Complete Accounting Cycle Exercise

4.1 JanJansenopenedJan'sWindowWasingonJuly1,2002.
DuringJulythefollowingtransactions
werecompleted. July 1 Invested$8,000cashinbusiness. 1 Purchasedusedtruckfor$6,000,paying$3,000cashandthebalanceonaccount. 3 Purchasedcleaningsuppliesfor$900onaccount. 5 Paid$1,200cashononeyearinsuranceplicyeffectiveMarch1. 12 Billedcustomers$2,500forcleaningservies. 18 Paid$1,000cashonamountowedontruckand$500onamountowedoncleaningsupplies. 20 Paid$1,200cashforemployeesalaries. 21 Collected$1,400cashfromcustomersbilledonJuly12. 25 Billedcustomers$3,000forcleaningservices. 31 Paidgasandoilformonthontruck$200. 31 Withdrew$600cashforpersonaluse. ThechartofaccountsforJan'sWindowWashingcontainsthefollowingaccounts:No.101Cash, No.112AccountsReceivable,No.128CleaningSupplies,No.130PrepaidInsurance,No.157 Equipment,No.158AccumulateddepreciationEquipment,No.201AccountsPayable,No.212 SalariesPayable,No.301JanJansen,Capital,No.306JanJansen,Drawing,No.350IncomeSummary, No.400FeesEarned,No.633Gas&OilExpense,No.634CleaningSuppliesExpense,No.711 DepreciationExpense,No.722InsuranceExpense,No.726SalariesExpense.
Instructions:
a. b. c. JournalizeandposttheJulytransactions.UseJ1fortheJournalandthethreecolumnform ofaccount. PrepareatrialbalanceatJuly31onaworksheet. Enterthefollowingadjustmentsontheworksheetandcompletetheworksheet. 1 EarnedbutunbilledfeesatJuly31was$1,100. 2 Depreciatoinonequipmentforthemonthwas$200. 3 Onetwelfthoftheinsuranceexpired. 4 Aninventorycountshows$600ofcleaningsuppliesonhandatJuly31. 5 Accuredbutunpaidemployeesalarieswere$500. d. e. f. g. PreparetheIncomeStatementandOwner'sEquityStatementforJulyandaClassisfied BalanceSheetatJuly31. Journalizeandpostadjustingentries.UsepageJ2fortheJournal. Journalizeandpostclosingentriesandcompletedclosingprocess.UsepageJ3fortheJournal. PrepareaPostClosingTrialBalanceatJuly31.
Promotion9,YearI,SemesterII,StageI,GroupD'1,RoomE107 Mr.ProeunThatTel:089925782
4.1
GeneralJournal
Date
July 1
J1 Ref.
101 301 157 101 201 128 201
AccountTitleandExplantion
Cash JanJansen,Capital
(Investedcashinthebusiness)
Debit
8,000
Credit
8,000 6,000 3,000 3,000 900 900
Equipment Cash AccountsPayable

