al Company. he owner. _Brn ~m. dd no ma e any w ithdrawals lhis period.
Account Title
Rrent 1
eamed
Salaries 1expense
lnsurance expense
Offic e s upplies expense
Bike repair expense
Depree iatio n expense-Bikes
1

Debit

Creer
140.000

6Q..160
8.820
20.580
4.340
26.740

1. Using he at:Jove informa ion. deter ne tile ne

Net income

come.

17.360.J

2. Prepare 8 ro1J rt s Bike Rentar Compa ys. closing 1e

Event
1

General Journal
Ren earned
Inc.ome summary

-Income summary
--

Salaries expense
Insurance expense

--

.J

1 0.000.J

.J

.J
.J
.J

Credit
140.000..j

122.640..j
62.160..j
8.820..J
20.580,,I

Bike repai expense

Oeprecia on expense-Bikes

.J

26.7

--

Debit

..J
.J

Office supplies expense

llli!",omT~

-es.

Income summary

_3rovm. Capiral

.J
.J

4.340,,I

17.360.J
17.3601/

11.

http://mgmt026.wordpress.oom C 2014

award:

10 out of
10.00
point s
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company
as of December 31, 20 13. There were no investments by the owner in lhe current year.
a. Unrecorded depreciation on the trucks at lhe end of the year is S7,682.
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at the year-end is $1,500.
1. Use the above information about the company's adjustments to complete a 10-column work sheet.
DYLAN DELIVERY COMPANY
Work Sheet
For Year Ended December 31, 2013
Unadjusted Trial Balance

Dr
14,000

Account Title
Cash
Accounts receivable

Adjustments
Dr

Cr

Adjusted Trial Balance

Cr

Dr

22,000

Office supplies

2,500

Trucks

1,000./

250,000

Accum. Depreciation-Trucks

70,000

Land

1,500./

250,000./

250,000./
77,682./

8,000./

70,000./

70,000./

231,005./

231,005./
40,000./

256.060./

50,000

Salaries expense

21,980./

8,000./

40,000./
256.060

Depreciation expense-Trucks

77,682./
140,000./

21,980./
7,000./

40,000

Delivery fees earned

7.682./

107,545

57.682./

57,682./

107,545./

107,545./

16.000

1.000./

17,000./

17,000./

Interest expense

1,000

7.000./

8,000./

8.000./

Repairs expens&-Tl\lckS

7,000

7,000./

7,000./

Office supplies expense

Totals

650.045

650.045

15.682

15.682

Net Income

664.727

664.727

197.227
256.060

21 Prepare the year-end closing entries for Dylan Delivery Company as of December 31, 20t3.

Date
December 31. 2013

Genenll Journal
Delivery fees earned
Income summary

December 3t . 20t3

Income summary
Depreciauon expens&-Tl\lcks
Interest expense
Office supplies expense
Repairs expense-Trucks
Salaries expense

December 3t , 20t3

Income summary
S. Dylan, Capital

December 3t , 20t3

S. Dylan. Capital
S. Dylan, Withdrawals

Debit

.....
.....

256.060./

.....
.....
.....
.....
.....
.....

197.227./

.....
.....

58.833./

.....
.....

40.000./

249.838./

Credit

256.060./

57.682./
8.000./
17,000./
7.000./
107.545./

58.833./

2-2 Determine the capital amount to be reponed on the December 31, 2013 balance sheet.
. Dylan. Capital

256.060./

256.060

467,500

408.667

256.060

467,500

467,500

58.833./

Totals

....

22,000./

23t .005

S. Dylan. Withdrawals

Cr

1,500./

70,000

S. Dylan. Capital

Dr

22,000./

140,000./
1,000

Long-term notes payable

Cr

14,000./

2t ,980

Interest payable

Dr

Balance Sheet and Statement of

Owner's Equity

14,000./

7,682./

140,000

Accounts payable

Cr

Income Statement

40.000./

58.833./
$