Assets

111 Cash
112 Accounts Receivable
113 Office Supplies
114 Supplies
115 Prepaid Insurance
121 Office Equipment
122 Accumulated Depreciation - Office Equipment
123 Advertising Equipment
124 Accumulated Depreciation - Advertising Equipment
125 Furniture and Fixtures
126 Accumulated Depreciation - Furniture and Fixtures
Liabilities
211 Accounts Payable
212 Notes Payable
213 Salaries Payable
Owner's Equity
311 Common Stock
312 Retained Earnings
313 Dividends
314 Income Summary
Revenue
411 Revenue
412 Interest Revenue
Expenses
511 Salaries Expense
512 Advertising Expense
513 Rent Expense
514 Repairs Expense
515 Insurance Expense
516 Office Supplies Expense
517 Supplies Expense
518 Depreciation Expense - Office Equipment
519 Depreciation Expense - Advertising Equipment
520 Depreciation Expense - Furniture & Fixtures
521 Utilities Expense
522 Miscellaneous Expense
Dowe Cheatem & How Inc
Chart of Accounts
Here is the Post Closing Trial Balance for Dowe Cheatem & How Inc. for December 31, 2009
Dowe Cheatem & How Inc.
Post Closing Trial Balance
December 31, 2009
DR CR
Cash 17,000.00
Accounts Receivable 13,000.00
Office Supplies 3,300.00
Supplies 2,800.00
Prepaid Insurance 3,600.00
Office Equipment 30,000.00
Accumulated Depreciation - Office Equipment 17,000.00
Advertising Equipment 27,000.00
Accumulated Depreciation - Advertising Equipment 13,000.00
Furniture and Fixtures 9,900.00
Accumulated Depreciation - Furniture and Fixtures 3,000.00
Accounts Payable 5,200.00
Notes Payable 9,500.00
Salaries Payable -
Common Stock 25,000.00
Retained Earnings 33,900.00
106,600.00 106,600.00

The following transactions happened in 2010
1/4/2010 2,000.00 dividends paid
1/5/2010 8,000.00 received on amounts owed from customers
1/7/2010 2,500.00 paid creditors
1/21/2010 20,500.00 billed customers for services rendered
1/28/2010 9,500.00 paid salaries
1/28/2010 2,100.00 paid rent
4/1/2010 365.00 interest received from bank
4/15/2010 one half of amounts owed paid by customers
4/20/2010 355.00 paid for repairs to equipment
4/25/2010 2,800.00 paid for tv ads
4/28/2010 16,600.00 sales billed to customers
4/29/2010 115.00 flowers for office on account
4/29/2010 11,000.00 received on amounts owed by customers
4/30/2010 9,500.00 paid salaries
7/1/2010 2,225.00 utilities paid
7/5/2010 14,125.00 sales billed to customers
7/9/2010 1,200.00 paid creditors
7/10/2010 customers paid prior month's balance owed
7/13/2010 3,900.00 amount paid on note
7/17/2010 9,500.00 paid salaries
10/1/2010 16,750.00 cash sales
10/5/2010 10,800.00 customers paid on their accounts
10/15/2010 3,900.00 paid on note
10/22/2010 800.00 paid creditors
10/31/2010 9,500.00 paid salaries
10/31/2010 8,900.00 sales billed to customers
12/1/2010 2,100.00 paid rent
12/5/2010 4,350.00 paid utilities
12/10/2010 123.00 interest received from bank
12/15/2010 6,800.00 received on amounts owed
12/20/2010 5,200.00 sales billed to customers

Instructions:
Write journals for each month's transactions and then post each month's journals to the ledger.
Repeat this step until all months are entered.