(Purchasedusetruckpaidhalfofamount)
CleaningSupplies AccountsPayable
(Purchasedcleaningsuppliesonaccount)
PrepaidInsurance Cash
(Paidcashforoneyearinsurancepolicy)
130 101 112 400 201 101 736 101 101 112 112 400 633 101 306 101
1,200 1,200 2,500 2,500 1,500 1,500 1,200 1,200 1,400 1,400 3,000 3,000 200 200 600 600
12
AccountsReceivable FeesEarned
(Billedcustomerforcleaingservices)
18
AccountsPayable Cash
(Paidcashamountowedontruckandsupplies)
20
SalariesExpense Cash
(Paidsalriesforemployee)
21
Cash AccountsReceivable
(CollectedcashfromcustomerbillonJuly12)
25
(Billedcustomeerforcleaningservices)
31
Gas&OilExpense Cash
(Paidcashforgasandoilbill)
31
JanJansen,Drawing Cash
(Ownerwithdrewforpersonaluse)
Promotion9,YearI,SemesterII,StageI,GroupD'1,RoomE107Mr.ProeunThatTel:089925782
4.1 a
Page1of2
GeneralLedger
Cash
Date
July,1 1 5 18 20 21 31 31
Explanation
InvestedCashinbusiness Purchasedtruckpaidhalfofamount Paidcashforoneyearinsurancepolicy Paidaccountowedontruckandsupplies Paidcashforemployeesalaries Collectedcashfromcustomerbilled Paidcashforgasandoilontruck Owner'swithdrewforpersonaluse
Ref.
J1 J1 J1 J1 J1 J1 J1 J1
Debit 8,000
Credit 3,000 1,200 1,500 1,200
1,400 200 600
No.101 Balance 8,000 5,000 3,800 2,300 1,100 2,500 2,300 1,700 No.112 Balance 2,500 1,100 4,100 No.128 Balance 900
AccountsReceivable
Date
July,12 21 25
Explanation
Billedcustomerforcleaningservices Collectedcashfromcustomerbill Billedcustomerforcleaningservices
Ref.
J1 J1 J1
Debit 2,500 3,000
Credit 1,400
CleaningSupplies
Date
July,3
Explanation
Purchasedcleaningsuppliesoncredit
Ref.
J1
Debit 900
Credit
PrepaidInsurance
Date
July,5
Explanation
Paidcashforoneyearinsurancepolicy
Ref.
J1
Debit 1,200
Credit
No.130 Balance 1,200
Equipment
Date
July,1
Explanation
Purchaseusetruck
Ref.
J1
Debit 6,000
Credit
AccumulatedDepreciationEquipment
Date Explanation Ref. Debit Credit
No.158 Balance
AccountsPayable
Date
July,1 3 28
Explanation
Purchasedusetruckpaidhalfofamount Purchasedcleaningsuppliesoncredit Paidamountowedontruckandsupplies
Ref.
J1 J1 J1
Debit 1,500
Credit 3,000 900
No.201 Balance 3,000 3,900 2,400
SalariesPayble
No.212 Balance
4.1a
Page2of2
JanJansen,Capital
Date
July,1
Explanation
Investedcashinthebusiness
Ref.
J1
Debit
Credit 8,000
JanJansen,Drawing
Date
July,31
Explanation
Ownerwithdrewforpersonaluse
Ref.
J1
Debit 600
Credit
No.306 Balance 600
IncomeSummary
No.350 Balance
FeesEarned
Date
July,12 25
Explanation
Billedcustomerforcleaingservices Billedcustomerforcleaingservices
Ref.
J1 J1
Debit
Credit 2,500 3,000
No.400 Balance 2,500 5,500
GasandOilExpense
Date
July,31
Explanation
Paidcashforgasandoilontruck
Ref.
J1
Debit 200
Credit
No.633 Balance 200
CleaningSuppliesExpense
No.634 Balance
DepreciationExpense
No.711 Balance
InsuranceExpense
No.722 Balance
SalariesExpense
Date
July,20
Explanation
Paidcashforemployeesalries
Ref.
J1
Debit 1,200
Credit
4.1a
Jan'sWindowWashing WorkSheet ForthemonthendedJuly,31

AccountTitle
Cash AccountsReceivable CleaningSupplies PrepaidInsurance Equipment AccountsPayable H.Kohl,Capital H.Kohl,Drawing FeesEarned GasandOilExpense SalariesExpense Total Accumulateddepre.Equip. DepreciationExpense InsuranceExpense CleaningSuppliesExpense SalariesPayable Total NetIncome Total
TrialBalance Dr. 1,700 4,100 900 1,200 6,000 Cr.
Adjustment Dr. (1)1,100 (4)300 (3)100 Cr.
2,400 8,000 600 5,500 200 1,200 15,900 (5)400 15,900 (2)200 (2)200 (3)100 (4)300 2,100 (5)400 2,100 (1)1,100
AdjustedTrial IncomeStatement Balance Dr. Cr. Dr. Cr. 1,700 5,200 600 1,100 6,000 2,400 8,000 600 6,600 6,600 200 200 1,600 1,600 200 200 100 300 17,600 400 17,600 200 100 300 2,400 4,200 6,600 6,600 6,600
BalanceSheet Dr. 1,700 5,200 600 1,100 6,000 Cr.
2,400 8,000 600
200
15,200 15,200
400 11,000 4,200 15,200
4.1bandc
Page1of2
Jan'sWindowWashing IncomeStatemet ForthemonthendedJuly,31

Revenues
FeesEarned
$ 6,600 $200 $ 1,600 $200 $100 $300 2,400 $ $ 4,200
Expenses
Gas&OilExpense SalariesExpense DepreciationExpense InsuranceExpense CleaningSuppliesExpense
TotalExpenses NetIncome
Jan'sWindowWashing StatementofOwner'sEquity ForthemonthendedJuly,31

JanJansen,CapitalJuly1 Add: Investments NetRevenue Less: Drawings JanJansen,CapitalJuly31
$ $ 8,000 $ 4,200 $12,200 $600 $11,600
4.1d
Page2of2
Jan'sWindowWashing BalanceSheet ForthemonthendedJuly,31

