AP4-3A 11-2-20 !

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*AP4-3A
The completed financial statement columns of the worksheet for Woods Company are shown below.

WOODS COMPANY
Worksheet
For the Year Ended December 31, 2010
Income Statement Balance Sheet
Acc.
No. Account Titles Dr. Cr. Dr. Cr.
101 Cash 8,167
112 Accounts Receivable 7,258
130 Prepaid Insurance 1,953
157 Equipment 27,877
167 Accumulated Depreciation 8,802
201 Accounts Payable 11,939
212 Salaries Payable 2,777
301 S. Woods, Capital 33,915
306 S. Woods, Drawing 7,222
400 Service Revenue 43,685
622 Repair Expense 5,457
711 Depreciation Expense 2,724
722 Insurance Expense 1,286
726 Salaries Expense 35,133
732 Utilities Expense 4,041
Totals 48,641 43,685 52,477 57,433
Net Loss 4,956 4,956
48,641 48,641 57,433 57,433

Correct.
Complete the income statement, owner's equity statement, and a classified balance sheet. S. Woods made an
additional investment in the business of $4,000 during 2010. (List multiple entries from largest to smallest eg
10, 5, 3, 2. If a net loss, record amount using either a negative sign preceding the number eg -45 or
parentheses eg (45). List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3,
2.)

WOODS COMPANY
Income Statement
For the Year Ended December 31, 2010
Revenues
Service revenue $ 43685
Expenses
Salaries expense $ 35133
Repair expense 5457
Utilities expense 4041
Depreciation expense 2724
Insurance expense 1286
Total expenses 48641
Net income (loss) $ (4956)

WOODS COMPANY
Owner's Equity Statement
For the Year Ended December 31, 2010
S. Woods, Capital, January 1 $ 29915
Add: Additional investment by owner 4000
33915
Less: Drawings 7222
Net loss 4956 12178
S. Woods, Capital, December 31 $ 21737

WOODS COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 8167
Accounts receivable 7258
Prepaid insurance 1953
Total current assets 17378
Property, plant and equipment
Equipment $ 27877
Less: Accumulated depreciation 8802 19075
Total assets $ 36453

Liabilities and Owner's Equity

Current liabilities
Accounts payable $ 11939
Salaries payable 2777
Total current liabilities 14716
Owner's Equity
S. Woods, Capital 21737
Total liabilities and owner's equity $ 36453

Correct.
Prepare the closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5,
3, 2.)

Date Account/Description Debit Credit

Dec. 31 Service revenue 43685
Income summary 43685

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AP4-3A 11-2-20 !"5:19

(To close revenue account.)

Dec. 31 Income summary 48641
Salaries expense 35133
Repair expense 5457
Utilities expense 4041
Depreciation expense 2724
Insurance expense 1286
(To close expense accounts.)
Dec. 31 S. Woods, Capital 4956
Income summary 4956
(To close net income.)
Dec. 31 S. Woods, Capital 7222
S. Woods, Drawing 7222
(To close drawings.)

Correct.
Post the closing entries and rule and balance the accounts. Use T accounts. Income Summary is account No. 350. (If an amount should be blank, enter a zero. All
boxes must be filled to be correct.)

S. Woods, Capital Repair Expense

12/31 4956 12/31 33915 12/31 545712/31 5457
12/31 722212/31 0
12/31 0 12/31 21737 Depreciation Expense
12/31 272412/31 2724
S. Woods, Drawing
12/31 722212/31 7222 Insurance Expense
12/31 128612/31 1286
Income Summary
12/31 48641 12/31 43685 Salaries Expense
12/31 0 12/31 4956 12/31 3513312/31 35133
48641 48641
Utilities Expense
Service Revenue 12/31 404112/31 4041
12/31 4368512/31 43685

Correct.
Complete the post-closing trial balance. (If answer is zero, please enter 0. Do not leave any fields blank.)

WOODS COMPANY
Post-Closing Trial Balance
December 31, 2010
Trial Balance
Account Titles Dr. Cr.
Cash $ 8167 $0
Accounts Receivable 7258 0
Prepaid Insurance 1953 0
Equipment 27877 0
Accumulated Depreciation 0 8802
Accounts Payable 0 11939
Salaries Payable 0 2777
S. Woods, Capital 0 21737
S. Woods, Drawing 0 0
Service Revenue 0 0
Repair Expense 0 0
Depreciation Expense 0 0
Insurance Expense 0 0
Salaries Expense 0 0
Utilities Expense 0 0
$ 45255 $ 45255

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