Enter balances after first 2 steps into first 2 columns of worksheet
Consider the following facts for adjustments. Put them in the worksheet and get the adjusted balances
a 1,350.00 Supplies on hand
b 2,975.00 Office supplies used for year
c Prepaid insurance balance is a 3 year coverage purchased Dec 31, 2009
d 10% Depreciation for office equipment is this percentage of cost
e 15% Depreciation for advertising equipment is this percentage of cost
f 20% Depreciation for furniture and fixtures is this percentage of cost
g 1,175.00 Salaries to accrue

Finish the worksheet
Prepare an Income Statement
Prepare a Statement of Retained Earnings
Prepare a Balance sheet
Journalize and post the adjusting entries
Journalize and post the closing entries
Prepare a Post-Closing Trial Balance for December 31, 2010
Checkpoints
Cash 35,708
Unadjusted Trial Balance 176,978
Net Income 14,688
Post Closing Trial Balance 117,308
Dowe Cheatem & How Inc. GJ1
General Journal
Description Post Ref Debit Credit
1/4/2010 Dividends 313 2,000
Cash 111 - 2,000
-
1/5/2010 Cash 111 8,000
Accounts Receivable 112 8,000
-
1/7/2010 Accounts Payable 211 2,500 -
Cash 111 - 2,500
-
1/21/2010 Accounts Receivable 112 20,500
Revenue 411 20,500
-
1/28/2010 Salaries Expense 511 9,500 -
Cash 111 - 9,500
- -
1/28/2010 Rent Expense 513 2,100 -
Cash 111 - 2,100
- -
4/1/2010 Cash 111 365 -
Interest Revenue 412 - 365
- -
4/15/2010 Cash 111 12,750 -
Accounts Receivable 112 - 12,750
- -
4/20/2010 Repairs Expense 514 355 -
Cash 111 - 355
- -
4/25/2010 Advertising Expense 512 2,800 -
Cash 111 - 2,800
- -
4/28/2010 Accounts Receivable 112 16,600 -
Service Revenue 411 - 16,600
- -
4/29/2010 Miscellaneous Expense 522 115 -
Accounts Payable 211 - 115
- -
4/29/2010 Cash 111 11,000 -
Accounts Receivable 112 - 11,000
- -
4/30/2010 Salaries Expense 511 9,500 -
Cash 111 - 9,500
- -
7/1/2010 Utilities Expense 521 2,225 -
Cash 111 - 2,225
- -
7/5/2010 Accounts Receivable 112 14,125 -
Revenue 411 - 14,125
- -
7/9/2010 Accounts Payable 211 1,200 -
Cash 111 - 1,200
- -
- -
Big Corporation GJ2
General Journal
Description Post Ref Debit Credit
7/10/2010 Cash 111 18,350
Accounts Receivable 112 - 18,350
- -
7/13/2010 Notes Payable 212 3,900 -
DATE
DATE
Cash 111 - 3,900
- -
7/17/2010 Salaries Expense 511 9,500 -
Cash 111 - 9,500
- -
10/1/2010 Cash 111 16,750 -
Revenue 411 - 16,750
- -
10/5/2010 Cash 111 10,800 -
Accounts Receivable 112 - 10,800
- -
10/15/2010 Notes Payable 212 3,900 -
Cash 111 - 3,900
- -
10/22/2010 Accounts Payable 211 800 -
Cash 111 - 800
- -
10/31/2010 Salaries Expense 511 9,500 -
Cash 111 - 9,500
- -
10/31/2010 Accounts Receivable 112 8,900 -
Sales Revenue 411 - 8,900
- -
12/1/2010 Rent Expense 513 2,100 -
Cash 111 - 2,100
- -
12/5/2010 Utilities Expense 521 4,350
Cash 111 - 4,350
- -
12/10/2010 Cash 111 123 -