Assets
CurrentAssets Cash AccountsReceivable CleaningSupplies PrepaidInsurance TotalCurrentAssets Property,Plant,andEquipment Equipment Less:Accumulateddepreciationequipment
$ 1,700 $ 5,200 $600 $ 1,100 $ 8,600 $ 6,000 $200
$ 5,800 $14,400
TotalAssets LiabilitiesandOwner'sEquipty
CurrentLiablities AccountsPayable SalariesPayable TotalCurrentLiablities
$ 2,400 $400 $ 2,800 $ 2,800
TotalLiablities
Owner'sEquity JanJansen,Capital
$11,600 $14,400
TotalLiabilitiesandOwner'sEquity
4.1d
4.1 e
GeneralJournal
Date
July,31 1
J2 Ref. Debit Credit
AccountTitleandExplantion AdjustingEntry
(Torecordaccruedreveneu)
112 400
1,100 1,100
DepreciationExpense Accumulateddepre.Equipment
(Torecordmonthlydepreciationonequipment)
711 158
200 200
InsuranceExpense PrepaidInsurance
(Torecordinsuranceexpired)
722 130
100 100
CleaningSuppliesExpense CleaningSupplies
(TorecordSuppliesused)
634 128
300 300
SalariesExpense SalariesPayable
(Torecordaccuedsalaries)
726 212
400 400
4.1
Page1of2
GeneralLedger
Cash
Date
July,1 1 5 18 20 21 31 31
Explanation
Ref.
J1 J1 J1 J1 J1 J1 J1 J1
Debit 8,000
Credit 3,000 1,200 1,500 1,200
1,400 200 600
No.101 Balance 8,000 5,000 3,800 2,300 1,100 2,500 2,300 1,700 No.112 Balance 2,500 1,100 4,100 5,200 No.128 Balance 900 600 No.130 Balance 1,200 1,100 No.157 Balance 6,000
AccountsReceivable
Date
July,12 21 25 31
Explanation
Billedcustomerforcleaningservices Collectedcashfromcustomerbill Billedcustomerforcleaningservices Adj.Entry
Ref.
J1 J1 J1 J2
Debit 2,500 3000 1,100
Credit 1,400
CleaningSupplies
Date
July,3 31
Explanation
Purchasedcleaningsuppliesoncredit Adj.Entry
Ref.
J1 J2
Debit 900
Credit 300
PrepaidInsurance
Date
July,5 31
Explanation
Paidcashforoneyearinsurancepolicy Adj.Entry
Ref.
J1 J2
Debit 1,200
Credit 100
Equipment
Date
July,1
Explanation
Purchaseusetruck
Ref.
J1
Debit 6,000
Credit
Date
July,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 200
No.158 Balance 200
AccountsPayable
Date
July,1 3 28
Explanation
Ref.
J1 J1 J1
Debit 1,500
Credit 3,000 900
No.201 Balance 3,000 3,900 2,400
SalariesPayble
Date
July,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 400
No.212 Balance 400
4.1e
Page2of2
JanJansen,Capital
Date
July,1
Explanation
Ref.
J1
Debit
Credit 8,000
JanJansen,Drawing
Date
July,31
Explanation
Ref.
J1
Debit 600
Credit
No.306 Balance 600
IncomeSummary
No.350 Balance
FeesEarned
Date
July,12 25 31
Explanation
Billedcustomerforcleaingservices Billedcustomerforcleaingservices Adj.Entry
Ref.
J1 J1 J2
Debit
Credit 2,500 3,000 1,100
No.400 Balance 2,500 5,500 6,600 No.633 Balance 200
GasandOilExpense
Date
July,31
Explanation
Ref.
J1
Debit 200
Credit
Date
July,31 Adj.Entry
Explanation
Ref.
J2
Debit 300
Credit
No.634 Balance 300
DepreciationExpense
Date
July,31 Adj.Entry
Explanation
Ref.
J2
Debit 200
Credit
No.711 Balance 200
InsuranceExpense
Date
July,31 Adj.Entry
Explanation
Ref.
J2
Debit 100
Credit
No.722 Balance 100
SalariesExpense
Date
July,20 31
Explanation
Paidcashforemployeesalries Adj.Entry
Ref.
J1 J2
Debit 1,200 400
Credit
No.726 Balance 1,200 1,600
4.1e
4.1 f
GeneralJournal
Date
July,31 31
AccountTitleandExplantion ClosingEntry (1)

FeesEarned IncomeSummary
(ToclosingRevenueaccount)
400 350
6,600 6,600
(2)
31
IncomeSummary Gas&OilExpense CleaningSuppliesExpense DepreciationExpense InsuranceExpense SalariesExpense

