Professional Documents
Culture Documents
Instructions:
Answer these questions, assuming the year begins January 1.
(a) If the amount in Supplies Expense is the January 31 adjusting entry, and $300 of supplies was purchased in
(b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for 1 year, what was
the total premium and when was the policy purchased?
(c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at
Or,
Supplies (on1st) + Supplies purchased - supplies expense = Supplies (on 31st)
1350 + 300 - 950=700
for 1 year, what was
+ Increase in - Increase
at Cash Receipts Revenue (or Deferral in Accrual
(Payments) for Expense) for the (Prepaid/ (Receivables /
Revenue (Expense) = period Unearned) Payables)
Cash Paid = Wages Expense - (Closing Balance - Opening Balance)
2500 = 1800 - (1060 - Opening Balance)
Opening Balance = 2500 - (1800-1060) = 1760
Or,
Salaries Payable (on1st Jan) + Salaries Expense - Salaries Paid = Salaries Payable (on 31st Jan)
1760 + 1800 - 2500 = 1060
Unearned Service
+ Increase in - Increase
Cash Receipts Revenue (or Deferral in Accrual
(Payments) for Expense) for the (Prepaid/ (Receivables /
Revenue (Expense) = period Unearned) Payables)
Cash Received = Revenue for the period + (Closing balance - Opening balance)
1800 = 4000 + 750 - Opening
Opening = = 4750 - 1800 = 2950
Cash
1-Nov 2790 11/8
10-Nov 11/20
12-Nov 11/22
29-Nov 11/25
11/30 Bal. 2790
Accounts Receivable
11/1 Bal. 2910 11/10
11/27
11/30 Bal. 2910
Supplies
11/1 Bal. 1120 11/30
11/17
11/30 Bal. 1120
Equipment
11/1 Bal. 10000
11/15
11/30 Bal. 10000
Accumulated DepreciationEquipment
1-Nov 500
30-Nov 500
Accounts Payable
20-Nov 1-Nov 2300
Common Stock
1-Nov 10000
30-Nov 10000
Retained Earnings
1-Nov 3000
11/30 Bal. 3000
Service Revenue
11/12
11/27
11/30
11/30 Bal. 0
Depreciation Expense
30-Nov
11/30 Bal. 0
Supplies Expense
30-Nov
11/30 Bal. 0
Rent Expense
22-Nov
11/30 Bal. 0
(b) Journalisation of November Transactions
usting Entries Date Account Titles Debit Credit
10 Cash 1,800
Accounts Receivable 1,800
12 Cash 3,700
Service Revenue 3,700
15 Equipment 3,600
Accounts Payable 3,600
17 Supplies 1,300
Accounts Payable 1,300
29 Cash 750
Unearned Service Revenue 750
Adjusting Entries
1 Nov. 30 Supplies Expense 1,320
Supplies ($2,420 $1,100) 1,320 1120+1300= 2420
$0
PROBLEM 4-7A
Cash
1-Nov 2790 11/8 1220
10-Nov 1800 11/20 2500
12-Nov 3700 11/22 480
29-Nov 750 11/25 1000
11/30 Bal. 3840
Accounts Receivable
11/1 Bal. 2910 11/10 1800
11/27 900
11/30 Bal. 2010
Supplies
11/1 Bal. 1120 11/30 1320
11/17 1300
11/30 Bal. 1100 1120+1300-1100
Equipment
11/1 Bal. 10000
11/15 3600
11/30 Bal. 13600
Accumulated DepreciationEquipment
1-Nov 500
30-Nov 250
30-Nov 750
Accounts Payable
20-Nov 2500 1-Nov 2300
11/15 3600
11/17 1300
11/30 Bal. 4700
Common Stock
1-Nov 10000
30-Nov 10000
Retained Earnings
1-Nov 3000
11/30 Bal. 3000
Service Revenue
11/12 3700
11/27 900
11/30 500
11/30 Bal. 5100
Depreciation Expense
30-Nov 250
11/30 Bal. 250
Supplies Expense
30-Nov 1320
11/30 Bal. 1320
Rent Expense
22-Nov 480
11/30 Bal. 480
(b) Journalisation of November Transactions
usting Entries Date Account Titles Debit Credit
10 Cash 1,800
Accounts Receivable 1,800
12 Cash 3,700
Service Revenue 3,700
15 Equipment 3,600
Accounts Payable 3,600
17 Supplies 1,300
Accounts Payable 1,300
Adjusting Entries
1 Nov. 30Supplies Expense 1,320
Supplies ($2,420 $1,100) 1,320 1120+1300= 2420
Before After
Adjustment Adjustment
Dr. Cr. Dr. Cr.
Cash 3,840 3840
Accounts Receivable 2,010 2,010
Supplies 2,420 1100
Equipment 13,600 13,600
Accumulated Depreciation
3700+900 =4600 Equipment 500 750
Accounts Payable 4700 4700
Unearned Service Revenue 1150 650
Salaries and Wages Payable 480
Common Stock 10000 10000
Retained Earnings 3000 3000
Service Revenue 4600 5100
Salaries and Wages Expense 1,600 2080
Rent Expense 480 480
Supplies Expense 1320
Depreciation Expense 250
$23,950 $23,950 $24,680 $24,680
600+1000 =1600
PROBLEM 4-7A
RIJO EQUIPMENT REPAIR
(g) RIJO EQUIPMENT REPAIR Balance Sheet as on
Income Statement November 30, 2014
For the Month Ended November 30, 2014 Assets
Current assets
Revenues Cash 3840
Service revenue 5100 Accounts receivable 2010
Expenses Supplies 1100
Salaries and wages expense 2080 Total current assets
Supplies expense 1320 Property, plant and equipment
Rent expense 480 Equipment 13600
Depreciation expense 250 Less: Accumulated depreciation
Total expenses 4130 Equipment 750
Net Income $970 Total assets
Liabilities and Stockholders Equity
Current liabilities
RIJO EQUIPMENT REPAIR Accounts payable 4700
Retained Earnings Statement Unearned service revenue 650
For the Month Ended November 30, 2014 Salaries and wages payable 480
Total current liabilities
Retained earnings, November 1 3000 Stockholders equity
Add: Net Income $970 Common stock 10000
Retained earnings, November 30 3970 Retained earnings 3970
Total stockholders equity
12,850
$19,800
$5,830
13,970
$19,800