Interest Revenue 412 - 123
- -
12/15/2010 Cash 111 6,800 -
Accounts Receivable 112 - 6,800
- -
12/20/2010 Accounts Receivable 112 5,200 -
Sales Revenue 411 - 5,200
- -
12/31/2010 Adj Supplies Expense 517 1,450 -
Supplies 114 - 1,450
- -
Adj Office Supplies Expense 516 2,975 -
Office Supplies 113 - 2,975
- -
Adj Insurance Expense 515 1,200 -
Prepaid Insurance 115 - 1,200
- -
- -
Big Corporation GJ3
General Journal
Description Post Ref Debit Credit
Adj Depreciation Expense - Office Equipment 518 3,000 -
Accumulated Depreciation - Office Equipment 122 - 3,000
- -
Adj Depreciation Expense - Advertising Equipment 519 4,050 -
Accumulated Depreciation - Advertising Equipment 123 - 4,050
- -
Adj Depreciation Expense - Furniture and Fixtures 520 1,980 -
Accumulated Depreciation - Furniture and Fixtures 126 - 1,980
- -
Adj Salaries Expense 511 1,175 -
Salaries Payable 213 - 1,175
DATE
- -
12/31/2010 Revenue 411 82,075 -
Income Summary 314 - 82,075
- -
12/31/2010 Income Summary 314 67,387 -
Salaries Expense 511 - 39,175.00
Advertising Expense 512 - 2,800.00
Rent Expense 513 - 4,200.00
Repairs Expense 514 - 355.00
Insurance Expense 515 - 1,200.00
Office Supplies Expense 516 - 2,975.00
Supplies Expense 517 - 1,450.00
Depreciation Expense- Office Equipment 518 - 3,000.00
Depreciation Expense- Advertising Equipment 519 - 4,050.00
Depreciation Expense-Furniture and Fixtures 520 - 1,980.00
Utilities Expense 521 - 6,575.00
Miscellaneous Expense 522 - 115.00
- -
12/31/2010 Income Summary 314 14,688.00 -
Retained Earnings 312 14,688.00
-
12/31/2010 Retained Earnings 312 2,000.00 -
Dividends 313 - 2,000.00
- -
- -
- -
- -
- -
Big Corporation GJ4
General Journal
Description Post Ref Debit Credit
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
DATE
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
Dowe Cheatem & How Inc.
General Ledger
Cash Account No. 111
Post
Item Ref Debit Credit Debit Credit
Beg Bal 17,000
1/4/2010 GJ1 - 2,000 15,000 -
1/5/2010 GJ1 8,000 - 23,000 -
1/7/2010 GJ1 - 2,500 20,500 -
1/28/2010 GJ1 - 9,500 11,000 -
1/28/2010 GJ1 2,100 8,900 -
4/1/2010 GJ1 365 - 9,265 -
4/15/2010 GJ1 12,750 22,015 -
4/20/2010 GJ1 - 355 21,660 -
4/25/2010 GJ1 2,800 18,860 -
4/29/2010 GJ1 11,000 29,860 -
4/30/2010 GJ1 9,500 20,360 -
7/1/2010 GJ1 2,225 18,135 -
7/9/2010 GJ1 - 1,200 16,935 -
7/10/2010 GJ2 18,350 - 35,285 -
7/13/2010 GJ2 3,900 31,385 -
7/17/2010 GJ2 - 9,500 21,885 -
10/1/2010 GJ2 16,750 38,635 -
10/5/2010 GJ2 10,800 49,435 -
10/15/2010 GJ2 - 3,900 45,535 -
10/22/2010 GJ2 800 44,735 -
10/31/2010 GJ2 9,500 35,235 -
12/1/2010 GJ2 - 2,100 33,135 -
12/5/2010 GJ2 - 4,350 28,785 -
12/10/2010 GJ2 123 - 28,908 -
12/15/2010 GJ2 6,800 - 35,708 -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
Accounts Receivable Account No. 112
Post
DATE
Balance
Balance
Dowe Cheatem & How Inc.