(TocloseExpensesaccount)
350 633 634 711 722 726
2,400 200 300 200 100 1,600
(3)
31
IncomeSummary JanJansen,Capital
(Toclosenetincometocapital)
350 301
4,200 4,200
(4)
31
JanJansen,Capital JanJansen,Drwaing
(Toclosedrawingtocapital)
301 306
600 600
4.1 f
Page1of2
GeneralLedger
Cash
Date
July,1 1 5 18 20 21 31 31
Explanation
Ref.
J1 J1 J1 J1 J1 J1 J1 J1
Debit 8,000
Credit 3,000 1,200 1,500 1,200
1,400 200 600
No.101 Balance 8,000 5,000 3,800 2,300 1,100 2,500 2,300 1,700 No.112 Balance 2,500 1,100 4,100 5,200 No.128 Balance 900 600 No.130 Balance 1,200 1,100 No.157 Balance 6,000
AccountsReceivable
Date
July,12 21 25 31
Explanation
Ref.
J1 J1 J1 J2
Debit 2,500 3000 1,100
Credit 1,400
CleaningSupplies
Date
July,3 31
Explanation
Ref.
J1 J2
Debit 900
Credit 300
PrepaidInsurance
Date
July,5 31
Explanation
Ref.
J1 J2
Debit 1,200
Credit 100
Equipment
Date
July,1
Explanation
Purchaseusetruck
Ref.
J1
Debit 6,000
Credit
Date
July,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 200
No.158 Balance 200
AccountsPayable
Date
July,1 3 28
Explanation
Ref.
J1 J1 J1
Debit 1,500
Credit 3,000 900
No.201 Balance 3,000 3,900 2,400
SalariesPayble
Date
July,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 400
No.212 Balance 400
4.1f
Page2of2
JanJansen,Capital
Date
July,1 31 31
Explanation
Investedcashinthebusiness ClosingEntry(3) ClosingEntry(4)
Ref.
J1 J3 J3
Debit 600
Credit 8,000 4,200
No.301 Balance 8,000 12,200 11,600 No.306 Balance 600 0 No.350 Balance 6,600 4,200 0 No.400 Balance 2,500 5,500 6,600 0 No.633 Balance 200 0 No.634 Balance 300 0 No.711 Balance 200 0 No.722 Balance 100 0 No.726 Balance 1,200 1,600 0
JanJansen,Drawing
Date
July,31 31
Explanation
Ownerwithdrewforpersonaluse ClosingEntry(4)
Ref.
J1 J3
Debit 600
Credit 600
IncomeSummary
Date
July,31 31 31
Explanation
ClosingEntry(1) ClosingEntry(2) CloseingEntry(3)
Ref.
J3 J3 J3
Debit 2,400 4,200
Credit 6,600
FeesEarned
Date
July,12 25 31 31
Explanation
Billedcustomerforcleaingservices Billedcustomerforcleaingservices Adj.Entry ClosingEntry
Ref.
J1 J1 J2 J3
Debit
Credit 2,500 3,000 1,100
6,600
GasandOilExpense
Date
July,31 31
Explanation
Paidcashforgasandoilontruck ClosingEntry
Ref.
J1 J3
Debit 200
Credit 200
Date
July,31 31 Adj.Entry ClosingEntry
Explanation
Ref.
J2 J3
Debit 300
Credit 300
DepreciationExpense
Date
Explanation
Ref.
J2 J3
Debit 200
Credit 200
InsuranceExpense
Date
Explanation
Ref.
J2 J3
Debit 100
Credit 100
SalariesExpense
Date
July,20 31 31
Explanation
Paidcashforemployeesalries Adj.Entry ClosingEntry
Ref.
J1 J2 J3
Debit 1,200 400
Credit 1,600
4.1f
4.1 g
Jan'sWindowWashing PostClosingTrialBalance ForthemonthendedJuly,31

Debit Cash AccountsReceivable CleaningSupplies PrepaidInsurance Equipment Accumulateddepreciationequipment AccountsPayable SalariesPayable JanJansen,Capital $ 14,600 $1,700 $5,200 $ 600 $1,100 $6,000 $ 200 $2,400 $ 400 $ 11,600 $ 14,600 Credit
4.2 HelgaHohlopenedHelga'sCarpetCleanersonMarch1.During,thefollowingtransactionswere
completed. March 1 Invested$10,000cashinbusiness. 1 Purchasedusedtruckfor$6,000,paying$4,000cashandthebalanceonaccount. 3 Purchasedcleaningsuppliesfor$1,200onaccount. 5 Paid$1,800cashononeyearinsuranceplicyeffectiveMarch1. 14 Billedcustomers$2,800forcleaningservies. 18 Paid$1,500cashonamountowedontruckand$500onamountowedoncleaningsupplies. 20 Paid$1,500cashforemployeesalaries. 21 Collected$1,600cashfromcustomersbilledonMarch14. 28 Billedcustomers$3,200forcleaningservices. 31 Paidgasandoilformonthontruck$200. 31 Withdrew$900cashforpersonaluse. ThechartofaccountsforHelga'sCarpetCleanerscontainsthefollowingaccounts:No.101Cash, No.112AccountsReceivable,No.128CleaningSupplies,No.130PrepaidInsurance,No.157 Equipment,No.158AccumulateddepreciationEquipment,No.201AccountsPayable,No.212 SalariesPayable,No.301H.Kohl,Capital,No.306H.Kohl,Drawing,No.350IncomeSummary, No.400FeesEarned,No.633Gas&OilExpense,No.634CleaningSuppliesExpense,No.711 DepreciationExpense,No.722InsuranceExpense,No.726SalariesExpense.
Instructions:
a. b. c. JournalizeandposttheMarchtransactions.UseJ1fortheJournalandthethreecolumnform ofaccount. PrepareatrialbalanceatMarch31onaworksheet. Enterthefollowingadjustmentsontheworksheetandcompletetheworksheet. 1 EarnedbutunbilledfeesatMarch31was$600. 2 Depreciatoinonequipmentforthemonthwas$250. 3 Onetwelfthoftheinsuranceexpired. 4 Aninventorycountshows$400ofcleaningsuppliesonhandatMarch31. 5 Accuredbutunpaidemployeesalarieswere$500. d. e. f. g. PreparetheIncomeStatementandOwner'sEquityStatementforMarchandaClassisfied BalanceSheetatMarch31. Journalizeandpostadjustingentries.UsepageJ2fortheJournal. Journalizeandpostclosingentriesandcompletedclosingprocess.UsepageJ3fortheJournal. PrepareaPostClosingTrialBalanceatMarch31.
4.2
GeneralJournal
Date
March 1
J1 Ref.
101 301
AccountTitleandExplantion Cash H.Kohl,Capital

(Investedcashinthebusiness)
Debit
10,000
Credit
10,000
Equipment Cash AccountsPayable

(Purchaseusetruck)
157 101 201
6,000 4,000 2,000
CleaningSupplies AccountsPayable
(PurchasedCleaningSuppliesoncredit)
128 201
1,200 1,200
PrepaidInsurance Cash
(Paidcashforoneyearinsurancepolicy)
130 101
1,800 1,800
14
(Billedcustomerforcleaingservices)
112 400
2,800 2,800
18
AccountsPayable Cash
(Paidamountowedontruckandsupplies)
201 101
2,000 2,000
20
SalariesExpense Cash
(Paidcashforemployeesalaries)
726 101
1,500 1,500
21
Cash AccountsReceivable
(CollectedcashfromcustomerbilledonMarch14)
101 112
1,600 1,600
28
(Billedcustomerforcleaningservices)
112 400
3,200 3,200
31
Gas&OilExpense Cash
(Paidcashforgasandoilontruck)
633 101
200 200
31
H.Hohl,Drawing Cash
(Owner'swithdrewforpersonaluse)
306 101
900 900
4.2
Page1of2
GeneralLedger
Cash
Date
March,1 1 5 18 20 21 31 31
Explanation
InvestedCashinbusiness Purchasedtruck Paidcashforoneyearinsurance Paidaccountowedontruckandsupplies Paidcashforemployeesalaries Collectedcashfromcustomerbilled Paidcashforgasandoilontruck Owner'swithdrewforpersonaluse
Ref.
J1 J1 J1 J1 J1 J1 J1 J1
Debit 10,000
Credit 4,000 1,800 2,000 1,500
1,600 200 900
No.101 Balance 10,000 6,000 4,200 2,200 700 2,300 2,100 1,200 No.112 Balance 2,800 1,200 4,400 No.128 Balance 1,200
AccountsReceivable
Date
March,14 21 28
Explanation
Billedcustomerforcleaningservices Collectedcashfromcustomerbill Billedcustomerforcleaningservices
Ref.
J1 J1 J1
Debit 2,800 3,200
Credit 1,600
CleaningSupplies
Date
March,3
Explanation
Purchasedcleaningsuppliesoncredit
Ref.
J1
Debit 1,200
Credit
PrepaidInsurance
Date
March,5
Explanation
Paidcashforoneyearinsurancepolicy
Ref.
J1
Debit 1,800
Credit
Equipment
Date
March,1
Explanation
Purchaseusetruck
Ref.
J1
Debit 6,000
Credit
No.158 Balance
AccountsPayable
Date
March,1 3 28
Explanation
Purchasedusetruck Purchasedcleaningsuppliesoncredit Paidamountowedontruckandsupplies
Ref.
J1 J1 J1
Debit 2,000
Credit 2,000 1,200
No.201 Balance 2,000 3,200 1,200
SalariesPayble
No.212 Balance
4.2a
Page2of2
H.Kohl,Capital
Date
March,1
Explanation
Ref.
J1
Debit
Credit 10,000
H.Kohl,Drawing
Date
March,31
Explanation
Ref.
J1
Debit 900
Credit
No.306 Balance 900
IncomeSummary
No.350 Balance
FeesEarned
Date
March,14 28
Explanation
Billedcustomerforcleaingservices Billedcustomerforcleaingservices
Ref.
J1 J1
Debit
Credit 2,800 3,200
No.400 Balance 2,800 6,000
GasandOilExpense
Date
March,31
Explanation
Ref.
J1
Debit 200
Credit
No.633 Balance 200
No.634 Balance
DepreciationExpense
No.711 Balance
InsuranceExpense
No.722 Balance
SalariesExpense
Date
March,20
Explanation
Paidcashforemployeesalries
Ref.
J1
Debit 1,500
Credit
4.2a
Helga'sCarpetCleaners WorkSheet ForthemonthendedMarch,31