General Ledger
Item Ref Debit Credit Debit Credit
Beg Bal 13,000
1/5/2010 GJ1 - 8,000 5,000 -
1/21/2010 GJ1 20,500 - 25,500 -
4/15/2010 GJ1 - 12,750 12,750 -
4/28/2010 GJ1 16,600 - 29,350 -
4/29/2010 GJ1 - 11,000 18,350 -
7/5/2010 GJ1 14,125 - 32,475 -
7/10/2010 GJ2 - 18,350 14,125 -
10/5/2010 GJ2 - 10,800 3,325 -
10/31/2010 GJ2 8,900 - 12,225 -
12/15/2010 GJ2 - 6,800 5,425 -
12/20/2010 GJ2 - - 10,625 -
Office Supplies Account No. 113
Post
Item Ref Debit Credit Debit Credit
Beg Bal 3,300
Adj GJ2 - 2,975 325 -
- - - -
Supplies Account No. 114
Post
Item Ref Debit Credit Debit Credit
Beg Bal 2,800
Adj GJ2 - 1,450 1,350 -
- - - -
- - - -
Prepaid Insurance Account No. 115
Post
Item Ref Debit Credit Debit Credit
Beg Bal 3,600
Adj GJ2 - 1,200 2,400 -
- - - -
Office Equipment Account No. 121
Post
Item Ref Debit Credit Debit Credit
Balance
DATE
Balance
DATE
DATE
Balance
DATE
Balance
DATE
Dowe Cheatem & How Inc.
General Ledger
Beg Bal 30,000
- - - -
- - - -
Accumulated Depreciation - Office Eqipment Account No. 122
Post
Item Ref Debit Credit Debit Credit
Beg Bal 17,000
Adj GJ3 - 3,000 - 20,000
Advertising Equipment Account No. 123
Post
Item Ref Debit Credit Debit Credit
Beg Bal 27,000
- - - -
- - - -
Accumulated Depreciation - Advertising Equipment Account No. 124
Post
Item Ref Debit Credit Debit Credit
Beg Bal 13,000
Adj GJ3 - 4,050 - 17,050
Furniture & Fixtures Account No. 125
Post
Item Ref Debit Credit Debit Credit
Beg Bal 9,900
- - - -
- - - -
Accumulated Depreciation - Furniture & Fixtures Account No. 126
Post
Item Ref Debit Credit Debit Credit
Beg Bal 3,000
Adj GJ3 - 1,980 - 4,980
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
3.00
DATE
Dowe Cheatem & How Inc.
General Ledger
Liabilities
Accounts Payable Account No. 211
Post
Item Ref Debit Credit Debit Credit
Beg Bal 5,200
1/7/2010 GJ1 2,500 - - 2,700
4/29/2010 GJ1 115 2,815
7/9/2010 GJ1 1,200 - - 1,615
10/22/2010 GJ2 800 - - 815
- - - -
- - - -
Notes Payable Account No. 212
Post
Item Ref Debit Credit Debit Credit
Beg Bal 9,500
7/13/2010 GJ2 3,900 - - 5,600
10/15/2010 GJ2 3,900 - - 1,700
Salaries Payable Account No. 213
Post
Item Ref Debit Credit Debit Credit
Adj GJ3 1,175 1,175
- - - -
Owner's Equity
Common Stock Account No. 311
Post
Item Ref Debit Credit Debit Credit
Beg Bal 25,000
- - - -
- - - -
- - - -
- - - -
Retained Earnings Account No. 312
Post
Item Ref Debit Credit Debit Credit
Beg Bal 33,900
12/31/2010 close GJ3 14,688.00 - -
12/31/2010 close GJ3 2,000.00 - - -
- - - 46,588.00
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
Dowe Cheatem & How Inc.
General Ledger
Dividends Paid Account No. 313
Post
Item Ref Debit Credit Debit Credit
1/4/2010 GJ1 2,000 2,000
12/31/2010 close GJ3 - 2,000.00 - -
- - - -
- - - -
Income Summary Account No. 314
Post
Item Ref Debit Credit Debit Credit
12/31/2010 close GJ3 82,075.00
12/31/2010 close GJ3 - - 67,387.00 -
12/31/2010 close GJ3 - - 14,688.00 -
- - - -
Revenue
Revenue Account No. 411
Post
Item Ref Debit Credit Debit Credit
1/21/2010 GJ1 20,500 20,500
4/28/2010 GJ1 - 16,600 - 37,100
7/5/2010 GJ1 - 14,125 - 51,225
10/1/2010 GJ2 16,750 16,750
10/31/2010 GJ2 - 8,900 - 60,125
12/20/2010 GJ2 - 5,200 - 82,075
12/31/2010 close 82,075 -
- - - -
- - - -
Interest Revenue Account No. 412
Post
Item Ref Debit Credit Debit Credit
4/1/2010 GJ1 365 365
12/10/2010 GJ2 - 123 - 488
12/31/2010 close GJ3 488 - - -
- - - -
Expenses
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
Dowe Cheatem & How Inc.