AccountTitle
Cash AccountsReceivable CleaningSupplies PrepaidInsurance Equipment AccountsPayable H.Kohl,Capital H.Kohl,Drawing FeesEarned GasandOilExpense SalariesExpense Total Accumulateddepre.Equip. DepreciationExpense InsuranceExpense CleaningSuppliesExpense SalariesPayable Total NetIncome Total
TrialBalance Dr. 1,200 4,400 1,200 1,800 6,000 Cr.
Adjustment Dr. (1)600 (4)800 (3)150 Cr.
1,200 10,000 900 6,000 200 1,500 17,200 (5)500 17,200 (2)250 (2)250 (3)150 (4)800 2,300 (5)500 2,300 (1)600
AdjustedTrial IncomeStatement Balance Dr. Cr. Dr. Cr. 1,200 5,000 400 1,650 6,000 1,200 10,000 900 6,600 6,600 200 200 2,000 2,000 250 250 150 800 18,550 500 18,550 250 150 800 3,400 3,200 6,600 6,600 6,600
BalanceSheet Dr. 1,200 5,000 400 1,650 6,000 Cr.
1,200 10,000 900
250
15,150 15,150
500 11,950 3,200 15,150
4.2bandc
Page1of2
Helga'sCarpetCleaners IncomeStatemet ForthemonthendedMarch,31

Revenues
FeesEarned
$ 6,600 $200 $ 2,000 $250 $150 $800 3,400 $ $ 3,200
Expenses
Gas&OilExpense SalariesExpense DepreciationExpense InsuranceExpense CleaningSuppliesExpense
TotalExpenses NetIncome
Helga'sCarpetCleaners StatementofOwner'sEquity ForthemonthendedMarch,31

H.Kohl,CapitalMarch1 Add: Investments NetRevenue Less: Drawings H.Kohl,CapitalMarch31
$ $10,000 $ 3,200 $13,200 $900 $12,300
4.2d
Page2of2
Helga'sCarpetCleaners BalanceSheet ForthemonthendedMarch,31

Assets
CurrentAssets
Cash AccountsReceivable CleaningSupplies PrepaidInsurance TotalCurrentAssets
$ 1,200 $ 5,000 $400 $ 1,650 $ 8,250
Property,Plant,andEquipment
Equipment Less:Accumulateddepreciationequipment
$ 6,000 $250
$ 5,750 $14,000
TotalAssets LiabilitiesandOwner'sEquipty
CurrentLiablities
AccountsPayable SalariesPayable
$ 1,200 $500 $ 1,700 $ 1,700
TotalCurrentLiablities
TotalLiablities
Owner'sEquity
H.Kohl,Capital
$12,300 $14,000
TotalLiabilitiesandOwner'sEquity
4.2d
4.2 e
GeneralJournal
Date
March,31 1
AccountTitleandExplantion AdjustingEntry
(Torecordaccruedreveneu)
112 400
600 600
DepreciationExpense Accumulateddepre.Equipment
(Torecordmonthlydepreciationonequipment)
711 158
250 250
InsuranceExpense PrepaidInsurance
(Torecordinsuranceexpired)
722 130
150 150
CleaningSuppliesExpense CleaningSupplies
(TorecordSuppliesused)
634 128
800 800
SalariesExpense SalariesPayable
(Torecordaccuedsalaries)
726 212
500 500
4.2
Page1of2
GeneralLedger
Cash
Date
March,1 1 5 18 20 21 31 31
Explanation
Ref.
J1 J1 J1 J1 J1 J1 J1 J1
Debit 10,000
Credit 4,000 1,800 2,000 1,500
1,600 200 900
No.101 Balance 10,000 6,000 4,200 2,200 700 2,300 2,100 1,200 No.112 Balance 2,800 1,200 4,400 5,000 No.128 Balance 1,200 400 No.130 Balance 1,800 1,650 No.157 Balance 6,000
AccountsReceivable
Date
March,14 21 28 31
Explanation
Ref.
J1 J1 J1 J2
Debit 2,800 3,200 600
Credit 1,600
CleaningSupplies
Date
March,28 31
Explanation
Ref.
J1 J2
Debit 1,200
Credit 800
PrepaidInsurance
Date
March,5 31
Explanation
Ref.
J1 J2
Debit 1,800
Credit 150
Equipment
Date
March,3
Explanation
Purchaseusetruck
Ref.
J1
Debit 6,000
Credit
Date
March,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 250
No.158 Balance 250
AccountsPayable
Date
March,1 3 28
Explanation
Ref.
J1 J1 J1
Debit 2,000
Credit 2,000 1,200
No.201 Balance 2,000 3,200 1,200
SalariesPayble
Date
March,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 500
No.212 Balance 500
4.2e
Page2of2
H.Kohl,Capital
Date
March,1
Explanation
Ref.
J1
Debit
Credit 10,000
H.Kohl,Drawing
Date
March,31
Explanation
Ref.
J1
Debit 900
Credit
No.306 Balance 900
IncomeSummary
No.350 Balance
FeesEarned
Date
March,14 28 31
Explanation
Billedcustomerforcleaingservices Billedcustomerforcleaingservices Adj.Entry
Ref.
J1 J1 J2
Debit
Credit 2,800 3,200 600
No.400 Balance 2,800 6,000 6,600 No.633 Balance 200
GasandOilExpense
Date
March,31
Explanation
Ref.
J1
Debit 200
Credit
Date
March,31 Adj.Entry
Explanation
Ref.
J2
Debit 800
Credit
No.634 Balance 800
DepreciationExpense
Date
March,31 Adj.Entry
Explanation
Ref.
J2
Debit 250
Credit
No.711 Balance 250
InsuranceExpense
Date
March,31 Adj.Entry
Explanation
Ref.
J2
Debit 150
Credit
No.722 Balance 150
SalariesExpense
Date
March,20 31
Explanation
Paidcashforemployeesalries Adj.Entry
Ref.
J1 J2
Debit 1,500 500
Credit
No.726 Balance 1,500 2,000
4.2e
4.2 f
GeneralJournal
Date
March,31 31
AccountTitleandExplantion ClosingEntry (1)