General Ledger
Salaries Expense Account No. 511
Post
Item Ref Debit Credit Debit Credit
1/28/2010 GJ1 9,500 9,500
4/30/2010 GJ1 9,500 - 19,000 -
7/17/2010 GJ2 9,500 - 28,500 -
10/31/2010 GJ2 9,500 - 38,000 -
Adj GJ3 1,175 - 39,175 -
12/31/2010 close GJ3 - 39,175 - -
- - - -
Advertising Expense Account No. 512
Post
Item Ref Debit Credit Debit Credit
4/25/2010 GJ1 2,800 2,800
12/31/2010 close GJ3 - 2,800 - -
- - - -
- - - -
- - - -
Rent Expense Account No. 513
Post
Item Ref Debit Credit Debit Credit
1/28/2010 GJ1 2,100 2,100
12/1/2010 GJ2 2,100 4,200
12/31/2010 close GJ3 4,200
- - - -
- - - -
Repairs Expense Account No. 514
Post
Item Ref Debit Credit Debit Credit
4/20/2010 GJ1 355 355
12/31/2010 close GJ3 - 355 - -
- - - -
Insurance Expense Account No. 515
Post
Item Ref Debit Credit Debit Credit
Adj GJ2 1,200 1,200
12/31/2010 close GJ3 - 1,200 - -
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
Dowe Cheatem & How Inc.
General Ledger
- - - -
Office Supplies Expense Account No. 516
Post
Item Ref Debit Credit Debit Credit
Adj GJ2 2,975 2,975
12/31/2010 close GJ3 - 2,975 - -
- - - -
Supplies Expense Account No. 517
Post
Item Ref Debit Credit Debit Credit
Adj GJ2 1,450 1,450
12/31/2010 close GJ3 - 1,450 - -
- - - -
Depreciation Expense - Office Equipment Account No. 518
Post
Item Ref Debit Credit Debit Credit
Adj GJ3 3,000
12/31/2010 close GJ3 - 3,000 - -
- - - -
Depreciation Expense - Advertising Equipment Account No. 519
Post
Item Ref Debit Credit Debit Credit
Adj GJ3 4,050 4,050
12/31/2010 close GJ3 - 4,050 - -
- - - -
Depreciation Expense - Furniture & Fixtures Account No. 520
Post
Item Ref Debit Credit Debit Credit
Adj GJ3 1,980 1,980
12/31/2010 close GJ3 - 1,980 - -
- - - -
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
Balance
DATE
Dowe Cheatem & How Inc.
General Ledger
Utilities Expense Account No. 521
Post
Item Ref Debit Credit Debit Credit
7/1/2010 GJ1 2,225 2,225
12/5/2010 GJ2 4,350 - 6,575 -
12/31/2010 close GJ3 - 6,575 - -
- - - -
Miscellaneous Expense Account No. 522
Post
Item Ref Debit Credit Debit Credit
4/29/2010 GJ1 115 115
12/31/2010 close GJ3 - 115 - -
- - - -
- - - -
Balance
DATE
Balance
DATE
Account Title Debit Credit Debit Credit Debit Credit
Cash 35,708 - - - 35,708 -
Accounts Receivable 10,625 - - - 10,625 -
Office Supplies 325 - - - 325 -
Supplies 1,350 - - - 1,350 -
Prepaid Insurance 2,400 - - - 2,400 -
Office Equipment 30,000 - - - 30,000 -
Accumulated Depreciation - Office Equipment - 20,000 - - - 20,000
Advertising Equipment 27,000 - - - 27,000 -
Accumulated Depreciation - Advertising Equipment - 17,050 - - - 17,050
Furniture and Fixtures 9,900 - - - 9,900 -
Accumulated Depreciation- Furniture and Fixtures - 4,980 - - - 4,980
Accounts Payable - 815 - - - 815
Notes Payable - 1,700 - - - 1,700
Salaries Payable - 1,175 - - - 1,175
Common Stock - 25,000 - - - 25,000
Retained Earnings - 33,900 - - - 33,900
Dividends Paid 2,000 - - - 2,000 -
Income Summary - - - - - -
Revenue - 82,075 - 82,075 - -
Interest Revenue - 488 - 488 - -
Salaries Expense 39,175 - 39,175 - - -
Advertising Expense 2,800 - 2,800 - - -
Rent Expense 4,200 - 4,200 - - -
Repairs Expense 355 - 355 - - -
Insurance Expense 1,200 - 1,200 - - -
Office Supplies Expense 2,975 - 2,975 - - -
Supplies Expense 1,450 - 1,450 - - -
Depreciation Expense - Office Equipment 3,000 - 3,000 - - -
Depreciation Expense - Advertising Equipment 4,050 - 4,050 - - -
Depreciation Expense - Furniture and Fixture 1,980 - 1,980 - - -
Utilities Expense 6,575 - 6,575 - - -
Miscellaneous Expense 115 - 115 - - -
- - - - - -
- - - - - -
187,183 187,183 67,875 82,563 119,308 104,620
14,688 - - 14,688
82,563 82,563 119,308 119,308
Balance Sheet
Dowe Cheatem & How Inc.
Work Sheet
For the year ending December 31, 2010
Adj Trial Balance Income Statement
Revenue 82,075 $
Interest Revenue 488
Salaries Expense 39,175 $
Advertising Expense 2,800
Rent Expense 4,200
Repairs Expense 355
Insurance Expense 1,200
Office Supplies Expense 2,975
Supplies Expense 1,450
Depreciation Expense - Office Equipment 3,000
Depreciation Expense - Advertising Equipment 4,050
Depreciation Expense - Furniture and Fixture 1,980
Utilities Expense 6,575
Miscellaneous Expense 115
Net Income 14,688 $
Dowe Cheatem & How Inc.
Income Statement
For the year ending December 31, 2010
Retained Earnings - December 31, 2009 33,900 $
Plus: Net Income 14,688
48,588
Less: Dividends 2,000
Retained Earnings - December 31, 2010 46,588 $
Dowe Cheatem & How Inc.
Statement of Retained Earnings
For the year ending December 31, 2010
Cash 35,708.00 $
Accounts Receivable 10,625
Office Supplies 325
Supplies 1,350
Prepaid Insurance 2,400
Office Equipment 30,000 $
Accumulated Depreciation - Office Equipment 20,000 10,000
Advertising Equipment 27,000
Accumulated Depreciation - Advertising Equipment 17,050 9,950
Furniture and Fixtures 9,900
Accumulated Depreciation- Furniture and Fixtures 4,980 4,920
Total assets 75,278 $
Accounts Payable 815 $
Notes Payable 1,700
Salaries Payable 1,175
Total Liabilities 3,690 $
Stockholder's Equity
Common Stock 25,000
Retained Earnings 46,588
Total stockholder's equity 71,588
Total liabilities and stockholder's equity 75,278 $
Dowe Cheatem & How Inc.
Balance Sheet
December 31, 2010
Cash 35,708 $
Accounts Receivable 10,625
Office Supplies 325
Supplies 1,350
Prepaid Insurance 2,400
Office Equipment 30,000
Accumulated Depreciation - Office Equipment
Advertising Equipment 27,000
Accumulated Depreciation - Advertising Equipment
Furniture and Fixtures 9,900
Accumulated Depreciation- Furniture and Fixtures
Accounts Payable
Notes Payable
Salaries Payable
Common Stock
Retained Earnings
117,308 $
Dowe Cheatem & How Inc.
Post-Closing Trial Balance
December 31, 2010
20,000
17,050
4,980
815
1,700
1,175
25,000
46,588
117,308 $
Dowe Cheatem & How Inc.
Post-Closing Trial Balance
December 31, 2010