FeesEarned IncomeSummary
(ToclosingRevenueaccount)
400 350
6,600 6,600
(2)
31
IncomeSummary Gas&OilExpense CleaningSuppliesExpense DepreciationExpense InsuranceExpense SalariesExpense

(TocloseExpensesaccount)
350 633 634 711 722 726
3,400 200 800 250 150 2,000
(3)
31
IncomeSummary H.Kohl,Capital
(Toclosenetincometocapital)
350 301
3,200 3,200
(4)
31
H.Kohl,Capital H.Kohl,Drwaing
(Toclosedrawingtocapital)
301 306
900 900
4.2
Page1of2
GeneralLedger
Cash
Date
March,1 1 5 18 20 21 31 31
Explanation
Ref.
J1 J1 J1 J1 J1 J1 J1 J1
Debit 10,000
Credit 4,000 1,800 2,000 1,500
1,600 200 900
No.101 Balance 10,000 6,000 4,200 2,200 700 2,300 2,100 1,200 No.112 Balance 2,800 1,200 4,400 5,000 No.128 Balance 1,200 400 No.130 Balance 1,800 1,650 No.157 Balance 6,000
AccountsReceivable
Date
March,14 21 28 31
Explanation
Ref.
J1 J1 J1 J2
Debit 2,800 3,200 600
Credit 1,600
CleaningSupplies
Date
March,28 31
Explanation
Ref.
J1 J2
Debit 1,200
Credit 800
PrepaidInsurance
Date
March,5 31
Explanation
Ref.
J1 J2
Debit 1,800
Credit 150
Equipment
Date
March,3
Explanation
Purchaseusetruck
Ref.
J1
Debit 6,000
Credit
Date
March,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 250
No.158 Balance 250
AccountsPayable
Date
March,1 3 28
Explanation
Ref.
J1 J1 J1
Debit 2,000
Credit 2,000 1,200
No.201 Balance 2,000 3,200 1,200
SalariesPayble
Date
March,31 Adj.Entry
Explanation
Ref.
J2
Debit
Credit 500
No.212 Balance 500
4.2f
Page2of2
H.Kohl,Capital
Date
March,1 31 31
Explanation
Investedcashinthebusiness ClosingEntry(3) ClosingEntry(4)
Ref.
J1 J3 J3
Debit 900
Credit 10,000 3,200
No.301 Balance 10,000 13,200 12,300 No.306 Balance 900 0 No.350 Balance 6,600 3,200 0 No.400 Balance 2,800 6,000 6,600 0 No.633 Balance 200 0 No.634 Balance 800 0 No.711 Balance 250 0 No.722 Balance 150 0 No.726 Balance 1,500 2,000 0
H.Kohl,Drawing
Date
March,31 31
Explanation
Ownerwithdrewforpersonaluse ClosingEntry(4)
Ref.
J1 J3
Debit 900
Credit 900
IncomeSummary
Date
March,31 31 31
Explanation
ClosingEntry(1) ClosingEntry(2) ClosingEntry(3)
Ref.
J3 J3 J3
Debit 3,400 3,200
Credit 6,600
FeesEarned
Date
March,14 28 31 31
Explanation
Billedcustomerforcleaingservices Billedcustomerforcleaingservices Adj.Entry ClosingEntry
Ref.
J1 J1 J2 J3
Debit
Credit 2,800 3,200 600
6,600
GasandOilExpense
Date
March,31 31
Explanation
Paidcashforgasandoilontruck ClosingEntry(2)
Ref.
J1 J3
Debit 200
Credit 200
Date
March,31 31
Explanation
Adj.Entry ClosingEntry(2)
Ref.
J2 J3
Debit 800
Credit 800
DepreciationExpense
Date
March,31 31
Explanation
Ref.
J2 J3
Debit 250
Credit 250
InsuranceExpense
Date
March,31 31
Explanation
Ref.
J2 J3
Debit 150
Credit 150
SalariesExpense
Date
March,20 31 31
Explanation
Paidcashforemployeesalries Adj.Entry ClosingEntry(2)
Ref.
J1 J2 J3
Debit 1,500 500
Credit 2,000
4.2f
4.2 g
Helga'sCarpetCleaners PostClosingTrialBalance ForthemonthendedMarch,31

Debit Cash AccountsReceivable CleaningSupplies PrepaidInsurance Equipment Accumulateddepreciationequipment AccountsPayable SalariesPayable H.Kohl,Capital $ 14,250 $1,200 $5,000 $ 400 $1,650 $6,000 $ 250 $1,200 $ 500 $ 12,300 $ 14,250 Credit

Complete Accounting Cycle Exercise

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4.1 JanJansenopenedJan'sWindowWasingonJuly1,2002.

8,000 6,000 3,000 3,000 900 900

Equipment Cash AccountsPayable

Credit 3,000 1,200 1,500 1,200

1,400 200 600

Debit 2,500 3,000

No.130 Balance 1,200

No.157 Balance 6,000

Credit 3,000 900

No.201 Balance 3,000 3,900 2,400

No.301 Balance 8,000

No.306 Balance 600

Credit 2,500 3,000

No.400 Balance 2,500 5,500

No.633 Balance 200

No.726 Balance 1,200

Jan'sWindowWashing WorkSheet ForthemonthendedJuly,31

TrialBalance Dr. 1,700 4,100 900 1,200 6,000 Cr.

Adjustment Dr. (1)1,100 (4)300 (3)100 Cr.

BalanceSheet Dr. 1,700 5,200 600 1,100 6,000 Cr.

2,400 8,000 600

400 11,000 4,200 15,200

Jan'sWindowWashing IncomeStatemet ForthemonthendedJuly,31

$ 6,600 $200 $ 1,600 $200 $100 $300 2,400 $ $ 4,200

Jan'sWindowWashing StatementofOwner'sEquity ForthemonthendedJuly,31

$ $ 8,000 $ 4,200 $12,200 $600 $11,600

Jan'sWindowWashing BalanceSheet ForthemonthendedJuly,31

$ 1,700 $ 5,200 $600 $ 1,100 $ 8,600 $ 6,000 $200

$ 2,400 $400 $ 2,800 $ 2,800

J2 Ref. Debit Credit

Credit 3,000 1,200 1,500 1,200

1,400 200 600

Debit 2,500 3000 1,100

No.158 Balance 200

Credit 3,000 900

No.201 Balance 3,000 3,900 2,400

No.212 Balance 400

No.301 Balance 8,000

No.306 Balance 600

Credit 2,500 3,000 1,100

No.400 Balance 2,500 5,500 6,600 No.633 Balance 200

No.634 Balance 300

No.711 Balance 200

No.722 Balance 100

Debit 1,200 400

No.726 Balance 1,200 1,600

J3 Ref. Debit Credit

AccountTitleandExplantion ClosingEntry (1)

IncomeSummary Gas&OilExpense CleaningSuppliesExpense DepreciationExpense InsuranceExpense SalariesExpense

350 633 634 711 722 726

2,400 200 300 200 100 1,600

Credit 3,000 1,200 1,500 1,200

1,400 200 600

Debit 2,500 3000 1,100

No.158 Balance 200

Credit 3,000 900

No.201 Balance 3,000 3,900 2,400

No.212 Balance 400

Credit 8,000 4,200

Debit 2,400 4,200

Credit 2,500 3,000 1,100

Debit 1,200 400

Jan'sWindowWashing PostClosingTrialBalance ForthemonthendedJuly,31

AccountTitleandExplantion Cash H.Kohl,Capital